Wednesday, October 31, 2012

Recent Buy

Today seemed like a good day to average down in my McDonald's (MCD) position as well.  McDonald's also recently announced slightly disappointing earnings as revenue was up but profit numbers were down.  I'm not worried about McDonald's long-term prospects, especially as a dividend growth stock.  They recently increased the dividend by 10% starting with the next payment in December.  October was a busy month with 7 purchases being made, 6 in the FI portfolio and 1 in the Roth IRA.


I purchased 25 more shares of MCD for a price of $86.51 per share.  My cost basis for the McDonald's position was $88.94 before the purchase and now stands at $88.30.  I was able to decrease my cost basis by 0.72% by averaging down.  These shares have a YOC of 3.55% and increased the YOC for the total MCD position from 3.46% to 3.49%.  My YOC for the entire FI portfolio increased from 2.84% to 2.87%.  I'll be receiving an extra $77 in annual dividends including $19.25 this year with the December payout.

My forward 12-month dividends for the FI portfolio now stands at $1,309.69.  I should be able to get my 2013 forward dividends over $1,500 by the end of the year since I still have just under $3,600 free to trade right now plus another $2,600 that will be purchasing ADM or becoming free in December and then any further additions.  Unfortunately I already cash-flowed most of November's budgeted investment savings forward to my account earlier this month but I should be able to get another $3,000 or more from December.

8 comments:

  1. Great purchase. Few companies are more dominant in their field, and there is plenty of growth ahead for MCD. Solid products, huge economic scale and extremely strong brand name.

    I like the new layout!

    Best wishes.

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    1. I agree about McDonald's. In the qsr field they are definitely the market leader. Its one of the companies that you can feel safe knowing that they will sell more burgers next year than this year.

      Thanks for stopping by!

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  2. Nice purchases of MCD and NSC today. It's always nice when you can buy high-quality companies at good prices!

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    1. The plan was to pick up some more NSC earlier this week but the market closure changed that so I wont get getting the next dividend payment on the shares purchased today. But the decrease in cost basis by averaging down was more than worth it.

      Unfortunately MCD now makes up about 13% of my portfolio so I mighty have to hold off on further investment barring a much bigger drop from the current level.

      Thanks for stopping by!

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  3. Great buy! I was also looking at MCD today and nearly pulled the trigger. I got in on NSC last week.

    Looks like we are on the same page again ;)

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    1. I should have picked up NSC last week but just didn't make the purchase. I don't think you can go wrong with MCD at these levels but will gladly pick up more with a drop to the low $80's.

      Thanks for stopping by!

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  4. Love this purchase. I have an open MCD limit order in right now, and am also looking at KMI!

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    1. CI,

      I can probably afford to make one more purchase of KMI before it'd be too much of my portfolio, so I might pick up some more. I really liked the MCD purchase also, it was nice to get a chance to average down in a company as solid as MCD.

      Thanks for stopping by!

      Delete