Friday, November 9, 2012

Recent Buy

With the market continuing to drop I added to another position yesterday by picking up 20 mores shares of MCD for $85.52 each.  McDonald's reported it's first monthly same store sales decline in 9 years and promptly sold off about 2% on the day.  McDonald's still has plenty of growth ahead and as far as I'm concerned this is just a bump in the road.  Unfortunately I'm now out of capital for a little bit until I can get some money transferred over to my FI portfolio.
I now own 102 shares of McDonald's and got the chance to average down in the position by lowering my overall cost basis down another 0.53% to $87.83.  My YOC for these shares is 3.58% and for the entire position it's 3.51%.  The additional 20 share will provide $61.60 in annual dividends with $15.40 coming this year with the December payout.

My forward 12-month dividends for the FI portfolio now sits at $1,458.17 with a YOC of 2.94%.  It's exciting to see the forward 12-month dividends approaching $1,500.  I've made a lot more progress on this than I expected at the beginning of the year.

8 comments:

  1. Nice purchase of MCD today and KMI the other day. If I had more cash, I would be doing the same. Hopefully the stocks are still trading at these prices in early December, when I'll have new capital to invest.

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    1. DGM,

      Thanks. I know what you mean. I'm out of capital now and waiting to be able to get some more to my brokerage account. I hope the market continues to drop until I can get some more capital ready to put to work.

      Thanks for stopping by!

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  2. Like so often in the past, I am completely in tune with your stock picks. I added MCD and KMI recently as well. Would like to add some more MCD since it is one of my core holdings. Hoping the bad news drops it even further, even though it is already attractively priced atm.

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    1. FI,

      I know it seems like lately I'm picking up some shares and the next day you pick or the same company or vice versa. We've been in sync the last month or so. I wouldn't find further drops on both KMI and MCD they just need to stay down until I can get more money transferred over. I'm sure Congress will give us more opportunities with the fiscal cliff talk and Europe could easily rear its ugly head too, but as long as we keep investing in solid DG stocks we'll be in great position in the future.

      Thanks for stopping by!

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  3. PIP,

    Love the purchase. I also added 20 shared of MCD to my Freedom Fund on Thursday. You got in at a better price than me. It's priced right for the long-term investor with a P/E ratio below 16. The yield is there, the fundamentals are there and the price is right. I love adding shares to a high quality company like this on weakness!

    Best wishes.

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    1. DM,

      I'm with you on making MCD a core holding. Id like to pick up some more shares now that its dropped further but there's no capital available right now so I'll be sitting on the sidelines until I can get some more transferred over to the FI account. There's a lot of deals popping up and unfortunately not enough capital to scoop them all up.

      Thanks for stopping by!

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  4. How do you keep track of your YOC? Is it a spreadsheet? Did you create it yourself?

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    1. Evan,

      I just keep track of it in a spreadsheet that I made myself. I kept adding things as I felt it was needed to keep track of, although I need to go and delete some things now because I'm not too worried about them anymore.

      Oh, and Happy Belated Birthday!

      Thanks for stopping by!

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