Thursday, April 18, 2013

Recent Buy

On Tuesday, April 16th I added to my position in Caterpillar (CAT) by purchasing 18 more shares at $82.60 per share.  I would have waited and tried to make the purchase tomorrow to get own the shares in time for the next dividend payment in May, but I got a little confused and saw the ex-div date of April 18th and was thinking that was the record date meaning today was the ex-div date.  Oh well, I still feel it's a fair price, although it is a bit lower starting yield than I'd like.  Caterpillar did lag the market on a generally up day and has recently been under pressure with concerns about the global economy.  I'm not worried about them long-term and if housing does get rolling again here in the United States, that will provide ample demand to keep them going strong.  My total positions for my FI portfolio has grown quite a bit so I was glad to get a chance to add to an existing position.

I didn't really get to average down my cost basis but did add at pretty much the same price as my first purchase back in October.  My target entry price for Caterpillar is at $101.52 so this purchase was made well below the target.  These 18 shares will carry a YOC of 2.50% and will provide an extra $37.44 in annual dividends before reinvestment or future increases.  As I mentioned above, I'll get to receive the next dividend payment in May.  I'm glad that I was able to pick up shares for what I feel is a solid entry price of a company that pays on the February, May, August, November schedule to diversify the timing of my dividend payments more.  Currently over 75% of my dividends are paid during the March, June, September, December schedule.

My forward 12-month dividends now stand at $2,319.02.

I've updated my Portfolio page to reflect the addition.

6 comments:

  1. Nice buy PIP. It will be very interesting to see the size of the dividend increase later this year. It will be telling of management's long-term outlook.

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    1. ADY,

      I'll be looking forward to it to see how big it'll be. I'm hoping for at least high single digits but I could see management being conservative with a mid-single digit raise. I like CAT long-term because if you think of heavy equipment, they immediately come to mind.

      Thanks for stopping by!

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  2. Had been looking to buy CAT for my wife's account, and was targeting an $80 price. It closed Friday at $80.43, so put in an $82 limit order. Typically does not move a whole lot from close price to next day open, so suspect I will get it under $82.
    Now if only APD would come down to about the same price...

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    1. They announce earnings early next week. Maybe tomorrow I can't remember off the top of my head. I think you could probably get it a bit cheaper but $82 is still a great price. I wouldn't mind APD dropping either. I'd like to add a bit more to my position.

      Thanks for stopping by!

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    2. Looks like you'll be able to get it sub-$80 after the earnings miss.

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    3. I was not expecting great news today from CAT, and after I saw the earnings miss I thought it would likeley drop a few points (my order got filled at $81.12). To my surprise, when I last checked (about an hour before market close) it had popped upwards almost 3%. You just never know...

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