On Wednesday, June 12th I picked up some shares of ExxonMobil (XOM). I've been trying to become a part owner of this company for a long time but the initial yield is what has kept me from doing so. Since my cash has continued to build up during the market run up I took advantage of a bit of weakness in the markets and XOM's share price to put some money to work. You can only build cash to a certain point before you're losing out by not being invested. I drew a line in the sand and decided that on the next dip below $90 I'd finally become a part owner in this wonderful company.
I picked up 18 shares of ExxonMobil for $89.76 each which cost a total of $1,623.63 after commission. My per share cost basis works out to $90.20 per share. Based on the current annual dividend of $2.52 these shares will provide $45.36 in annual dividends and carry a YOC of 2.79%. I'm not excited about the purchase price, but I believe it's at least around fair value which is about all you can hope for when the markets have been on fire as they have in 2013.
I have a target entry price of $89.25 for XOM, so I didn't overpay by a whole lot. The analyst 1 year target price for XOM per Yahoo! Finance is $94.96 implying over 5% of upside plus the dividend to boot. Upon further weakness I'll average down my cost basis for this position because I still expect solid 9-10% dividend growth for years to come.
My forward 12-month dividends are up to $2,694.90 which is 77% of the way towards my goal of hitting $3,500 by the end of 2013.
I've updated my Portfolio page to reflect this addition.