I'm reporting another purchase from Friday to go along with my purchases of Chevron and ExxonMobil. This one came right before the close of trading and was very much welcomed. I didn't get the cheapest price because I missed out on following the market during the 2 big drops last week, but quality time with family came first. And I still got some good deals. I've been trying to focus on adding to current positions rather than initiate new ones and luckily most of those have been going on sale. What a strange turn of events June has brought. At the beginning of the month I was frustrated about having way too much cash on hand and now I'm sitting here wishing for more. I still have enough free cash to make another purchase or two but I can't go overboard due to my open option positions, especially since they were sold on margin. Anyways, let's get into the details.
I purchased 20 more shares of Phillip Morris (PM) for $87.4899 each. After commission my per share cost basis works out to $87.89. Based on the current annual dividend of $3.40 these shares will carry a YOC of 3.87% and provide an extra $68 in annual dividends.
I didn't get to average down my cost basis with this purchase but I'm still very pleased with the entry price. It's been a while since PM has seen current prices and a much welcomed opportunity. My average cost basis actually increased by 1.58% to $86.19. No worries though. I was hoping to pick up shares at the 4.00% yield level but just didn't want to wait for it. Especially with the upcoming ex-div date on June 25th. I should receive 2 payments from PM this year and I really like that they pay on a different schedule than most. The upcoming dividend increase for October's payment is just icing on the cake.
My FI Portfolio's forward 12-month dividends are now at $2,999.92 which is 85.69% of the way towards my goal of $3,500 by the end of 2013.
I've updated my Portfolio page to reflect this addition.
Have you been taking advantage of the recent pullback in the markets? Do you think it will continue or has the rally begun?