Well I wasn't planning on doing much to the portfolio other than selling off more shares of HAL, my employer's stock. General Electric reported a great quarter with a huge list of back-orders and I'm not really sure how I've never picked up any shares. It's not a steal of a price but the potential for both capital appreciation and dividend growth is there. Management has stated they are targeting dividend growth that matches earnings growth, which if you believe management and analysts that should be around 10% for the next five years. I'm hoping for the markets to pullback some other the next few weeks so I can average down my cost basis for the new GE position.
I purchased 50 shares of General Electric (GE) for $24.52 each. After commission my per share cost basis is $24.68. Based on the current annual dividend of $0.76 these shares carry a YOC of 3.08% and will provide $38 in annual dividends before reinvestment or future increases. I'll only receive one dividend from GE this year but they're due for an increase with their payment in January 2014 and I expect to see at least a 10% increase again unless the economy takes a big step backwards. As I mentioned above I really like GE's prospects to grow their industrial business. Almost all of their segments saw increases in the last quarter and there is a huge backlog of orders. It's always a good sign to have a bunch of people wanting your products. Management has been working to reduce the financing arm, GE Capital, since it almost bankrupted the whole company back in 2008/09. GE Capital's size has been the biggest deterrent for me to become a partial owner of an otherwise great company.
I also sold off 73 more shares of Halliburton (HAL) which I purchase through the ESPP program that they offer. This lot of shares had a per share cost basis of $24.31 and I was able to sell them for $46.13 before commission and fees. Not a bad return there. Unfortunately these shares were a disqualifying disposition with short-term capital gains. Ouch! I'll have to report $757.74 as additional income on next years taxes and $827.11 as short-term capital gains. A profit is a profit and I needed the cash to finish building up the down-payment for our house purchase later this year.
My FI portfolio's forward 12-months dividends now sit at $2,934.66 which is 83.85% of the way towards my goal of $3,500 by the end of the year.
I've updated my Portfolio page to reflect these changes.