Wednesday, January 29, 2014

Recent Buys

Last week was quite a busy week for both my FI Portfolio and my Roth IRA.  I made 3 purchases between the two accounts and while that hurts my capital raising for an investment property, I felt all 3 represented good value at the time so I went ahead and made the purchases.

The first purchase was using up the last of my capital in my Roth IRA.  I had raised some funds to try and have both of my BAC calls executed but I couldn't get there so there was around $1,000 left to invest in another company.  With that cash I purchased 12 shares of Phillip Morris (PM) on January 22nd for $83.15.  This was a new position for my Roth IRA but continued to build up the overall position in PM.  After commission, my per share cost basis comes out to $83.81.  Based on the current quarterly dividend of $0.94 per share these shares carry a YOC of 4.49% and will provide $45.12 in annual dividends before any reinvestment or increases.  My forward 12-month dividends from my Roth IRA are now $215.87.


The second purchase I made was to add 25 more shares of Target (TGT).  Target has a bit of a black mark to its name right now with the recent credit card data breach and struggling in their expansion into Canada.  Over the long-term though I think these will just be viewed as good entry points for long-term investors.  I purchased the shares on January 22nd for $58.81 per share which gives a per share cost basis after commission of $59.13.  Target's current quarterly dividend is $0.43 per share giving these shares a YOC of 2.91% and they will provide $43.00 in annual dividends before reinvestment or future increases.

By adding to my position in Target I was able to average down my cost basis. from $60.69 to $60.38.  I'd have liked to have added more as it would have let me lower my total cost basis even more, but I'm happy with a 0.51% decrease.  My YOC for my position in Target had it's YOC increase from 2.83% to 2.85% and I now own a total of 127 shares.

The last purchase was to pick up some shares of Chevron.  I've been wanting to add to my position but the share price and available capital seemed to never find a way to meet.  Finally though they did and I purchased 10 shares for $116.99 on January 24th.  After commission my per share cost basis on this lot came to $117.79.  I try to purchase in larger amounts to lower the drag of commission but I'm still trying to balance capital saving for an investment property and capital deployment for continuing on the path towards FI.  Based on the current quarterly dividend of $1.00 these shares carry a YOC of 3.40% and will provide $40.00 in annual dividends before reinvestment or future increases.

I now own a total of 40 shares of Chevron with an average cost basis per share of $120.86.  This is 0.83% lower now with the new shares added to the lot.  My YOC for my position in Chevron increased from 3.28% to 3.31%.  Chevron has been a great investment for long-term holders and I look forward to measuring my holding period in decades with them.

Adding in some dividend reinvestments from some other positions, my forward 12-month dividends for my FI Portfolio increased by $83.86 bringing the total to $3,721.68.  This has me 74.43% of the way towards my goal of $5,000 in forward dividends by the end of the year.

I'm also really interested in adding some shares of Wal-mart at current prices and Coca-Cola if the price comes down a bit more.

Have you been buying during the recent sell off?  Any companies you'd like to add to your arsenal at current prices?


22 comments:

  1. Nice move JC. I think it's funny that Target sold off on the credit card hacking issue. Really?! are people really going to stop shopping at Target because of that. No. It may cost them a few bucks this quarter or next, but a year from now who will really remember or care. It looks like we could get a shot at another down day today. YAY! Have a good one
    -Bryan

    ReplyDelete
    Replies
    1. Bryan,

      Short-term noise is wonderful news for the long-term investor. No one will remember this in half a year let alone a year or two, but I'm happy to pick up some more shares on the cheap. I saw the further selloff but I think I'll have to hold off for now to try and get WMT to a bigger position. Oh and to save up money for a downpayment on that rental.

      Thanks for stopping by!

      Delete
  2. Really like the buys. PM also drop another 2% today. That's why we are not day traders.

    ReplyDelete
    Replies
    1. FFDividend,

      I'll probably add some more PM now that it's under $80. I didn't see this kind of pull back coming at all, but I'll take the opportunities as they present themselves.

      Thanks for stopping by!

      Delete
  3. I feel like you're channeling my previous comment into buys- PM, TGT and CVX! We are on the same page.

    ReplyDelete
    Replies
    1. WE,

      I'll take help anywhere I can! ;). It never hurts to have more eyes out there looking for the value propositions. Now I just need to buy some more WMT and then hopefully the markets will calm down a bit so I can get that rental property.

      Thanks for stopping by!

      Delete
  4. I've used the sell of over the past few weeks to add shares to some of my positions. I've also been keeping an eye on TGT thinking that a drop due to the credit card issue could present an opportunity, but I haven't pulled the trigger as of yet.

    ReplyDelete
    Replies
    1. First Million,

      The TGT sell off has been nice because there's a lot of value here as long as the credit card hacking issue gets resolved and hopefully the Canada expansion can start to go smoother.

      Thanks for stopping by!

      Delete
  5. Nice purchases! I have been nibbling at both PM and TGT lately. Looking to add more. I agree CVX is looking pretty attractive, as well.

    ReplyDelete
    Replies
    1. Warrior,

      CVX and PM are even better after this past week. I need to add a bit more PM and I added some more CVX for over 3.5% yield. I think that's a great entry point for CVX.


      Thanks for stopping by!

      Delete
  6. We've been doing extra buying in January, but just of our index funds. Still, it's nice to be able to buy anything on sale!

    ReplyDelete
    Replies
    1. Done by Forty,

      Index funds work too, the key is to come up with a plan and then stick to it. I'll gladly take a sale on some high quality companies although I wish the sale would have come in late February.

      Thanks for stopping by!

      Delete
  7. Some great purchases JC! Of the three, my favorite is probably the PM pickup in your Roth. For me, PM is a buy below $85 and the recent drop (it has gone down even further) is very attractive. Just not enough capital to go around as I rebuild some of reserves from other activities over the last few months.

    ReplyDelete
    Replies
    1. w2r,

      I know exactly what you mean. I really wish the markets would have started the recent action in late February/early March. It's been so hard to try and keep my capital on the sidelines for a rental property. I've given into temptation though and made some more moves today. I guess I need to open another savings account that isn't linked to my brokerage to save the down-payment in.

      Thanks for stopping by!

      Delete
  8. Pursuit,

    Nice buys. I think both are great choices right now. I pulled the trigger too early on TGT earlier in the month, but I'm in it for the long haul.

    Best wishes!

    ReplyDelete
    Replies
    1. DM,

      Shoot, I pulled the trigger too early on TGT too but like you, I'm happy with the price with a long-term mindset. But it's over a 3.00% yield now.

      Thanks for stopping by!

      Delete
  9. Late January has been a good month for buying (taking advantage of the market falls).

    I have several recent dividend payments to invest, and as I have posted on my blog, will be able to buy more shares than a couple of weeks ago. This means even more income available for re-investing later this year.

    Happy Investing
    FI UK

    ReplyDelete
    Replies
    1. FI UK,

      Late January has been great, although the timing for myself has been horrible. Got to love getting to reinvest at cheaper prices. That really helps the compounding to grow faster.

      Thanks for stopping by!

      Delete
  10. Hi PIP,

    TGT is a great purchase!
    I think Dividend Mom has also buy TGT.

    On Friday I have bought 40 shares from HCP.
    But TGT is a buy worth!
    Next month... now I have no money over... ;-)

    best regards
    D-S

    ReplyDelete
    Replies
    1. D-S,

      I liked the TGT purchase too. A lot of us bloggers did as well. I was a bit early on the purchase but overall I think it was at a solid price.

      HCP is a great company and the increased dividend was nice too. Almost a a 4% increase on a 5.5% yield is great. I'm in the same situation as I have more ideas than money right now.

      Thanks for stopping by!

      Delete
  11. I also just bought some CVX and TGT is on my list of likely purchases in the near future. The credit hacking has provided a great buying opportunity for those of us with a long term time horizon.

    ReplyDelete
    Replies
    1. Matt,

      CVX is great and the price getting this cheap is even better. I've been surprised by the continued hard sell off in both TGT and PM. But that's great for investors with capital to purchase shares on the cheap.

      Thanks for stopping by!

      Delete