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?