Whenever I make a new purchase for my portfolio I feel it's only fair to get a post written giving all of the juicy details. I want to be as transparent as possible with my journey to reach financial independence through dividend growth investing. Being open about the moves I make allows for better discussion with all of you and helps spread ideas around as well as letting me create my own "investing journal" to chronicle why I purchased a company in the first place and that way I can revisit if something changes and make the decision on whether to continue owning the company or not. On Monday of this week I added to my position in Wal-Mart (WMT) (Full Analysis Here).
I purchased 20 shares of Wal-Mart for $76.76 per share which gives me a per share cost basis of $77.15 after commission. Based on the current annual dividend of $1.92 these shares will provide $38.40 in annual dividends and carry a YOC of 2.49%. Unfortunately I'll only receive one dividend payment the rest of this year in September. I first purchased WMT in my FI Portfolio almost exactly one year ago when I purchased 22 shares. The per share cost basis for my whole position in WMT increased from $75.01 to $76.02 or 1.35%.
A lot of investors were quite disappointed with the last dividend increase from WMT where they increased the dividend a rather paltry 2.1%, and rightfully so when 10%+ was quite the norm. Coming out of the "Great Recession" it's been a very tough retail environment and retailers have been struggling, but I still expect great things out of Wal-Mart. They continue to make in-roads with their online store which is going to be key to at least maintain market share from Amazon for non-perishable items. I'll be watching Wal-Mart a little more closely than I expected to when I first purchased shares but this company will still around around churning out profits and dividends for years to come. Another reason I purchased Wal-Mart is because the position was way out of whack compared to my position in Target. My Wal-Mart position is still only about half the size of Target so I'll continue to look for opportunities to average down my cost basis.
Thanks to Target's (TGT) huge 21% increase yesterday and my purchase of Wal-Mart on Monday, my FI Portfolio's forward 12-month dividends are now at $4,374.00 which is 87.48% of the way towards my goal of reaching $5,000 by the end of the year.
I've updated my Portfolio page to reflect this addition.
Have you been making any purchases in this rather heated market?