Man it feels good to be back and adding to my forward dividends. It was 1 month exactly since I made a purchase so it's been a long time coming. I guess the main reason is that my attention was being pulled in a million different directions so it was hard to focus on any specific one. 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.
This morning I first purchased 8 shares of Visa (V) for $212.31 per share. After commission my per share cost basis came to $213.30. Based on the current annual dividend of $1.60 these shares will carry a YOC of 0.75% and provide $12.80 in annual dividends. I first bought shares of Visa back in August 2013. Unfortunately for the new purchase, shares of Visa have had some great appreciation leading to a 9.8% increase in the cost basis for my total position in Visa to $193.76. I'm not worried though because this is an excellent company with a long growth runway.
While this purchase strays from my normal purchase when it comes to dividend yield, the dividend growth is outstanding. I typically try to buy companies that yield in the "sweet spot" of 2.5-4% yield with 6-10% annual growth but I think every portfolio can have some low yield/high growth and high yield/low growth companies sprinkled in.
I also finally added again to my position in General Electric (GE). I'd been missing out by small margin over the last week and finally upped my limit price a bit. I purchased 60 shares of GE for $25.86 per share. After commission my per share cost basis came to $25.99. Based on the current annual dividend of $0.88 per share these shares will carry a YOC of 3.39% and provide $52.80 in annual dividends. I last added to my GE position in March of this year after initiating the position almost exactly a year ago. Man time flies because it really didn't seem like it was that long ago. This increased the cost basis for my position by 1.15% to $25.45.
After some dividend increases and these new purchases my forward 12-month dividends increased to $4,581.74. I'm now 91.63% of the way towards my goal of $5,000 in forward dividends by the end of the year and should easily be able to pass that with additional purchases the rest of this year.
I've updated my Portfolio page to reflect these additions.
What companies have you been purchasing or are on your watch list? Still buying despite the markets' incessant climb higher?