Friday, July 25, 2014

Recent Buys

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?

18 comments:

  1. congrats on almost researching your goal PIP. I have been eyeing Visa, but can't seem to pull the trigger just yet. I'd like to pick it up below 200. Thinking about Deere instead.

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    1. MrStockFox,

      I'm getting there but a little slower than I'd like because there were other potential uses for my savings and of course Mr. Market hasn't helped too much this year. If V dips back below $200 I'll add some more to my own portfolio. DE was also on the watchlist but I decided to see if it goes lower. It's over 2% of my portfolio right now and is one of my few industrial sector stocks so I'd like to either build up some other positions or get a great price on DE.

      Thanks for stopping by!

      Delete
  2. Great purchases PIP. I am looking at initiation a position in V as well especially after the drop today. GE is also great and it is already the largest in my portfolio. The highest I have purchased GE is at $25.00. So if it drops below that, I might consider adding more :)

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    1. DGJ,

      If GE dips below $25 again then I'll add some more as well. There's more room for GE in my portfolio the way it's currently constructed and there's not a lot of other industrial companies giving good values right now. I was surprised to see V's drop today but was glad to get a chance to add some more.

      Thanks for stopping by!

      Delete
  3. Congrats on the great purchases, PIP. I am tempted to buy more GE after initiating a position last month.

    regards
    R2R

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    1. R2R,

      I like GE here as it represents a decent value in an relatively expensive market. I think we all got spoiled in 2011/2.

      Thanks for stopping by!

      Delete
  4. Good job with these adds. I was shocked V sold off like it did today and almost jumped on it myself. Great timing too and not waiting for it to bounce back up a few dollars at the end of the market day. I was debating between PM and GE today and ultimately chose nothing. I'll buy something next week. Would love to add more DE, but that would make it my biggest holding in my small portfolio and leave little room for averaging down on further price declines. Lot's to consider. Keep adding to those forward dividends, you're on an epic pace!

    Take care!
    Ryan

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    1. Ryan,

      The V selloff was a bit surprising but very much welcomed. I just picked a relatively low price and set a limit order before the open. Overall I thought it was a pretty good quarter. I'm holding off on DE myself because another purchase of DE would make it my largest industrial sector holding. I hope to be able to get some more capital allocated over the next few months because there's a much larger cash hoard than I'd like right now. I know it's a good problem to have.

      Thanks for stopping by!

      Delete
  5. Nice buys JC. I had a limit order in for 25 shares of Visa (at $112) this morning, but just couldn't pull the trigger. I was excited about the pullback, especially since the stock held it's 200 day. I don't know why, but I just didn't feel right about it. Good work buddy on following it through
    -Bryan

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    1. Bryan,

      I know it's a bit expensive but I really like the company and the valuation isn't that bad considering what some of the blue chips are trading for. It's a calculated risk but I think it should turn out well. Hopefully you find a reason to join the Visa owner club. I know I've got enough of their cards in my wallet.

      Thanks for stopping by!

      Delete
  6. Visa was a great buy for today. Silly that the stock is down but great for investors getting in at a discount.

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    1. A-G,

      It seems like the selloff was related to the slightly lowered guidance but that's fine by me. This company is set up to perform well long term so I'll just add to my position.

      Thanks for stopping by!

      Delete
  7. JC,

    Nice buys. V had a great quarter and the stock is down on slightly lower guidance. Good for us long-term investors! V remains high on my watch list for a purchase in August, which would allow me to quickly add to my position.

    And I also like GE here. I think GE, DE, and V are all pretty high on my watch list right now. Good stuff!!

    Best wishes.

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    1. DM,

      V is still up there on my list but I'm probably waiting until sub-$200 before I'll add again. Hopefully you'll get a chance to add to this great company. The sell off seemed rather unwarranted but that works for me.

      I've been looking at DE as well but will probably wait for a slightly lower price. I don't have enough industrial exposure and adding to DE again would put me overweight for where I'd like the position to be currently. So I have time to wait for a bit better entry price.

      Thanks for stopping by!

      Delete
  8. JC,

    It's nice to see you making purchases again.

    I agree with your view on V. I also own Visa and periodically buy small chunks. The price has retreated a little and I'm probably due to add a little more funds to the stock. They have a really low yield but I expect really high growth from them. I don't mind a few companies like this in my portfolio to balance it out.

    I don't own GE but they are on my watchlist. It's tough to own them all.

    Take care

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    1. AAI,

      Yeah, time flies when you're on vacation for a bit and doing a bunch of stuff around the house.

      It sure is hard to not own them all but of course if that's the case I'd just stick with an index or make a few motifs.

      Thanks for stopping by!

      Delete
  9. We recently picked up shares in GE...have had our eye on it for awhile and couldn't resist picking up shares after the recent dip. Hope to continue picking up shares if prices stays the same or drops. As for Visa, we have our eye on it but would prefer to buy on a dip. Nevertheless, we like the future prospects that Visa offers in their growth (both price and dividends). AFFJ

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    1. AFFJ,

      I'm looking to add some more GE under $25 although I might wait a bit longer to try and build up some other positions if Mr. Market keeps acting like he did today. What sold me on buying V is that you can buy them for just a bit higher P/E compared to the slower growing PG or KO but get much faster growth. The yield is low but you got to love that growth rate and the potential for long term growth of greater than 10% for the company and the dividend.

      Thanks for stopping by!

      Delete