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 Tuesday of this week I decided to average down my cost basis in Deere & Company (DE). I initiated a position in DE back in June and frankly the second purchase I made was a mistake as I should have waited until a bigger drop to add to my position. I still feel that the purchase was made with a good long term value but "averaging down" for a 1.5% discount was a bit early and left me in a bit of a bind when it comes to future purchases. I purchased 23 shares of DE for $82.32 per share. After commission my per share cost basis came to $82.67. Based on the current quarterly dividend of $0.60, these shares will provide $55.20 in annual dividends and carry a 2.90% YOC.
I was able to average down my cost basis but the effect wasn't as significant as I'd have liked. Before this purchase my per share cost basis for the position was $91.15. The new lot was purchased at a 9.31% discount to the prior cost basis and lowered my whole positions' cost basis by 3.56% to $87.91. As I mentioned earlier I was a bit early on my second purchase of Deere and should have waited on a lower secondary entry price. My hands are a bit tied right now from adding more to the position due to the position accounting for 3.07% of my portfolio. If the shares dip to around $77-78 then I'd likely make another purchase but until I build up some other positions I'll be holding off on adding more.
My forward 12-month dividends are now at $5,070.70 and I've officially passed my goal of $5,000 by the end of the year. Success!!!! I raised my goal to $5,500 during the August's dividend update and I'm currently 92.19% of the way towards the new goal.
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I've updated my Portfolio page to reflect this purchase.
What companies are on your shortlist to buy?