More Zero Commission Buys
Well, I just couldn't help myself. Earlier this month just about every brokerage firm announced they were lowering commissions to $0. My broker, Fidelity, followed suit as well in the race to ZERO.
I made 4 small purchases the week that commissions were lowered and followed that up with 4 more purchases last week. None of the purchases was a meaningful amount of capital, so the dividend bar didn't move too much, but it was nice to get the chance to dollar cost average a bit more capital into some excellent companies and keep building up our forward dividends.
In total I invested $1,383.36 and boosted my forward dividends by $28.60. That's just a 2.07% yield starting off, but I expect all 4 to continue with solid growth moving forward.
The valuations look pretty solid with the exception being Visa. However, given the long runway for accelerated growth I'm willing to pay up a little bit while dollar cost averaging, but larger purchases will be made at better valuations.
Honeywell's valuation is likely on the upper end of fair value at 20.1x 2019's estimates and 18.5x 2020's estimates. Given the quality of the business, even if it's quite cyclical, I'm willing to pay fair value for Honeywell especially if it's just dollar cost averaged in.
Johnson & Johnson looks much more appealing at just 15.0x 2019's estimates and 14.2x 2020's estimates. It's been very difficult to find a business of Johnson & Johnson's quality at a reasonable valuation given the long extended bull market. Much of that is likely due to the big uncertainty surrounding the opiod trials/settlements, but I believe that should remedy itself in the not too distant future.
My FI Portfolio's forward 12-month dividends increased to $7,613.04 with my FolioFirst dividends at $101.21. My Roth IRA's forward dividends remain at $618.96 while my Rollover IRA's dividends increased to $2,257.60. My taxable accounts can expect to produce $7,714.25 over the next year with all accounts providing $10,590.81.
Has your brokerage joined in on the $0 commission party? Have you changed your investment plans to do more dollar cost averaging as opposed to larger purchases?