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?
You have to love those $0 commish buys. Now everyone can buy a single share. Soon fractional shares will be made available too. No excuses to invest. Like the pick ups. JNJ has been on my list too.
ReplyDeleteDivHut,
DeleteI'm loving it. Although I'm likely to slow it down a bit moving forward. I'd like to have at least a little cash hold that's ready to deploy if we get some really good opportunities. I'm hoping JNJ will moving a bit lower into low $120s but I did pick up another share this week at what I think is a pretty good spot.
All the best.
Nice purchases there. All great companies to own for the long haul.
ReplyDeleteR2R,
DeleteThat was the point here to side with great companies even if they aren't at the best valuations. It's pretty damn hard to find any compelling opportunities, at least among the DGI suspects. So I tried to just focus on quality and decent valuations.
Thanks for stopping by!
I just added JNJ and MSFT today. JNJ for DCA and MSFT for future growth. Little high on the valuation, but love where they are headed.
ReplyDeleteChad,
DeleteI added MSFT and am likely to keep adding more. The yield is blah, but the valuation is compelling at least compared to some of the other businesses that I've looked at that have much lower growth profiles but similar or higher valuations. I missed the dip on V into the low $170s this week, but at some point I'll get some more added to my portfolio.
Thanks for stopping by!