One Piece At A Time | Week Ended 11/1/19
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.
Over the first 2 weeks since Fidelity moved down to $0, I made 8 small purchases allowing me to dollar cost average and build up some positions ever so slightly.
After being admittedly a bit too active after the move to $0, last week saw the pace of investment slow down some. Going forward I'd like to do around $500-$1,000 per month of DCA.
In total I invested $652.50 and boosted my forward dividends by $11.25. That's a 1.72% yield starting off. The starting yield is quite low with this latest round of purchases largely due to the purchases all being made on the higher end of fair value. That being said I do expect Ecolab and Automatic Data Processing to be able to continue to grow their dividend in the 8-14% range over the long term while Hershey should be able to show 5-8% growth.
The valuations range from fair to expensive with these purchases.
Dividend yield theory suggests fair prices of $131, $167 and $150 for Hershey, Ecolab and Automatic Data Processing, respectively.
That being said all 3 companies are clearly high quality and I'm not concerned about any of them over the long term. You can check out my full valuation analysis for each company on Seeking Alpha:
The Hershey Company (HSY)
Automatic Data Processing (ADP)
My FI Portfolio's forward 12-month dividends increased to $7,688.77 with my FolioFirst dividends at $101.21. My Roth IRA's forward dividends remain at $619.71 while my Rollover IRA's dividends increased to $2,310.17. My taxable accounts can expect to produce $7,789.98 over the next year with all accounts providing $10,719.86.
Are you doing more dollar cost averaging now that most every brokerage firm is at $0 commissions? What do you think of my purchases from last week?