I have a couple of puts that I've sold recently and I could get assigned additional shares of NSC. However, I don't want to miss out if NSC has a run up in price. It has already moved back higher than $60/share from a low of about $56. I do still want to own more of their stock. I decided to purchase additional shares this morning to average down.
I bought 37 shares @ $60.29/share lowering my cost basis from $67.57/share to $64.98/share. These 37 shares will also add $74 to my yearly dividend income. This will be my last purchase of the month.
NSC is a dividend contender that has increased dividends for 11 straight years. They have a current yield of 3.32% and a 5-year CAGR of 19.5%. If they maintained this level of dividend growth they would have a 10-year YOC of 19.72%. Actually to achieve a 10-year YOC of at least 10% that I look for , NSC would need to have a dividend growth rate of 11.66%. I believe they can achieve this.
I've been thinking about adding to my NSC but I want to keep all the shares in the same portfolio and the ones I currently own are in my Roth IRA which has been maxed out for the year and all the capital spent.
ReplyDeleteHi PIP. I go through some of the same thoughts about having a position in two different brokerage account.
DeleteI have VOD in my income portfolio at Charles Schwab and want to eventually own it in my DG portfolio but I may just buy more through Schwab to keep the shares together. I guess It comes down to wanting to be organized.
However, if VOD took a dive and I only had available funds in my Etrade account I wouldn't let being disorganized keep me from getting a good price on a stock that I want to buy.
Nice buy austinbroker. PIP, I hold the same stocks in different accounts and it drives me crazy. It was the result of great opportunities and cash distribution at the time. I try to avoid it as much as possible.
DeleteNSC has caught my eye as well after this stock price drop.
ReplyDeleteI believe the coal segment will present rather strong headwinds, but that the current price of around $60 is appealing.
Hi Dividend Monk,
DeleteThanks for stopping by to comment. Also thanks for the analysis you just did on the company. I see the coal weakness as short-term and expect the company to rebound. I plan to keep adding shares if the price goes much lower than $60/share. Take Care.