Yesterday I was deciding between a few stocks to add to my Income Portfolio including VOD, the new KRFT and OHI. I ultimately added 100 shares of Vodafone (VOD) @ 26.969/share. Currently my income portfolio has 100 shares each of VOD, TSM, EXC, and APL. I have a covered call I sold on 100 shares of TSM earlier in the year that will likely get called away in January leaving me with just 3 stocks.
I like Vodafone to compliment my Verizon (VZ) shares that I own in my DG portfolio. VOD has a current yield of about 5.5 % according to Etrade and has exposure to emerging markets. They also received a special payment from Verizon Wireless last year as they own 45% of the company. The yield doesn't take into consideration these special dividends that may or may not continue. This purchase should provide about $150 in additional annual income.
I don't currently have my Income portfolio posted on my blog but that could change as it grows. I don't want it larger than 20% of my DG portfolio.
VOD has been unloved for some time now. They have lots of things going for them and Verizon Wireless will certainly pay special dividends in the years to come. I am looking to add more to my current position. Great buy and great price! I added 100 @ $29.40 a short while ago...it was too soon.
ReplyDeleteHi ADY ,
DeleteThanks for stopping by to comment.
I sold a put earlier in the year at $27 that expired while I collected a premium. This time I was able to purchase the stock right at the $27 target I wanted. A couple dollars difference in the long run shouldn't matter much if you bought a great company.
I hope they continue to receive the VZ special dividends which will be a huge boost to the yield.
Nice purchase. I also noticed the decline in VOD recently, making it one of several stocks under consideration for purchase. However, due to cash constraints, I will have to remain content with my current position in VOD.
ReplyDeleteThanks DGM. I wish I had more cash available also as the market has given us some better prices. I tend to deploy it as soon as I get enough for a purchase.
DeleteVOD is definitely on my watchlist of stocks to buy. The yield is over 5.3% even without factoring in the possibility of the special dividends from Verizon Wireless. That's insane.
ReplyDeleteThis is one I would like to load up on in large chunks. At this price, it appears to be a great time to do so. Nice buy!
Yeah the yield is great and it gives me international exposure. I think VOD is the better play than VZ currently. If the special dividends continue that would just be icing on the cake.
DeleteThanks for stopping by.
Looks like a good purchase. I don't know much about VOD but the numbers look decent.
ReplyDeleteA little off topic but just an FYI - Not sure if you heard but on Nov. 6th TGH increased their dividend again for the 11th straight quarter from $0.42 / quarter to $0.44 / quarter. Payout ratio is still below 50% and the stock has dropped recently and is now trading below $30 with a 5.8% div. yield. I hold a very small position in TGH now but I may add to my position if it drops below $29.25. I know you currently have a put option contract out on this one so thought you may be interested.
-Shawn
Hi Shawn,
DeleteThanks for stopping by to comment. I think VOD will be a nice addition to my income portfolio.
In regards to TGH, it's definitely on my watch list and I wouldn't mind picking up more shares. I haven't bought more since I have a put option sold as you mentioned. I've been really busy and didn't even notice the quarterly dividend raise. Thanks for bringing that to my attention! They have been raising dividends like clockwork, I just hope it can continue while they keep the payout ratio low.
I don't know a whole lot about the intermodal shipping container business. I need to do more research but they seem to be doing something right. The current price does look very attractive.
Take care.
Hmm you could throw this one in the DG portfolio too. It does tend to raise dividends. What differentiates the DG and income portfolio? Perhaps high yield?
ReplyDeleteI just saw your comment. I agree with you. VOD could go in either account. Mainly my income portfolio will be higher yielders (greater than 5%).
DeleteI don't escrow my taxes so I set up a Charles Schwab account to hold my money. Instead of earning a terrible savings account rate I started to invest this money into higher yielding stocks. This portfolio will target higher yields and not necessarily require a certain amount of years of dividend increases. EXC certainly falls into this category.
However, I do have a couple positions in my DG account that could be put in my income account including BBVA and DOW. For the most part though, I'm trying to keep the steady dividend increasers in my DG portfolio and separate from the "utility" type companies.