My ShareBuilder purchases went through today and I'll be reporting them each week as they happen.
Today I purchased:
$250 of PM
$500 of TEVA
$500 of MO
$250 of RDS.B
I used $1500 and added $61.54 to my yearly income, an average yield of 4.1%.
My forward 12-month dividends increased from $4033.28 to $4094.82.
Nice buys. I like PM and MO. I've owned MO from the time I started dividend growth investing and it's been great to me. I need to look into TEVA. It's hovering near it's 52 week low, so it might be a good entry point. Or it might be a sign of something bad. More research is needed on my end.
ReplyDeleteI used to own MO around 17/share and sold before I got into DG investing. I wish I had just held on. I like both companies long-term and will keep adding shares.
DeleteTEVA has great dividend growth and I love that they are in generics. They do have a blockbuster drug that accounts for about 20% of their revenue though. However, I've watched the company for a while and feel comfortable buying at these prices.
Thanks for stopping by!
Yet another reason I need to open a sharebuilder account. I want to write up more recent buy articles. Plus the more consistent DCA is nice.
ReplyDeleteNice buys here!
Hey PIP,
DeleteThe sharebuilder account is working great so far. I definitely like the ability to DCA into more companies without paying more in fees, especially with how much the markets have gone up. I may start building up some cash though and wait for a pullback. Most stocks seem fairly valued here. However, selling puts has been a nice way for me to earn extra income with a rising market.
Take care!
Very nice buys! This sharebuilder thing sounds more and more intriguing. Sure, $200 here and $500 here don't seem like much, but over the course of even just one year, they will add up to a lot.
ReplyDeleteI do agree that the market seems well valued right now. Outside of the sharebuilder, I would be looking to hoard some cash for a more opportune time to load up. Selling puts is great as well.
Hi FI Fighter,
DeleteAt $12/month, I only need to purchase an average of $2400 of stock to keep my expense ratio at .5% or lower. I am also told I can get it to $10/month with a Costco membership. I will be looking into that. I know that I am saving on fees vs Etrade.
I plan to just ease into positions until tax season is over. I will accumulate some extra cash and hope for a pullback later this year.
Thanks for your input.
Are you paying a $4 commission with Sharebuilder? If so, at a lot size of $250, you are essentially paying a 1.60% commission. Of course, Sharebuilder has much higher fees to sell. You are also losing flexibility because you can only buy on Tuesdays. For $4.95, Tradeking can give you better flexibility and lower cost for a round trip transaction. I would also advise increasing your lot size to $800 - $1000 to keep costs low.
ReplyDeleteHi DGI,
DeleteNo I pay $12/month charged on my cash back blue Amex card. I receive 12 free trades each month. After 12 i think it is an additional $4/trade. So I will not go over 12 trades in a month. Also your first month is free.
I will have to look into Tradeking.
Thanks for the tip!
So if you have 12 free trades, and you use them all then you pay a dollar per trade, right? No other fees at all?
DeleteI didn't look at them yet, but is it true you can only buy on Tuesday's? That's quite limiting though.
Martin,
DeleteYou are correct. You get up to 12 trades with no additional cost per month.
The Tuesday buys are one drawback. However, you can select your orders up until 5:00 E on Mondays. In my two weeks of experience my trades have been executed in the first hour of Tuesday trading. In the long-run I am not too concerned with a few cents difference in prices. Sometimes you will get a better price the next day so I figure it will even out.
Thanks for stopping by!