I'm reporting my automatic purchases for this week (09/03):
I bought:
$1000 of V (New Purchase)
$500 of KO
I used $1500 in new capital and added $19.43/year to my dividend income. This is an average yield of 1.3%.
My forward 12-month dividend income increased to $7231.45.
Note:
I plan to continue adding to existing positions that are below average weight.
I also decided to initiate a position in a new company, V. VISA has grown their dividend payments from .44/year in 2009 to .99 in 2012. That's a 125% increase in only 3 years! They are also due to increase their dividend for the last payment in 2013. If they increase the dividend by another .11 like last year that will raise the dividend 33% to .44/quarter or 1.76/year. VISA does have a low dividend yield but I believe its growth with make up for it. It's more of a total return type company.
If you read My Business Plan that I recently posted, you will notice that this falls below the minimum yield of 2.5%. However, my total portfolio yield is still above the 3.5% threshold so it's ok for me to add a few high growth and low dividend stocks.
Picture:
Just for some fun and to add some color I will be posting pictures of places I've been to. It's also motivation to reach FI so I can travel and do what I want to when I want to.
This is a picture from Oktoberfest in Munich last fall.
Great buy with Visa! I have been following the stock for a while and I think this debit fee fiasco is the perfect time to get shares at an undervalued price. On another note, thank you for your continued updates and articles. I also live in Austin and am new to DGI. Your journey is inspiring. I am beginning my path to FI and it's great to get insight from others further along. Keep up the good work!
ReplyDeletePursuing Financial Freedom,
DeleteThanks, I think this is a great entry point as well for V. I plan to build up to a full position by the end of the year. I'm happy you find my updates/articles helpful and motivating. One reason I do this is to help motivate other people to start investing. It's also nice to meet someone else from the Austin area. I'm curious how you found my blog? Good luck on your path to FI and I hope you stop by more often to comment.
Take care!
I have become an avid reader of many DGI blogs (Dividend Mantra, Passive Income Pursuit, Dividend Growth Investor, etc) and saw a link to your site. I was glad to read you are in the Austin area and have the same ideology towards FI and DGI. When you say " building a full position" what amount are you targeting? Is this a % of your portfolio or a specific $ amount? The dividend growth for Visa can be off the charts. I'm tempted to over-allocate here. I have many discussion points I would like to hear your take on. I will send you an email in the future as well as continue to comments on your posts.
ReplyDeletePFF,
DeleteWhen I say building a full position, I mean an average weighted position. So for having 40 companies that would be a portfolio weight of 2.5%. Feel free to email me with any questions or for further discussion.
I am looking at purchasing Visa too. It is not a dividend payer I want to have in my portfolio, but it is a great business model and many people do not understand that Visa (and Mastercard) are true money making machines.
ReplyDeleteI just picked up a little more V this week. They already got a little boost after they announced that they will be joining the Dow 30. I agree that they are money machines, basically charging a toll anytime someone uses a card with a Visa logo.
DeleteTake care