I'm reporting my automatic purchases for this week (10/29):
I Bought:
$1500 of BP
$500 of KO
$500 of V
I used $2500 in new capital and added $90.30/year to my dividend income. This is an average yield of 3.6%.
My forward 12-month dividend income increased to $7974.14.
Note:
The one drawback with using Sharebuilder's monthly $12 purchase program is that the buys have to go through on Tuesdays and you have to lock it in by end of the day on Monday. BP had a pretty big pop Tuesday of 4% and I probably wouldn't have bought as much if I could have made a change in the morning. I still have a good cost basis on what I believe to be a decent value in this market.
I will continue to add to V until it's up to a 2.5% weight, currently at 1.9%. I'm also planning to bring up the weight of TGT to the same level. I still see value in big energy and am looking for value in healthcare to raise my exposure. With markets sitting at all time highs, it's becoming more difficult to find value. I plan to continue making weekly purchases regardless but I'm anxiously hoping for a pullback.
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 photo is from Verona, Italy last fall.
I also added BP as well as some RDS.B which I feel are both undervalued right now. The whole energy market really.
ReplyDeletesee comment below
DeleteI agree with Wallet Engineers.
ReplyDeleteI agree with both of you. RDS.B is on my list to add to also. I don't care that these companies are getting a little higher weight because I know it will average out in the long-term. I still have a long ways to go to build my portfolio.
DeleteI am seriously looking at adding V to my portfolio. I like the stock. Another candidate would be Discover (DSF). I do not have Sharebuilder account, but what you are saying looks like a limitation I wouldn't want. Does the cheaper fee pay for it?
ReplyDeleteV is a cash cow with no debt. They do have a very low dividend yield but I know this will increase with time. I plan to keep adding more shares.
DeleteAs for ShareBuilder, I complained about the price this week but in all actuality it probably averages out. Somes Tuesdays the market is down and I'll get a better price. I really wouldn't let that discourage you. You pay $12/month for 12 trades. I like to keep an expense ration below .5%. This means I have to make purchases totaling more than $2400 with these 12 trades. I'm way higher than that so I have a very small expense ration with Sharebuilder.