I'm reporting my automatic purchases for this week (04/01):
I Bought:
$200 of DE (John Deere)
$200 of MCD (McDonald's)
$200 of V (Visa)
I used $600 in new capital and added $12.53/year to my dividend income. This is an average yield of 2.1%.
Note:
I'm concentrating on sectors besides Energy and positions that are currently underweight in my portfolio. All three companies I believe offer decent value currently and are below average weight.
Having close to 40 positions (my current end target), I won't be adding a lot of new positions to my portfolio. Instead I plan to keep adding to current positions.
I plan to keep purchases relatively low for about another month as I close on a third rental and make a tax payment.
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 I took from the Empire State Building in New York City in 2012. Such a beautiful city!
I think Deere is pretty cheap right now as well. The lack of a dividend increase is still fresh in my mind which is preventing me from buying more at the moment. I don't plan to sell though because I'd have to replace it with something more expensive. I believe in this company's story enough to weather a mild freeze, whereas I lost faith in some others (like INTC). You know what? If we do end up holding our companies for decades freezes are bound to happen in a portfolio of 40-50. I personally will continue holding long time payers such as GIS, TD, BNS, and a couple others through freezes. IMO a long time payer earns extra time, but still needs to be monitored. Look at GE.
ReplyDeleteCI,
DeleteI agree that DE does look cheap and I'm watching for a dividend increase. They still have until the end of the next year to technically raise the dividend and not affect their YOY increase record. I still don't like 5+ quarters of the same dividend.
I agree that freezes are bound to happen when holding that many companies. I plan to just watch companies a lot closer when they don't make a raise. DE and INTC are on a close watch list for me. You're right, GE did turn out well but that was an unusual circumstance with them having a lot of financial exposure during the Great Recession. Regardless, it happens and most large companies still recover if we have patience.
Thanks for stopping by!
I'm considering buying some MCD. I have a very small position right now that could use some reinforcement. PE is about 17.5 and yield is above 3%. I've got enough capital...
ReplyDeleteHi Wallet,
DeleteI like MCD here in this market. Decent yield and growth. I'm working to build up underweight positions myself.
Cheers!