Tuesday, April 29, 2014

Weekly Sharebuilder Purchases

Here are my purchases for this week.

  • ARCP:  38.55 shares @ $12.95 --- Yield  7.72%  (initial position-speculative)
  • ESV:  9.73 shares @ $51.30 --- Yield  5.85%
  • KMI:  15.13 shares @ $32.97 --- Yield  5.09%
  • BP:  9.88 shares @ $50.50 --- Yield  4.63% 
  • VZ:  10.66 shares @ $46.82  ---Yield  4.53%  (initial position)

Total capital invested is $2500.00 divided equally amongst all five companies.  The combined yield is 5.56% and will increase my dividends by $138.82.

Note:  BP dividend yield is based on an increase from $.57 per quarter to $.585 per quarter.  This was announced earlier today.


$100/Week Challenge---Week 1

I am pleased to announce that I surpassed $100 for this week.  Due to the speculative nature of ARCP, I would like to note without ARCP my dividends will still increase by $100.33 + $16.80 (IBM increase see below).

The only financial sacrifice made this week was when my wife asked me to take our dog to the groomer.  By grooming I don't think she expected me to take the dog to the bath tub and wash her myself. :-)  Even $45 can add up over time.  It's the small sacrifices compounded that yield long term results.


Dividend Increase: 

IBM announced today that it will increase its quarterly dividend from $.95 per quarter to $1.10 per quarter.  This is a 15.79% increase.  Since I own 28 shares my yearly dividends will increase by $16.80

All in all this has been a good first week.

8 comments:

  1. Just found your site through the DividendMantra blog. I found your transparency and progress reports truly inspirational. I've been toying with the idea of switching my retirement portfolios to an entirely div. growth model having used a permanent portfolio-type strategy for several years. Today I finally took the plunge and sold out of my long-term bonds and gold investments and bought shares in KO, KMI, SDRL, ARCP, O, GE, PG and VZ. We'll see how it turns out for me, but I really wanted that monthly dividend income stream. KMI and KO are my core holdings, btw. Anyway, keep up the good work. I find your blog and others like you very inspirational and encouraging. - beanz

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    1. beanz,

      Thanks for stopping by. It sounds like we have a similar background, I too started with mutual funds looking only at yearly returns as opposed to income growth. It looks like we own many of the same companies.

      I must confess that some of my purchases comes within days after reading Dividend Mantra's Recent Purchase articles...ARCP is a blatant example. Lol. His insight and research is outstanding and much appreciated by many.

      Good luck on your journey!

      MDP

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  2. Hey,

    can you please tell me how much you pay fees per purchase? I just cannot beliebe it - your buying just 450 USD for one purchase. In Europe, I pay ~17 EUR = 23 USD for one purchase, regardless if I buy 500 USD or 3000 USD shares...this is why i never buy below 2500 USD for one purchase, otherwise fees would eat up my yield...

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    1. Sure thing. I pay a flat $12 per month to Sharebuilder. This allows me to make 12 purchases per month, but the purchases have to made on Tuesdays and I have to pick the stocks by Monday afternoon. If I choose to purchase more than 12 stocks in a month then each addtional purchase costs $1 per purchase. I hope this helps.

      MDP

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  3. I do not think ARCP is too speculative. It may be a bumpy holding, but can turn out well from the long term perspective. Hold it for 20 years and you make money, trust me.

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    1. Martin,

      I hope you are correct about ARCP not being too speculative. Anytime I see 7.5% or better I get a little nervous, but it definitely is safer at $13 than $18. I bought DLR late last year and it was a high yielder as well. Hopefully these two REITs along with HCP will "pay dividends" for many years.

      Thanks for commenting!

      MDP

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  4. Wow, that's a nice week right there! I considered ARCP at one point, but ran out of room with REIT allocations. I concluded it was borderline speculative, yet it appeared to be worth the risk!

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    1. CI,

      Thanks for the comment. I love the yield, but it reminds me a lot of my junk bond holdings. I will build a small position and then I will be done with my REIT allocation for a while.

      MDP

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