Tuesday, May 13, 2014

Weekly Sharebuilder Purchases

Here are my purchases for this week.

  • KMI:  20.05 shares @ $32.42 --- Yield  5.18%
  • VZ:  13.49 shares @ $48.20 --- Yield  4.40%
  • PFE:  22.28 shares @ $29.18 --- Yield  3.56%
  • CLX:  7.33 shares @ $88.70 --- Yield  3.34%

Total capital invested is $2600 invested equally in each company.  The combined dividend yield is 4.12% and will add $107.12 to my yearly dividend income.

Note:  Clorox raised its quarterly dividend from $.71 to $.74 per quarter and I am using the new yield for my calculation.


$100/week Challenge---Week 3

This is my third consecutive week in which I have increased my yearly dividends by $100.  This is more difficult than I first envisioned, but like training for a marathon I plan on taking it one week at a time.  I have become hyperaware of my spending habits.  If nothing else this renewed focus on extreme savings is a nice byproduct of the challenge.



8 comments:

  1. Solid long term picks for the most part. I am partial to CLX having it in my portfolio for many, many years. I think KMI is too aggressive with its dividend payout. The payout ratio for KMI is well over 100% and long term I'm not sure how sustainable that yield is.

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    1. Keith,

      If you look at the Kinder cash flow statements you will notice a lot of depreciation (non cash) expense. I believe KMI will be able to not just maintain, but continue its dividend growth for the forseeable future based on solid operations.

      MDP

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  2. Nice purchases...the only way to grow your dividend income is to grow your portfolio. Keep it up. Wishing you continued success in your journey!

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    1. A Frugal Family's Journey,

      Thanks for the comment. You are correct about growing your portfolio. I know there is a lot of talk about overvalued markets, but the same comments have been made during the past four years. I am going to keep buying income producing companies and not worry about market timing. It's not going to matter 10 years from now whether I bought Clorox at $88 or $78 dollars this week. My concern is whether the dividends are increasing over time since that is what will be paying my bills.

      Best wishes on your journey as well.

      MDP

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  3. I own all but PFE (sold after dividend cut), but think they are all solid companies for the long-term. You are making some sizable purchases there, keep it up! I hope to be able to add much more the second half of the year. I've had some unexpected expenses with my new office building.

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    1. Brent,

      Pfizer is ok I think it's a little undervalued since the AZN acquisistion news. I was hoping to add more VZ in the coming weeks, but new that Warren Buffett has been acquiring shares has made it pop. Clorox never seems to pullback but I want to diversify my portfolio so I like the company even if it is a bit pricey. KMI continues to confound me. It is continually undervalued. I am overweight so probably won't add more unless it dips into the 20's.

      MDP

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  4. Pretty amazing that you've been able to increase yearly dividends by $100 for three consecutive weeks. How long can you keep that pace up? Are you sitting on excess free cash.

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    1. Josh,

      I have very little cash. I work six days a week in a sales career that typically requires 10 hour days. Fortunately my house and car is paid off and I am able to save 75-80% of my take home pay. Hopefully I can continue this pace for the rest of the year.

      MDP

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