Tuesday, July 15, 2014

Weekly Sharebuilder Purchases

Here are my automatic investments for this week.

  • APU:  13.14 shares @ $45.66 --- Yield  7.71%
  • BP:  11.67 shares @ $51.41 --- Yield  4.55%
  • PAYX:  14.2 shares @ $42.18 --- Yield  3.60%
  • CAG:  19.38 shares @ $30.96 --- Yield  3.23%
Total capital invested this week is $2400 ($600 in each company).  The combined yield on these purchases is 4.77% and will add $114.29 to my yearly dividends.


$100/week Challenge---Week 12

After 12 weeks I have added $1400.17 to my yearly dividends not counting DRIPs and dividend increases.  My year end goal is to reach $14,500 in forward dividends/interest. Currently my forward dividends are around $11,700 (this is an estimate because some of the income is from mutual funds and high yield bonds).  Doing some "back of the coaster" math I need to average about $117.00 per week for the rest of the year to reach my goal.

August through December changes.

Here is the hard part.  I have been playing around on the fringes with high yielding companies like ARCP, ESV, and APU to reach my $100 week objectives.  There is nothing wrong with these companies and I believe the yield is artificially high because they have been temporarily out of favor.  DLR is another such example that was yielding close to 7% last fall after the REITs corrected. The price plummeted to the mid $40's and is now around $60 with a yield close to 6% after a large dividend increase earlier this year.

I actually like acquiring companies that are accidentally high yielders and periodically purchase companies that are part of  the "Dogs of the Dow."  This year's small dogs that I own include Intel, Cisco, Pfizer, General Electric, and AT&T.  These have been good performers so far this year and I will continue using this strategy for part of my portfolio.  With that said, I plan on buying the so called 800 pound gorilla companies starting in August. 

Companies on my radar for next month and the rest of this year include:

JPM, JNJ, XOM, PEP, KO, MSFT, MCD, PG, MO, GE, AAPL, WFC, and CVX. 

As is always the case, I will not rule out purchasing other companies, but these will get most of my attention.

10 comments:

  1. Great progress, MDP. Hope you arent sacrificing quality in the reach for yield for your $100/week challenge. Some really good strong names on your watchlist. I'd be interested to see which ones you'll pick.

    Best wishes
    R2R

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    Replies
    1. R2R,

      I have probably strayed away from my ideal mix of companies as I have tried to increase dividend income in a relatively short period of time. Usually I buy 3 or 4 "safe" companies and one high yielder. Like I mentioned, I will be buying bread and butter companies for the most part starting next month.

      MDP

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  2. Congrats on another successful week.
    Some big names in your watchlist a few of which I am also looking at. Will be interested to know which ones you buy.

    ReplyDelete
    Replies
    1. DGJ,

      Thanks for the comment. I will be following earning season pretty closely. One of my best purchases a year ago was Microsoft when they reported a poor quarter and dropped over 10% in one day to $31. I wish I had bought more. The next few weeks should be interesting!

      MDP

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  3. Hey,

    Great progress. Nice to see you are on track to achieve your year end goal. I like the companies on your radar, a lot of those are on my radar as well, especially PG which seems to be a good candidate for a drop if market sentiment deteriorates. I have just started looking into UTX which suffered a recent drop and I thought it might interest you, it has a great track record and a strong FCF, but the dividend is only 2%.

    Best wishes,
    Dividend Venture

    ReplyDelete
    Replies
    1. DV,

      I really like PG and the fact that it hasn't run up like many others is fabulous for longer term accumulation. I will have to take a look at UTX. I have been watching HON and GE and would definitely consider adding another industrial company in the future.

      MDP

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  4. MDP,

    You're on a roll! I don't follow some of these companies, but that forward dividend income is sure nice! Color me green with envy. :)

    Keep it up!

    Best regards.

    ReplyDelete
    Replies
    1. DM,

      I think you will notice more of the usual suspects during the next few months. I will however, throw in a curveball every now and then simply because I can't help it. :-)

      MDP

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  5. Thanks for sharing your weekly purchases with us. I used to own APU a while back. I had it for a good 2 years collecting those dividends before I sold my position. Definitely a great stock to own but you have to watch it more closely that say a KO, MCD or GIS.

    ReplyDelete
    Replies
    1. DivHut,

      I will definitely be watching APU closely. It look like they have had solid dividend growth for a number of years, but propane business is hardly predictable. Thanks for the input and the comment.

      MDP

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