Tuesday, November 4, 2014

Weekly Sharebuilder Purchases

Here are my automatic investments for this week.

  • BP:  12.03 shares @ $41.56 --- Yield  5.77%
  • RDS-B:  7.01 shares @ $71.31 --- Yield  5.27%
  • BBL:  9.70 shares @ $51.54 --- Yield  4.81%
  • GM:  16.26 shares @ $30.76 --- Yield  3.90%
  • BAX:  7.28 shares @ $68.64 --- Yield  3.03%

Total capital invested is $2500 ($500 in each company).  The combined yield on this week's purchases is 4.56% and will increase my dividends by $113.90.

$100/week Challenge --- Week 28   S&P 500:  2004

Energy companies continue to fall along with oil prices.  This morning oil was trading around $76 a barrel.  This is creating a tremendous amount of pressure within the broader energy sector. On the other hand, I noticed Clorox was trading over $102 and Procter is close to $89.  This may be related to the recent Ebola outbreak.  In any event I am glad that I own both. 

I should reach my goal of $14,500 in forward passive income within the next couple of weeks.  It should be noted that about $200/year comes from ARCP so I may actually still be short.  Regardless of what happens to ARCP, I will still hit the goal even with smaller weekly investments especially with raises still to come from T, GE, and PFE.

Stock on the radar for next week include the above companies along with IBM, GE, XOM, UL, and COP.

20 comments:

  1. Great purchases. The energy sector drop is a welcomed event, allows us to buy energy companies at a cheaper price. ARCP has been an interesting development. I'm monitoring on the sideline. Not exactly sure if it's worth it to buy a small amount of ARCP shares at current low price or not.

    ReplyDelete
    Replies
    1. Tawcan,

      I am loving the energy sector right now. They continue to look undervalued in relation to the rest of the market. Of course they could end up staying that way for years which could become a problem from a growth perspective.

      MDP

      Delete
  2. Nice purchases MDP. The energy sector has been on a downward trend and is giving some attractive prices. Nice time to add some stocks in that sector. I want to add to my PG position, but it just keeps going up. So waiting until it cools down a bit.

    ReplyDelete
    Replies
    1. DGJ,

      Energy is the side of the pond that I will continue to fish in. Hopefully this strategy is fruitful. I agree with you on PG. UL seems to be a decent alternative right now.

      MDP

      Delete
  3. Do we ever doubt that energy will bounce back and we'll look at these days of lower gas prices and stock prices with fondness. I like the BP selection the most from the above. Your annual dividends are my real world motivator. Thanks for sharing. Look forward to next week.

    ReplyDelete
    Replies
    1. DivHut,

      Unless we are in some kind of super cycle bear market with oil I think this is a good long term strategy. As of right now, there are no cost efficient alternatives to oil and developing nations will continue to use crude as they grow their economies.

      MDP

      Delete
  4. $14,500 in forward income is amazing! I've been thinking of adding some more energy to my portfolio as well, and of course, I welcome the lower gas prices.

    Looking forward to next week's purchases!

    ReplyDelete
    Replies
    1. Seraph,

      Thanks for the comment. Low gas prices are one of the reasons I have been adding to GM recently. Their profits live and die with trucks and suvs so I think they will benefit for a while from the oil pullback.

      MDP

      Delete
  5. Some good buys MDP! I am looking at BAX, CVX, XOM, and a few others as well. I was able to snag some BBL earlier this week, which added a nice boost to the forward income.

    ReplyDelete
    Replies
    1. W2R,

      I like all the companies you mentioned and will be adding to them for the coming weeks and months.

      MDP

      Delete
  6. I like the energy plays. Really beaten up. Much more upside than downside potential right now at these levels. Just gotta stick with the big names as the small ones might get squeezed out if we head lower.

    ReplyDelete
    Replies
    1. AG,

      Yeah, big oil names are where I plan on buying at least while they are down. Some big names are yielding 4-6% which is great even though there is some risk.

      MDP

      Delete
  7. Race ya to $14,500 :). Have you thought about your 2015 goal yet? Ive started doing some mental math and am coming up with somewhere around $17k forward dividends.

    ReplyDelete
    Replies
    1. AA,

      Ready...set...go! You actually have me beat if we only count dividends. About $3k of my passive income comes from junk bonds. As far as 2015 goes, I hope to be between 17.5k and 18k in passive income. I plan on cutting back on my weekly purchases, so I will have to rely more on dividend increases and DRIPing.

      MDP

      Delete
  8. MDP,

    Interesting purchase into GM, very interesting. Also, thought I haven't calculated - how heavy is your portfolio in oil? I am curious, thanks! Congrats on the additional bang to your dividend income projections.

    -Lanny

    ReplyDelete
    Replies
    1. Lanny,

      Actually my exposure to "oil" is relatively low. My BP position is the largest and is larger than my XOM and RDS positions combined. I would say the three make up somewhere around 6% of my portfolio. I do have energy related positions in KMI and ESV, but they are not pure oil plays.

      MDP

      Delete
    2. Whoops.....I forgot about my CVX position. That brings my total oil exposure to about 8% of my portfolio.

      Delete
  9. Natural resources do seem to be cheap right now. I see you are buying BBL. I've been debating for awhile now on that one but still havent pulled the trigger. I'd like to see it level off first.

    ReplyDelete
  10. PMU,

    It looks like BBL is trying to find a bottom in the low 50s. I don't know for sure, but I will be buying more shares at these levels and lower.

    MDP

    ReplyDelete
  11. You are just killing it with these purchases! 14,500 is incredible. BP is hard to resist here at this yield even though I have a large position. I had originally targeted 14k in forward income for this year but am going to fall short. I should be at the 12k milestone by the end of this month though. Keep up the good work!

    ReplyDelete