Tuesday, January 20, 2015

Weekly Sharebuilder Purchases


Here are my automatic investments for this week.

  • GE:  10.28 shares @ $23.63 --- Yield  3.89%
  • MCD:  2.75 shares @ $90.90 --- Yield  3.74%
  • CAT:  2.99 shares @ $83.51 --- Yield  3.35%  (initial position)

Total capital invested is $750 ($250 in each company). The combined yield on these purchase is 3.66% and will add $27.45 to my year dividends.

This is the first week in what seems like forever that I did not add to my energy positions. I still believe that there is tremendous opportunity within the energy sector, but my portfolio is becoming a bit tilted so I decided to take advantage of some weakness in other sectors.

Companies that I will be watching closely include the three listed above as well as JNJ, UL, TD, JPM, CVX, PM, T, XOM, and RDS-b.


18 comments:

  1. I'm ending up highly tilted toward energy as well (not to mention my job). Need to keep looking for other opportunities.

    ReplyDelete
    Replies
    1. Adam,

      The rough and tumble Houston economy is one of the reason's I love creating "location independent" passive income streams. Keep searching for new opportunities.

      MDP

      Delete
  2. Good idea on diversifying outside of the energy sector. :)

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    Replies
    1. Tawcan,

      Definitely. I actually started last week buying shares of TD. I hope to add JNJ to my portfolio as well. With any luck energy prices will stay low for a while so I can continue to build those positions as well.

      Thanks for the comment!

      MDP

      Delete
  3. I like the pickups here MDP as I've been looking closely at GE and CAT, and have added some MCD in my Loyal3 portfolio.

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    Replies
    1. W2R,

      I am glad that we are on the same page. I would love to see CAT continue to stay around 80 and GE in the $23 range. JNJ is starting to look pretty good as well.

      MDP

      Delete
  4. Nice buys. I was considering GE, CAT and MAT over the weekend. All three represent good value wrt their dividend yield. I'm not a huge fan of MCD, but there is no denying the yield is very good.

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    Replies
    1. ADY,

      I noticed MAT is yielding around 5.5%. I made a pretty big purchase a few months back around $30. I probably won't add any more here as I am focusing on other positions. Right now JNJ is on my short list as it is the one "must have" company that I have yet to start a position in.

      MDP

      Delete
  5. MDP,

    Nice buys all around. I like CAT a lot here. It's cyclical, so it's great to catch it down here instead of back up in the $100s.

    Keep up the great work!

    Best wishes.

    ReplyDelete
    Replies
    1. DM,

      You are right about CAT. It can easily get back up to 100 or down to 60 in a quick fashion. I hope it stays in the 80s and lower so I build a position in it.

      MDP

      Delete
  6. I've been following you for 6 months now. You've been a huge inspiration to me and have been one of the main reasons that I will try and reach early FI too!

    Love the buys! It's definitely a change from the energy sector that everyone seems to be buying lately. Question. Is being overweight the only reason you chose not to purchase energy this week? Or do you not feel as strongly about the valuation as you did in the past month or two?

    As always, I'm excited for next week!

    ReplyDelete
    Replies
    1. free2retire30,

      Thanks for the kind remarks. I glad I have provided some inspiration for you. As far as energy goes, I am still very excited about the valuation and will be adding to my positions. It is just a relief to have other options that have come down in price. Hopefully I can continue adding to CAT and start a position in JNJ!

      MDP

      Delete
  7. MDP,

    All 3 of those are excellent purchases. MCD is probably my favorite, as I am building that position through Loyal 3 (what you thought about using that to build a position fee free?). Really they are all giants and should continue to do well in their respective industries.

    Long GE and MCD. I wish I was long CAT too.

    - Gremlin

    ReplyDelete
  8. DG,

    I really like the concept behind Loyal 3 and will look into in the future. I really love Sharebuilder, but I will probably add another brokerage account once my balance reaches a certain level.

    MCD is unloved right now, which puts it squarely in my buying zone.

    MDP

    ReplyDelete
  9. I really like GE at these levels. I would be adding if it was not already over 11% of my portfolio. MCD has been under pressure for a while now, but doesn't seem to drop below the 90s. Planning to add MCD if it drops a bit further.

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    Replies
    1. DGJ,

      Yeah I agree 11% is kind of high, but you are still adding funds each week so you will equalize over time.

      MCD has been under pressure and I wish it would move outside the $89-95 range one direction or the other because I have been buying all of my shares at these price levels. If it drops to the $70s I can then start lowering my basis.

      MDP

      Delete
  10. All three are in my portfolio and have been for a very long time. CAT has really come down a lot from it recent highs as global economic slowdowns seem to be the prevailing story going forward. Pretty solid combined yield for these dividend stalwarts. At least you get paid pretty nicely to wait. Thanks for sharing.

    ReplyDelete
    Replies
    1. DivHut,

      CAT's share price bounces around so fast that I hope I can pick up more shares in the low 80s and lower. I'll probably average in over the next few months.

      MDP

      Delete