Tuesday, January 27, 2015

Weekly Sharebuilder Purchases

Here are my automatic investments for this week.

  • BBL:  5.81 shares @ $43.05 --- Yield  5.76%
  • T:  7.61 shares @ $32.85 --- Yield  5.72%
  • CAT:  3.14 shares @ $79.71 --- Yield  3.51%
  • JNJ:  2.46 shares @ $101.17 --- Yield  2.77%

Total capital invested is $1000 ($250 in each company). The combined yield on these purchases is 4.44% and will add $44.44 to my yearly dividends.

The market is taking a beating today with the DJIA down about 350 points.  Oil prices actually seem to be stabilizing a bit, at least for the time being. It has been a while since I have added to T and in an effort to continue improving the quality of my portfolio I initiated a position in JNJ which quite frankly is long overdue.

After selling off my ARCP shares yesterday, it feels going to resume my journey buying incoming producing assets and these four should be reliable producers for some time to come.

Companies on my radar for next week are CAT, MSFT, KO, JNJ, PG, T, GM, GE, CVX, and PM.

Looking at the falling CAT and MSFT prices, I may use my ARCP proceeds today to pick up some more shares of one of these companies.

21 comments:

  1. More great purchases! I too am now considering more MSFT. I haven't added any money to microsoft in over 6 months so I might consider adding some.

    ReplyDelete
    Replies
    1. Fox,

      I actually bought my shares back in the middle of 2013 for around $31. I think the lower 40s with a yield around 3.00% looks pretty good here.

      MDP

      Delete
  2. Good day to buy. Wow ATT is a great yield right now.

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    Replies
    1. AG,

      T is a giant cash register. I like it here in the low 30s.

      MDP

      Delete
  3. MDP,
    A lot of these are on my radar today too. I'm considering averaging down on CAT, adding to my PM holdings, or initiating a position in MSFT or JNJ today. Still waiting to see how this plays out and not sure of my next move. Strong US dollar obviously a concern right now.
    -RBD

    ReplyDelete
    Replies
    1. RBD,

      It's nice to see some great options outside of the energy sector. The four you mentioned look great!

      MDP

      Delete
  4. Nice purchases, MDP. Looks like MSFT is taking quite a beating today. Looks lucrative.

    R2R

    ReplyDelete
    Replies
    1. Roadmap,

      Yeah, I bought my shares back in the middle of 2013 after an earnings miss. It fell about 10% on that day as well.

      MDP

      Delete
  5. I added CAT and MSFT, waiting T at 32 and JNJ at 100

    ReplyDelete
    Replies
    1. finanzasmania,

      I think you will have chances to pick up those companies at your prices.

      MDP

      Delete
  6. Great purchases. MSFT might be a good buy. :)

    ReplyDelete
    Replies
    1. Tawcan,

      No worries about Microsoft paying its dividend. It is overloaded with cash. That's a good thing.

      MDP

      Delete
  7. I added to CAT as well. Couldn't resist a 7% drop!

    ReplyDelete
    Replies
    1. Seraph,

      Congrats on the purchase. Hopefully it stays down here for a while.

      MDP

      Delete
  8. like the CAT and JNJ buys. As with your last buys you are hitting on some serious current yield with your weekly purchases. The CAT drop took many by surprise but I guess with a strong dollar and weaker global demand CAT's products just don't make sense for many abroad. It is, and always was a cyclical stock so this drop may just present a good buying opportunity. Thanks for sharing.

    ReplyDelete
    Replies
    1. DivHut,

      It's crazy the how the dollar and the commodity collapse are affecting all these companies. Everywhere I look there are some wonderful companys that have fallen $30-40 per share in very quick fashion. These are the opportunities everyone wants when stocks are high and everyone fears when the price drops occur. I am going to continue holding my nose and buying.

      MDP

      Delete
  9. Always interesting to see what your thinking. I've viewed AT&T as a value trap but maybe it needs a second look. I keep adding to my energy purchases.

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    Replies
    1. Adam,

      It is a value trap, but I love receiving and reinvesting the dividends. Around 6% seems to be pretty solid. Over that and I will be adding aggressively.

      MDP

      Delete
    2. 6% is certainly solid. Can't beat the yield.

      Delete
  10. Hi MDP,

    I'm a newer investor(30yrs old), and have read article like this one:

    http://www.financialsamurai.com/better-to-invest-in-growth-stocks-over-dividend-stocks-for-younger-investors/

    Everything in that article make sense to me, so why would anyone invest in dividend stocks. If you had put all your money in a company such as Tesla or Amazon from the very beginning, you'd be super rich today.

    ReplyDelete
    Replies
    1. Rick,

      As the saying goes there is more than one way to skin a cat. I have no problem with growth investing or index investing either. In fact my retirement accounts are Vanguard funds.

      Ultimately investing in good businesses, dividend payers or not is what is most important. I personally feel like a dividend companies are more mature and established and can weather storms better than growth companies simply because typically have proven business systems that have large moats and are cash generating machines.

      I like to use a real estate example as well. If person A buys a property today for 100k and then sells it 10 years later for 250k then he made a good investment. Likewise if person B buys a house today for 100k but keeps it and rents it out making $5,000 a year net income that is a good investment also. The first example is a spec play and the second is an income play. I prefer income to speculation.

      MDP

      Delete