Here are my automatic investments for this week.
- RDS-B: 4.03 shares @ $62.06 --- Yield 6.06%
- BBL: 5.77 shares @ $43.29 --- Yield 5.73%
- SO: 5.65 shares @ $44.23 --- Yield 4.75% (initial position)
- JNJ: 2.49 shares @ $100.56 --- Yield 2.78%
Total capital invested is $1000 ($250 in each company) and the combined yield of these purchases is 4.83%. This will add $48.30 to my yearly dividends.
I also sold $6000 worth of my mutual fund holdings ($3000 of CAIBX and AHITX). This sale will reduce my yearly dividends by approximately $285.
I plan on reinvesting the proceeds by the end of this week. One of the biggest factors in selling off some of the junk bonds is the major tax disadvantage. Keeping high yield bonds in a taxable account when my top rate this year was 33% is not a good idea. I may look at investing the AHITX proceeds in higher yield municipal bonds or increase my utility holdings which have similar yields but are taxed at 15% .
SO doesn't look very cheap here, but considering it was in the $53 range a couple of months ago, I decided it might be worth while to start building a position. I think it is a decent substitute for my high yield bonds.
Stocks on my radar for next week include the ones listed above as well as PG, PM, T, CVX, and XOM.