Thursday, January 5, 2017

Recent Buy --- M


Today I added to my Macy's position.





  • M: 47 shares @ $30.69 --- Yield  4.92%

Total capital invested is $1449.38 and will add $70.97 to my yearly dividends.

Retail stocks are getting hammered across the board today so I decided to jump into what I consider a deep value play. It's hard to believe that M was trading around $45 a little over a month ago. Anyone who has followed me for a while know that I am not afraid to jump into unloved industries. I originally exercised an $32 M call several months ago. I almost purchased a call today but just decided to add a few shares instead.

Forward dividends are around $6120.

I will hit $10,000 in forward dividends THIS YEAR!


24 comments:

  1. I bought small number of both M and KSS (Macy's an Kohls). Don't know if the selloff in retail is over yet so I may average down again - especially if the dividend yields hit %5.

    ReplyDelete
    Replies
    1. JLH,

      I agree with you about retail being rocky for a while. Great job picking up KSS an M on the low.

      MDP

      Delete
  2. Jumping in when others are getting out. That's the best time to get in. The whole sector is really getting hammered which seems a bit overdone by those crazy drops we are seeing. Great yield you are capturing because of that price drop. Nice job!

    ReplyDelete
    Replies
    1. DivHut,

      Yeah it reminds me of the energy sector last year. I don't know exactly how this plays out, but I'm willing to chance a small part of the portfolio.

      MDP

      Delete
  3. How do you feel about adding what I call "Alternative" options to a portfolio (MLP's, BDC's , oil trusts, REits, Mreits, etc). I've been looking for an inexpensive, high volume ETF that may contain all of these to make paperwork simple, but I have not found a good one yet. I'm wanting to add something like this to my taxable account (15% income bracket).

    ReplyDelete
    Replies
    1. JLH,

      i owned some share of APU last year, but I typically stay with traditional companies. But money can be made many different ways!

      MDP

      Delete
  4. Very nice purchase..I also sold a cash secured put on TGT today. Will update my blog post soon.
    Keep up the good job!

    ReplyDelete
    Replies
    1. MU,

      I'll be watching for your post. I am thinking about adding to my small TGT position also if it drops below $70.

      MDP

      Delete
  5. My opinion is Sears is probably a bad long-term investment, as is Kohls. Amazon has really changed the game, and people love the convenience of the digital buying experience. UAA, VFC and OXM are all better companies, with better upside, in my opinion. Keep up the great intensity though, love the energy!

    ReplyDelete
    Replies
    1. Anonymous,

      There is always a risk with any company and sector. A year ago investing in energy looked foolish and now the companies for the most part have recovered nicely. Unfortunately the deep values typically lie in the middle of a graveyard not a rose garden.

      Thanks for stopping by and commenting!

      MDP

      Delete
  6. Why M? I don't understand the reasoning. Choice can't be purely based on past dividends? Please help me understand your long term thinking.

    Thanks,
    Dividend Geek

    ReplyDelete
    Replies
    1. dividendGeek,

      It's basically a contrarian move. How it pans out, we'll see. It's an iconic brand that is trading at 30 down from 70. Will it hit 20 or lower? Maybe. The last time it hit the low 30s it bounced and has had 6 years of dividend increases with a 50% payout ratio.

      MDP

      Delete
    2. Thanks MDP. I see your point. I guess in the long run you average it out.

      Delete
  7. Congrats on $10,000 in forward dividends!

    ReplyDelete
    Replies
    1. dG,

      Actually just over 6k but will hit 10k later this year for sure!

      MDP

      Delete
    2. OOPS. But, I am sure you will make it to 10k. Good luck mate.

      Delete
  8. MDP -

    You're a wild man, and I dig it, hope Macy's tears it up for you!

    -Lanny

    ReplyDelete
    Replies
    1. Lanny,

      Thanks brother! We'll see how it goes. Still only 1 of 37 companies so I don't mind rolling the dice a bit here.

      MDP

      Delete
  9. Macy's a risky bet with 68 stores being closed and the potential for either a dividend cut or elimination to conserve cash. They are basically in survival mode like JCPennys, Sears, and a whole bunch of other retailers.

    ReplyDelete
    Replies
    1. Anonymous,

      It certainly is. So was BBY a year ago and it was able to turn things around. I think M will do the same.

      MDP

      Delete
  10. MDP-

    Do you reinvest your dividends or take as cash for later buys?

    ReplyDelete
    Replies
    1. Mat,

      I reinvest everything except the RDSb shares.

      MDP

      Delete
  11. Hey MDP, heard of your unfortunate circumstance today and really feel for you. Divorce is a real killer to personal finance but you inspire us all with the way you're bouncing back. Will be following

    ReplyDelete
    Replies
    1. Rory,

      Yeah....there is never any shortage of hurdles in life (personal or business). We pick up the pieces and forge ahead.

      Thanks for the kind words and the comment!!

      MDP

      Delete