- APU: 13.14 shares @ $45.66 --- Yield 7.71%
- BP: 11.67 shares @ $51.41 --- Yield 4.55%
- PAYX: 14.2 shares @ $42.18 --- Yield 3.60%
- CAG: 19.38 shares @ $30.96 --- Yield 3.23%
$100/week Challenge---Week 12
After 12 weeks I have added $1400.17 to my yearly dividends not counting DRIPs and dividend increases. My year end goal is to reach $14,500 in forward dividends/interest. Currently my forward dividends are around $11,700 (this is an estimate because some of the income is from mutual funds and high yield bonds). Doing some "back of the coaster" math I need to average about $117.00 per week for the rest of the year to reach my goal.
August through December changes.
Here is the hard part. I have been playing around on the fringes with high yielding companies like ARCP, ESV, and APU to reach my $100 week objectives. There is nothing wrong with these companies and I believe the yield is artificially high because they have been temporarily out of favor. DLR is another such example that was yielding close to 7% last fall after the REITs corrected. The price plummeted to the mid $40's and is now around $60 with a yield close to 6% after a large dividend increase earlier this year.
I actually like acquiring companies that are accidentally high yielders and periodically purchase companies that are part of the "Dogs of the Dow." This year's small dogs that I own include Intel, Cisco, Pfizer, General Electric, and AT&T. These have been good performers so far this year and I will continue using this strategy for part of my portfolio. With that said, I plan on buying the so called 800 pound gorilla companies starting in August.
Companies on my radar for next month and the rest of this year include:
JPM, JNJ, XOM, PEP, KO, MSFT, MCD, PG, MO, GE, AAPL, WFC, and CVX.
As is always the case, I will not rule out purchasing other companies, but these will get most of my attention.
Great progress, MDP. Hope you arent sacrificing quality in the reach for yield for your $100/week challenge. Some really good strong names on your watchlist. I'd be interested to see which ones you'll pick.
ReplyDeleteBest wishes
R2R
R2R,
DeleteI have probably strayed away from my ideal mix of companies as I have tried to increase dividend income in a relatively short period of time. Usually I buy 3 or 4 "safe" companies and one high yielder. Like I mentioned, I will be buying bread and butter companies for the most part starting next month.
MDP
Congrats on another successful week.
ReplyDeleteSome big names in your watchlist a few of which I am also looking at. Will be interested to know which ones you buy.
DGJ,
DeleteThanks for the comment. I will be following earning season pretty closely. One of my best purchases a year ago was Microsoft when they reported a poor quarter and dropped over 10% in one day to $31. I wish I had bought more. The next few weeks should be interesting!
MDP
Hey,
ReplyDeleteGreat progress. Nice to see you are on track to achieve your year end goal. I like the companies on your radar, a lot of those are on my radar as well, especially PG which seems to be a good candidate for a drop if market sentiment deteriorates. I have just started looking into UTX which suffered a recent drop and I thought it might interest you, it has a great track record and a strong FCF, but the dividend is only 2%.
Best wishes,
Dividend Venture
DV,
DeleteI really like PG and the fact that it hasn't run up like many others is fabulous for longer term accumulation. I will have to take a look at UTX. I have been watching HON and GE and would definitely consider adding another industrial company in the future.
MDP
MDP,
ReplyDeleteYou're on a roll! I don't follow some of these companies, but that forward dividend income is sure nice! Color me green with envy. :)
Keep it up!
Best regards.
DM,
DeleteI think you will notice more of the usual suspects during the next few months. I will however, throw in a curveball every now and then simply because I can't help it. :-)
MDP
Thanks for sharing your weekly purchases with us. I used to own APU a while back. I had it for a good 2 years collecting those dividends before I sold my position. Definitely a great stock to own but you have to watch it more closely that say a KO, MCD or GIS.
ReplyDeleteDivHut,
DeleteI will definitely be watching APU closely. It look like they have had solid dividend growth for a number of years, but propane business is hardly predictable. Thanks for the input and the comment.
MDP