Tuesday, December 9, 2014

Weekly Sharebuilder Purchases

Here are my automatic investments for this week.   S&P 500:  2042

  • RDS-b:  2.93 shares @ $68.21 --- Yield:  5.51%
  • MCD:  2.19 shares @ $91.31 --- Yield:  3.72%
  • IBM:  1.24 shares @ $161.43 --- Yield:  2.73%

Total capital invested is $600 ($200 in each company). The combined yield of these purchases is 3.99% and will add $23.94 to my yearly dividends.


Energy companies continue to fall so I will keep adding to these positions. Energy currently represents 12% of my overall portfolio, therefore I still have room to expand these holdings. I would ideally like to be around 15%. If I am temporarily out of balance that is ok. I believe 20% of my portfolio in any one sector would be too high.

Also, I have noticed that Canadian banks have been taken to the proverbial "woodshed" in recent week so I may start to take a closer look at some of these companies. I have a strange feeling that the falling energy and commodity prices are starting to spread to the banking sector. Hopefully their loan portfolios aren't over-exposed to unstable energy companies. Significant problems could start to arise if that is the case. I will do some more research, but most likely I will continue to stay away from the banking sector. I really hate to rule out any sector, but as a whole this is one that has not had a very good track record in my view.

Stocks on my radar for next week include T, VZ, IBM, CVX, RDS-b, BBL, GM, and GE.

14 comments:

  1. RDSB is looking really interesting at these levels. When I looked at it a few months ago, it was trading around $85 adn thought it was too expensive and discarded the idea of investing. But now that its in its mid-60s, its tempting. I will have to revisit and consider it.

    Thanks for sharing your purchases.
    R2R

    ReplyDelete
    Replies
    1. R2R,

      Thanks for the comment. I have been purchasing shares as low as 68 and as high as 82. I really like the yield here and will certainly add more shares at this level and lower.

      MDP

      Delete
  2. MDP,
    I definitely agree with R2R! Shell was on my watch list then I took it off but with the oil weakness it is back on my list of compelling values right now. Gotta love MCD and IBM as long term investments as well. Thank you for sharing!
    FFF

    ReplyDelete
    Replies
    1. FFF,

      There are so many values in energy right now, I sometimes have a hard time deciding what to buy. I will probably focus on the majors right now.

      MDP

      Delete
  3. RDSB is definitely looking very interesting. Great addition to any portfolio. Love your MCD and IMB purchases too.

    ReplyDelete
    Replies
    1. Tawcan,

      Thanks and I agree. All 3 companies look good right now.

      MDP

      Delete
  4. The oil sector continues to be under pressure and seems to be a good time to add these stocks. I recently added COP and BP and plan to add BBL as part of my weekly purchases. Also added small amounts of PG and PM as well.

    ReplyDelete
    Replies
    1. DGJ,

      I saw that and good job. I probably should buy some more PG. I was hoping to pick up shares in the 70s and now its surged up into the 90s.

      MDP

      Delete
  5. Nice purchases MDP. Way to plow ahead and keep moving forward.
    -Bryan

    ReplyDelete
    Replies
    1. IS,

      Steady forward progress and consistent methodical investing is the key to long term wealth!

      MDP

      Delete
  6. It's interesting to see if MCD will become popular among the DGI bloggers as it has fallen quite a bit in recent days. By the same token YUM is also falling on its face. Like the MCD buy. I just posted my buys which was not energy related. Thanks for sharing.

    ReplyDelete
    Replies
    1. DivHut,

      It seems like more than just energy is getting hit recently. I am actually having a difficult time deciding where to deploy capital each week. Most likely I will stay with energy and maybe telecom.

      MDP

      Delete
  7. MDP,

    I am long MCD and really like that buy. I do plan on adding energy stocks and really like your RDS.b buy. IBM is on my watchlist as well. I like the moves you made with all 3.

    What I really find interesting is your take on the Canadian Banks. It will be something worth watching, and I think we all hope they don't get slapped in the face with the falling commodities prices as well. I am interested to hear more on this, as I am long only one bank - CM - from up there. However, they have been on everyone's radar for a while.

    - Dividend Gremlin

    ReplyDelete
    Replies
    1. DG,

      Like I mentioned to Divhut, it seems like several sectors are dropping recently. At least it gives investors extra options when it comes to investing. I like energy and telecom right now.

      MDP

      Delete