Friday, March 6, 2015

Stock Purchase -- PM Again


Today I purchased more shares of PM.

  • PM:  38 shares @ $79.81 --- Yield  5.01%

Total capital invested is $3042.78 which will increase my yearly dividends by $152.00.

Obviously I thought yesterday's PM price of $81.95 was good so why not buy some more today. I wanted to take advantage of today's big market slide and was paralyzed looking at all the choices. Thanks to interest rate fears, companies like HCP and SO have fallen close to $10/share in the last month. T has been drifting lower. Stalwarts KO and PG have great yields and are companies to buy and own for decades to come. I don't even have to talk about XOM, RDS, BP, and CVX.

At the end of the day, I have too much exposure to energy, not that I won't be adding more shares in the future. I just like the yield and defensive nature of tobacco companies and since PM continues to underperform MO, I decided to add once again.

Forward dividends from MO and PM now exceed $1000/year. That has to be a good thing.

I have now regained approximately 75% of the income that I lost from the ESV cut.

I hope everyone has a great weekend!!!!

DEFY MEDIOCRITY

24 comments:

  1. MDP,

    Nice pickup on the PM at pretty much the low for the day. I was actually quite happy to see the market decline today except that I am a bit more limited on ammunition. I did make a smaller purchase of PM though as well this afternoon. There are so many high-quality companies offering great yields of between 3-5% and only so much capital. Have a great weekend!

    FD

    ReplyDelete
    Replies
    1. FD,

      I am not limited on ammo myself. I find it hard to believe that PM at a 5% yield is not a great value. Could it go to 6%??? Sure it could. Companies like T, HCP, BP, Shell, and others are hovering around that range. I will be happy to add more shares on continued weakness.

      MDP

      Delete
  2. Solid buy as always I think. We're not owning PM for personal reasons.

    ReplyDelete
    Replies
    1. Tawcan,

      I understand completely your position regarding PM ownership. There are many substitute companies that can provide great dividends and value.

      MDP

      Delete
  3. Great purchase MDP. Today was definitely a day with lot of opportunities with the market going down. And several stocks look attractive. But I also ended up purchasing PM today at little over 80. I have been eyeing to increase my holding in PM for a while now and was waiting for the price to hit 80. I still haven't got to posting the purchase yet. Will need to do it over the weekend.
    Hopefully next week the market presents additional opportunities like this.

    ReplyDelete
    Replies
    1. DGJ,

      Opportunities were certainly everywhere today! It sounds like you made a good purchase with PM today. If the market continues it drop, I will be on the sidelines next week because my capital is getting very low.

      MDP

      Delete
  4. Really nice. I also purchased some shares of PM today. But you beat me on the purchase price.

    ReplyDelete
    Replies
    1. MU,

      I got lucky as I held off buying anything until the end of the day. Two Fridays ago, PM did the same thing and ended the day at the low. Congrats on your buy!

      MDP

      Delete
  5. MDP,

    Love that you are just saying screw it - boom, purchase. Steering clear of you, you're trail blazing over there, keep at it - nice purchase, great yield, solid growth. Love PM.

    -Lanny

    ReplyDelete
    Replies
    1. DD,

      Thanks buddy! I'm just trying to make up some lost ground with my dividend count. I really did plan on holding off a bit on the purchases. Now due to limited capital I will be on the sidelines again for a while.

      MDP

      Delete
  6. Backing up the truck... this is why you're at $15k dividends already. Find some value and pounce.

    ReplyDelete
    Replies
    1. W2R,

      The truck is backed up and now overloaded. I need to digest these purchases for a while.

      MDP

      Delete
  7. Nice Job MDP. I'm happy that you'll just hustling it up. I'ma buy some PM on Monday bud. Too sweet not to. I wanna build a big position too. Got 83 shares so far. Imagine owning 1000 shares MDP. Lol. Keep it up and much love bud.

    ReplyDelete
    Replies
    1. DH,

      1000 shares of PM sounds insane! Insane in a good way that is. Keep fighting hard over there.

      MDP

      Delete
  8. Like you, I was like a kid in the candy store with the market dropping today. Too many things I want to buy, and not enough money to buy all of it!

    ReplyDelete
    Replies
    1. Seraph,

      Yes too many choices lead to serious confusion on my part. I chose to stay with high yield and defensive business.

      MDP

      Delete
  9. MDP, like you am loading up PM an HCP at these rates. My YOC has now risen above 5% :-)
    - Michael

    ReplyDelete
    Replies
    1. DGC,

      I have big positions in both names you mentioned and would love to continue adding to them. Your YOC is great!!!

      MDP

      Delete
  10. Over $1000 a year from 2 investments... that's awesome!

    I thought of adding to OHI, O, UHT on friday but didnt pull the trigger quite yet. Keep up the great work though MDP

    ReplyDelete
    Replies
    1. ADD,

      Thanks and if there is a big drop next week, I will unfortunately be on the outside looking in.
      REITs are looking very attractive again. Hopefully they will drop back to the 2013 levels.
      MDP

      Delete
  11. MDP,

    Daammmmmn. I don't have any PM or MO, partly because of my own issues and my wife's various threats. However, PM is a great deal and value and should reward you for a long time.

    Congrats,
    Gremlin

    ReplyDelete
    Replies
    1. DG,

      No worries there. Plenty of opportunites are available in less controversial sectors. Good luck either way you decide!

      MDP

      Delete
  12. Nice buy MDP...we are watch PM but don't own any shares currently. But with the recent drop in prices, we may have to initiate shares soon.

    Thanks for sharing your buy...BTW, we added this purchase as well as your last purchase just a few days ago to our Collection of Recent Buys. AFFJ

    ReplyDelete
    Replies
    1. AFFJ,

      Thanks! Yeah I hope you get a lower entry price. It seems like $75-85 has been the range for the past couple of years. Eventually I think it will break out to the up side.

      Best wishes,

      MDP

      Delete