Here are my automatic investments for this week.
- RDS-b: 4.76 shares @ $62.91 --- Yield 5.98%
- PM: 3.95 shares @ $76.00 --- Yield 5.26%
- NOV: 6.01 shares @ $49.96 --- Yield 3.68%
Total capital invested is $900 ($300 invested in each company). The combined yield on today's purchases is 4.97% and will add $44.76 to my yearly dividends.
This is the lowest price I can remember purchasing PM. I will probably continue to add even though it is my largest position. It still seems odd to me how PM and MO have continued to head in opposite directions over the past couple of years.
I also started the process of dismantling my mutual fund holdings yesterday. Overall I have a little over $120k spread across two funds CAIBX and AHITX. I started the process with a relatively small reduction. I will sell a similar amount of my junk bonds withing the next month as well. Capital gains will come into play with this transition so I will most likely take my time with the process.
I sold 100 shares of CAIBX yesterday at $59.97. which will net me $5997 and will reduce my yearly dividends by $200.00.
I have not decided if I will make one larger purchase or just keep averaging in on a weekly basis. Most likely I will use some type of combination.
Companies on my radar for next week include JNJ, CAT, XOM, CVX, BBL, NOV, PM, RDS-b, UL, and KO.
DEFY MEDIOCRITY
As always those numbers are inspiring. That snowball has to be an avalanche at this point!
ReplyDeleteAdam,
DeleteThanks!!! I don't think I am at "Avalanche" mode yet, but another couple of years of investing and I will be getting closer to FI that is for sure!
MDP
MDP, good job with making purchases on quality companies. You can't go wrong with this strategy.
ReplyDeleteDiv4son
Div4son,
DeleteThanks for stopping by! Energy companies continue to take a beaten, but I am surprised PM keeps hitting new lows. I like all three companies still and will continue adding to these positions.
MDP
Hey MDP. Keep up the good work bud. Always appreciate you sharing in your thoughts and processes. Thanks my friend.
ReplyDeleteHustler,
DeleteNo problem. I just keep throwing more coal in the fire so this train can keep rolling down the tracks.
MDP
Great things again! Some nice ones on your radar as well!
ReplyDeleteDivGuy,
DeleteThanks. The energy side of my portfolio is pretty bruised right now, but good things will happen as time goes by. This dividends received this month from energy companies is pretty cool!
MDP
MDP,
ReplyDeleteGreat pickups again this week. PM continues to surprise everyone to the downside. We added some more today as well at $75.71. Keep up the great work as the market continues to provide good value in certain unloved sectors.
FD
FD,
DeleteGreat job picking up PM. I certainly have some unloved companies in my portfolio. One of these days the love will come!
MDP
MDP,
ReplyDeleteAwesome watching your progress. Strong adds. I like your move away from the Index Funds. You do a better job than they do anyway.
- Gremlin
DG,
DeleteI agree completely. I can't wait to invest the proceeds from the mutual fund sale in April.
MDP
Great purchases, what's even better is that you're selling your mutual funds. :)
ReplyDeleteTawcan,
DeleteI should have sold more funds last year, but many have untaxed gains. I don't want to take too big of a tax hit as my bracket is very unfriendly right now. :-(
MDP
Hi MDP,
ReplyDeleteI was wondering, have you posted an analysis of the companies you are purchasing? I am curious to see what type of things you look for in an investment. If you have already provided this somewhere on the site, please kindly share the link.
Best Regards,
DGI
DGI,
DeleteI am not really into writing up analyses of companies in which I would like to invest. There are already many of you who already do excellent work in this area. This blog is primarily an investment journal that helps with my own accountability. I am trying to reach FI in a rather short time frame.
Also, not to sound like a disclaimer, but I really am not interested in trying to influence anyone to make any specific investment decisions.
If there is a minor theme to my overall strategy, you could say it is loosely based on the Dogs of the Dow strategy...more specifically on the small dogs.
MDP
http://jlcollinsnh.com/2014/11/12/stocks-part-xxvii-why-i-dont-like-dollar-cost-averaging/
ReplyDeleteLR,
DeleteInteresting read.
I am a bit confused as to what dollar cost averaging is. If I invest money as it becomes available to me is that dollar cost averaging? Does someone who habitually contributes to his 401k as he receives his monthly paychecks dollar cost averaging? I would argue that someone who invests regularly as the funds become available is doing the opposite.
If my employer paid me $200k up front today and I invest $900 today, $900 next week, and so on that would be averaging into the market. If I played and won the lotto and invested a small sum periodically of several years, then that would be dollar cost averaging.
What is not dollar cost averaging is putting the money available in my checking account today into the market immediately. I can't invest what I don't have.
I guess I could save up for 2 or 3 years before investing and then dump it in all at once. That would unfortunately be market timing and leaving money on the sidelines which has the same negative effect as dollar cost averaging.
There are many ways to invest and build wealth. The most important thing is to stay off the sidelines which sadly, is what most people do.
MDP
Your consistency is awesome. PM is looking very attractive here but I'm sitting on pretty much no capital. But luckily things should start to turn around on that front and I'll be able to start doing regular investing in a month or two.
ReplyDeletePIP,
DeleteThanks a lot for the kind words. Considering your circumstances, I would say you are the true inspiration and I am in awe of your efforts month in and month out.
MDP
Like the PM buy. I have seen quite a few dividend investors adding or initiating positions in PM in recent weeks. Nice current yield among all the buys though. Seems like energy has taken a back seat in recent weeks for many investors. Interesting to see some additions for the week. Thanks for sharing.
ReplyDeleteDivHut,
DeleteI am a bit heavy in PM, but it seems very attractive here. Despite the energy side of my portfolio taking some major hits, I will continue to add while occasionally making larger purchases in other sectors.
MDP
You surely averaged down the purchase cost of PM. Nice job! I am thinking to purchase at least 20 shares more in my portfolio to make up my total shares to 100. Then I am considering to write covered calls for a little extra income.
ReplyDeleteMU,
DeleteThanks. You are definitely right about averaging down on my cost basis. Right now my basis is about $81. That gives my a YOC of just under 5%. Hopefully PM will continue to be unloved and I can further lower my basis.
MDP
Great list of stocks. I added to my PM position in March and also initiated position in NOV last week. Looking forward to adding either stock if capital permits. I have been adding KO, T and WMT for the last couple of weeks.
ReplyDelete