Here are my final purchases for the week.
- WPC: 28 shares @ $55.87 --- Yield 6.87%
- IBM: 12 shares @ $129.92 --- Yield 4.00%
- ADM: 48 shares @ $31.46 --- Yield 3.56%
- UL: 38 shares @ $39.97 --- Yield 3.40%
- AAPL: 16 shares @ $96.83 --- Yield 2.15%
Total capital invested is $7736.37. The combined yield on these purchases is 3.99% and will add $308.64 to my yearly dividends.
Week 2 for the year is ending a lot like week 1. It is a very crazy environment right now! I'm not sure, but IBM in the 4% range may be an all time high yield (for now). I have never owned AAPL shares before so I am glad to start a new position under $100.
DEFY MEDIOCRITY
Great buy on IBM, I did the same when I saw it under $130.
ReplyDeletePeople will look back and rue not buying such a huge cash machine at 8.9x earnings!
Mike,
DeleteIt's crazy thinking back to 2013 and 2014 when IBMs dividend was around 2% IBM has been a value trap for a few years but I still have faith in Big Blue!
MDP
MDP,
ReplyDeleteI can get behind all of those buys. I am long UL and AAPL already and thinking of adding ADM. Outside of O I do not plan on owning too many REITs, but I know WPC has a good history. Strong yield growth, looks like you are crushing it!
- Gremlin
DG,
DeleteReits are strange creatures. The only one I used to own that has been on a crazy tear is DLR. It just keeps on trucking!
MDP
Great job adding to your dividend stream. I am not quite there yet, but very close. I hope to have $2K a month in dividends by summer. Mostly in S&P ETFs.
ReplyDeleteNNL,
DeleteWow $2k a month in dividends combined with your rental income would be sweet! I hope to get there myself in the next few years. Also I completely understand your index investing strategy. Total passive and frees up a lot time as well. I use a 65/35 Vanguard 500 & Vanguard Bond split for my 401k. Right now the bonds are doing great! :-)
MDP
My only advice, for what it's worth, is to be patient with your buys since you're still mostly cash. Historically speaking these markets are primed more for future declines than upward trajectories save for short-lived spikes. The bear has been digging in for awhile now, one sector at a time. Now most sectors are looking bearish.
ReplyDeleteDWC,
DeleteI tend to agree with you. This market is looking very similar to the 2000-2002 bear market. Presidential year, low oil, high flying momentum stocks losing energy, etc etc. If only tobacco stocks were trading at 6 PEs and 8% yields life would be great! LOL
MDP
I know you are eager to jump start your dividend machine but this is a pretty heavy buy tranche especially after your recent buys not long ago. I kind of agree with DwC above. While these are great prices, values and yields, temperament with your purchases might be a little wise at this time. I just recall all the dividend bloggers buying up anything oil and materials super fast only to become overweight in the sector only to sell after severe declines in price or divvy cuts. The market will still be around next month and next year and next decade.
ReplyDeleteDivHUt,
DeleteRestraint restraint restraint! OK I feel better. Like I mentioned above this market has a slow train wreck appearance and I need to do a better job buying smaller amounts at wider intervals. This has always been difficult. We'll see how I do. :-)
Thanks for stopping by!
MDP
Fantastic stock buys. I am a fan of every company you bought. Let's hope the bleeding stops soon and these stock start gaining price momentum. If they don't we can always buy more ad reduce our cost basis.
ReplyDeleteIH,
DeleteThanks for stopping by! I have no idea what direction the market is going head, but since I am still about 85% cash I prefer lower. With that said I understand that a much lower market could signal a recession and that is never a good thing.
Stay focused and keep adding coal to the fire!
MDP
These look like solid companies. I've looked at IBM before but just can't buy the "artificial" earnings per share created by buying a tremendous amount of shares. They are getting into some other business as of late that could pay off down the road but I'm looking for increases in revenues. The value certainly looks to be there but I'm always cautious with any tech purchases and don't own any currently. Good luck and I'll be watching all of your crazy buying streak. Like some other posters mentioned, there's not rush to deploy your cash. I'm actually expecting a recession of sorts in the next year or two. You never know but it's great to be mostly cash right now.
ReplyDeleteAAI,
DeleteYeah IBM has been in a major funk for some time. A while back it was at $200 a share and now looks to be heading towards $100. I feel good about the dividend, but the business is not performing like in years past. I probably will hold off with any more purchases for the remainder of the month. I do want to get my portfolio back up to much higher levels and earning dividends again though.
MDP
MDP...All I can say is wow! I've been tracking your activity in our Recent Buys Collection and you are certainly leading the way with your activity this month. Not sure if I've missed a few or not but I have you down for 14 total buys this month and the month is only half way complete.
ReplyDeleteLooking forward to seeing what you pick up next week. AFFJ
AFFJ,
DeleteI have lost track myself. It has been a crazy month to invest in. I have a lot of catching up to do, but will try not to go all in. I plan to take several years to redeploy all my cash.
MDP
Hi MDP -- these are great buys! Although I don't own ADM and UL, those are on my watch list. Picking up IBM for 4% is great -- congratulations! Observers are very critical of IBM, but the corporation isn't going away anytime soon. IBM has, yet again, filed the most patents in 2015 of any company in the world.
ReplyDeleteTake care!
FerdiS, DivGro
FerdiS,
DeleteI didn't know that about the IBM patents. Pretty cool! You are right about IBM and the current yield. Even if the dividend growth rate slows, starting at 4% is a great place to be.
MDP
That's a great combined yield. When stock prices become volatile it's good to still have that reliable stream of dividend income. Speaking of which, I've included your dividend situation in my recent post to inspire readers to become dividend investors. I presumed you're making about $22K a year in dividend income. Let me know if this number is off and I can correct it. :) Thanks.
ReplyDeleteLiquid,
DeleteThanks for dropping by. You would have been correct if I had not gone through a divorce late last year. I actually liquidated about 90% of my stocks and what I didn't give to my ex-wife I kept in cash.
Currently my yearly dividends are around $8k including taxable and retirement accounts. By year end I hope to be back in the 5 digit club somewhere around 10k per year. I'm probably 3 or 4 years away from getting back to where I was.
MDP
Thanks for the explanation. Sorry to hear that. I'm sure you'll have no problem getting back to where you were. Divorce can be a financial pain, but it can't take away your experience and human capital. #GoTeamDividends
Delete