Today I decided to re-initiate my AAPL position.
- AAPL: 25 shares @ $92.96 --- Yield 2.45%
Total capital invested is $2330.91 and will this will increase my yearly dividends by $57.00. AAPL is currently trading about $40 per share below its 52 week high and I think offers decent value here. I started of with a fairly small position and will gladly add more in the mid $80s if that happens.
I was close to buying CSCO or ABT as well today and still may. I think both look attractive especially CSCO yielding around 4%.
I still have a desire to keep $300k in cash and am within $14k of that number right now. I am really pleased with my restraint during the past few months, so I decided to reward myself with a small purchase. Knowing me though, this is probably a break in the dam that will have me going "bat shit crazy" with more purchases in the near future!
Stay tuned!
DEFY MEDIOCRITY
Why drive yourself crazy not making buys? The point of being a dividend investor is to create a growing passive income stream. That doesn't happen sitting in cash. You don't have to make a $100k buy next week but it's OK to keep nibbling on various positions every few days or once a week.
ReplyDeleteDivHut,
DeleteI need a psychiatrist! LOL I guess with the recent divorce and the Houston economy I have been playing it safe. SHAME SHAME SHAME. I will probably do just like you suggested. I plan on adding weekly, not Sharebuilder auto buys, just even numbered buys like today.
Way to call me out! I love that shit!
MDP
Oh no, MDP started buying again :) Seriously, nice job with the restraint. You're a smart guy. If holding a bunch of cash fits your goals and game plan, I applaud you for doing so. At this moment, building up our cash fits my family's needs.....so we've been doing so over the past year. Better opportunities are coming :)
ReplyDeleteI hope Houston doesn't get too sloppy with the oil downturn. I saw JC was laid off this week. On second thought, I have been wanting to buy some real estate in College Station.....so a real estate collapse in the area might help advance my goal. I hope your week finishes up well
-Bryan
Bryan,
DeleteHouston is in a lot better better shape now than 30 years ago, but still suffers through the boom/bust cycles like before. Now there is much more technology and medical related industries to help buffer falling oil prices. Good luck with you College Station real estate endeavor. Being a Longhorn, I avoid that cow town like the plague. :)
MDP
I completely get the urge to buy and the desire to play it safe. I have an unquenchable desire to BUY BUY BUY....but also the urge to play it safe. I tried to play it safe (and hold back my buying urges) in 2013 and missed out on the market being up 32%. Lesson learned. I now keep a large chunk reserved for "playing it safe" and investing heavily when those great opportunities arise. But also allow/require myself to make modest purchases twice a month. This way, I'm always adding, satisfying my urge to buy but also staying somewhat safe with the holdback. Something like this could work for your temperament.
ReplyDeleteBGH,
DeleteYour approach totally makes sense to me. Small purchases often and then unload with both barrels when the shit hits the fan.
MDP
Solid buy MDP! I think your idea of saving up your cash reserve is a great idea, given all the stuff you've been through lately.
ReplyDeleteTawcan,
DeleteI love having the cash, but hate the limited cash flow. I really just wanted some time to digest everything and not worry about managing a portfolio. Now that six months has passed I feel better about things in my life and will get back to building the portfolio.
MDP
Ah, so hard not to take a bite out of AAPL with their recent downturn. I just don't like the idea of holding tech stocks when a bear market hits. Even though we're not there, I feel that in the next three years, it will most definitely hit. I'll keep loading in myself to some other stocks but tech... not so much, even with AAPL so attractively priced! Glad to see others aren't holding back as much as me though. It could very well pay off for you!
ReplyDeleteDiv Reaper
DR,
DeleteHolding tech stocks through bear markets is not fun, except mabye AAPL over the last 8 years. I remember the 00-02 bear market vividly and even the strongest companies like MSFT, INTC, and CSCO lost around 70% of their value. I don't believe 17 years later any of them have fully regained all the market cap losses.
In fact I believe INTC and CSCO may still be trading below 50% of their all time highs. Scary stuff indeed.
MDP
Congrats on the buy, I think Apple will have another great year when they release the iPhone 7 - they will continue to be on the the great new age tech companies that all consumers use.
ReplyDeleteTristan
Dividendsdownunder,
DeleteI agree with your assessment. The growth may slow, but I think Apple continues to mature it will turn into a giant cash cow like Microsoft. The dividends should flow for years to come!
MDP