Wednesday, June 1, 2016

First June Purchase --- 3 Dimes on GM







Today I added shares of GM to my portfolio.

  • GM:  100 shares @ $30.19 --- Yield  5.03%

Total capital invested is $3025.94 and this will add $152.00 to my yearly dividends. I have owned shares of GM on and off over the last two years around the $29-31 price range and viewed today's drop as a good re-entry point.  I was also watching NKE and Shell. They had big drops early but rebounded as the day went on. One other industrial I would love to buy again is BA. I will be patiently waiting for a price below $120.

DEFY MEDIOCRITY

16 comments:

  1. I think you are getting great value for your money. I'm keeping a close eye on the stock price in hopes of lowering my cost basis of $31.10. Some say if interest rates go up, GM sales will go down. However, if interest rates go up, i think that mean the economy is picking up - which should be good for car sales. GM seems to have an excellent CEO in place which should do this company some good.

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    1. ADY,

      I know you are one of the few bloggers buying GM. It may drift into the $28-29 range like it did a few months ago. If I remember correctly, you bought some calls, as did I. I closed mine out and didn't exercise them. I don't know whether or not you still are holding yours. If so, they will probably work out well for you.

      MDP

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  2. Thanks for sharing MDP. I will take a look at this as I want to own a couple car stocks. I was thinking of picking up Magna International but am waiting for it to drop more. Was thinking about BMW which is paying a 4 plus dividend. We'll see how I feel as I am obsessed with Renewable energy lately. I picked up some BEP.
    Cheers bro.

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    Replies
    1. Hustler,

      Wow that 4% divvy on BMW sounds great! I understand your interest in renewables. I don't think it is a fad, that space is just difficult to work economically. I'm sure in ten years the landscape will look a lot different.

      I might jump back into UNP as I think railroads are here to stay. Will they ever put solar panels on the roofs of trains? I don't think so, but you never know! :-)

      MDP

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  3. Good Start to new month already.Shell is one of the companies i already own in my account ,maybe you should check under armour if you checking nike.

    ReplyDelete
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    1. desidividend,

      If I did anything with UA it might be an options trade as they currently don't offer a dividend. I'm glad to hear you own Shell, though. I will again at some point.

      MDP

      Delete
  4. Welcome to the GM club. I've got 250 shares myself. Tough to beat the valuation and yield right now. Lots of cushion.

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    1. BGH,

      Very nice share count there! I think GM in the 5% range is pretty solid. They have a very low PE and have room to give generous future raises. If the economy slows down it might fall to $20, but it's definitely not the GM of 10 years ago.

      MDP

      Delete
  5. bought BA & GM last week too, good looks sir, best of luck.

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    1. DKC,

      Nice job! I have owned both in the past and will own them both again at some point in the future as well.

      MDP

      Delete
  6. Good buy. It's not a popular stock with the DGI crowd. I assume it's due to the industry and that too many of us remember 2008. But, GM has done a great job recovering. I hold Ford shares, but I've been thinking of trading them for GM.

    ReplyDelete
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    1. IH,

      The industry is highly cyclical, mired with inefficiencies, and at one time had brutal legacy obligations. I think GM has moved past most of those old problems, but it is still damn competitive out there in the auto space.

      MDP

      Delete
  7. Thanks for sharing. I never thought about GM but it looks promising at this price. This is why when I can't decide which stock to get from my existing list of stocks I like to read about other bloggers purchases. Best wishes

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    1. HHWG,

      GM is in a very competitive and ever changing business. The customers are very demanding and often times fickle. The yield is high and their business model is much more sustainable than 10 years ago. We will see how it goes.

      MDP

      Delete
  8. I don't think GM is too popular with the DGI crowd because it doesn't have a history of increasing its dividend so it doesn't even make it through our screens. I don't know much about the metrics of the company, I just know it hasn't had 20+ Years of increasing dividends (obviously 2008 wasn't great lol) so I don't even get to see its other metrics.

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    Replies
    1. Evan,

      It will never be confused with JNJ or Coke, but I like the value and think the dividends is well covered. A hard recession ultimately will be the test for a company like GM. It is on much stronger ground than a decade ago. Hopefully they keep performing well and making desirable products.

      MDP

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