Today I added to my Macy's position.
- M: 47 shares @ $30.69 --- Yield 4.92%
Total capital invested is $1449.38 and will add $70.97 to my yearly dividends.
Retail stocks are getting hammered across the board today so I decided to jump into what I consider a deep value play. It's hard to believe that M was trading around $45 a little over a month ago. Anyone who has followed me for a while know that I am not afraid to jump into unloved industries. I originally exercised an $32 M call several months ago. I almost purchased a call today but just decided to add a few shares instead.
Forward dividends are around $6120.
I will hit $10,000 in forward dividends THIS YEAR!
I bought small number of both M and KSS (Macy's an Kohls). Don't know if the selloff in retail is over yet so I may average down again - especially if the dividend yields hit %5.
ReplyDeleteJLH,
DeleteI agree with you about retail being rocky for a while. Great job picking up KSS an M on the low.
MDP
Jumping in when others are getting out. That's the best time to get in. The whole sector is really getting hammered which seems a bit overdone by those crazy drops we are seeing. Great yield you are capturing because of that price drop. Nice job!
ReplyDeleteDivHut,
DeleteYeah it reminds me of the energy sector last year. I don't know exactly how this plays out, but I'm willing to chance a small part of the portfolio.
MDP
How do you feel about adding what I call "Alternative" options to a portfolio (MLP's, BDC's , oil trusts, REits, Mreits, etc). I've been looking for an inexpensive, high volume ETF that may contain all of these to make paperwork simple, but I have not found a good one yet. I'm wanting to add something like this to my taxable account (15% income bracket).
ReplyDeleteJLH,
Deletei owned some share of APU last year, but I typically stay with traditional companies. But money can be made many different ways!
MDP
Very nice purchase..I also sold a cash secured put on TGT today. Will update my blog post soon.
ReplyDeleteKeep up the good job!
MU,
DeleteI'll be watching for your post. I am thinking about adding to my small TGT position also if it drops below $70.
MDP
My opinion is Sears is probably a bad long-term investment, as is Kohls. Amazon has really changed the game, and people love the convenience of the digital buying experience. UAA, VFC and OXM are all better companies, with better upside, in my opinion. Keep up the great intensity though, love the energy!
ReplyDeleteAnonymous,
DeleteThere is always a risk with any company and sector. A year ago investing in energy looked foolish and now the companies for the most part have recovered nicely. Unfortunately the deep values typically lie in the middle of a graveyard not a rose garden.
Thanks for stopping by and commenting!
MDP
Why M? I don't understand the reasoning. Choice can't be purely based on past dividends? Please help me understand your long term thinking.
ReplyDeleteThanks,
Dividend Geek
dividendGeek,
DeleteIt's basically a contrarian move. How it pans out, we'll see. It's an iconic brand that is trading at 30 down from 70. Will it hit 20 or lower? Maybe. The last time it hit the low 30s it bounced and has had 6 years of dividend increases with a 50% payout ratio.
MDP
Thanks MDP. I see your point. I guess in the long run you average it out.
DeleteCongrats on $10,000 in forward dividends!
ReplyDeletedG,
DeleteActually just over 6k but will hit 10k later this year for sure!
MDP
OOPS. But, I am sure you will make it to 10k. Good luck mate.
DeleteMDP -
ReplyDeleteYou're a wild man, and I dig it, hope Macy's tears it up for you!
-Lanny
Lanny,
DeleteThanks brother! We'll see how it goes. Still only 1 of 37 companies so I don't mind rolling the dice a bit here.
MDP
Macy's a risky bet with 68 stores being closed and the potential for either a dividend cut or elimination to conserve cash. They are basically in survival mode like JCPennys, Sears, and a whole bunch of other retailers.
ReplyDeleteAnonymous,
DeleteIt certainly is. So was BBY a year ago and it was able to turn things around. I think M will do the same.
MDP
MDP-
ReplyDeleteDo you reinvest your dividends or take as cash for later buys?
Mat,
DeleteI reinvest everything except the RDSb shares.
MDP
Hey MDP, heard of your unfortunate circumstance today and really feel for you. Divorce is a real killer to personal finance but you inspire us all with the way you're bouncing back. Will be following
ReplyDeleteRory,
DeleteYeah....there is never any shortage of hurdles in life (personal or business). We pick up the pieces and forge ahead.
Thanks for the kind words and the comment!!
MDP