After much consideration I decided to dip my toes in another tech stock, namely IBM. IBM seems to be part of most DGI portfolio’s and not without good reason. I’ve initiated a small position with 2 shares @ $143,89 and as usual with all my purchases it proceeded to dip the next day to lower $142. Oh well…
IBM | |
P/E | 11.95 |
Yield | 4,17% |
Payout Ratio | 47,42% |
Trackrecord | Almost Aristocrat status (in 4 years) |
Valuation | $4,76 above 52-week low | $38,90 below 52-wk high |
With new developments in cloud, AI, autonomous driving and blockchain I am very confident that IBM has a very bright future ahead.
With a quarterly dividend of $1.50 this should bring me (2 x 1,50 x 1 (just missed the ex-dividend date 😦 ) -15% tax = $2.55 closer towards my goal for 2017. My forward annual income should ofcourse increase with four times that amount: $10,20 to a total of $154.01.
As I had some additional funds left, I like to keep my cash close to $0 on my brokerage account, I also added 1 share of OHI at $32,33. This buy provides me with an additional (1 x 0,64) – 15% is $0.54 towards my goal of 2017. This also marks the first time that I have expanded an existing position in my portfolio, dollar-cost-averaging in effect!
My total forward income increases with this additional OHI share to $156,82.
So what did you buy in September?
Great buy. I also hold some IBM. Just wonderring, what broker do you use? You must be paying some low transaction fees, to be able to make small purchases cost efficiently, right?
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Thanks Albert! I use DeGiro as my broker. The fees are not that bad. For example that 1 share OHI buy will cost me my first received dividend total.
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Hi Mr. Robot,
Nice purchase! I think IBM has good value at the moment. Its value drop was too big recently in my opinion.
I was also considering IBM recently but chose CSCO at the end.
I am jealous of your broker – it looks like the commissions are amazing! I wish they were available in Lithuania – the commercial bank I am using sucks with their investment platform, unfortunately..
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Thanks for stopping by BI! I pay €0,50 + 0,004$ per US transaction.
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That’s amazing! I pay $9.95 per US transaction 😀 so I have to invest in much bigger bunches, unfortunately. Hopefully, DeGiro or a similar broker will become available in Lithuania one day…
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IBM is my 3rd largest holding at the moment and I have a great confidence in them on a long term. Probably the share price won’t start going much higher before they finally manage to increase their revenue, but meanwhile the company provides great and safe dividends that can be reinvested. Well done!
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Thanks RR, appreciate It!
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I think you made a great decision. Both IBM and OHI came very close to being a part of the 5 stocks that I added to my portfolio in September. Congrats on DCA for the first time!
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Thanks DP!
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Nice purchase with IBM. The company is on my watch list for all the reasons you mention in the article. Love the 4% yield! Enjoy
Bert
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I saw and commented on your watch list a few days ago. Thanks for stopping by Bert!
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Well, no dividend companies for me this month. I purchased 10 shares of PLAY @ 49.99 and 824 of BLRX @ 1.08.
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Great to see you actively purchasing. Thanks for commenting!
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Good call on IBM, I think they are going to be a big player in blockchain technology. I just wrote about it and also bought some IBM in my dividend portfolio. Will add more on dip.
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Thanks for commenting Mr. ATM, cheers to IBM! 🙂
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