So it is again time to buy some stocks! I am really getting used to it and I must say I already am contemplating putting more money in the market every month. Although 250 euro is a nice sum already its getting mighty addictive seeing those dividends roll in and that increasing forward annual income.
That being said I doubled my normal monthly capital because I believed there were soms nice price drops for me to add to and open up a new position.
First I added to my existing position (like so many of you in de DGI community) in…. AT&T!
| AT&T | |
| P/E | 15,67 |
| Yield | 6,02% (5-yr avg is 5,13%) |
| Payout Ratio | 93,78% (but with more than enough FCF) |
| Trackrecord | Aristocrat: 32 years (!) of dividend increases |
| Valuation |
$0,05 above 52-week low | $10,43 below 52-wk high |
I’ve picked up 9 shares @ $32,60. Unfortunately this will provide me with no additional income this year since I missed the ex-dividend date in October. But these 9 shares will provide me with 9 x 4 x 0,49 = $17,64 – 15% = $15,- in additional income bringing the total to $172,19 + $15 = $187,18.
But wait….there’s more! 🙂
I also saw a nice dip (in retrospect I should have waited longer since its dipped even lower) on Cardinal Health. Since I’m already big into tech stocks I wanted a little more diversification. So I managed an additional buy of 5 shares @ $60,50.
| Cardinal Health | |
| P/E | 17,64 |
| Yield | 3,04% (5-yr avg is 2%) |
| Payout Ratio | 53,14% |
| Trackrecord | Aristocrat: 32 years (!) of dividend increases |
| Valuation |
$4,81 above 52-week low | $24,38 below 52-wk high |
Since I also missed the ex-dividend date on this one, it will not provide me with additional income this year but my I will receive my first payout in January 2018. These 5 shares create an additional (5 x 4 x 0,46) – 15% = $7,82 amount of passive income.
This will bring my new forward income total to….<drumroll>…… $195,-
Amazing to realize I am almost going to cross the $200 mark in forward income. I should easily be able to cross this nice milestone with my purchase in December. So if you made it this far I’m very curious to find out what you think of my purchases and ofcourse if you made some of your own! Let me know in the comments!
Congrats on your purchases and taking advantage of the price decline. It’s always good when you have the extra cash to be able to do that. Also, super excited about you crossing the $200 mark in annual forward dividend incomes. That’s huge and it’s only gonna get higher and higher.
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Hi DP, thanks a lot for your comment!
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Nice going! Keep up the good work.
No complaint, just curious. I see so many in the DGI communicty buy T just like you said. But the dividend growth rate is only just above 2%, the pay ratio is over 90 and the stock is certainly not a growth stock. I understand that the high dividend percentage is appealing to people close to or in retirement, but for people with a long runway. Why T?
I just hope you can give me some more insight.
Congratz on reaching 200 on forward income!
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Hi P2F, for me its two things. I liek to have a mix of high yielders (with likely low growth) and low yielders (with high growth). I believe a mix of the two will keep me going in the long run in turns of results & motivation.
For T, I believe that the internet is a cornerstone to society just like electricity & water. So there will allways be a need for it, it will increase even more in the future with IoT for example.
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T is also recession prove, just like utilities, but even better. People would stop paying their electric bills, rather than give up their smartphones. As you said, T is a high dividend, slow growth play, but it also has a great potential to be a mega media/technology company. I think T is on the cusp of becoming a growth stock as our need for data and media content grows.
Mr. Robot, love your T buy. It’s my biggest position on cost basis. As for CAH, I don’t have much love for it. I consider them middleman. Everyone is trying to get rid of middleman to lower cost to compete with AMZN. In healthcare, I like big pharma or device makers such as MDT or SYK.
Good luck with your investments and take care 🙂
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Mr. ATM, your comment (as always) is very much appreciated. I’m going to look into those companies, thanks for mentioning them!
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I understand and it sounds good. Good luck with the investment!
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I picked up a few shares of AT&T at 33.80. Looks a sound investment to me, hopefully it serves us both well.
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Hi UncleMagnus, thanks for stopping by. I hope so too!
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Mr. Robot, Both quality buys. T is one of my larger holdings and I think you picked it up at a good price. I have looked at Cardinal many times, but never have purchased for no particular reason other than limited capital to invest in so many good companies. Good luck with both of them. Tom
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Hi Tom, thanks! Is CAH on your watch list for next month?
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Not at this time Mr. Robot. I see Bert from the Dividend Diplomats have CAH on their watch list. So you guys are thinking a like. Check it out if you have not yet. Tom
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Hi Mr. Robot,
Congrats on double buy this month! I own T and am thinking if I should add to my position at this price (I purchased it 2 years ago at a similar price). With regards to CAH, I am not that much familiar with the company so cannot comment much on it 🙂
It’s great that you keep adding quality companies to your portfolio each month. I think it’s a strategy that cannot fail in the long run! And looking forward for you to cross the $200 forward annual income next month 😉
-BI
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Hi BI, thanks! I’m pretty stoked about crossing the mark as well. This should be a sure thing next month !
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Two of my largest portfolio positions. Nice job on adding two Dividend Aristocrats to your portfolio MR. Robot. I’m excited for you to start receiving those dividend checks in 2018!
Bert
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Hi Bert, same here. Thanks for stopping by!
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Nice buys. I own both of those companies. Picked up some T myself on the last dip. That 6% dividend is awesome. Always love making big buys toward the end of the year. Even if the dividends don’t hit in the year you got it, it makes the growth for next year that much greater.
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HI DD, great to see we are both buying the same things. I’ve made some side hustle so I’ll be able to make another larger buy in December!
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You’re doing great! It might not be a bad thing to miss the ex-dividend date, assuming the share price drops by the amount of the dividend on the ex-dividend date. For one thing, you don’t have to immediately owe taxes on that first dividend. Secondly, you now get that share of stock at a lower price – while still getting the same dividends in the future. I hardly pay attention to the ex-dividend date now. Either way, great job adding to your investments!
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Hi Dozer, thanks for stopping by! You are right if course although it always (mentally) great to immediately get a bang for your buck so to speak 🙂
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Congrats on your new buys. Both great companys. I was debating cardinal but went with cvs instead at the time. Keep it up. Congrats on the 200 mark!
Cheerz
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Hi CPI, thanks for stopping by! I was also looking at CVS, their growth rate was so.ewhat higher then CAH. But their aristocrat status won me over.
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