It’s june and that means it is time for a new stock buy. The market has seen some volatility lately which made for some interesting opportunities. After dropping a few hints here and there on your blogs (and on this one!) I finally entered the Utilities sector, BIG TIME. At least in a big way for me.
In the Netherlands your May paycheck also includes your holiday allowance. After some discussion with Mrs. Bot we decided to double the amount of capital to deploy this month. Awesome! Mrs. Bot is really getting on board with this whole DGI stock market thing so that bodes well for the future.
So what did I buy you ask? Well let me show you!
On 4/6/2018 I bought my first utility stock, PPL Corporation. I initated a position with 22 shares @ $27,-. As per usual the price immediately dropped afterwards with about $2. I really need to find out why this keeps happening 🙂
| PPL | |
| P/E (<20) | 15,88 |
| Yield (>2%) | 6,07% |
| Payout Ratio (<75%) | 93,82% |
| Increases (>= 5 year) | 6 years |
| 5-year DGR (>5%) | 1,6% |
| EPS (>0) | $1,70 |
| Valuation (<=10% > 52wk low) | 6,30% |
I’m not expecting large dividend increases in the near future, but the 6,07% dividend yield makes up for that. ITs prt of my DGI strategy of mixing up high yielders with low growth and low yielders with high growth,
Yes there actually is more, so here is what I bought next: On 06/06 I initiated a position in Consolidated Edison. I bought 8 shares @ $72,82.
| Consolidated Edison | |
| P/E (<20) | 14,45 |
| Yield (>2%) | 3,92% |
| Payout Ratio (<75%) | 67,1% |
| Increases (>= 5 year) | Aristocrat: 43 years |
| 5-year DGR (>5%) | 2,7% |
| EPS (>0) | $5,04 |
| Valuation (<=10% > 52wk low) | 2,33% |
And then I still wasn’t finished buying as PPL dropped in price I was able to snag an additional share @ $25,80 lowering my costbase a fraction. 🙂
So with these buys I made some nice progress on my forward income:
8 shares ED provides me with a yearly dividend of $22,88 -15% Taxes) = $19,45.
23 shares PPL provides me with a yearly dividend of $37,72 – 15% (taxes) = $32,06.
Together with my last buy and another 0,2% dividend increase from Realty Income Coporation (O) this makes my new forward income a grand total of $396,74!
Financially free in 10 years 
Nice to read how you’re building up to your portfolio, congrats on the new positions and added cashflows!
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Thanks Mr.FireMe! The snowball is starting to tip, next thing you know it will be rolling!
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This seems like a good choice for you. I thought the same thing regarding the current dividend for PPL: a nice current yield but don’t expect much dividend growth in the future. Overall, a good entry price point for you as well. – Mike
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Thanks Mike, appreciate it!
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Mr. Robot, Fellow owner of PPL here. Nice juicy yield. I think their payout ratio is expected to come down a little and better dividend growth will result than what we have seen in the last few years. I have never owned ED. I was looking to add to my position in WEC and AEP in the utility sector, but the prices ran up on me recently before I got it done. Good work as always. Glad Mrs. Bot is getting on the DGI train. Research shows women are better investors than men. Actually I think the research shows they are better than men at most everything. Tom
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Hey Tom, great to see you 🙂 that would be a great future for PPL and us!
I’m glad that Mrs. Bot is on board as well but are you sure you’re not overcompensating your whole bear/peanut butter story now with this research of yours 😛
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Way to go. We bouht some PG shares. My annual dividend income jumped to ~420€ So sad I still cannt get my hands on O or OHI to reach that 500€ mark faster 😦 Inching forward with 10-15€ additios with lower yield buys like PG. In such speed we will reach 500€ mark only next year
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No worries with the lower yielders come (usually) higher growth numbers. So in a few years that would fuel your engine even faster than those high dividends now.
I also bought PG as well, definitely a good buy P2035!
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Yee as one guy said be greedy when everyone is fearful 😉
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Great buys! I don’t have PPL but I do own ED. They are actually the utility for my home. The dividends I receive from them are enough to pay for 3 months worth of electricity for me, lol. Again, very nice buys! 😀
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I read it on your income report, that’s just awesome that you use the products of your investments. It makes everything a lot more tangible. Same for me for example in my stocks of Unilever and Ahold Delhaize.
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I’m not sure which I like better–your new purchases or the fact that you doubled up on the investment capital with Mrs. Robot onboard the DGI train with you!
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Hahaha thanks DivvyDad, appreciate it. I love the fact that Mrs. Robot is on track too. 🙂
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I keep trying to get Mrs. DD excited about DGI and her eyes just glaze over as she begins to nod off haha. Although she has been supportive of my challenge for us to direct as much extra capital to our DGI portfolio as possible, and honestly I am more than happy with that.
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That’s just great DivvyDad. It’s important that both partners are on board or at the very least agree. You’re in this together and building a future. Great to hear that’s the case for you guys as well!
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Wow! Such a great way to add a lot of extra dividend income! Great to hear Mrs Bot is also interested. You guys will build up something very solid over time!
DI
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Hey DI! That’s my hope as well. I was really pleasantly surprised by my wife’s actions to add to the capital deployment 🙂
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Grats on the purchases. I need to enter the utility market. But it sounds like you made some nice additions to your portfolio.
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I’m pretty confident that these buys will serve me well in the future. I’m excited to see you enter this sector as well, let me know!
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