Recent Buy – December (Part 5)

First of all, I apologize for reporting the trades several weeks late. I was enjoying time off with family during Christmas time off and since new year, I got really busy at work and barely got chance to blog. That’s one of those things that I have to cope up with as engineer. Since new year, had a two big deadlines and just got bit relaxed time to do what I like doing, which is blogging. So here I am, reporting my last trades for the past year. I already have made this year’s purchases as well which I am planning to blog about in a couple of days.

As a value investor, one should always be on hunt to find the bargain and keep investing in these bargains at regular interval, monthly or bi-weekly. When bargains shifts from one company to other, we as a value investor, should follow the value stocks and maintain monthly purchases of these value stocks to create continuously growing stream of passive income. Continuous flow of dividend income stream that can grow over the time at faster pace than inflation rate is extremely vital.

In The Dividend Karma’s journey of creating constant flow of passive income via dividend investing, I try to keep looking around hunting for the value dividend stock and post it on this blog once I made a decision and pull the trigger to buy piece of business within any such company.

Lately, utility companies and REITs have been hammered due to interest rate increase fear since those are typically considered to be attracted by income investors. It worked out good since TDK’s portfolio wasn’t much exposed to these industries. I still have some more to report for this year’s purchases, which I will be posting soon as well.

On 21st December, I bought 65 shares of HCP, Inc. (HCP) at an average price of $25.844. EPD pays quarterly dividend of $0.37 (paid in the month of February, May, August and November). Dividends will be reinvested.

On 21th December, I also added 50 shares of PPL Corporation (PPL) at an average price of $31.50. PPL pays quarterly dividend of $0.395 (paid in the month of March, June, September and December). Dividends will be reinvested.

On 28th December, I added 5 shares Vanguard Consumer Staples ETF (VDC) at an average price of $145.99. VDC pays quarterly dividend about $3.60 a year (two smaller amounts paid in the month of March and September and two larger amounts paid in the month of June and December). Dividends will be reinvested.

On 28th December, I added 5 shares Vanguard Consumer Discretionary ETF (VCR) at an average price of $156.98. VCR pays quarterly dividend of about $0.45 (paid in the month of March, June, September and December). Dividends will be reinvested.

On 28th December, I added 29.551 shares T Rowe Price Global Technology Inv (PRGTX) at an average price of $16.92. Dividend is paid once a year only (that is actually profit not dividend but since I have bought these funds in tax advantaged accounts). For year 2016, it paid $1.25 in dividends and $2.66 for the year of 2017. Dividends will be reinvested.

TDK’s Portfolio is updated with these purchases and can be found here. These purchases will add about $156.0 to TDK’s forward annual dividend.

Total capital invested is 5,270. This will increase TDK’s dividends by about $ 280. Yield on the these purchase is about 5.31%.

What are your thoughts on this purchase ? What are the stocks you are buying or looking to add ?

This Post Has 10 Comments

  1. Hello TDK!

    It’s awesome how you have so much passion writing about dividend stocks. I can sense that you get excited blogging about this which is fantastic! Keep up the great work.

    I personally don’t buy dividend paying stocks. I generally do DCA with ETFs and index funds. I do however also buy single stocks that focus more on growth and less dividend. Currently, from what I can remember I still hold NKE and AAPL. As far as I know, I plan to hold them indefinitely. I also hold my bank stocks because of the EOP so it’s free money. That’s been doing great and their dividend yield is pretty good. DRIP is also fantastic!

    At the moment, my form of passive income so far is the house we are renting out as well as our investment property. My fiancé and I have an interest in RE so we wanted to try it out to see how it is!

    1. Hi Savvy Panda,

      Yes, I agree DCA with low cost ETFs and index funds is always a good idea specially when you don’t feel like to spend a lot of time investigating into rigorous financial data which at times, can be misleading as well and can lead to below market performances at times as well. My journey is to create passive income via dividend income so that’s why you will see stocks more than ETFs on my portfolio. However, its great that you have your passive lined up with rental properties. After all, its all about secondary income generation without too much of time spent or trouble so we can call it passive income.

      Good Luck and thanks for stopping by,
      TDK.

  2. Hi TDK, Very well diversified group of purchases. Of the group, PPL is the only one I own and have held it for many years. I used to own HCP, but when they recently spun off one of their lower performing business units and cut the combined dividend to less than the prior dividend paid by the consolidated entity I sold out. I don’t hang around long after a dividend cut even though this was sort of a back door cut as part of a spin off and reorganization. Good luck with them all and Happy New Year. Tom

    1. Hi Tom,

      I understand your concerns on HCP. My thought process is baby boomer is getting older and will need more of HCP related services where HCP can get benefited. I understand Dividend cut is never a good sign but like you mentioned it was more like business spin-off, also yield is still very lucrative after being cut since the price has dropped so much since then. Good to have you as fellow shareholder for PPL :).

      Good Luck and thanks for your comment, Tom.
      TDK.

  3. Nice buys mate. Especially VDC and VCR. Where do you buy PRGTX? What is the commission?

    1. Hi DG,

      Thank you mate. I use Charles Schwab and I am getting free trades for next 9 years. It actually started last year so now I have only 8 years of free trades left, they had deal if you transfer from Scottrade then they will match free trades for amount of years you had invested with Scottrade. It worked out pretty well, I love PRGTX and keep buying here and there. If you decide to move on with Charles Schwab then let me know I can contact them to see if they match the same deal for you or give any other offer, or you can contact them directly as well.

      Good Luck and thanks for your comment.
      TDK.

  4. Hi TDK, excellent group of dividend payers. I haven’t sold any of my REITS or utilities but I haven’t been a buyer either. I still think they have a bit more downside before I will start purchasing again. 2018 will be a good year. Cheers Steve

    1. Hey Steve,

      I agree there may be some downside left still since the rates are on uphill and bonds are also getting some attention lately but that’s why I haven’t had a boat load of these yet. I have bought some REITs and Utility this month as well, which I will posting soon too, however, I still have room to add more since I am way behind on REITs and Utilities my overall portfolio compared to where I would like to be.

      Thanks for stopping by and commenting.
      TDK.

  5. Like your PPL buy. I have a full position as well and love the yield. Wish I could add more.

    Similar to Tom, I have concerns regarding HCP. Owned it and then sold it before the cut. They have not yet recovered from the div cut, though it may have to do with the entire REIT healtcare sector facing headwinds, not to mention increasing interest rate pressure. In any case, seems you got in at a good entry point, so it should work out fine for you.

    Take care

    1. Hi Mr. ATM,

      Great to have you and Tom on PPL boat with me :).
      Yes, I understand both of your concerns about HCP. Increasing interest has really taken toll of off income related stocks such as utility sector, REITs etc. and it can still go further low in increasing interest rate market but good thing is my pretty light concentrate on these income related sectors on my overall portfolio so I still have a lot of room to increase holdings in these two sectors, will see how next few months go but I believe I will have a few more purchases in these two sectors in near future.

      Good Luck,
      TDK.

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