Recent Buy – January (Part 1)

Recent Buy – January (Part 1)

I am very excited that I started the new year with bunch of purchases and I hope to continue this trend of investing in dividend paying stocks as year progresses. 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 of possibly negatively affected by TAX Reform 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 2nd January, I bought 45 shares of Southern Co. (SO) at an average price of $47.40. SO pays quarterly dividend of $0.58 (paid in the month of February, May, August and November). Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $104.40 with yield on cost of about 4.89%.

On 3rd January, I added 10 shares of Dominion Energy (D) at an average price of $77.14. D pays quarterly dividend of $0.77 (paid in the month of March, May, August and November). Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $30.80 with yield on cost of about 3.99%.

On 4th January, I added 125 shares of CenturyLink, Inc (CTL) at an average price of $16.65. CTL pays quarterly dividend of $0.54 (paid in the month of March, June, August and November). Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $270.0 with yield on cost of about 12.97%.

On 4th January, I also added 10 shares of Walgreens Boots Alliance, Inc. (WBA) at an average price of $71.87. WBA pays quarterly dividend of $0.40 (paid in the month of February, May, September and November). Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $16.0 with yield on cost of about 2.23%.

On 4th January, I also added 15 shares of L Brands, Inc. (LB) at an average price of $50.35. LB pays quarterly dividend of $0.60 (paid in the month of February, May, September and November). Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $36.0 with yield on cost of about 4.77%.

On 4th January, I also added 25 shares of BHP Billiton plc (BBL) at an average price of $42.14. BBL pays bi-annual dividend of $0.80 (paid in the month of March and September). Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $40.0 with yield on cost of about 3.80%.

On 4th January, I also added 30 shares of National Oilwell Varco, Inc. (NOV) at an average price of $37.73. NOV pays quarterly dividend of $0.05 (paid in the month of March, June, September and December). Dividends will be reinvested. This purchase will increase TDK’s annual dividend barely by $6.0 with yield on cost of about 0.53%.

On 4th January, I also added 8 shares of International Business Machines, Corp (IBM) at an average price of $162.0. IBM pays quarterly dividend of $1.50 (paid in the month of February, May, August and November). Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $48.0 with yield on cost of about 3.70%.

On 4th January, I also added 50 shares of Omega Healthcare Investors, Inc. (OHI) at an average price of $27.26. OHI pays quarterly dividend of $0.65 (DIVIDEND INCREASES EACH QUARTER) (paid in the month of January, April, July and October). Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $130.0 with yield on cost of about 9.54%.

On 4th January, I also added 30 shares of Tanger Factory Outlet Centers, Inc. (SKT) at an average price of $25.76. SKT pays quarterly dividend of $0.343 (paid in the month of January, April, July and October). Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $41.16 with yield on cost of about 5.33%.

TDK’s Portfolio is updated with these purchases and can be found here. These purchases will add about whopping $722.36 to TDK’s forward annual dividend with total invested capital of about $12,026.25, with yield on cost of about 6.00%.

BAAANGGGGGG !!!

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

This Post Has 10 Comments

  1. Hey TDK, You have been a busy man. I have added to my holdings in D and O this month. Of your buys, I am long SO, D, WBA and IBM. On the other side I have considered CTL, but never purchased worrying about dividend safety. I owned BHP at one time, but it is too cyclical for me leading to concerns about dividend safety as well. I like the space OHI operates in, but already hold VTR and HCN. The rest I am not familiar with from an investing standpoint. Enjoy your newly created passive income. Tom

    1. Hi Tom,

      Yes its been a busy month so far but from next month onwards, these purchases will slow down a lot. Good to have you as fellow shareholder in SO, D, WBA and IBM, great dividend paying companies.
      About CTL, I agree about dividend safety concern but I thought there is room for a small investment into CTL looking at their past records and amount of corporate taxes they pay in domestic market with this TAX Reform. Will see how it plays out though. BHP and other O&G companies I have been lately investing is pretty cyclical in nature but since I am in only mid-30’s I felt like I have little room for cyclical companies specially when Oil prices were low for several years now.

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

  2. Wow what a start to the year TDK! Do you plan to keep adding to your investments at this rate? Do you have some capital waiting to be deployed into more stocks, or are these additions coming from your cash flow each month?

    I bought BHP on the Australian Stock Exchange a couple of years ago, but sold it not long ago – like Tom above, found it a little too cyclical and found a few other good Fully-Franked dividend stocks to reinvest the proceeds in!

    Good luck building that passive income stream for 2018!

    1. Hi Frankie,

      Yes this has been a busy month so far but this will slow down as next few months roll in here. This was due to cash available on my Tax advantaged accounts ready to be deployed for a last few months. I still have a few more coming in but once these cash are deployed then each month investment will come only from cash flow each month, which is much less than these amounts. I am excited for this year and looking forward to be able to generate growing passive income thru dividend (and value) investing approach.

      Yes, I agree last few years were not the best for O&G industry but I am hoping Oil price recovery is closer than farther but who knows what will happen.

      Good Luck to you as well.
      TDK.

  3. Wow! That’s a significant investment TDK. Of the companies you’ve mentioned, I’ve been interested in SO and OHI for a long time. Maybe this year will be the year I pull the trigger. In any case, what a great way to add to your forward annual dividends!

    1. Hi DP,

      Yes its been significant investment but this won’t last very long. It will settle down a lot once cash available to be deployed will go down to minimum I like to maintain for emergency (3 to 6 month of expenses) then investment will come only from cash flow each month but very happy to be able to invest good amount this month a few more purchases will come up shortly as well.

      SO and OHI are on my radar for still more purchases, will see if I can add more to it.

      Good Luck and thanks for stopping by.
      TDK.

  4. Nice purchases. 6.00% yield is very high. How has your portfolio performance been? Comparing to S&P 500.

    1. Hi Dividendgeek,

      Yes Very happy and content with 6% div yield. Typically I don’t run after yield so much but these purchases just occur to yield so much mainly because income stocks have lately been punished in the wake of internet rate increasing markets, such as Utility and REITs, etc. Portfolio performance is just going well per my expectations, however, I have not compared with S&P 500. I am pretty sure I haven’t beaten S&P but that’s OK since I want to grow my passive income more so than anything else at this point. Snow ball effect is huge and I am just need to stay on track to keep increasing my passive income to a point where I can be FI, if I choose to be.

      Good Luck.
      TDK.

  5. Wow, that is some significant capital you put into your portfolio in a short amount of time. Almost beat my portfolio in a month haha. I own a few of those companies and would love to add a few others. Looking forward to seeing what you buy next.

    1. Hi Dividend Daze,

      Yes, You’re correct. These purchases are way more than I can afford in a month but since I had cash ready to be deployed, it worked out great. I have some more purchases coming up this month also part of accumulated cash ready to be deployed and not from monthly cash flow. These purchases will come down within a month or two once the access cash is fully deployed.

      Thanks for stopping by and for your comment, Good Luck.
      TDK.

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