Recent Buy – January (Part 2)

Recent Buy – January (Part 2)

I am very excited that the new year’s bunch of purchases have continued (obviously not as nearly the same pace as it started earlier, but still reasonable pace) 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 or whenever cash becomes available to be deployed. 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.

I have still decided continue with my favorite sectors currently, utility companies and REITs since they have been punished lately, thanks to interest rate increase fear of possibly negatively affected by TAX Reform since those are typically considered to be attracted by income investors. I still feel TDK’s portfolio is anywhere close to full positions on these two sectors. I still think there’s a lot more room for these sectors in TDK’s portfolio without being overly exposed to either of these two sectors.

On 10th January, I added 18 shares of AT&T (T) at an average price of $36.579. T pays quarterly dividend of $0.50 (paid in month of February, April, July and October). Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $36.0 with yield on cost of about 5.467%.

On 10th January, I added 15 shares of Southern Company (SO) at an average price of $45.995. SO pays quarterly dividend of $0.58 (paid in month of February, May, August and November)Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $34.80 with yield on cost of about 5.04%.

On 12th January, I bought 20 shares of HCP at an average price of $23.7964. HCP pays quarterly dividend of $0.37 (paid in the month of February, May, August and November). Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $29.60 with yield on cost of about 6.22%.

On 12th January, I added 10 more shares of Southern Company (SO) at an average price of $45.064. SO pays quarterly dividend of $0.58 (paid in month of February, May, August and November)Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $23.20 with yield on cost of about 5.148%.

On 12th January, I also added 20 shares of Aflac, Inc. (AFL) at an average price of $87.024. AFL pays quarterly dividend of $0.45 (paid in the month of February, May, August and November). Dividends will be reinvested. This purchase will increase TDK’s annual dividend by about $36.0 with yield on cost of about 2.07%.

On 12th January, I also added 25 shares of Omega Healthcare Investors, Inc. (OHI) at an average price of $26.095. OHI pays quarterly dividend of $0.66 (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 $66.0 with yield on cost of about 10.12%.

TDK’s Portfolio will be updated with these purchases soon (having to do some troubleshooting updating portfolio currently, hopefully I will be able to update soon here). These purchases will add about $225.60 to TDK’s forward annual dividend with total invested capital of about $4,667.77, with yield on cost of about 4.83%.

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

This Post Has 10 Comments

  1. Another good batch of buys TDK. Agree with your thoughts on REIT and utility stocks. For different reasons, they won’t benefit much from the corporate tax cuts, are being pressured with the threat of higher interest rates and investors are rotating out and putting their money in other better performing sectors. That said, I like the contrarian play, like you. Of your buys, I’m long T and SO. Tom

    1. Thanks Tom. Great to have you as fellow shareholder for T and SO.

      Thanks for your comment.
      TDK.

  2. Good set of buys TDK. I don’t have much of exposure to REITs. There is definitely a pull back in REIT and utilities. Good job buying undervalued stocks.

    1. Thanks Geek for stopping by and commenting.

      Good luck.
      TDK.

  3. Hi TDK, I am starting to like REITS and utilities as well and after the first quarter I plan on buying more. Nice list of buys.

    1. Hi Steve,

      Yes REITS and Utilities have been beaten down a bit this past month or so. Its great time to take advantage of lower prices (this may continue to go lower) but with salt I am OK to initiate some of these positions and feel good about those at current prices. I may dig more into these if price continue to go lower. Good see you are also thinking alike. Good luck with your purchase as well.

      TDK.

  4. That is some awesome deployment of capital and definite quality buys. Congratulations on taking control of your financial life. I’ll be following your progress from now on!

    1. Mr. Robot,

      Thank you so much for good words and following the blog. I wish you the best in your journey as well.

      Good Luck.
      TDK.

  5. Grats on the purchases TDK. I have to double check something with T in terms of when they pay their dividends, as you said they pay dividends in January. I didn’t get paid from T in January, but I see that it’s reflected in my brokerage account as being paid on February 1. So is it possible that i got paid in January, but it didn’t clear my brokerage in February?

    1. Hi DP,

      You’re correct, the ex dividend date was in January but was actually got paid in February. Thanks for correcting/checking. I checked my dividend was also recieved on 1st February so no delay from your brokerage. I will correct the article, thanks.

      Thanks for stopping by and commenting,
      TDK.

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