It was not a usual week for us, as we had quite a bit of extra cash to invest in the market. I know i know, all time highs and all that bad stuff for new investments. I wanted to get this money into the market to start earning me dividends as soon as possible. We never know when the next recession is going to hit, so there’s very little use in spending time trying to figure it out (although a lot of “experts” do!). This all being said, I looked to buy several things that were a little more of a bargain. Long term, this won’t matter at all, but it made me feel better at the time!
Buys for the Week:
O: 25 @ 59.89 ($1497)
I’m finally in. A dividend stalwart that almost everyone owns. I noticed a downtick in late 2016 and kept my eye out for a good price. A monthly payer that has raised its dividned in 21 consecutive years with a nice yield of over 4%. I don’t love REIT stocks, but I currently own HCP and OHI that have been lackluster, so I figured I might as well average down on the industry as a whole and pick up some O.
GATX: 17 @ 59.71 ($1015)
A nice growth potential stock, GATX is in the railcar industry. I’ve had huge success with one of their counterparts – TRN, so I’m picking up another chunk of the industry. GATX has a dividend yield of 2.6% and a payout ratio of only about 25%. They have raised dividend an average of 5.5% per year, outpacing inflation, and more importantly their earnings have grown by 20% per year over 3 years.
TGT: 23 @ 64.00 ($1472)
I keep buying this on year-long downswing. 40+ dividend increases don’t go away overnight. Averaging down on my position while the yield is up around 3.7%!
RCL: 11 @ 84.97 ($935)
Royal Carribean has a lower dividend yield at about 2.2%, but with a payout ratio of around 33%, they can afford to raise it in the coming years, if they want. A relatively small investment into this company seems worthwhile given their recnet display of earning power.
GILD: 28 @ 70.10 ($1962)
A big averaging down investment. I was down about 15% on my initial investment of GILD so I’m pouring a little more capital in to try to jumpstart my return. They never stopped making money as their earnings sit at over $10 per share. They have a massive cash reserve and are just one effective drug away from bouncing back in stock price (the 52 week high is $103).
SO: 40 @ 49 ($1960)
I’m adding a little more to this position. It has a nice yield that I don’t see going away. Seems to be a bit of room for it to return to previous highs, but a consistent dividend payer is what I’m looking for here. They have acquired a large position in the natural gas business from one of my other holdings, KMI, so between the two of them, I expect some good returns if/when natural gas returns to previous prices.
VZ: 40 @ 50.32 ($2013)
I hate having Verizon service. But everyone seems to have it and not mind it as much as me. In some areas it seems like a monopoly, so I might as well invest, right? The stock is beaten down in price a bit, and offers a nice 4+% dividend that has grown for 10 consecutive years.
ABBV: 32 @ 60.23 ($1927)
Biotech stock with room for growth. I think this price is fair, given their dividend stability (44 year streak) and their high current yield of 4.2%. As I said with GILD, these huge companies are just one new drug away from everyone loving them again.
JXI: 100 @ 45.10 ($4,510)
Needed some utilities exposure and they are all fairly beaten down right now, so I decided to go the index fund route. JXI has a fairly steep expense ratio at 0.47%, but with a yield of 4.74% and about 10% from its 52 week high, I figured it was a worthwhile investment. I started out investing in index funds and they haven’t let me down yet. This one just happens to pay a huge dividend.
DVY: 57 @ 89.05 ($5,076)
I had some trouble picking specific other companies this week, but wanted to get money in the market, so I decided on another index fund. DVY is a diversified dividend payer with an expense ratio of 0.4%. The yield sits at 3.8% and I know the market is close to all time highs, but I just don’t think that will matter over the long haul. This gives me a chunk of companies that will continue to grow moving forward with relatively low risk considering its spread across 96 companies.
We won’t have an investing week like that for awhile! Very lucky to be able to invest all this money into our future. We are slowly marching towards our goal of $36,000 of passive income per year (right now, we should be sitting at around $10,000 per year).
In other news – we sent off our Xmas gift back in November to our sponsored child and got the thank you note and pictures in the mail this week. It’s nice to be able to give back a very SMALL portion of our income to make a big difference for a family down in Guatemala.
Thanks for stopping by! I hope everyone had a good week. I’ll be updating my portfolio page today with all of these purchases.