Thursday, January 31, 2013

January Recap

January was a hot month for stocks, but unfortunately that makes it more difficult to find companies trading at discounts.  I still plan to make a purchase every month, but I don't mind keeping a little cash on hand for dips or market corrections.  I'm currently looking at defense stocks such as RTN and GD.  RTN is creeping up on my buy price.

2013 is off to a good start.  Lorillard did a 3 for 1 stock split.  ABT spun off ABBV.  I'm pleased with the spinoff, as I'd rather just own the diversified health care portion.  With the spinoff I'm free to sell my Abbvie shares when the time is right.  I like what I see with the new ABT, it's kind of like a mini JNJ.  Unfortunately the yield is very low right now, but I may pick up some shares in the future.

 DOW: 13,861 /// S&P 500: 1,498 /// 10-YR BOND 1.99%

New Purchases:
1) 11 shares LO at $113.74 ($37.91 after split) - $68.20 annual income

Sales:
none

Dividends Received: $195.17
Pepsi (PEP) - $43.00
Philip Morris (PM) - $66.30
Corporate Office Properties series L (OFC-PL) - $22.58
Realty Income series F (O-PF) - $6.76
Exchange Income Corporation (EIFZF) - $18.13
LTC Properties (LTC) - $26.06
Toronto-Dominion Bank (TD) - $12.34

Dividend Increases:
1) KMI: $.36 to $.37 per quarter.  $2.92 annual income

New Deposits: $1,035
$1,000 to ROTH, $35 to taxable account

Lending Club:
Added $50

Option/Bonus:
1) 54 shares Abbvie (ABBV) from spinoff
2) 56 shares Lorillard (LO) from a 3:1 stock split

10 comments:

  1. CI,

    Congrats on another very successful month. Your dividends were very strong during a month which is going to be pretty light for a lot of us dividend growth investors.

    I'm with you on some of the defense stocks approaching a decent value territory. The potential sequestration is going to provide some turbulence in this sector, so opportunities could be ripe for the picking.

    Best wishes!

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    Replies
    1. Thanks DM!

      I'll be keeping an eye on the defense industry, I'm starting to see some value.

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  2. Congrats on another great month! Your dividends are just awesome. Almost $200 in a slow month for payouts is great, mine were nowhere near that. I also didn't make a buy in January. The markets had almost a straight shot up so the opportunities were few and far between. I'm just glad that I put a lot of capital to work before the fiscal cliff resolution. I understand having some cash ready but I wouldn't want to be over 10% cash. I'd rather get that capital working either through purchases or selling puts.

    Congrats again!

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    Replies
    1. Yes I wish I bought more before the fiscal cliff, but it's okay. I'm currently about 5% cash which doesn't bother me. We'll see what happens in February but I'm hoping for a nice dip sometime soon.

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  3. Another solid month for you -- good job! Coincidentally, I've also been looking at GD and RTN lately. GD is the only stock (out of 27) in my portfolio that is currently in the red. I might average down if it goes much lower, but I am also thinking about starting a position in RTN, which has a higher yield. At this point I'm not sure which is the better buy.

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    Replies
    1. RTN has been a wonderful holding for me, but GD is another strong company. I'd probably lean towards GD simply to diversify plus I'm more familiar with the products. I know quite a bit about GD equipment since I use them at work. I was reading about some new products hitting the market that I'm sure the military will buy.

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  4. CI, I like your purchase of LO. I bought a few shares as well. It has a great growth potential in my opinion.

    Great dividend income. I like it and hope I soon get to those levels too.

    ReplyDelete
    Replies
    1. Awesome Martin! LO recently did a 6.5% dividend increase. The YOC is growing nicely for us!

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