1 share MCD: 3.36% yield, $3.24 annual income
4 shares UL: 3.66% yield, ~$5.88 annual income
I bought a small amount of McDonald's stock today. MCD is one of my core holdings and is currently trading around fair value. I think it's attractive compared to most other stocks right now. This is one of the highest prices I've ever paid, but will barely affect my cost basis.
I'm pleased to announce Unilever as the newest addition to my income portfolio. Unilever is based in the UK and represents my first dividend growth investment outside North America. I really like this company. It has an awesome collection of brands that consumers will purchase in any economic environment. People need to wash themselves, eat, and do laundry whether we're in the midst of a depression or economies are reaching new heights. You'll recognize many Unilever brands. Some of the more prominent names include Suave shampoo, Dove grooming products, Knorr soups & side dishes, Hellman's mayonnaise, Axe body spray, Vaseline, Bertolli pastas, and Lipton iced teas. The nice part is that UL offers quite a few high quality budget brands and might not be as susceptible to private labeling as say Procter & Gamble.
I calculate UL to be a bit over valued, but it seems to always trade at a premium. Morningstar stamped it with a $45 fair value however. If you believe Morningstar, UL is still pretty cheap. Anyways this is one of those companies that was destined to make its way into my portfolio at some point.
I have many free trades available and did not pay commissions today. I plan to continue small weekly purchases until my supply of free trades run out.
I actually like UL as well, and agree that it could stand to be a bit cheaper, however I think it still represents some solid pickup. I'm assuming your free trades are time based, so you have further incentive to make the weekly purchases?
ReplyDeleteYes the free trades only last 6 months so I might as well use them. I'll be doing weekly purchases for quite a while.
Deletehave you looked at loyal3?
ReplyDeleteYes I have and I think it's a good idea.
DeleteI have considered starting an account for small deposits to reward myself for making good choices. Example: I resist the pressure to eat out for lunch. Instead I eat at home and drop the $10 I would have spent in Coca-cola stock. Little things like that quickly add up, making it a nice incentive plan. I hear they accept credit cards so an investor could rack up cash back bonuses or airline miles.
However it cannot be my main broker because it simply does not offer enough stocks at this time.
CI,
ReplyDeleteReally like the UL purchase. UL and NSRGY will eventually find their way into my portfolio. Great companies with brands that everyone knows. I'm sure between UL and NSRGY you can have at least one product on each aisle/shelf in a Super Walmart. That's pretty impressive.
Pretty sure additional UL purchases will be in my future. Nestle is an awesome company! I can't get past the yearly dividend and dividend withholding taxes though. If it paid quarterly I might like the stock as much as the business itself.
DeleteI feel I already own the grocery stores. Between GIS, KRFT, PEP, KO, UL, PG, JNJ, and even ABT (they have consumer products like contact solution & protein powder) it's pretty much covered. If someone was to spend $100 at the grocery store, it would be hard NOT to buy something these companies produce. You'd have to make a conscious effort.
Agree with PIP. Nice purchases. I am thinking about nibbling at MCD and I have had my eye on UL and NSRGY since Q3 of last year. Unfortunately, both have run up recently. I may look at dollar cost averaging into those bit by bit.
ReplyDeleteI plan to dollar cost average as well, but I won't pay over $41 for UL. I'm still eying TGT and need to grab some more industrial stocks at some point. Perhaps companies like GE or MMM. Bah industrial stocks seem fairly pricey at the moment and yields tend to stink because of it.
DeleteWhat kind of commissions are you paying and what broker are you using?
ReplyDelete