Monday, February 3, 2014
Weekly Purchase - CVX, PM, UL
5 shares PM, 4.84% yield, $18.80
11 shares UL, 3.77% yield, ~$16.17 (depending on exchange rates)
Wow I had horrendous timing today! I typically make my purchases in the morning before reporting for duty, little did I know the market would sell off in grand fashion. Only a few hours after purchase these companies were trading at much lower prices. I've always known that I stink at market timing. That's why I have been dollar cost averaging with monthly purchases over the years. Terrible timing aside I still picked up shares in quality companies that are extremely likely to raise dividends going forward. One day I hope to live primarily off dividend income. These shares are valuable towards that end.
While I could have saved a couple bucks if I knew how to predict market movements, I'm actually very pleased the heated stock market is finally falling back down to earth. I still have 3 more planned purchases earmarked for the coming weeks. I'm heading out of country pretty soon (for a military mission; it's not a vacation). I won't have much time for investing, plus buying stocks is more difficult in a time zone half way around the world. Not sure if I'll have reliable internet access either. Some of the companies I'm looking at include ABT, JNJ, KO, MMM, PG, TGT, and XOM,. I want to add high quality now that valuations are more reasonable.
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 (probably July).
Core Position: Yes
Speculative Position: No
Expectations: Steady income; 7% annual dividend growth
Automatic Sell: Frozen dividend; dividend cut
Consider Selling: Business fundamentally changes, management becomes untrustworthy, fundamentals deteriorate, wildly over valued stock price, or position fails to meet expectations.