Monday, March 10, 2014
Weekly Purchase - KO, MCD
7 shares KO, 3.17% yield, $8.54 annual income
4 shares MCD, 3.43% yield, $12.96 (purchased last week)
I went with Coca-Cola for this week's purchase; McDonald's last week. Bargains are becoming harder and harder to find, however I will always be interested in KO when the market offers a yield over 3%. Out of my four KO purchases to date, this chunk of shares came with the highest starting yield. Also I managed to acquired KO shares just in time to receive the next dividend payment which is scheduled for April. Not bad. I decided to grab a few MCD shares last week, but was unable to report the purchase at the time. Both of these companies have been designated as core holdings because I plan to hold them forever. KO and MCD aren't sexy, they aren't exciting, and are unlikely to offer high short term capital appreciation. However I am looking for dependable companies with decent yields who raise dividends on a regular basis in order to build a passive income stream. That's where these particular businesses really shine and why they are the most popular dividend growth stocks around.
I have many free trades available and did not pay commissions today (or last week). I plan to continue small weekly purchases until my supply of free trades run out.
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