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.
Symbol: KO
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
Solid buys here CI! As with yourself, any time KO yields over 3% they are on the short list for getting picked up. Very much a candidate for this month's Loyal3 purchase for me.
ReplyDeleteThx, I'll have to stop by here in a just a minute to see what you've been up to.
DeleteNice grabs! How did you get all these free trades again? It seems like you have a lot of them!
ReplyDeleteScottrade has a program where you can earn 3 free trades for referring people. A few months ago someone on a website (I don't remember which one) was planning to open a new account and was looking for a bonus code so I posted mine. I guess that was good move on my part because I ended up with something like 39 or 42 free trades. The free trades have a 6 month time limit so I figured I'd start buying small amounts on a weekly basis instead of 1-2 large buys per month.
DeleteI'll probably go back to larger trades after July unless I happen to get lucky again.
Great buys CI. KO hasn't participated in the latest moves and looks like a relatively good value in this crazy market.
ReplyDelete-Bryan
I have to agree with you there. I know it's still not cheap on an absolute basis, but considering the alternatives I'm happy to add a few shares. Take care!
DeleteGood move, CI.
ReplyDeleteThe insider buying at KO made me have a second look and I like what I see. I might initiate a position in KO soon.
Best wishes
Hey, how have you been R2R? Will be stopping by shortly.
DeleteI like KO now. I will get some on Friday when i get paid.
ReplyDeleteNice. Hopefully it dips a little bit so you can grab a few extra shares!
DeleteGreat buys. Those are core holdings and both are yielding a good dividend as of now. It was a particularly well timed pick, considering MCD is up almost 4% today, nice going.
ReplyDeleteBest Wishes!
Yeah you're right MCD did go up a bit today. It seems to have been struggling in recent months, but I would expect a company of that caliber to get back on track. I plan to stay invested in McDonalds for a long time. Thanks for the comment!
DeleteCI,
ReplyDeleteAre you doing $500 a week purchases? Thought I just read a post you were doing $500 a month?
Evan,
DeletePlease realize that #1) I am very conservative and use extremely conservative numbers when projecting future results. #2) I invest whatever I happen to save in any given month. I now expect to save $1,500 per month, but that is subject to change. Nothing is guaranteed, i just try to make to most of my situation.
#3 I don't DRIP, so maybe I invest $2000/mo instead of the $1500 I save from my day job.
Delete