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. 

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

15 comments:

  1. 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.

    ReplyDelete
    Replies
    1. Thx, I'll have to stop by here in a just a minute to see what you've been up to.

      Delete
  2. Nice grabs! How did you get all these free trades again? It seems like you have a lot of them!

    ReplyDelete
    Replies
    1. Scottrade 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.

      I'll probably go back to larger trades after July unless I happen to get lucky again.

      Delete
  3. Great buys CI. KO hasn't participated in the latest moves and looks like a relatively good value in this crazy market.
    -Bryan

    ReplyDelete
    Replies
    1. 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!

      Delete
  4. Good move, CI.
    The 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

    ReplyDelete
    Replies
    1. Hey, how have you been R2R? Will be stopping by shortly.

      Delete
  5. I like KO now. I will get some on Friday when i get paid.

    ReplyDelete
    Replies
    1. Nice. Hopefully it dips a little bit so you can grab a few extra shares!

      Delete
  6. Great 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.

    Best Wishes!

    ReplyDelete
    Replies
    1. 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!

      Delete
  7. CI,

    Are you doing $500 a week purchases? Thought I just read a post you were doing $500 a month?

    ReplyDelete
    Replies
    1. Evan,

      Please 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.

      Delete
    2. #3 I don't DRIP, so maybe I invest $2000/mo instead of the $1500 I save from my day job.

      Delete