Tuesday, June 16, 2015

Recent Purchases: June



This is the first of many posts in which I will outline my recent purchases in the stock market. Hopefully I can keep up with these as I tend to (due to available capital) buy shares in smaller quantities than most.

I like to think that it is not how much of what you buy, it is what you buy that matters in the end. Everyone is saying it, the stock market right now is generally considered to be expensive. Either way it makes no difference. Finding high quality and consistent dividend payers (and growers) is possible. Furthermore, I find that I am continually adding to positions I already own. This is called averaging down. Because my positions in the stock market are small relative to what they will become I aim to average down when  share prices drop from my purchase price around 6-10%. This is the case as long as nothing significant has caused a change in said share price. To over simplify it, if AAPL stock drops 5% over night for no reason one may consider adding to their position. In contrast though, if share price drops due to the discovered use of illegal child labor in production lines you may want to hold off. Each case will differ though so I suggest you evaluate averaging down for yourself.

On to the Purchases!

I recently added 1 share to my position in Chevron Corporation (CVX) at the price of $99.55. I now currently own 3 shares of CVX with an average cost of 105.04. I feel that I have a great opportunity with the slump in the oil industry. The value in this sector is great and my portfolio reflects this with positions in CVX and Exxon Mobile (XOM) and Kinder Morgan (KMI). A quality company with a lovely current yield of 4.28% this company is one which I would consider "un-killable" in my 20 year timeframe.

Furthermore. I recently initiated a position in Wal-Mart Stores (WMT) at the share price of 72.13. I currently own 2 shares of WMT and will look to add to this when more capital becomes available. WMT has been on a great run lately but missed expectations in Q1 leading to continued drops in price which started in January of 2015. Wal-Mart is boasting a current yield of 2.71% and is a good example of a company willing to constantly reward share holders. WMT has had 40 years of consecutive dividend raises and shows no sign of slowing down! I look forward to owning more of this company.

As I trade with Robinhood App I paid $0 in commissions which allows me to keep more of my money!

I can't wait to keep you updated on my journey until next time.


What have you purchased lately?
Do you own shares in these companies?
What are you watching as June passes its mid point?


Full Disclosure: Long all tickers listed


I am a 21 year old kid who seeks to create a life of financial independence via passive income. The accumulation and growth of quality dividend yielding stocks will be the main source of income and this is my journey.

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18 comments:

  1. Hey DK,

    Nice picks here. Why CVX instead of XOM though I'm curious? And I've looked at Robinhood a bit and read about people having issues with retrieving money from there.. How has your experience been? Either way I see nothing but solid names in this post, so good on ya. Keep it up bud.

    PS: I'm 21 also. Pretty cool to finally find someone the same age as myself. I'll keep up to date on you.

    Best regards
    DB

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    1. Hey great question.

      I averaged down on CVX instead of XOM because the difference in purchase price to current price was greater in the case of CVX. Essentially I was getting a larger discount than I would have if I bought XOM.

      As for robinhood, I haven't ever attempted to withdraw any funds but the I can say that I've never had any issues with their platform. Since all I do is buy and hold, it work for me quite well!

      DK

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  2. Congrats on the great purchases! Keep putting that capital to work.

    I also added to my CVX position recently and I own some XOM as well. I'm keeping a close eye on FL this month and I might average down on a few other holdings.

    Ken

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    1. Dividend Empire,

      Great to hear! The only issue that I have is that I want to purchase more shares. I can't quite decide how much chase to keep on hand as I continue to pay for school. My portfolio is small for now, this should change in the near future.

      Best of luck!

      Div

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    2. I don't see that as an issue for the same reason that Adam stated below. You are blessed with plenty of time. Do what you can right now and by the time you get to my age (33) your portfolio will put mine to shame.

      Ken

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    3. Ken,

      Should we set a reminder and revisit the subject in 12 years? Could be an interesting comparison haha!

      DK

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  3. Good stuff here, DK. All good buys and doesnt matter if its 0.1 shares or 100 shares, the fact you are starting so young is huge. Keep up the nice work!

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    1. Adam,

      Thank you! I figure if I worry about quality now and continue picking up dividend aristocrat type stocks it will make it much easier for me down the road! Hope fully I'm right.

      DK

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  4. DK,

    Question -- who are you trading with these days? (Just wondering)

    DividendMantra just said he trades at $4.95. I know Scottrade is generally $7. Same for Vanguard. However, I also just learned that if you have $500k in invested assets with Vanguard, trades start happening at $2 each. Past $1m, you start getting a ton of trades for free. I hope I'm interpreting that right, but just food for thought as we keep moving forward.

    FM

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    1. Hey Monkey

      If you check out my post, Tools Of The Trade, you'll see that I trade with Robinhood app. It allows me to buy and sell stocks with absolute no commission! It's pretty bare bones but it allows me to but and hold all day long!

      DK

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    2. Oh, right. Sorry! I keep reading that it's not so simple to get your money out of Robinhood app. Are you concerned about that?

      FM

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    3. Right now no because I do not plan in taking any money out of my account for at least 20 years. That being said I was given 1 share of SOUTH32 from the BBL demerger that I'm considering selling. If I do I'll try to withdraw the proceedings and let you know how it goes.

      You should open an account and try buying 1 share of something though. Test out the platform and see if it's worth the possible issues you have heard! Maybe it will be maybe it won't be, but if it is worth it you just got a broker with $0 commissions!

      DK

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    4. If you have a Costco account you can buy for $2 a trade with Sharebuilder.

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    5. I am also looking at trading out of Robinhood, since I am really new to investing. Is it true that if I decided in a few years to transfer to another broker (like Scottrade or e*trade), I would have to liquidate the account? Isn't it possible to transfer in kind (i.e. not selling, moving the stocks to the other broker)? I was wondering this... I saw that they do ACAT for a fee of 75$. I still think it's a good idea to trade on Robinhood because I would save a ton of money on fees in the long run.

      I tried researching it on the internet, but haven't found any answers. I know it's not possible to transfer from broker to broker, but why does it say on their fee pdf, ACAT 75$?

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  5. You are well on your way. Keep being consistent and buy as much as you can each month. In just a few short years, if you stick to these high quality names and don't chase yield, you'll be a happy adult. Congrats on these recent buys. Look forward to more of your updates.

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  6. Good job on this months purchases, there some real value in the names you selected. I wish I would have started my dividend journey at your age, I'd be so much farther along!

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  7. Nice job of averaging down your stocks.

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