Purchase of Additional KMI
Today I transferred an additional $1,300 into my Roth IRA to give me the maximum allowed per year contribution of $5,500. Rather than purchase an entirely new equity, I decided to purchase an additional 32 shares of KMI. I had a very minimal unrealized loss (on the order of around 1%) so this purchase did slightly lower my cost basis. I will update this post tomorrow when the details get posted on my brokerage account.
This purchase takes me from 100.9411 shares up to 132.9411 shares. Not including any anticipated dividend increases, the annual income generated (and automatically reinvested) will have increased from $153.43/year to $202.07/year, a 32% relative increase in annual dividend. KMI still has two dividend payouts remaining for 2013 so before this purchase $76.72 would have been reinvested; now $101.04 will be reinvested. I will be continuing to leave automatic reinvestment turned on until the size of the dividends could be used to purchase a large enough amount to offset the commission loss.
My current portfolio is made up of 11 stocks. One downside to purchasing more shares of KMI is that it is now my single largest component of my portfolio at approximately 13.8%. I will continue to add more capital throughout 2013 to my taxable account in order to reduce this percentage. Some of the stocks that are on my horizon are INTC and MCD. I may be buying either of these two companies within the next 1-2 months.
|Company||Symbol||Shares||Price||Yield||Expected Annual Dividend|
|Kinder Morgan Inc||KMI||32||$39.67||3.83%||$48.64|
Full Disclosure: Long KMI