Additional Purchases for Roth IRA: TGT and KMI

Today I maxed out the annual contribution limit for my Roth IRA. I typically like to max out the Roth IRA as soon as possible (usually by February), but I decided to wait until later this year so that I would have more cash available for options trading.

I divided the $2000 into two stocks that I feel are cheaply valued and already in my portfolio, Kinder-Morgan (KMI) and Target (TGT). In fact, these are the only two stocks that I do not have an unrealized capital gain in. I think I’m down around $500 in KMI (was around $1000 as recently as a few months ago!) and about $200 in TGT.

KMI pays a great dividend and has had a ton of insider buys. Additionally, the trouble again in the Middle East only reinforces the need to development our own energy resources in North America. I feel that KMI is uniquely positioned to take part in this resurgence of American energy development. They not only transport oil but have the capability to transport our vast natural gas supply.

This is the third purchase of KMI that I’ve made. This purchase increases my annual KMI dividends from $234.03 to $279.39.

TGT has been down ever since the credit card hacking issue took place. I feel that Target will recover well from this issue and may even be in a better spot in the near future as they are going to be adding chip & pin technology to their stores. (Chip & pin technology is something that really hasn’t caught on in the United States yet, but is very prevalent in Europe and the rest of the world. I have one card with true chip & pin technology.)

As a show of confidence, TGT’s management just increased the dividend by about 21%. This purchase is the second time that I’ve bought TGT’s stock outside of dividend reinvestment. It will increase my annual TGT dividends from $65.87 to $103.31.

I am still invested in 20 companies. My 12-month forward annual dividend is now $2,340.29 ($195.02/month).

Company Symbol Shares Price Yield Expected Annual Dividend
Kinder-Morgan KMI 27 $36.065 4.67% $45.36
Target Corp TGT 18 $58.16 3.57% $37.44

Forward 12-Month Dividends: $2,340.29 ($195.02/month)

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4 Responses

  1. Ryan says:

    Congrats on some great buys here, really like these two companies. Keep up the great work on those forward dividends 🙂
    Ryan recently posted…Recent Buys: June 11th, 2014My Profile

  2. Scott,

    Solid purchases. I own both and think you’ll do well with these in the long-term. It’s even better that you are getting them for below your cost basis.

    • scott says:

      Thanks, Brent. It’s been fun seeing the dividends really starting to take off each month. Can’t wait to see what it looks like a few years from now!

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