Latest purchases: BMY, CY, DEO, GILD, KKR, VTR

I love the posts where I discuss new purchases because it is so fun to see the annual dividend keep going higher.

The latest purchases include a few new stocks and some old players. All pay dividends, though not all have the dividend growth history of a Johnson & Johnson or a Coca Cola (but how many really do?). I’m purchasing these for combination of growth as well as dividends.

On January 13th I made these purchases in my Roth:
Diageo (DEO): $4308 invested. Increases annual dividend by $131.
Ventas (VTR): $1231 invested. Increases annual dividend by $61.50.

And then on February 1st I made these purchases in my taxable brokerage account:

Bristol-Myers Squibb (BMY): $3400 invested. Increases annual dividend by $109.20.
Cypress Semiconductor (CY): $2960 invested. Increases annual dividend by $110.
Gilead Sciences (GILD): $7200 invested. Increases annual dividend by $188.
KKR & CO LP (KKR): $2640 invested. Increases annual dividend by $96.

Altogether in January and early February I invested around $21,739, of which $11,169 was new capital and $10,570 was from selling GILD and KKR in December. The sales of GILD and KKR were for tax loss harvesting purposes and the equities were intended to eventually be bought back, as some of that money was recently used for.

The GILD purchase was from selling a put that got assigned (which I was happy for since I wanted to purchase the company back anyway). I received $114.99 in premium for that put option.

These purchases raise my forward 12-month dividend by $695.70, bringing it up to $6160.44 or $513.37 per month. This is a new all time record for forward 12-month dividend.

For fun, from now on I’m also going to be including the dividend amount calculated to be an hourly wage based upon 1) the federal definition of a 40 hour work week (2087 hours), and 2) based on non-stop work for an entire year (8760 hours). Some of the other dividend bloggers that I follow do this calculation as well. It has no real point except that it is kind of cool to think about someone working constantly for you with no extra effort on your part.

Hourly wage based on 40 hour work week: $2.95/hour
Hourly wage based on non-stop work: $0.70/hour

My dividend worker is still quite a ways below minimum wage. Guess I have to keep feeding him more money to get that hourly wage higher!

The Roth purchases also satisfy one of my annual goals of maxing out my retirement account as soon as I can.

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9 Responses

  1. DivHut says:

    Those are some nice buys. I’m still impressed with how much buying our fellow investing peers have been making since the start of 2017. Nice to see the VTR pick up. I also have been considering the health REITs as they are still beaten down. I’m looking at HCP among other names in the space. Keep that buying going. You’ve put good money to work. Thanks for sharing.
    DivHut recently posted…February 2017 Stock ConsiderationsMy Profile

  2. Jay says:

    Awesome post – and glad the tax loss selling worked out for you. The “dividend worker” calculation is also very interesting. I am going to do that math on my own portfolio today. Thanks again for sharing!
    Jay recently posted…Trend Following Trading Ideas for February 2017 Part 1My Profile

  3. Nice buys, I never understood the tax loss harvesting, does it apply only to capital gains/loses or can offset dividend income also?

    I like BMY and GILD
    Dividends 4 Future recently posted…January 2017 UpdateMy Profile

    • scott says:

      Hi Dividends 4 Future,

      Tax loss harvesting works by locking in a capital loss. That loss is then first used to offset capital gains. Then if capital loss remains after offsetting all capital gains, up to $3000 a year of it is used to reduce regular taxable income, including income from dividends.

      The roboinvesting platforms take this a step further: Let’s say you own a Schwab S&P500 index ETF. If this is sold at a loss, the roboinvestor would immediately buy an equivalent amount of a Vanguard S&P500 index ETF. I guess the ETFs are different enough that this doesn’t violate the IRS’s rule against investing in a substantially similar equity within 30 days.

      Since I don’t generally invest in ETFs, I have to wait 30+ days before I can buy back the stock I had sold to lock in the loss. The hope is that the stock either won’t have moved much in those 30 days or that it even falls in price. The risk is that the stock could rise substantially in those 30 days, meaning that you wouldn’t be able to purchase the same number of shares, but you would still get to keep the benefit of the loss for tax purposes.

      As always and with everything on this site, remember that I’m not a financial advisor or tax professional so all of this is just my opinion. 🙂

      Scott

  4. Divi Cents says:

    Some very nice buys Scott,

    Over 6g in forward dividends!
    Divi Cents recently posted…Dividend Income – January 2017My Profile

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