Purchase of GE, MCD, and O
Today I purchased three additional equities, bringing my total number of positions up to 14. My entire portfolio can be found here.
My first purchase was General Electric (GE). I had originally owned GE back in 2004 and, up until 12/2011, had been contributing a little bit monthly via a DRIP. I had originally bought GE for its diversification as well as very reliable dividend. However, “between 2008 and 2009, GE stock fell from roughly $40/share to less than $10/share, and the company slashed the dividend from $1.24 for the year down to $0.40” (1). I sold GE, took the capital loss, and invested that money profitably elsewhere. With an updated focus from management and restructuring, I now feel that GE is a solid dividend growth candidate once again. While I could probably have waited for a correction before buying some of these stocks, I am investing for the long term of 20+ years so fluctuations of a few points here and there don’t bother me. I’d rather have the money invested somewhere than just sitting losing value due to inflation. GE currently has a dividend yield of 3.20%. I bought 128 shares of GE at 23.395. This will add $97.28 to my annual dividends, including approximately $24.32 for the remainder of 2013.
My second purchase was McDonald’s (MCD). MCD needs no explanation. Every time I drive by or stop at a McDonald’s, it is packed, while the Burger King or Hardee’s across the street is nearly vacant. (This is somewhat disappointing because I slightly prefer the taste of a Burger King burger…) A few years ago I was doing a long road trip and stopped for dinner at a Burger King. I walked in and actually had to ask them if they were still open (this was around 9pm or so at night). They assured my they were open until 10pm despite being in the process of doing an entire floor cleaning. I was the only person in there too and maybe one other guy stopped in during my time there. I finished my burger and went up to grab a coffee to help me stay awake the rest of the drive. Burger King coffee is actually not that bad. I placed the order for a medium coffee and paid via cash. I was in a little hurry so after about 5 minutes of waiting, I asked what the hold up was. The manager told me that he was just starting brewing up another batch of coffee and it would be another five minutes. Not having much time to wait I asked for my money back, drove across the street to a packed McDonald’s, and in less than a few minutes was on my way. That little story explains in a nutshell why I invested in MCD. Always popular and great service. MCD currently has a dividend yield of 3.00%. I bought 30 shares of MCD at 100.999. This will add $92.40 to my annual dividends, including approximately $46.20 for the remainder of 2013.
My final purchase was diversification into real estate with Realty Income Corp (O). Realty Income trademark is The Monthly Dividend Company. They have a 44-year track record of dependable monthly dividends. The company has just declared its 517th consecutive common stock monthly dividends and has increased the dividend 72 times since becoming listed on the New York Stock Exchange in 1994, amounting to 142.1% dividend growth since 1994. O currently has a dividend of 4.90%. Realty Income Corp is an equity REIT (Real Estate Investment Trust) that primarily invests in real estate and earns an income through the rent they charge their tenants. A summary of their financial performance can be found here. They are diversified with over 3,500 commercial properties in 49 states and Puerto Rico. I bought 67 shares of O at 45.00. This will add $144.72 to my annual dividends, including approximately $60.80 for the remainder of 2013.
In total, purchases from today (not counting dividend reinvestment) will pay $334 in annual dividends. The total annual dividends for my portfolio is now up to $1431. As stated on my post, Will I get to my $1000 goal?, and following an additional purchase of KMI, I was still about $64 short. I should now easily make that goal with an additional $131 expected during remainder of the year.
|Company||Symbol||Shares||Price||Yield||Expected Annual Dividend|
|General Electric Company||GE||128||$23.395||3.20%||$97.28|
|Realty Income Corporation||O||67||$45.00||4.90%||$144.72|
(1) General Electric: A Dividend Growth All-Star In The Making
Full Disclosure: Long GE, KMI, MCD, O