Back at it with new dividend buys — FLO and GILD
The first was buying an additional 50 shares of Gilead Sciences (GILD). I had purchased this biotechnology company in February 2016 at a share price of $89.779. I liked the company at that price and recently it has gotten even more attractive. I was able to buy these 50 shares at a price of $78.36 per share. This not only lowered my cost basis to $83.97, it also added $86 per year in extra dividends.
The second purchase was a company that has gotten a lot of attention recently by the dividend investing community, Flowers Foods (FLO). This is a new purchase for me. On 9/1/2016 I bought 200 shares at $14.76 per share. This adds $128 a year in dividends.
Together these two purchases bring my annual dividends to $4,899.34, or $408.28 per month.
At one point I was over $5000 a year in projected dividends. However, due to dividend cuts (here’s looking at you KMI and KKR!), I’m having to slowly work my way back up.
It’s getting hard now a days to find stocks that I feel are undervalued… I may have to go to the method of collecting premium by selling puts at prices I wouldn’t mind owning the stock at.