Adding to Two Positions I Already Own — AMGN and NSRGY
I’ve been busy with work, vacation, and the holiday season, which has kept me from writing a couple of posts. The great thing, though, is that even though I’ve been busy, my dividend income has kept rolling in. December has always been a great month for dividend income, and I’m really looking forward to seeing what the total is this year.
But for now, here’s a post about two additional purchases of stocks that I already own:
As most of you know, stocks in the US in general are getting kind of expensive from a valuation standpoint. Dividend stocks in particular have done great, likely because most people are starved for yield and subsequently have been bidding the prices ever higher.
There are, however, a few industries and individual stocks out there that have trended down. One industry which has not done that well post Trump’s election has been biotechnology. In fact, I recently sold nearly my entire share of Gilead (GILD) to harvest some of those capital losses for tax purposes. I will, one way or another, be buying GILD back as soon as the 30 days are up. In fact, I have a put option currently opening on GILD at a strike price of $72 expiring at the end of January. I’ll either let that get assigned or just buy back the 90 shares that I sold plus more.
One biotech stock that I decided to dollar cost average down rather than sell at a loss is Amgen (AMGN). On 12/9/2016 I purchased an additional 33 shares of AMGN. This lowered my cost basis from around $158/share to $152/share. It also increased my annual dividend from $253.75 to $405.55, an increase of $151.80.
My second purchase is the large multinational Swiss food, Nestle (NSRGY). I’ve had Nestle in my portfolio for awhile now. It isn’t the most common of dividend stocks since it pays only once a year (in May). It does have a nice yield of 3.41% currently and is sitting at a slight paper loss since I bought it. On 12/22/2016 I purchased an additional 113 shares, which increased its annual dividend from $72.52 to $345.69, an increase of $273.17.
Overall, these two purchases bring my forward twelve-month dividend up to $5401.85. This will be even higher come January when I repurchase the GILD shares that I sold for tax loss purposes.
I’m excited about getting paid again in a few days. Looking forward to putting more money to work!