Latest Buys Bring Me Above $7000 a Year in Dividends — GE and IBM
My latest two buys are companies that I already own. Both GE and IBM are going through a bit of a rough patch right now with Buffett selling some of his position in IBM and GE getting downgraded by Deutsche Bank. In fact, if I would have waited to buy GE until a little later in the month I would have picked it up at an even greater deal!
On 5/9/2017, I purchased 20 shares of IBM at $153/share. This brings my position in IBM to approximately 68 shares worth roughly $10,360 today. This purchase adds $120 per year in dividends. My cost basis is in the 140s, but I still feel this is a good point to add more shares.
On 5/9/2017, I purchased 100 shares of GE at $29.09/share. GE is one of my larger positions at nearly 789 shares worth roughly $22,130 today. This purchase adds $96 per year in dividends. This buy also actually raised my cost basis since I’m in at the mid $26 level. If I had held out until after the Deutsche Bank report, I could have gotten it for slightly cheaper. I would have either saved $28 or been able to buy 1 additional share…not that much of a savings when you think of it that way.
Once volatility increases, I intend to supplement the $757 a year that GE pays me in dividends with call options. However, the premiums are so low right now that it is just not worth it yet.
And, I am super excited to say that these two purchases (along with some of the recent dividend increases), bring my forward annual dividends well above the $7000 level. I’m currently sitting at $7,141.69.
This is $3.42/hour working 40 hours a week and $0.82/hour working 24/7. These numbers are based on 2087 and 8760 hours, respectively.
I still have about $4000 in cash burning a hole in my brokerage account. What other stocks are you guys considering at these valuations?