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?

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25 Responses

  1. Lindsey Hunt says:

    Killing it πŸ™‚

  2. Jay says:

    Great work! Looks like some good forward income. I also love framing the income in terms of dollars/hr – so congrats on giving yourself a raise!
    Jay recently posted…Trend Following Trading Ideas for May 2017 Part 3My Profile

  3. DivHut says:

    Awesome job building up that dividend income. GE came to my attention today as well though I did not pull the trigger. I’ll be watching GE now that it’s below $30 and looking a lot more attractive. Nice pick ups!
    DivHut recently posted…Dividend Portfolio Sector Allocation May 2017My Profile

    • scott says:

      DivHut, Thanks! It’s fun seeing the reinvested dividends finally start to buy whole shares now! I’m continuing to watch GE as well and might pick up some more if it stays below 29.


  4. Well done mate another great purchase well done to you!
    Buy, Hold Long recently posted…May 2017 – Blog UpdateMy Profile

  5. Great names for sure. GE is always a solid choice. Just wish they would increase their dividend a little more frequently. But the dividend is safe so you can count on a payment either way. IBM has come down a lot in price in the past month or so. Perfect time to pick it up. Are you worried at all that Warren Buffett sold such a big portion of his shares in the company? How well do you think they will perform long term?
    Dividend Daze recently posted…How to Decide Between Paying Off Student Loans Early Or Investing (Or Both)My Profile

    • scott says:

      I think GE will eventually get back to giving us some good dividend increases. At least the current dividend (around 3.4%) is quite nice!

      I’m not super concerned about Buffett selling some of his position. He still owns a lot. Over the long term I think IBM will perform great. A lot of the negatives are already priced in. They pay a great dividend and have enough cash flow to easily cover it and future increases.


  6. AG says:

    i can tell your a fan of frank curzios with that GE position πŸ™‚

  7. Man that’s is awesome great hourly breakdown. I like ibm but don’t own any us stocks due to the current conversion rate. Keep it up

    • scott says:

      Thanks for the comment, Passivecanadianincome. (Love the domain name!) Any good value Canadian companies you’d recommend at current market levels? I own a couple Canadian companies now…a bank and some mining stocks (on the TSX).


  8. FiscalVoyage says:

    WOW great stuff!! congrats on passing $7000 a year in dividend income!!
    FiscalVoyage recently posted…My Dividend Income Bought $1,200 Worth of SharesMy Profile

    • scott says:

      Thanks, FiscalVoyage. I’ll be sure to follow your journey as well. There are so many newer dividend bloggers…it is great!


  9. Actually I’m surprised that Buffet bought IBM all those years ago. Since the 1980s Buffett has focused on buying growth stocks, and IBM is hardly a growth company any more.
    Troy @ Market History recently posted…Comment on U.S. stock market on May 23, 2017: thoughts and outlook by TroyMy Profile

    • scott says:

      Hey Troy,

      Yeah, I was kind of surprised too. But, I think they may have finally gotten some of the growth component (cloud, data analytics, Watson, etc) back. I’m holding them for the long term.


  10. What do you like about IBM besides the dividend? I know they have some new divisions(cloud, data analytics) but the consecutive declines in revenue scare me off and there’s so much competition in that space.

    • scott says:

      Hi timeinthemarket,

      I agree that there are a lot of consecutive declines. But, I think they are starting to finally figure things out and will get the revenue growth on the right track. Plus, there’s so much negative sentiment builtin that really any good news will bring the stock higher. And, the dividend remains easily covered. Despite Buffett selling some of BRK’s IBM shares, he continues to hold a lot.

  11. That is really fantastic, well done to you! i know I would be happy with that

  12. I think Warren Buffett recently sold his IBM after holding on to it for many years.
    Troy @ Market History recently posted…High valuations don’t guarantee weak investment returnsMy Profile

  1. June 15, 2017

    […] 20 shares of IBM and 100 shares of GE […]

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