Tuesday, November 11, 2014

Loyal3 Stock Buys of the Week Edition #7

I have been keeping track of my weekly buys for Loyal3 for 7 weeks now. This week I was focusing on averaging down on some of my core positions with higher dividend yields. I don’t usually focus on how high the yield for a stock is because I love adding to stocks with lesser yields but higher growth potential as well. For example Disney (DIS) and Starbucks (SBUX) are two core positions with 1% and 1.68% yields respectively. I don’t really need the income from dividends as much as I will 30 years from now. This will give Disney and Starbucks plenty of time to grow their dividends.

The overall Loyal3 portfolio dividend yield stands at a conservative 2.73%. I would like to bring that number up to at least 3.25% for the long term. This shouldn’t be too hard with all the dividend increases and companies paying over 3.5% yields such as MCD, UL, KRFT, MAT, and TGT. Although I bought a bunch of high yielders this week, it is not my main focus or strategy. It just so happens I wanted to average down into these particular stocks with higher yields. They also happen to be fairly valued except for Coca-Cola which has a P/E of 23.20 but I love the stock and I am willing to buy up shares below the $42 price target.

Company
Amount
Share Price
P/E
Div Yield
UNILEVER (UL)
$50
$39.70
17.78
3.77%
COCA-COLA(KO)
$50
$41.64
23.20
2.98%
MATTEL(MAT)
$50
$31.00
14.96
4.88%
MCDONALDS(MCD)
$50
$93.61
18.89
3.63%
TOTAL
$200
 
 
Average  3.82%

What do you think about my recent additions?

 

 

 

 

 

17 comments:

  1. My favorite of the group is UL, and I have been aggressively adding over the last month. To get some exposure to some of the long-term growth you mentioned, I am opening a position with Starbucks this month. Keep up the steady investing and good work!

    ReplyDelete
    Replies
    1. W2R,
      I also like UL as a favorite and I am going to pick up a few more shares this week on L3. SBUX is a solid long term growth position. I should have picked up some more when they were sitting at 72/share. I also like DNKN right now and I am expecting some solid growth from them as well. So many opportunies and not enough capital.

      Delete
  2. MCD and UL are my top picks for your recent purchase. It shouldn't be difficult to boost your yield over time to well over 3%. There are many great solid long term dividend payers paying well north of 3%. As always, it's great reading your recent updates and buys. Look forward to the next update.

    ReplyDelete
    Replies
    1. DivHut,
      Thanks for the continued support. I have plans on adding some of the high yield stocks on L3 this week to take advantage of the upcoming dividends in December. MCD, UL, K, MAT, and KO are on my radar. All great dividends and most are fairly valued. That will also give me a raise in my overall portfolio yield.

      Delete
  3. I have to agree with other UL under $40 was a great buy for sure. MCD was a nice pick up as well...we also own MCD and think we picked up shares around $93 as well.

    Keep up the weekly buys as long as you can...looks like your are making great progress so far.

    Wishing you continued success. AFFJ

    ReplyDelete
    Replies
    1. AFFJ,
      I am glad I picked up UL and MCD at those prices. I think they will both provide great returns for years to come. Both dividend yields are well over 3% and I will be happy to collect the divideds for the next 30+ years. I have a long list of buys for next week and I am trying to lock in some more by Tuesday the 28th. I am trying to take advantage of the CC rewards on L3 before they take it away.

      Delete
    2. Did L3 all ready stop processing credit card orders? I did 4 prior to 2PM EST Nov 5 and they still have not processed a full week later.

      Delete
    3. Anonymous,
      I am having the same issue. I wonder if Veterans day delayed my transactions because that doesnt count as a business day. If the orders dont go through tomorrow then I will give them a call. It sucks that all my buys went up which will now give me less shares.. I might not be using L3 as much after this week.

      Delete
  4. Great buys DM! I added UL to my weekly purchases this week as well. Also, I scooped up some KO and MCD as well. Keep up the good work!

    ReplyDelete
    Replies
    1. Hey Agent,
      Those are all great buys indeed. I believe they all pay a dividend in December so I am expecting a solid month in terms of passive income. I am up to 25 buys this week and I am working on compiling a list for my next article. I look forward to seeing your progression.

      Delete
  5. DM,

    Nice purchases here. Some really solid blue chip names up there!

    I recently added to my UL position as well, so we're on the same page. :)

    Keep it up!

    Best regards.

    ReplyDelete
  6. Hey Mantra,
    I would love to be able to hold 100 shares in UL as you mentioned in your recent post. I am up to 23 shares now and might bring it up to 40 by the end of the year if the price is still attractive. Thanks for signing off on my recent purchases. I have a long list of buys for next week and I am hoping this will make December a record month in terms of passive income. I know you dont like to add low dividend yield players, but have you thought about TWX or VIAB for the media/movie sector? I know Buffet owns VIAB at this time and the price seems attractive at 69/share.

    ReplyDelete
  7. I personally prefer DIS over MAT if you want to go in the toy & kids industry. KO is not cheap right now, but it's always a good stock to add to your portfolio :-). I just sold MCD this week to buy a smaller company (BDI on Toronto). Bigger yield and better growth potential. I currrently wonder if MCD will be able to take a more healthy turn and increase their margin....

    ReplyDelete
    Replies
    1. TDG,
      My plan is to keep MAT a very small part of my overall portfolio. It is somewhat of a risky play and I would rather be investing my money into DIS like you mentioned. KO is definitely not the cheapest but they are one of the safest stocks to hold for the long term. I still have hope for MCD because they can change the menu and have consistently raised the dividend. I understand where you are coming from with trying to find better returns in the market. I want to eventually focus on adding a few more mid cap stocks to my portfolio.

      Delete
  8. I like the adds since i own 3 out of the 4 and still like mattel as well. Keep grinding away!

    ReplyDelete
    Replies
    1. Hey AG,
      Thank you for signing off on my buys for the week. I still want to average down a little in Mattel for the week. I really feel like this will be a decent long term investment. The yield is nearly 5% so I can't complain if I am being paid to wait.

      Delete