Even though I have been extremely busy with getting my career path straight, I did find time to put together 10 buys for the month. It took me a couple of weeks to figure out whether I wanted to go this route but I feel like buying baskets of stocks helps me stay diversified into many sectors. Buying into 10 companies provides more value to me because if one or two companies slump, then I have another eight to carry the rest of my portfolio. It was extremely difficult at first because it is tough to find that many companies in a market that is at an all time high. I could have easily picked a bunch of energy stocks but that sector seems too volatile to me. I want to protect my hard earned capital by investing into the healthcare, utilities, telecom, consumer defensive, consumer cyclical, and industrials sectors. I was able to do this all in one purchase with the help of Motif Investing for the flat rate fee of $9.95. The added bonus was I will be receiving a $150 bonus if I make 5 trades within the next 45 days. I am the first to jump at any free money that will be given to me just by investing into companies that will make me even more money. Now let’s take a look at the companies I started out with in my new portfolio:
My plan was to have an overall dividend yield of at least 3.5% and I ended up with 4%. The overall volatility of this portfolio is fairly low compared to the market as a whole. As you can see I have a beta of 0.77 and an overall P/E of 13.89. I don’t expect to receive a ton of gains here but I also don’t expect to lose much money either if the stock market heads downward. Slow and steady always wins the race! I did add two riskier plays (GSK and BBL) to my portfolio but I don’t feel like this was a bad thing. The dividends for both those stocks are over 5% and I am hoping that I can buy up some more shares in the near future. I realize that I didn’t get the best deals in the market in terms of value (DEO, BAX, and GIS) but I do believe these companies will do fine for the next 20-30 years. I did notice that a few others bought into BNS, BBL, and GIS. I also think that VZ and T are looking good with the recent dip so if these two continue to decline I will be the first to dollar cost average into those positions.
I would love to hear what the rest of the DGI community thinks about my recent investment. I am open to any suggestions or thoughts going forward.
Thanks for sharing your Motif portfolio with us. Look like a lot of solid names and a very nice yield too. I believe in the slow and steady mantra too as I see capital appreciation as simply the gravy on our investment portfolios. Several of your Motif names are in my portfolio too. Look forward to your progress.
ReplyDeleteDivHut,
DeleteI am excited about the 4% yield and I might keep this portfolio as my high yield growth portfolio. I look forward to adding to these names and I am hoping to add others on my radar like TD and BMO. I am glad to see that many of these are in your portfolio and it seems like the slight pullback in the market might open up some more buying opportunities for the rest of the year.
Good buys DM. I especially like BAX and its future spinoff potential.
ReplyDeleteBDI,
DeleteI am hoping to add to this position in the near future. The spinoff is like adding icing to a cake. The healthcare sector should do well the next decade or two with all the baby boomers needing services as they reach old age. I heard AT & T might also be buying up Direct TV which could make them interesting as well. I having done any research around that, but I certainly believe satellite cable to be a great business. I am a happy subscriber to Dish Network and will continue to be unless they hike prices.
DM,
DeleteYea AT&T have been trying to buy directTV for a while but there are still some FCC problems with the buy, AT&T in my opinion is one of the riskiest blue chip stock right now. Why? I was wondering why AT&T would buy a satellite company instead of increasing their cell towers against Verizon. And then i saw last month that AT&T was buying a mexican/latin american mobile carrier and it all makes sense. In Mexico and southward, the big tv carriers aren't TWC or cable in general. It's satellite and directTV. Now what about a nice TV+phone deal in latin america? It would basically limit verizon and sprint to the US while all of latin american could possibly belong to AT&T. Now this is speculation but still...
http://www.bloomberg.com/news/2014-11-07/at-t-agrees-to-acquire-mexico-s-iusacell-for-2-5-billion.html
BDI,
DeleteThat is some solid information you have provided. I am a huge fan of the satellite companies and would invest into them if they weren't so overpriced. However I plan on adding more shares of AT & T because I feel they will have to acquire something to keep up with the other telecoms. The dividend yield is high but the growth is low. And I agree this is more riskier than some of the other blue chips but I wanted to have telecom companies because that are much better than bonds at this point.
Some pretty solid companies in that mix, and over the long haul the dollar cost averaging will help juice your passive income nicely while leveling out your entry prices for each position.
ReplyDeleteHow will your Motif purchases impact your investment in other platforms (Loyal3, Traditional Brokerage)?
Hey W2R,
DeleteI am excited about the 4% overall yield that I will be getting. I can't get that anywhere else at this point. I will certainly be averaging down in we have a pull back in the market. In the meantime I will be trying to save some capital for the next few weeks. I will continue to use Loyal3 and I might add one or two purchases this month. Just this morning I heard Starbucks will be adding beer and wine. They also have plans to deliver is certain locations. The other stock in L3 that looks interesting is Disney with all of the success in 2014. That dividend increase was certainly more than I expected. I have a cost basis of approximately $89/share so I might add sooner rather than later when the price gets out of reach.
Excellent purchases. I love utilizing dollar cost averaging. Keepp it up.
ReplyDeleteTawcan,
DeleteThe great thing is I would have to average up in many of the companies in my L3 portfolio. The problem is I don't want to pay more than I did a few months ago. The only exceptions I have are SBUX and DIS which have very bright future ahead of them.
Great purchases. I own GSK and BBL too and like you mentioned, they are risky plays. I just initiated position in BBL and planning to add to it over the next few weeks. GSK has been down since I initiated the position. Need to decide if I want to add to it. T and VZ are on my watchlist too.
ReplyDeleteHey DGJ,
DeleteThank you for signing off on these buys. My plan is to average down on all of these purchases. BBL, T, GSK, and VZ are all down over 5% since I bought them. I am hoping these prices stay low enough until I can put some capital together. The market is providing the DGI community with some great deals especially in the energy sector. I can't wait to see what you add before the new year.