With the holidays quickly approaching, there has been a lot of red in the market the last week or so and I’ve been patiently watching a handful of stocks from my latest dividend watch list.
Late last week I missed an opportunity to add to a couple of holdings as I was away from the computer spending a day with Divvy Mom doing some Christmas shopping and enjoying some time together–which is worth far more than any discount on a stock purchase.
Fortunately, by remaining patient I was presented with buying opportunities again today.
Adding to BlackRock and Altria Group
For more analysis on each company, I encourage you to review the prior posts detailing each purchase.
Here is a snapshot of my two purchases:
BlackRock is still a fairly new position to my portfolio and as I mentioned when sharing my watch list, I was looking to add more if the price returned to the sub-$400/share levels after previously purchasing at $396/share.
My sights were set on a price approximately 3-5% below my original purchase, and today I was able to buy an additional 5 shares at a cost of $383.00/share for a 3.27% dividend yield.
The 5 shares will add an additional $62.60 in projected annual dividend income.
This purchase doubles my share count to 10 shares, reduces my cost basis to $389.50, and will produce $125.20 in PADI.
Altria Group was already one of my larger holdings on a weighted basis; however, with the price testing the 52-week low and their recent move into the cannabis market I opted to round out my holding to 100 shares. Last week Altria announced a $1.8B investment into Cronos that will give them a 45% stake in the Canadian cannabis company. They also hold warrants that, if exercised, would increase their stake to 55% of the company.
In addition, there is speculation that Altria is looking to buy a stake in Juul, one of the most popular e-cigarette companies in the industry. With both of these companies, I believe Altria is positioning themselves well for the future.
The investment in Cronos and possible investment in Juul actually can go hand-in-hand as well, as it is possible to use the Juul (currently requires the user to hack the device but that may change in the future) to vape THC. Therefore the combination of these two companies could be a strategic move for Altria in the Canadian market, and eventually the US market should cannabis become legal nation-wide.
With the price of Altria dropping in recent weeks, I decided to take advantage and added 33 shares @ $53.00/share for a whopping 6.04% dividend yield.
The 33 shares will add an additional $105.60 in projected annual dividend income.
As mentioned, I now have a total of 100.275 shares that produce a total of $320.88 in PADI.
With these two purchases, both Altria and BlackRock are now slightly overweight in my DGI portfolio at 4.4% and 3.3% respectively. Therefore I am most likely done adding to both of these positions for some time, and will only be tempted if we see significant declines in either.
While these two holdings are overweight in my dividend growth investing portion of my portfolio, they each still represent less than 1% of my overall portfolio–so there is room to add more, but I want to build my DGI portfolio in as balanced manner as possible.
These two purchases, along with the dividends received thus far in December, have pushed me extremely close to reaching my revised goal of obtaining $5,500 in projected annual dividend income.
As of today, these purchases have added $168.20 in projected annual dividend income and that has pushed me to $5,468.10 in PADI. With the intent to make at least one or two more purchases before the month ends, I am confident that I will reach my revised goal.
What do you think of these two purchases?
Have you added either recently?