If y’all remember from my last new purchases, now that my watchlist is (mostly) empty, I do things a bit differently now. If there’s a new stock or two on my watchlist, I usually buy a starting position in one. After that, I choose stocks that meet the following conditions:
- Required: Position size < $5,500
- Required: Passes all or all-but-one of my criteria
- Required: Not purchased within the last month (for dollar cost averaging)
- Required: Must be in the same account I deposited money in
- Optional: Not a growth stock (will apply this month due to multiple options available)
- Optional: Has a yield > 3% (will not apply)
- Optional: Have a current loss on that position > 5% (will not apply)
With these criteria in mind, we have quite the selection this month.
- Basic Materials: PX
- Consumer Cyclicals: CMI
- Consumer Non-Cyclicals: PEP, HSY
- Energy: CVX, XOM, KMI, NOV
- Financials: WFC, BLK, TROW, DLR, VTR, WPC
- Healthcare: JNJ
- Industrials: NSC, UNP, MMM, GWW
- Technology: AAPL, MSFT, QCOM
- Utilities: WTR
So many choices, so little money to invest. So what did I buy?
- 9 shares of the TJX Companies (TJX) @ $69.73 (+$7.56 in annual income)
- 10 shares of Chevron (CVX) @ $88.90 (+$42.80 in annual income)
I just analyzed TJX here. I love the company, but consider it to be slightly above fair value. Hence, I really just wanted to open up a starter position and build it up over time. CVX is an entirely different beast altogether. The company just announced a dividend of $1.07, the 6th quarter in a row that the dividend hasn’t changed. That scares me a bit, but doesn’t make me want to sell just yet. I have a lot of faith in CVX and probably won’t sell even if the dividend is cut (wish I could say that about McDonalds though …). Besides, I am deeply in the red with CVX; I’ve lost about 22% since my last purchase over a year ago. Since I like the company, I wanted to average down on it. May go lower; in fact, I expect it will. I’ll just keep adding. And as a bonus, CVX’s FAST Graph:
What have you been buying?
Disclosure: Long all listed above.
12 Comments
Great buys DD,
I could average down my purchase on CVX as well, but instead I bought another Energy giant: KMI.
It is one of your other options, so you might have looked at it again.
Both companies are great for the long term.
Congratulations on your buy!
Best wishes, DfS
Dividend for Starters recently posted…Recent buy – July 2015 (2)
Thanks, and congrats on yours. I am iffy on KMI myself. There were a series of negative articles on KMI recently on SeekingAlpha which put some doubt in me. I haven’t really investigated the main claim of the dividend being in danger, so I wanted to hold off on more buys until my investigation was complete. Looks like a solid value though.
Great buys DD…we have a close eye on CVX and looking to add more shares if it stays below $90 next week. Way to add another roughly $50 to your forward dividends!
Keep it up. Best wishes and continued success on your journey! AFFJ
A Frugal Family’s Journey recently posted…Retirement Accounts (Update) – July 2015
Thanks, all the best!
Dude, I’m with you on CVX. Things look a little shaky right now but I have complete faith in the company. I just can’t see an oil titan like CVX fall down, I mean, it’s not like we’re not using oil anymore, and we won’t stop using it anytime soon.
At sub-90, CVX is a steal imo. Even though I just deployed some capital a week ago and I’m currently saving up some money for an emergency fund, I’m not gonna lie, I’m getting a really itchy trigger finger regarding averaging down in CVX. Seems like a rare opportunity to add at a huge bargain.
I think you did the right thing.
Cheers bro!
Zero to Zeros recently posted…New Stock Purchase: Spectra Energy
Yep yep. If it’s been around since Standard Oil, I think it’ll survive this period just fine. All the best!
Awesome purchases DD. You’ll ripping it up!! Chevron looks sooo sweet right now! I would love to add too but I just depleted all of the cash savings. Maybe the next purchases.
LOL . Keep up the hustle and hope you’re having a great time with the lovely lady. Cheers my friend.
Dividend Hustler recently posted…2015 Forwards Dividend Update. Milestone!
Ah, that must sting.
It just got so tempting that I couldn’t resist. All the best to you!
I was approving most companies you mentioned until I saw your picks! lol I’m surprised with them because I consider many companies you mentioned as better values currently: JNJ, PEP, MSFT, BLK and even AAPL were great buys last time I checked.
Congrats anyways! Being comfortable with your buys is what counts.
Cheers,
Mike
DivGuy recently posted…Canadian Dividend Telecom Comparison: BCE Vs Rogers Vs Shaw Vs Telus
Heh, but it wouldn’t be any fun if I chose what everyone else was buying! 😉 There were plenty of deals to be had, and plenty of time to take advantage of them. No worries!
Hi DD,
I’d love to average down on CVX and XOM but it seems that the recent drop in their price came with a recent boost in the currency exchange rate (CAD / US). So, even at those price I’m not really averaging down… I guess I should have kept US funds aside when the exchange rate was at 1,03… instead of 1,30 😉
Cheers
Allan recently posted…STRATÉGIE!! Comment épargner 100,000$ pour les études de votre enfant gratuitement grâce aux subventions gouvernementales!
Hi Allan! Aw, that sucks. So close but yet so far … Oh well, I’m sure there’ll be other opportunities to buy. No sweat