Recent Buys: October 9th, 2014

United-TechnologiesToday my total combined portfolio hit the red, as in a negative value. It hasn’t done this for almost a full year. Instead of holding my breath and getting scared, I got excited at all the opportunities in the market and ultimately decided to average down on United Technologies Corporation (UTX) as it set new 52-week lows. I initiated a position in this company just last month at $108.21 a share. Today I got in about 7% lower when I added 16 additional shares for $100.60 each and a $6.95 commission for a total transaction cost of $1616.55. My overall cost basis on this position decreases from $108.71 to $104.61 per share, and the purchase adds $37.76 to my 12 month forward dividends.

walmart-logoI’ve also followed some of my peers that I respect so much this month by opening a no cost Loyal3 account (non-referral link). If you haven’t read the post ‘Snowball City – Loyal3 Dividends’ at ‘Write Your Own Reality,’ do yourself a favor by checking it out and get inspired! In my new account, I initiated a small position and then added to Wal-Mart (WMT), and I will keep chipping away as I see fit. I am now invested in a total of 19 companies that pay growing dividends. I’ve made three Loyal3 purchases so far this month, and one of them was with a $10 free credit I got for opening the account. My portfolio page has been updated accordingly.  These small transactions added $2.72 to my 12 month forward dividends. Here are the details:

2014_Oct_loyal3_w1I’ll also include a fast graph of Walmart.

2014_Oct_FG_WMT My new combined 12 month forward dividend total is $1,118.96. Shortly after my purchase of UTX today, I read a great new article from the creator of fast graphs, Chuck Carnevale. It’s called “45 Attractive Dividend Growth Stocks In Today’s Overheated Stock Market – Part 1” and the first company he highlights happens to be UTX. In this article you can find several other great research candidates to look into while we’re experiencing this much welcomed market volatility.

I’m eager to see where the market goes from here, and either way I’ll be buying solid companies and collecting those sweet dividends that will one day pay for all of my expenses.

What do you think of UTX and WMT? What did you add to your portfolio in these past few days?

My Dividend Growth

http://www.mydividendgrowth.com

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26 thoughts on “Recent Buys: October 9th, 2014
  1. roadmap2retire

    Good pick, Ryan. I would love to add UTX to my portfolio. Its been on my watchlist for a while.

    Great time to average down! Best wishes
    R2R

     
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    1. My Dividend Growth

      R2R,

      Thanks a ton! It seemed like a great time to add when priced at 52 week lows. I’ll be curious to see if you ever jump on board. Congrats to you again for that cheap CVX purchase. One minute you were contemplating and the next you went for it, I felt included in that moment, hehe! Wishing you the best tomorrow and over the weekend 🙂

      ~Ryan

       
      Reply
      1. roadmap2retire

        Likewise, buddy….I felt included too. I am very low on capital now…will wait for the cash position to build up a bit before investing.

        cheers

         
        Reply
        1. My Dividend Growth

          I hear you. It’s tough sometimes to hold off buying when the market presents these attractive prices. I’m trying to only make a purchase when the bi weekly paycheck comes through and am tucking some extra away just in case of a massive market downturn. When to dip into that fund is the question! I’m hoping you have a nice and relaxing weekend!

          Best,
          Ryan

           
          Reply
  2. Retire Before Dad

    MDG,
    I opened a UTX position on Wednesday at $101. I like these diversified industrials. They could surely go lower if the market continues to far. Right now, the valuations are good, 52-week lows, plus the aerospace area is strong now. I also very much like their elevator business.

    I still prefer TGT to WMT. Mostly though for the shopping experience. Out WMT’s near us are terrible.

    I also averages down PH Wednesday, and bought mor SPY and IWM in retirement accounts.
    -RBD

     
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    1. My Dividend Growth

      RBD,

      Nice move with UTX, I think we’ll both look back in several years and be very happy with this one. Glad to have you aboard! PH is so attractive right now and you’ve really opened my eyes to that company and I would love to own a piece of it. Great job with those retirement accounts too, you’re firing on all cylinders and diversifying so well.

      I’m with you on preferring TGT over WMT. Both as investments and shopping experience. When I lived in the Midwest, I would shop at WMT more because they were open 24 hours a day and cheap. In Los Angeles, there aren’t many WMT’s that are close to us and none are open 24 hours. With our Target Red Card, we much prefer shopping with the 5% discount. I really want to own more of the companies that make the products these stores sell though. I really want to get started on some names that are overvalued like CL, CLX, KO, PEP, SWK and more. Hopefully I’ll get a shot eventually or I might just have to slowly average my way in. Always great to hear from you and I very much appreciate the comment!

      Hope you have a great weekend!
      Ryan

       
      Reply
  3. Dividend Gremlin

    Ryan,

    Good buy, and great to hear you started using Loyal3 as well. It has helped me to start 8 new positions over the past year, although WMT is not one. There are plenty of good stocks on there, and its all commission free and you can even gain credit card points or percentages back. Can’t beat that! I plan on rolling that account into my standard Sharebuilder account once it gets big enough. In the mean time, it is a great platform to grow a wide berth of positions you might not otherwise invest at the moment, for whatever the reason.

    – Gremlin

     
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    1. My Dividend Growth

      DG!

      Thank you much for the continued support and welcoming me to the L3 club 🙂 It’s truly wonderful to hear you’re having some serious success with it so far. I would love for KO, PEP, HSY, MSFT, NKE and UL to fall in price a bit and put them in my L3 account. I could pull the trigger on DPS and KRFT at current prices too and be pretty happy. I also see good value in MAT and YUM right now, but I’m not sure I want to own them yet. It’s hard to beat zero commission and 1.5% cash back with my Capital One Quicksilver credit card. I also love how the dividends get reinvested, it’s almost like FRIP at Scott Trade but better. Glad to be on the same page with you and I hope your weekend treats you well!

      Best Wishes,
      Ryan

       
      Reply
  4. writing2reality

    Wow, thanks for the link love and the shout-out! I appreciate that and am glad you’ve started investing through Loyal3! The power of regular, even small, investments, is tremendous, and Loyal3 facilitates that in an unbelievable way.

    I am planning on joining you as a UTX shareholder this month, and already hold some WMT in Loyal3, so needless to say I like the additions.

     
    Reply
    1. My Dividend Growth

      W2R,

      My pleasure! You’re setting an inspirational example over there 🙂 I’m pumped about this account and hope some of the overvalued dividend growing companies available on L3 come down a bit so I can start a position! I’m very happy to join you in WMT and am excited to see if you pull the trigger on UTX. I’m excited for the long term potential United Technologies offers and hope to one day be very happy I made this investment. It’s so kind of you to stop by and comment!

      Best Regards,
      Ryan

       
      Reply
  5. Dave

    Careful you will get a warning letter from Loyal 3 for buying the same stock with a credit card more than once per day.

     
    Reply
    1. My Dividend Growth

      Hi Dave,

      Thanks for the info as I wasn’t aware of that. I’ll keep it in mind when some of the core dgi companies on L3 go on sale and I make larger purchases. Appreciate the comment and hope to hear from you again.

      Best,
      Ryan

       
      Reply
      1. writing2reality

        Interesting about the notification… I’ve been doing this for a while and have yet to receive a warning letter. I’m not sure if there is a quota as to how much is too much, but I’ve made five transactions of a single stock with my credit card within a 10 minute window without any issues. I do anticipate the credit card option to disappear at some point. To me it is more of a marketing tool to bring folks in the door.

         
        Reply
        1. My Dividend Growth

          W2R,

          Thanks for chiming in. I was almost positive I had heard you mention this before, and I’m glad you’re here to verify that. I’m sure I’ll give this a try at some point and I’ll let you both know if they email me. Perhaps this feature isn’t consistent for every account. Either way I’m happy they got my foot in the door and I’ll be taking advantage as long as the option is available 🙂

          Best,
          Ryan

           
          Reply
  6. Dividend Mantra

    Ryan,

    Great buys. I especially like UTX here below $100. I’ve been stretching my cash flow a bit early in the month here, but I think UTX is a fantastic company.

    I’m a fellow shareholder in WMT, so that should tell you I like the business. 🙂

    Keep up the great work. Regular and consistent purchases will surely serve you well as you build your snowball.

    Best regards!

     
    Reply
    1. My Dividend Growth

      Jason,

      This was a tough decision because I want to own GE which came down in price too, and a couple of other companies I’m invested in are flirting with 52-week lows in BP, AFL, and DE. I like them all long term but UTX seemed too good to pass up here. WMT also seems fairly valued, but not a steal and I still like them even with the small dividend increase this year. L3’s no commission and 1.5% cash back threw it over the edge for me. I’m really hoping we can see a few other great companies touching 52-week lows in the coming weeks. Keep me in the red for a while! I really want a portfolio the size of yours, because it would be so fun to watch it move by thousands of dollars daily. I’ll keep grinding and you do the same. You are a constant inspiration to me and thank you for checking in!

      Best,
      Ryan

       
      Reply
  7. Dividend Road

    I was very close to adding to my current position in WMT but I’m just not as optimistic they have a strategy against the dollar stores yet. I do think they are a must have in a portfolio since they are great at generating revenue. I think you will be happy with you purchase in the long run.

     
    Reply
    1. My Dividend Growth

      DR,

      Thanks for sharing your thoughts. I’m happy to join you as a shareholder here. I’m not as worried about the company as I think they’re swiftly and successfully transitioning to eCommerce which I see as the future of retail. But I’d much rather own the companies whose products occupy these stores so I don’t plan on making this or TGT a large weighting in the portfolio when all is said and done. I hope we’ll both be very happy with this investment in the coming years 🙂

      Wishing you a nice weekend!
      Ryan

       
      Reply
  8. DivHut

    Nice pick up with the UTX. That stock has been getting quite popular in recent days and I can see why. It has a great and long dividend history as well as decent PE. I know the recent price drops are making it even more attractive. Not sure I would have gone with WMT though. Not my fav. I only own one true retailer, GWW. I know many like TGT but I just can’t get behind many of the consumer retailer businesses. Thanks for sharing.

     
    Reply
    1. My Dividend Growth

      DivHut,

      Thanks for the support and for sharing your thoughts. UTX is definitely getting popular for all the right reasons. I’m hoping I’ll be patting myself on the back for this one in the future. I really want the prices to continue to drop on a lot of these great DGI companies, I’ll be consistently buying as long as I’ve got the day job 🙂

      Best,
      Ryan

       
      Reply
  9. Dividend Diplomats

    MDG,

    Loving adding more to your position. You asked yourself, I am assuming – if I liked this company at X (the higher price) – wouldn’t I also like it if it dropped in price OR in another way – went on sale? Such as the 7% yours went on. Great move and nice job adding more shares to a fundamentally sound company that pays and increases dividends. Nice forward projected income as well. I just re-upped my positions in AT&T, MCD & GSK. Nice job again!

    -Lanny

     
    Reply
    1. My Dividend Growth

      Hi Lanny!

      Thank you very much for the support. Isn’t is great when the market is telling me I can get more shares of the same great company I own for an even higher yield with even more growing annual dividends??? Yes please!!! Excellent job over there with the purchases, I hold AT&T with you and like all three companies you listed. You’ve been having a killer year and it’s been real fun to watch, be sure to keep challenging yourself and Bert because it’s working!

      Best wishes,
      Ryan

       
      Reply
  10. DividendMongrel

    Hey Ryan,
    I have been in the red since I started but eventually I anticipate my portfolio to do well over the long term. I own a few risky stocks but overall most of them are blue chips. I’m glad to see you joined L3 and purchased WMT. I am a fan of this purchase simply because I still see long term growth. You can’t bet against one of the biggest retailers and Walmart is a very smart company. They are changing items to better the needs of the customers. I can now go into my local Wamart and purchase organic and gluten free foods for a reasonable price. They will continue to do well in my opinion.

     
    Reply
    1. My Dividend Growth

      DM,

      It feels good to be in the red, especially with young portfolios like ours. I plan to keep making the regular purchases to get those dividends and we’ll see where it goes from here. I’m loving Loyal3 so far, thanks for the welcome. Those are some great points about WMT. Their growth may not be as rapid in the coming years, but I like it a lot long term. I also recently put in a small order to join you in UL 🙂

      Best Wishes,
      Ryan

       
      Reply
  11. Special Agent Dividend

    Good job on averaging down. I’m loving the market at the moment and the ability to get some good deals.

    I’m really loving L3 myself. I’ve been using for several months and have about 1500 invested so far with small purchases. Can’t beat it!

     
    Reply
    1. My Dividend Growth

      Special Agent Dividend,

      Thank you much! The swings are definitely getting violent in the market and I hope this goes on for a bit longer so our capital can go that much further. More dividends for less capital, please! Would love to see all the core dgi companies hit 52-week lows. What a fun decision we’d have to make on limited capital 🙂 You’re killing it in L3! I’m probably going to ease my way in at about $50 a week for the time being. I may get interested in larger amounts though with what the market is doing these days.

      All my best,
      Ryan

       
      Reply

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