Recent buys – busy August

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IMG_3831At the beginning of the year, I disclosed that I want to keep 10-20% in cash just in case of a correction. The DOW was hitting 18,xxx several times. I kept my strategy, the patience pay off. The DOW was down more than 10%, the s&p 500 was also down 10% into the correction territory. What do I do? Deploy my cash of course. I can rebuild the cash over time, but the market correction, a chance for me to improve the yields, I wouldn’t pass up on that.

I have steadily been adding 5-10 shares of dividend champion stocks since the beginning of the year. I only bought when the stocks were down 10-30% from its 52 weeks high. My porfolio looked a little bit better when the market was down 1000 points, 10% for the year. Mine was down 6%, $12k. Thoughts was going through my mind, I should pay off my student loans with this, spend more on vacations, etc. But I quickly calmed down and deployed my cash to continue to average down and bought into beaten stocks.

I kept reminding myseft they were not broken companies,

They made a lot of profits and share only 20-40% of the payouts, so dividends will continue to grow.

They didn’t have much exposure with EU or china, so their profits shouldn’t be affected by much.

I bought them before and prices when way up, so when they were down again. Deploying my capital was the way to go.

I will hold these stocks for a long time, so the short term loss won’t affect my day to day life.

I have enough emergency funds so I don’t have to sell anything in panic.


Dividend added:

Goldman Sachs – GS – dividend added $26

Trow – added $20.8

MMM – added $20.5

Wmt – $19.6

JPM -$ 17.6

IBM – $26

GE – $27.6

F – $12

DOV – $16.8

CAT – $30.8

PG – $26.5

COF – $16.5

Total 1- year dividend forward: $261.2

GA

5 Comments

  1. Excellent strategy. I like most of the companies on your list. It’s good to get $261 dollars “locked in” which will double 8-10 years or less since you bought them with better yields.
    D4s

    • I’d hope so. They have pretty track record for increasing dividend. We’ll see how ps the next couple years will work out. There are a lot of prediction of market crash out there. With these companies with solid cash dedication for dividend, I sure hope they hold up and continue to raise dividends. 🙂

  2. Yous said it. These are not broken companies, just broken stocks. I always believed that these great price swoons only creates better buying opportunities for the patient investor. Solid list of names up there. Happy to be a fellow shareholder with you in quite a few.

  3. It’s a crazy market out there, any sort of “good news” will cause a sell of fearing the fed will increase rate. Any bad news about growth will also cause a tsunami of sell off. Then they’ll rebound because of oversold, they don’t have any to short. 🙂

    Anyhow, it won’t change the fact that will average at lease $300/mo in dividend payment this year. And probably increase by 50% due to continue buying. 🙂 cash flow is the key.

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