Recent Buy – WMT 

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The combination of strengthening in USD, increase employee salaries, and plan & development in ecomerce has spooked the Wall Street crooks and Halloween is still two weeks away. The crooks sent Walmart stock 10% down today, marking the down triple digits in red. What do I do on the red day? C’est simple! Achète! Achète! 

I bought 20 shares of Walmart stock today at the price of $61.11. This yield right about 3%. And will increase my annual dividend by  $39.2. This will increase the total number of Walmart shares to 130 shares. I don’t remember Walmart has been trading this low since 2010. Maybe, I’m wrong, but it’s a good thing to stock up on Walmart.  

 
Even buying WMT during the market high in 2005 will still increase your $10k investment to $18.4k (84%, or 6% per year, way above the inflation and above the 0% interest rate). Dividends sure do its job. 

Forget about the WMT price at the all time high, focus on 30% discount we have in Walmart right now, the s&p is only down 3%, Walmart has already corrected for the year. In 2009, when everything was down by 50%, WMT hold its ground. If we are going through another recession WMT will outperform everyone else. Otherwise, I’m collecting my 3% dividend until my old age. 

What’s about you? Have you bought anything lately, or you’re holding back because the market is having a run up?

6 Comments

  1. Great buy! I had a limit order set at $65 for WMT but I got impatient and bought at $72. Oh well. Maybe I’ll average down. Anyway congrats on getting in at such a great price.

    Ken

    • It’s kind of suck looking at a down portfolio, but on the bright side, we can average down, because the portfolio is still at the growing state.

      I’ve read somewhere that it doesn’t matter much if you space out your buys or average down. Say you bought at $72, and the stock go to $140, and you bought at $60 and the stock go to $140. It’s still look like it’s gained 2x.

      I bought D (dominion), and VZ at the begining of the year. VZ has a great run to $53 or so then now sitting at $44. D has a great run from $69 to $75, then down to $65, now up to $75. I didn’t sell when it go up. In a couple of month, the interest rate will increase, and D will definitely suffer. Knowing this ahead of time, one would say, I’d be an idiot not to sell at such high profit now. yes? The thing is we don’t know anything for sure. Dominion has a history of splitting its stock when the price hit about $80-90. And ì theo rát remains low for years, D will continue to benefit. If I sell, I’ll miss out the chance and I have to pay taxes on the gain.

      As for VZ – the stock is down 10%, stock is moving side way at the moment, but if I don’t sell, I haven’t lost anything, I’m still collecting 4% dividend. I can’t get that from the bannk. VZ has a great history of dividend increase, so is Walmart. I’m planing on having about a handful of anchor stocks, the ones that bring in the most dividend each month, relatively “safe” investment. Walmart is a good pick for the next coming month to size it up.

  2. Awesome buy Vivianne. I’m gonna pick 30 shares up tommorow morning. It’s a bit of bargain and I like Walmart as I shop there quite often. They got the best prices. Thanks for sharing.

    • Looking forward to your write up. You didn’t build up that monstrous dividend portfolio without any wise investment. Great job on getting WMT at great prices 🙂

  3. seems like a bargain. I really love averaging down too. Most of my stocks are much higher now we’re into October, but September afforded em the opportunity to average down on Unilever and Royal Dutch Shell. Pretty pleased about those opportunities.

    • Congrats on picking up Unilever and Royal Dutch Shell. I’m sure these will be paid off in the long run. That’s exactly what I’m in for with WMT buy.

      Cheers!

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