Recent Buy

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2012-2014, I’ve spent much of my taxable account money on banks stocks and profited from them. My two wild horses was BAC and WFC. I spent some of that profit and cash some money to buy the 4-plex in August 2014.

2014-2016, I’ve watched my $180k investment swung to $220k before decending to $170k, then comeback up. By then, I had pour more money into the account to “buy low”. I bought the dip. Sold a hug chunk from March to August. Bought another rental IN CASH for $55,001 on auction.com sight unseen. 😛

Update on Rental property: After months of delaying renovations, it was listed for a couple of weeks, and we had someone placing a deposit today. They are set to move in November 1st, 2016. I’ll do a write up after everything is settle.

Now, with more than 3 quarters into 2016, it has been tough finding a re-entry point. Energy stocks are recovered some from the all time low. The REITs are off the chart. Even the banks are through the roof. VZ and AT&T have made some big merging arrangements causing their stocks to go down. While the DOW is still at the all time high.

cropped-verizon-logo-2015

I bought VZ at $45, sold at $53. Bought again, sold again. This time, I bought 10 shares at 48.xx.

Verizon yield is nearly 5%, payout is close to 50% compare to AT&T 85%.

I’m a Verizon customers for almost 10 years now. They keep hooking me up with free movies on demand, free premium channels (I don’t watch them, but my tenants do. And that keeps them happy to stay put). They don’t double the price after the contract is up. But I do have to call every 2 years to keep the price relatively close to what I’m paying. Still, it’s better service than Comcast. Basically, a frugalist like myself is hooked on Verizon.

Not to mention, recently, I’ve upgraded to a iPhone 5S, as used one, but I needed one and Mr. W added me to his plan for $20 more than he’s paying with his bill right now. Oh well… I feel like my money is floating away in thin air. Hahah.

Well, if I can’t win, I’ll join them. Why not getting some of that money back?

But this buy is not without risks. VZ bought Yahoo online business, and with the recent yahoo bad press due to knowing the hacking has been going on for 2 years without resolving, this is bad.

Verizon Debt level is up from $40B to $90B, I guess if they can lock the rate at this level than its not too bad, but it’s still a concern.

Verizon has only been paying and raising dividend for 10 consecutive years. It’s below it’s main rival AT&T. So, when thing get rough, dividend probably would need to go first.

Customer service is no longer number 1, it’s got taken over. But for sure, when I speak to the customer retention department, they’d do whatever it takes to keep me as customer.

“Can you hear me, now?” Guy is at sprint because all the cellphone signals are the same, services are stabilize.

Verizon did get creative in creating smaller packages to keep the “cutting cords” movement. I guess, buying AOL and yahoo, they figured they’ve diversifying the business. Everybody is investing in the Internet business, either Internet contents or Internet of things like having a camera hook to a tv or DVR box so they can log on to an app to see what’s going on at home. Verizon is lagging behind Comcast on security over the Internet.

With that said, I’m only initiating 10 shares for now, if it dips further, I hope to get back to 200 share level like I had before. Dividend at that time was sweet.

What do you think about my buys?

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GA

5 Comments

  1. I’m like VZ, great buy. I’m long T, but I have space in my portfolio for both T and VZ. I’ve sold VZ for gains a few times the past few years. I don’t own any shares today, but I will likely add VZ shares soon.

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