As I'm writing this blog post, it's officially mid-May. Even though the weather over the past few weeks has mostly been mild, the last few days have brought a cold front to Central Wisconsin, with temperatures peaking in the 50s Fahrenheit during the day and dipping down just below freezing at night.
With that aside, I will be delving into my capital deployment during the month of April 2021.
Beginning with my retirement account, I deployed $378.00 in capital between my 7% contribution to my Capital Income Builder (CAIBX) position and my employer's 3% contribution.
Adjusting for the 3.5% sales charge on the contributions of myself and my employer, I deployed $364.78 in capital during April 2021.
The capital contributions made during April helped my CAIBX position to grow from 157.983 shares entering April to 163.409 shares heading into May.
Factoring in $2.13 in net annual dividends/share (which was the net annual dividends/share paid out by CAIBX last year), my net annual forward dividends were boosted by $11.56 as a result of my capital deployment, which works out to a 3.17% net yield.
Moving to my taxable accounts, I added to an existing position and initiated 3 new positions during April, all of which were on my watch list for April 2021.
I started April off by adding a share of Johnson & Johnson (JNJ) at a cost of $163.64, which equates to a 2.47% net yield when factoring in the $4.04 (ahead of the dividend increase) that was added to my net annual forward dividends that were added to my portfolio due to the purchase. JNJ's recent dividend increase was yet again well in excess of inflation, which means that the only year of JNJ's 59 year dividend increase streak that JNJ failed to beat inflation with its dividend increase was in 1980 when inflation was 13.5%!
Next, I initiated a 4 share position in T. Rowe Price Group (TROW) at an average cost of $178.69 a share as TROW, which works out to a 2.42% net yield when considering the $17.28 in net annual forward dividends that were added to my portfolio as a result of the purchase.
The second position that I added to my portfolio was 1 share of BlackRock (BLK) at a cost of $829.00, which equates to a 1.99% net yield when factoring in the $16.52 in net annual forward dividends that were added to my portfolio due to the purchase.
The third and final position that I added to my portfolio was 1 share of American Tower (AMT) at a cost of $250.00, which works out to a 1.98% net yield when considering the $4.96 in net annual forward dividends that were added to my portfolio as a result of the purchase.
When factoring in the $2,322.18 in net capital that I deployed during April 2021 and the $54.36 in net annual forward dividends that were added to my portfolio as a result of my purchases, I deployed capital at an average weighted net yield of 2.34%.
While my capital deployment was a bit lower than I anticipated due to the timing of my transfer to my brokerage account, the lower than anticipated capital deployment in April will lead to just over $3,000 in available capital for deployment during May.
Heading into May, my net annual forward dividends are just over $1,650.
How was your April in terms of capital deployment?
Did you initiate any new positions during April as I did with AMT, BLK, and TROW?
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