Tuesday, January 7, 2020

December 2019 Dividend Stock Purchases

We've officially ushered in the New Year and the Milwaukee Bucks had quite a nail biter against a shorthanded (without Karl-Anthony Towns and Andrew Wiggins), but scrappy Timberwolves team last Wednesday!

Fortunately, they sent the fans at Fiserv Forum home with a 104-102 win to ring in the New Year with style. You won't catch me complaining about blowout wins for the Bucks, but it's the close wins like this one that prepare a team for success in the postseason.

Aside from the Bucks' win on Wednesday, a new month and a new year mean that it's time for us to examine the dividend stock purchases that I made to close out 2019!

Similar to last month's dividend stock purchases, the month kicked off with a purchase of another unit of Energy Transfer (ET) in my Robinhood account. I would add another unit to my ET holdings on two more occasions in my Robinhood account, and once in my Webull account.

The 4 units of ET that I ended up adding in December came at an average cost of $12.47/unit. Factoring in the current distribution of $1.22/unit, this equates to a 9.78% yield on this block of units. These purchases boosted my annual forward distributions by $4.88.

The next purchase that I made was Digital Realty Trust (DLR) in my Robinhood account, which I purchased 3 shares of at an average cost of $114.00 a share.

Given the annualized dividend of $4.32/share, my entry yield is 3.79% on this purchase. The great news is that DLR's dividend is also likely to be increased 6-7% next month, which will provide a nice boost in my annual forward dividends without having to wait too long after my purchase.

For those that are interested in a further explanation for my decision to initiate a position in DLR, I recently wrote an SA article on the company. This purchase added $12.96 to my annual forward dividends.

My final purchase in my taxable accounts came in my Webull account, when I purchased 1 share of Broadcom (AVGO) at a cost of $321.20.

AVGO's past few dividend increases really caught my attention and put the company on my radar. When I coupled the 4.05% starting yield on my purchase with the 13.3% annual earnings growth that Yahoo Finance expects over the next 5 years, it became clear that for those willing to stomach the volatility of AVGO's shares, this company is likely to continue delivering impressive dividend increases in the years ahead to really ramp up my yield on cost.

The purchase of AVGO boosted my annual forward dividends by $13.00, having purchased my share shortly after the news of the 22.6% dividend increase.

The final bit of activity came within my retirement account, where I invested $345.10 (including my employer's 3% match and the dividends/capital gains received during the month).

Accounting for the 4.5% sales charge, these contributions and the $49.15 in dividends/$50.24 in long-term capital gains collected from the CAIBX position, increased my holdings of CAIBX from 82.332 shares at the beginning of the month to 87.442 shares at the end of the month.

The 3.694 shares of CAIBX that were added as a result of capital contributions boosted my annual forward dividends by $7.91 while the 1.416 shares of CAIBX that were added as a result of dividends/long-term capital gains added the remaining $3.03 in annual forward dividends, for a total of $10.94 of additional annual forward dividends. This equates to an average yield of 3.17%.

Concluding Thoughts:

December was a somewhat light month compared to the past few months of capital deployment in the taxable accounts. I deployed $713.07 in capital within my taxable accounts during the month of December, while I also deployed $345.10 in capital within my retirement account, for total capital deployment of $1,058.17 during December.

The $41.78 in annual forward dividends/distributions added during the month equates to a 3.95% yield on the capital that I invested, which is right around my target of 4-4.5%.

Entering the month of December, my annual forward dividends/distributions were at $828.92 and ended the month at $873.51.

The $2.808 of dividend increases in terms of annual forward dividends/distributions accounted for the remainder of the income that was added during the month.

I ended 2019 with 45 whole share stock holdings, 23 unique fractional share holdings in my M1 Finance portfolio, and a mutual fund holding. Given that my only monthly dividend payer is Realty Income (O) and all my other holdings pay quarterly dividends, that equates to 284 payments throughout the course of the year heading into 2020 alone!


What are your annual forward dividends/distributions heading into 2020? Were you able to add any new positions to your portfolio as I was able to with the purchases of DLR and AVGO?

As always, thanks for reading my summary of dividend purchases during the month of December 2019. I look forward to reading and replying to any comments that you are welcome to leave in the comment section below!

No comments:

Post a Comment