April 2022 Dividend Stock Purchases

As I'm writing this blog post, it's currently 55 degrees Fahrenheit here in Central Wisconsin. Next week is going to reach highs in the low-80s Fahrenheit, so summer is unofficially just days away and we barely had a spring!

With that aside, I'll turn to the dividend stock purchases (and the one non-dividend stock purchase) that I made in April 2022.

I started April by purchasing five shares of Innovative Industrial Properties (IIPR) at an average cost of $166.59 a share. My reasoning for purchasing the stock was that its AFFO per share is growing like a weed (pun intended), the stock is cheap for its growth prospects, and the starting dividend yield is market-crushing. Given the $35.00 in net annual forward dividends that I added from this purchase, my weighted average net yield fittingly was 4.20% on 4/20.

I followed up my purchase of IIPR by adding a share to my position in Home Depot (HD) at a cost of $316.01. For those interested in my buying rationale, I recently wrote a Motley Fool article on the stock. Since the stock boosted my net annual forward dividends by $7.60, my net dividend yield was 2.40%.

My first non-dividend paying stock purchase was the online retail, cloud computing, streaming, and advertising giant Amazon (AMZN). Where do I start with the beaten-down tech stock? AMZN is the undisputed leader in online retail and cloud computing. 

With global e-commerce sales set to surge from $4.9 trillion in 2021 to $7.4 trillion by 2025, Amazon is best positioned to cash in on this fast-growing market. Not to mention that the global cloud computing market is forecasted to compound at a 17.9% annual rate from $250 billion in 2021 to $791.5 billion in 2028. 

This is why analysts anticipate that AMZN will deliver 40% annual earnings growth over the next five years, despite its massive size. And at my average cost basis of $2,891.05 for my 0.21 shares of AMZN, I paid a 2025 P/E ratio of 20.9. This is a reasonably attractive valuation to pay for a stock that still has plenty of growth left in its tank, even with the recent challenges when it reported first-quarter earnings recently.

That's also why I plan on investing $50 to $100 into AMZN each month going forward. But make no mistake, 95%-plus of my capital will still be dedicated to dividend-paying stocks over growth stocks. And as AMZN's growth decelerates, I believe it will begin paying a dividend to shareholders near the end of this decade.

My next dividend stock purchase was 17 shares of Comcast (CMCSA) at an average cost of $42.06 a share. Readers that are interested in my reasons for buying the stock can visit my April 2022 Dividend Stock Watch List post that's linked above where I discuss IIPR. The $18.36 in net annual forward dividends that I added due to this purchase works out to a 2.57% weighted average net yield.

I also added 12 shares of A.O. Smith (AOS) to my portfolio at an average cost of $60.28 a share. Readers again can get my reasons for this purchase by checking out my April 2022 Dividend Stock Watch List post. Since my dividend stock purchase added $13.44 in net annual forward dividends, my net dividend yield was 1.86%.

My position in Williams-Sonoma (WSM) was increased by one share at a cost of $137.44. My reasons are outlined in a recent Motley Fool article on the stock. This added $3.12 in net annual forward dividends to the portfolio, which is equivalent to a 2.27% weighted average net yield. 

I also added two shares of NextEra Energy (NEE) at an average cost of $73.65 a share. My net annual forward dividends increased by $3.40 due to my purchase, which works out to a 2.31% net dividend yield.

The next dividend stock purchase that I made was when I increased my Starbucks (SBUX) position by two shares at an average cost of $76.78 a share. Interested readers can read my recent Motley Fool article for my buying rationale. The $3.92 in net annual forward dividends that were added to my portfolio from this transaction equate to a 2.55% weighted average net yield. 

I also added one share to my position in BlackRock (BLK) at a cost of $652.26. For my reasoning, check out my recent Motley Fool article on the stock. Given the $19.52 in net annual forward dividends that this purchase added, this works out to a 2.99% net dividend yield.

My last purchase of the month came when I added two more units to my position in Energy Transfer (ET) at an average cost of $11.39 a unit. This boosted my net annual forward distributions by $1.60, which is equivalent to a 7.02% weighted average net yield.

My one stock sale during the month was when I closed my five share position in Warner Bros. Discovery (WBD) that I received when AT&T (T) spun its media assets off. I received $91.86 in capital proceeds.

Concluding Thoughts:

Factoring out the capital proceeds from my sale of WBD, I deployed $4,215.99 in capital for April 2022. The purchases made with this capital added $105.96 to my net annual forward dividend income, which is a 2.51% weighted average net yield.

And I also received $10.49 in dividend increases from my dividend stocks during the month. This helped to propel my net annual forward dividends from just less than $2,580 at the start of the month to over $2,690 heading into May.

Discussion:

How was your April 2022 for capital deployment and dividend stock purchases?

Did you open any new positions like I did with AMZN, AOS, CMCSA, and IIPR during the month?

Thank you for reading. Please feel free to comment below!