Tuesday, October 3, 2023

September 2023 Dividend Stock Purchases

As I'm writing this blog post on Friday, September 29, the weather has warmed up again here in Central Wisconsin. Today is supposed to reach a high temperature of 76 degrees Fahrenheit and the weekend is going to reach into the low- to mid-80 degrees Fahrenheit range. This will probably be one of the last beautiful weekends before the temperatures get frigid and the outdoors isn't so enjoyable for six months. That's why I'm definitely going to get outside for at least a few hours this weekend!

Since the month of September is basically over, now is a good time to go over the dividend stock purchases for the month. Given that I recently lost my position at The Motley Fool and I would like to build up my emergency fund, I didn't deploy any of my own capital this month. Let's dig in.

Starting with my retirement account, I reinvested $81.36 in dividends from my Capital Income Builder (CAIBX) mutual fund. This increased my position by 1.29 shares at an average cost per share of $63.07. The resulting $2.75 lift in my net annual forward dividends equates to a 3.38% net dividend yield.

Thanks to the recent action that ONEOK (OKE) took to buy all units of Magellan Midstream Partners (MMP) in an $18.8 billion deal, my direct position in MMP is no more. My 16 units of MMP were exchanged for 10.672 shares of the new OKE and $403.96 in cash from OKE's $25 per unit cash payment and MMP's special distribution per unit of $0.2474. I took the proceeds from this deal and redeployed them into another 6.328 shares of new OKE at an average cost per share of $63.64. These actions boosted my net annual forward dividends by $64.94.

I lost $67.04 in net annual forward distributions from the closing of my position in MMP, so this corporate action lowered my net annual forward dividends by $2.10. But the new OKE is going to be an absolute force to be reckoned with in many ways, so I view this as an overall positive.

Concluding Thoughts:

My net annual forward dividends edged $0.65 higher from dividend stock purchases and the like during the month of September.

Fortunately, my portfolio worked harder than I did to make me richer for the month. Due to the $16.906 in dividend increases that I received during the month, my net annual forward dividends climbed from just shy of $4,210 to start September to nearly $4,230 heading into October.


How was your capital deployment in September 2023?

Did you start any new positions during the month?

I appreciate your readership and welcome your comments below!

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