As I'm writing this blog post, it's currently Friday, August 22nd. The temperature here in Central Wisconsin is expected to reach a high of 79 degrees Fahrenheit. It's also expected to be partly sunny, so I'm definitely looking to get outside later today.
Since I'm probably done deploying capital for the month, I'm going to highlight my dividend stock purchases and sales for August 2025. Without further ado, let's jump into it.
Dividend Stock #1: Alphabet (GOOGL)
My first purchase in August 2025 was another five shares of Alphabet at an average cost of $188.86 a share. Interested readers can find the gist of my investment thesis in my August 2025 Dividend Stock Watch List blog post. This transaction added $4.20 to my portfolio's net annual forward dividends, which is equivalent to a 0.44% net dividend yield.
Dividend Stock #2: Realty Income (O)
The next purchase that I made during the month was 14 more shares of Realty Income at an average price per share of $56.39. Curious readers can find my investment thesis in the August 2025 Dividend Stock Watch List blog post that I linked above. My net annual forward dividends climbed by $45.192, which equates to a 5.72% net yield.
Dividend Stock #3: UnitedHealth Group (UNH)
My third purchase in August 2025 was another two shares of UnitedHealth Group at an average cost of $236.18 a share. Readers can find my investment thesis in the blog post that I linked earlier. My net annual forward dividends grew by $17.68 from this transaction, which works out to be a 3.74% net dividend yield.
Dividend Stock Sale: Amgen (AMGN), Abbott Laboratories (ABT), and Johnson & Johnson (JNJ)
I closed a six share position in Amgen at an average price per share of $286.54. To be clear, I believe the stock can deliver high-single-digit annual total returns over the next several years. It's arguably a bit discounted, the dividend is well-covered, and mid-single-digit annual non-GAAP EPS growth is fairly realistic. For me, this was about opportunity cost. This move reduced my net annual forward dividends by $57.12.
I also exited a six share position in Abbott Laboratories at an average price of $130.51 and a five share position in Johnson & Johnson at an average price per share of $177.35. ABT and JNJ are both qualitative companies to be sure. However, I believe with their stocks near fair value and their growth prospects, high single digit annual total returns over the next several years is likely. These sales lowered my net annual forward dividends by $40.16.
Dividend Stock Purchases: Novo Nordisk (NVO)
I used the proceeds from my Amgen sale to buy 38 shares of Novo Nordisk at an average cost of $45.59 a share. Overall, I like NVO's AA credit rating from S&P. I'm also a firm believer in the company's existing drug portfolio and drug pipeline. This is why I'm confident that the stock can grow earnings at a high-single-digit to low-double-digit annual rate annually for the foreseeable future. The stock's forward 12-month P/E ratio of approximately 11 was less than half of its 10-year average P/E ratio of 27. Overall, I believe that could set NVO up for 20%+ annual total return potential from this cost basis over the next five years. This transaction added $57.11 to my portfolio's net annual forward dividends.
I also redeployed my proceeds from the ABT and JNJ sales to purchase another 30 shares of NVO at $55.13 per share. I think that high teens annual total return potential from the cost basis on this tranche is a realistic expectation through 2030. This added $45.09 to my net annual forward dividends.
Concluding Thoughts:
In August 2025, I invested $2,206.07 in fresh capital. These purchases added $67.072 to my net annual forward dividends. That's equivalent to a 3.04% net dividend yield. Capital redeployment lifted my net annual forward dividends by another $4.93 during the month.
The dividend raise announced in August 2025 increased my net annual forward dividends by $3.84. This led my net annual forward dividends to grow from around $6,160 at the start of August to $6,235 heading into September.
Discussion:
How was your capital deployment in August 2025?
Did you open any new positions like I did with NVO? Did you close any positions like I did with AMGN, ABT, and JNJ?
Thanks for reading. I look forward to your comments below!
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