As I'm writing this blog post on January 13, 2023, the year of 2022 is nearly two weeks behind us at this point.
Thus, I will be going over my dividend (and non-dividend) stock purchases for the final month of last year. Last month was my slowest for capital deployment in all of 2022 as I closed out the year by building my emergency fund up to just beyond six months of living expenses. Without further ado, let's dig into the few purchases that I made in December 2022.
My $153.67 in net dividends (regular dividends and special dividends less the $10 annual fee) received from the Capital Income Builder (CAIBX) mutual fund in my retirement account were automatically reinvested. This purchased 2.452 shares, which boosted my net annual forward dividends by $5.22 based on an annualized dividend per share of $2.13. That works out to a 3.40% net dividend yield.
I started off the month in my taxable accounts by adding yet another share to my position in Amazon (AMZN) at a cost of $94.80. As I alluded to in a previous post a while back, AMZN is the leader in e-commerce and cloud computing. And while the stock doesn't pay a dividend right now, it almost certainly will in the next six or seven years.
On that same note, I increased my position in Alphabet (GOOGL) by a share for the price of $100.18. GOOGL is the dominant digital advertising company in the world. And like AMZN, I suspect that it will likely begin paying a dividend by the end of this decade.
My first dividend stock purchase for the month was when I opened a starter position of three shares in Tractor Supply (TSCO) at an average cost per share of $210.95. For readers interested in the rationale on why I made this stock purchase and the two that will follow, my December 2022 dividend stock watch list post can provide more details. This transaction added $11.04 to my net annual forward dividend income, which equates to a 1.74% net dividend yield.
The next dividend stock purchase that I completed in December was one share of Union Pacific (UNP) at a price of $205.71. This buy boosted my net annual forward dividends by $5.20, which is equivalent to a 2.53% dividend yield.
The third and final dividend stock purchase that I executed last month was one share of FedEx (FDX) at a cost of $167.43. This transaction increased my net annual forward dividends by $4.60, which works out to a 2.75% net dividend yield.
I deployed $1,354.65 in capital during December 2022. These purchases lifted my net annual forward dividends higher by $26.06, which is a 1.92% weighted average net dividend yield.
Along with the $18.794 increase to my net annual forward dividends from dividend increases last month, this pushed my net annual forward dividends up to just below $3,355 heading into January 2023.
How was capital deployment in December 2022 for you?
Did you open any new positions like I did with TSCO?
I appreciate your readership and look forward to your comments below!