Tuesday, May 28, 2024

May 2024 Dividend Stock Purchases

As I'm writing this blog post, it is currently May 17, 2024. The temperature is currently 76 degrees Fahrenheit and sunny here in Central Wisconsin. That's precisely why I plan on getting outside after finishing this blog.

With that aside, I'm done with my dividend stock purchases for the month with fresh capital (I may sell a few stakes and redeploy capital in my Charles Schwab account). So, I'll outline my dividend stock purchases in my IRA for May 2024.

Dividend Stock Purchase #1: Brookfield Asset Management (BAM)

My first dividend stock purchase that I completed during the month was 10 shares of Brookfield Asset Management (BAM) at an average cost of $40.07 a share. This boosted my net annual forward dividends by $1.52, which works out to a 3.79% net dividend yield.

Interested readers can check out my Seeking Alpha article published earlier this month to learn why I added to my stake in BAM.

Dividend Stock Purchase #2: McDonald's (MCD)

The next dividend stock purchase that I made in May was two shares of McDonald's (MCD) at an average price per share of $267.22. That increased my net annual forward dividends by $13.36, which equates to a 2.5% dividend yield.

Readers can peruse my May 2024 Dividend Stock Watch List blog post for my brief investment thesis on MCD.

Dividend Stock Purchase #3: NextEra Energy (NEE)

The third dividend stock purchase that I executed for the month was five shares of NextEra Energy (NEE) at an average cost of $73.83 per share. This raised my net annual forward dividends by $10.30, which is equivalent to a 2.79% net dividend yield.

Those interested in my investment thesis can find it in this Seeking Alpha article from late last month.

Dividend Stock Sales: Digital Realty Trust (DLR), Eastman Chemical (EMN), International Business Machines (IBM), and Omnicom (OMC)

I closed out my respective 10, 7, 6, and 7 share positions in the aforementioned stocks on May 21. Each of these stocks have delivered little to no dividend growth for the last two to three years.

So, I was happy to cut ties with them. I received $3,845.47 in total capital proceeds from those sales and lost $131.16 in net annual forward dividends from the transactions.

Dividend Stock Capital Redeployment: Nvidia (NVDA), Philip Morris International (PM), British American Tobacco (BTI), and Enterprise Products Partners (EPD)

I rolled these proceeds into a starter position of two shares of Nvidia (NVDA) at an average cost of $951.59 a share. I also added six shares of Philip Morris International (BTI) at $100.43 apiece. I boosted my position in British American Tobacco (BTI) by 21 shares at an average cost of $31.50 each. Lastly, I upped my stake in Enterprise Products Partners (EPD) by 23 units at an average price per unit of $28.65.

As I put $3,826.31 in capital back to work, this helped me to increase my emergency fund (a bit more) by $19.16. I also lifted my net annual forward dividends by $10.11 after factoring in the loss of dividends with my four sales.

Overall, I believe this basket is going to meaningfully outperform my previous basket in relatively safe starting income, income growth, and capital appreciation.

Concluding Thoughts:

On the dividend stock purchases that I completed with my own capital, I deployed $1,304.25 in May. This boosted my net annual forward dividends by $38.86, which is a weighted average net dividend yield of 2.98%.

Combined with the $9.414 lift in my net annual forward dividends from dividend increases and the capital redeployment, my net annual forward dividends grew from $4,580 to $4,640.

Discussion:

How was your capital deployment this month?

Did you open any new positions?

Thanks for reading and please feel free to drop a comment below!

1 comment:

  1. Congrats on your stock purchases. I had a position in both Omnicom and Eastman Chemical in the past, but I swapped them out for Trade Desk and Air Products and Chemicals back in January. I had similar reasoning with arguably stronger growth prospects ahead for both companies. I don't think Trade Desk is suitable for more conservative accounts though, and it comes with a high degree of volatility.

    Along the lines of strong growth/dividend growth, I sold my positions in 3M/Solventum and Columbia Sportswear. I still like Columbia Sportwear, but the apparel industry can be very dynamic, so I wanted to stick to the best companies in that space. I started a new position in Nike, as I think their brand appeal sets them up well for years to come, and the recent price weakness set up a reasonable entry point. In the short term, the Summer Olympics aught to be a good opportunity for Nike to push their brand advertising.

    I also sold Diamondback Energy and trimmed Carlisle Companies after the strong price gains in both stocks. Both were/are extremely strong performers for me, but both energy and building products are prone to economic cycles, and these stocks may not prove to be good holds in the long run at this juncture.

    Lastly, I took a position in Nice Ltd. I wanted to balance my sector weightings a bit by adding to the technology sector. No dividend, but they've shown a strong track record of 13% earnings growth, which I think could continue going forward. This stock isn't right for everyone, but it is worth a look for more aggressive accounts.


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