I started this month thinking it would be a fairly low-key month with so few values floating around in dividend stocks. Even though good values are still few and far between at the moment, I’ve done a fair bit of buying so far this May… some via DRIP.
Anyway, I keep a running log of every dividend stock I purchase which can be viewed in the dividend growth stock purchases page.
So far, I’ve put a little over $4,000 to work with an average yield of 5.7%. I’ve added a little over $230 of yearly forward dividend income this month!
The $GIS, $T, $CVS purchases was made via DRIP.
New Buys - May 2021
|Symbol||Company Name||Date||Quantity||Buy Price||Comm/Fee||Total Cost||Yield||Income||Y Div||Q Div|
|CVS||CVS Health Corp||05/03/2021||1||60.80||0||76.48||3.29%||2.00||2.00||0.50|
|GIS||General Mills, Inc.||05/03/2021||1||60.80||0||60.80||3.22%||1.96||1.96||0.49|
|O||Realty Income Corp||05/05/2021||5||67.60||0||338.00||4.16%||14.07||2.81||0.23|
|QYLD||Global X NASDAQ 100 Covered Call ETF||05/11/2021||100||21.58||0||2,158.00||12.70%||273.96||2.74||0.23|
|TSM||Taiwan Semiconductor Mfg. Co. Ltd.||05/12/2021||5||109.30||0||546.50||1.63%||8.93||1.79||0.45|
|BDX||Becton Dickinson and Co||05/19/2021||9||241.53||0||2,173.77||1.37%||29.88||3.32||0.83|
|NNN||National Retail Properties, Inc.||05/26/2021||1||46.56||0||46.56||4.47%||2.08||2.08||0.52|
|∑ = 270||∑ = 8,943.52||∑ = 502.50|
You will see that I purchased some $QYLD. I am doing a little (like a .01% of portfolio value) experimenting with some higher yielding instruments. While none of my purchases are ever recommendations to buy (of course, you should always do your own research), this purchase in particular is NOT a dividend growth stock or dividend growth ETF. My goal here is to see if $QYLD could help me fill some (potential) small gaps in my early retirement cash flow. I tend to pay more attention when I have “skin in the game” so I picked up a small position. QYLD pays a sizable dividend from generating income through selling covered calls. The price of $QYLD will most likely deteriorate overtime and the dividends will decrease which is the exact opposite of what we expect out of our dividend stocks. Anyway, the 12% yield may looks great, but this is NOT an investment to bet the farm on.
My dividend portfolio has been updated with these buys.
All additional purchases made this May will be posted on this page. I aim to invest $2,500 – $4,000 every month. However, last month I invested a little over $6,500!
Blake – what are your thoughts on T right now? They’re doing some pretty impactful things with Warner and Discovery spin offs and the rumor is that may lead to a dividend cut and share price hit. I am worried about all of that and the debt they’re carrying. Highly considering selling it and getting into some other aristocrats for the time being, but on the other hand, they have been so steady for me the last 3 years.
Thanks for the comment. I’m with you, i’m not excited about the $T news either. On the news, I sold the last few years of my DRIP purchases. The positive – I don’t mind some potential capital appreciation with the new media company that will be formed and AT&T removing some debt is great. However, I purchased $T for the cash flow… as did the majority of AT&T holders. A reduction in the dividend is inevitable. With that, there is going to be a larger sell-off once the institutions (roughly 50% of outstanding shares) reduce/sell their positions – which is a when not an if.
But, there is still time to contemplate as we learn more about this deal. Frankly, it’s hard to find a 1:1 place to move the money inside the aristocrats. I added some $ENB to replace the cash flow I lost with my $T sale. But, that’s not for everybody. This last year I have learned that I am much more tolerant of dividend cuts than maybe I should be. But at the moment, I’m keeping my remaining 400 shares and will wait for more information. This isn’t wanted a lot of us wanted, but it’s what we got.
You know what they say – When life gives you lemons, be happy you at least got some lemons 😉