Dividend Growth Stocks

Money in the Trough – New Dividend Stock Purchases

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Dividend StockAll the red has brought quite a few opportunities to add some new dividend stock’s to the portfolio. I’ve kind of been like a kid in a candy store.  The new purchases have been to my new taxable brokerage account which allows me to make purchases for one buck a trade. This has enabled me to make multiple small dividend stock purchases without feeling the pain of trading costs.

 

New to the Portfolio
I purchased Cummins Inc (Ticker Symbol: CMI):
Purchase Date: 8/12/15
Company: Cummins – (CMI)
Buy price: $126.80
Shares bought: 3
Yield: 3.09%
5yr Dividend Growth Rate: 33%

This $380.40 Cummins purchase will add $11.76 of annual dividend income to the portfolio! If you’ve not heard of Cummins before they manufacture diesel and natural gas engines. It’s been hit hard the last few months due to slowing growth in China and a strong dollar. I’m in it for the long haul and will happily average down if we see further weakness.

Another New Company to the Portfolio
I purchased T. Rowe Price Group (Ticker Symbol: TROW):
Purchase Date: 8/12/15
Company: T. Rowe Price – (TROW)
Buy price: $74.19
Shares bought: 6
Yield: 2.80%
5yr Dividend Growth Rate: 11.9%

This $445.14 T. Rowe Price purchase adds $12.48 of annual dividend income to the portfolio! TROW makes their money off of fees from the investment products they manage for their clients (mutual funds, retirement accounts, 401k…). They’re a great company and their funds are wonderful for investors who don’t have the time, knowledge, inclination or choice to manage their own investments. TROW has a long history of rewarding share holders and just recently paid a $2.00 special dividend to investors.

What, Another New Company to the Portfolio?
I purchased United Technologies (Ticker Symbol: UTX):
Purchase Date: 7/27/15
Company: United Technologies – (UTX)
Buy price: $98.02
Shares bought: 4
Yield: 2.61%
5yr Dividend Growth Rate: 8.9%

This $392.08 United Technologies purchase will add $10.24 of annual dividend income to the portfolio! UTX makes products for building systems and the aerospace industry. They own a couple brands you’ve probably heard of; Otis (elevators) and Carrier HVAC. They are in the process of selling their helicopter division to LMT for roughly 9 billion dollars and plan to use that money to buy back shares.

So, all of these purchases sums up to $1,217.62 and added $34.48 in additional annual dividend income. I’ll take it and smile. The total trading costs for these purchases was $3. As you can see, while each individual trade is low, it does start to add up. The average yield for these three purchases is a little over 2.8%. Certainly nothing to write home about, but not bad considering the quality and potential dividend growth of the companies.

The dividend portfolio has been updated with these new purchases.

 

Did you pick up any new or average down on any of your existing holding this week?

I'm a dividend growth investor who is aiming to retire early in 6 years at the age of 45. My goal is to live off the income my dividend portfolio and rental property produce exclusively and leave the corporate rat race. I hope you will join me in this journey!

2 Comments

  1. Congrats on getting in at such great prices! I own TROW and CMI as well. Both are great companies and you managed to get in about $10 cheaper than me on both of them! Perhaps it’s time for me to average down? Enjoy your new dividend income!

    Ken

    • Blake

      Hi Ken,

      I’m happy to join you in the TROW and CMI club! I don’t know if I would average down just yet. If things continue like this, I suspect we’ll see CMI in the high 110s and TROW in the lows 70s before we see them going substantially higher. If I can be patient, that’s when I’ll add more.

      As always, thanks for stopping by and commenting!

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