Monday, April 6, 2015

Recent buy: ABBV, T, VZ

Tomorrow morning, the following trades will be executed:

ABBV $1350
T $700
VZ $300

All of these companies will be going ex-dividend in the next 7 days and appear to be trading at or a bit below fair value.

Their yields are highlighted below. All of these companies pay yields higher than my preferred 3%.

ABBV - 3.5%
T - 5.6%
VZ - 4.4%

This will add around $100 in annual dividends or $25 next month.

In the coming weeks, I will have an unexpected addition of income. I am contemplating using these extra funds to make Visa into a full position, which will be an addition of $4000-5000. I am impressed by Visa's moat, cash flow, debt, and growth. I believe that in the very long term they will grow very quickly in the US and overseas. In terms of its low yield, I believe their small dividends will eventually become sizable yield on cost from the dividend growth.


  1. Nice pickups! Can't go wrong with those companies.

    Quick question: What constitutes a full position? Is it the $ amount or # of shares? You mention turning V into a full position. Thanks!

  2. Hi Ron,

    Some shares have lower price than other shares. For instance LMT is $200 each while T is $33 each. In the end I look at total dollar amount compared to the total value of the portfolio. For now I am thinking $8000-10000 will be a full position. As the portfolio grows, this number will increase accordingly.

    With a full position I will be hesitant to add more unless there was a really really good reason. Full positions are only allocated to companies I am comfortable with holding even when times are bad.

    My semi-full to full positions are:

    I am working on getting anything I consider core to be a full position if they are of good fair value. Those that I'm still working on include KO, T, XOM, CVX, PG, KMB, KRFT

    1. Cool! Thanks for the explanation. I figured that a full position meant a dollar amount. But, being relative to your portfolio makes more sense. I see it as a 'goal' to get each company up to that amount, ie. $4000, $5000, $10000. It makes sense to get your core holdings to a full position, since they will be in your portfolio for a long time.