Thursday, June 13, 2019

Recent buy: MKC, MSFT, ROST, V, T, WEC, etc

The following shares were purchased today to increase dividend income. My cash horde was getting large, so time to let some go.

Type  Symb. Qty Price  Amt [USD]
Buy MC CORMICK NON VTG  MKC  3 $156.46 ($469.38)
Buy MICROSOFT CORP  MSFT  5 $132.06 ($660.30)
Buy ROSS STORES INC COM  ROST  5 $100.43 ($502.15)
Buy ILLINOIS TOOL WORKS INC  ITW  4 $151.63 ($606.52)
Buy COCA COLA COM  KO  10 $50.96 ($509.60)
Buy AT&T INC  12 $32.22 ($386.64)
Buy WEC ENERGY GROUP INC SHS  WEC  10 $83.29 ($832.90)
Buy AUTOMATIC DATA PROC  ADP  6 $163.83 ($982.98)
Buy VISA INC CL A SHRS  7 $168.89 ($1,182.23)
Buy STARBUCKS CORP  SBUX  12 $83.21 ($998.52)
Buy MCDONALDS CORP COM  MCD  8 $203.99 ($1,631.92)
Buy CLOROX CO DEL COM  CLX  8 $155.56 ($1,244.48)

Total invested is around $10,000 in cash.

After the investment my forward annual income spiked up by around $250. I am now sitting comfortably over $18K in annual dividends, to be exact: $18,267.86


  1. I have to admit your courageousness. Most of these names are trading at a 5 year top in valuations, so buying them at these levels assumes you don't mind being underwater for a long long time. Don't get me wrong, I am not trying to be a troll as I own quite a few of the names that you own in my portfolio as well, but I always pay attention to valuation while making my purchases.

  2. Agree with the above comment but cost averaging will fix nearly all of the problems. I have seen this in my own portfolio. After a while with a very long time horizon, it simply does not matter.

    I do the same but at smaller amounts. Young Dividend is going to be able to retire very soon. I am happy for him.

    1. It has worked over the past decade, but may not necessarily work over the next couple. Substantial valuation expansion has caused a disconnect between price and value. Mean reversion is a powerful phenomena that should be used to ones advantage to purchase assets at the right prices. Curious to know why MMM, MO, PM weren't added instead of say MKC, MSFT, SBUX and V (I own the last 3 BTW) which look overpriced right now.

    2. Thanks for all the comments.
      I have found in the last 6 years that stocks that are high, high quality, and beat and raise continue to get higher. Stocks that are low, typically stay low. I like paying a premium for high quality. And since my time horizon is over 40+ years and my vocational income constantly flows in, I am not worried about getting a nice 10 or 20% discount.

      My goal is to accumulate income. Not worry about if I am underwater. Every share I buy makes me feel more comfortable and independent. Each share prints out more cash for me, and that ATM printing machine is something I will hold forever, unless one day that ATM machine breaks or is no longer able to print out cash, then I will replace it with another one.

      I did not add to MMM, MO, or PM as I simply have way too much. They are good yield and if I had a starter position I would add more.

    3. Sorry GrowthNValue, I have to disagree here.
      We all can think about stocks that we wish we bought 5 or 10 years ago and we didn't. Why? Because valuations kept us out from starting a position. Take MSFT, ABT or V as an example. They all were "expensive" many years ago too. Experts were screaming how overvalued they were. And what happened? They kept raising. Any company that is going to be successful over the long run will outgrow any valuation you assign it today. I don't want to miss out those winners.

      On the other hand, cheap valuations let people invest in some "trouble" companies. If you stop for a moment and think, we are in a raging bull market since when? 2009? Buying cheap, undervalued companies is buying underperformers in a market that is firing on all cylinders. These companies are cheap for a reason. So is it not better to have winners that keep raising earnings and beating expectations? I believe yes.

      One final thought. The majority of us are making many small investments of $1K or so. And we have decades of investing in front of us. The price that I'm going to pay today won't be the most important thing in 10 or 20 years from now. So why hasitating? If it's a high-quality company I'm willing to pay a higher price. And believe me, the price that you think is high today, will look like a bargain in 10-20 years from now.

    4. Yeah, if the investment horizon is extremely long-term then a few dollars here and there won't matter. But one must also remember that in the past, best of breed blue chip names like JNJ, HD, DIS have gone sideways for a decade, just because investors were willing to buy shares at any prices. So in the long run, valuations do matter.

  3. Young Div -

    Impressive list of valuable companies that will be paying dividends for a long time. Bravo!


  4. awesome buys, thinking of add V/KO/ITW.

  5. The stock picks are great but the prices are too expensive except T.

  6. Despite the current comments on valuation. You added some quality dividends that will benefit you for a long, long period of time YD.


  7. Love it YD! And having your cash hoard too big is a great problem to have. Also it's great to see you well over the $18k mark for forward dividends. That's like having your own person working a minimum wage job for you each year.

  8. Hey YD, Was wondering if you have ever broken out what your contributions from your salary are? I realize at this point alot of the investing cash is from dividends.