It has been almost two months since I reported a stock purchase so with another buy added today, I figured I best play a little catch up and quickly summarize what I’ve been up to on my quest to achieve financial independence.
Working backward, this morning I purchased 30 shares of Verizon (VZ) at $45.41 per share, for a total cost basis of $1,369.29 including the $6.95 trading fee. I had $46 per share drawn as a line in the sand where I would get interested in adding VZ if the share price fell below that line. Today it did as telecom’s in general are taking a beating, so I decided to bite.
This is my second of likely three total purchases of Verizon that increases my share count to 105. My overall cost basis for Verizon now stands at an even $46, and this purchase added $66 to my annual dividends. I would need another haircut of at least 10 percent to make that final buy.
On January 16, I initiated a position in National Oilwell Varco (NOV) by purchasing 35 shares at $58.46 per share. The total cost of this transaction was $2.053.10 and it added $64.40 to my annual dividends.
Head over to Dividend Mantra for an in-depth analysis of this oil and gas well play, or read this quick overview for a little insight into their operations:
National Oilwell Varco, Inc. is a provider of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The Company operates through three segments. Its Rig Technology segment designs, manufactures, sells and services complete systems for the drilling, completion, and servicing of oil and gas wells. Its Petroleum Services & Supplies segment provides a variety of consumable goods and services used to drill, complete, remediate and workover oil and gas wells and service drill pipe, tubing, casing, flowlines and other oilfield tubular goods. Its Distribution & Transmission segment provides maintenance, repair and operating supplies and spare parts to drill site and production locations worldwide.
Today National Oilwell Varco is trading in the $52’s and there’s room for a further drop — regardless of their fundamentals and moat — as the energy sector continues to get pummeled. I will be looking to add to this position should the price pierce below $50.
A week earlier on January 6, I initiated another new position in Harris Corporation (HRS), a company I had been watching for close to a year. My purchase was for 20 shares at $68.45 totaling $1,376, and I’d like to add more should it fall into the low-to-mid $60s. This purchase added $37.60 to my annual dividends.
Here’s an overview on Harris Corporation and their work in the defense and space industries, and check out their impressive dividend growth:
Harris Corporation (Harris), together with its subsidiaries, is an international communications and information technology (IT) company serving government and commercial markets in more than 125 countries. The Company operates in three segments: RF Communications segment, Integrated Network Solutions segment and Government Communications Systems. Its RF Communications segment consists of United States Department of Defense and international tactical communications, and public safety and professional communications. Its Integrated Network Solutions segment consists of IT services, Harris CapRock Communications and Healthcare Solutions. During the fiscal year ended June 29, 2012, the Company discontinued its cyber integrated solutions operation (CIS) and broadcast communications operations (Broadcast Communications) which were part of its Integrated Network Solutions segment. In February 2013, the Company sold Broadcast Communications business to an affiliate of The Gores Group, LLC.
Turning back the clock to 2014, on December 17 I bought 70 shares of General Electric (GE) for $24.10 a share. This purchase totaled $1,694 and added $64.40 to my annual dividends. I now own a total of 230 shares of General Electric and plan on eventually maxing out my holding at 400-500 shares. GE is also a favorite of mine to reinvest dividends into using Scottrade’s flexible reinvestment program.
General Electric needs no introduction, but here’s a primer for any newcomers to the dividend investing game:
General Electric Company (GE) is a diversified technology and financial services company. The products and services of the Company range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. It serves customers in more than 100 countries. Effective January 28, 2011, it held a 49% interest in a media company that includes the NBC Universal businesses. Its segments include Energy Infrastructure, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital. Effective January 1, 2011, it reorganized the Technology Infrastructure segment into three segments: Aviation, Healthcare and Transportation. In April 2014, the Company’s GE Healthcare acquired CHCA Computer Systems Inc., operating room (OR) management and analytics solutions provider. In June 2014, Cameron International Corporation sold Reciprocating Compression business to GE.
We all have regrets, and my most recent one was purchasing 15 shares of Caterpillar (CAT) for $94.23 a share, totaling $1,420.45. I eventually wanted to add Caterpillar to my holdings but I was impatient in not letting the impact of the energy sector on this equipment behemoth play out first. As such, today CAT is trading under $80 and though I’ve lowered my cost basis a couple bucks with a handful of reinvested shares, I should have waited.
On the flip side this is a long term play, like all of my purchases, and added $42 in dividends to my annual earnings. Here’s a quick snapshot of what CAT is all about:
Caterpillar Inc. (Caterpillar) is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments – Resource Industries, Construction Industries, and Power Systems – and also provides financing and related services through its Financial Products segment. The Company’s Construction Industries segment is responsible for supporting customers using machinery in infrastructure and building construction applications. The Resource Industries segment is primarily responsible for supporting customers using machinery in mine and quarry applications. Power Systems segment is primarily responsible for supporting customers using reciprocating engines, turbines and related parts across industries serving electric power, industrial, petroleum and marine applications as well as rail-related businesses.
I have enough cash on hand for one more $1,400-ish purchase but cannot commit to anything beyond that for a couple reasons. First, I need to figure out my tax bill and how much of a dent that will make into my dwindling cash pile. Second, my web income slows to a near halt after the holidays so I have to keep that in mind as well.
I’ll continue to scrap for every penny I can and invest whenever I can as opportunities present themselves. Some of the stocks that I have my eye on for the coming 30-60 days include UPS ($95 a share), PM (under $80 a share), EMR ($55 a share range) and DIS (under $90 a share).
I am long HRS, GE, CAT, NOV, VZ, DIS, and PM. This article is for entertainment purposes only and not an advertisement or solicitation to purchase any of these securities.