Tuesday, November 18, 2014

Recent Buys - Let's keep this ball a rollin'

Like many others, I squeezed in a few more Loyal3 buys before they stopped accepting credit card orders.  This had helped because of the 1.5% cashback I was getting from the card company.  Well, I only had the chance to enjoy a few orders with the cashback bonus, but Loyal3 is still there to offer fee-free trades and that's a Good Thing (I dare you not to think about Martha Stewart while that replays in your head, you're welcome!).

With the above move from Loyal3 came an inspiration to open a traditional brokerage account.  So, I made a buy there as well.  Loyal3 is great, but they don't offer everything.  I wanted to get my hands on something in the gas and oil sector, so I gobbled up 10 shares of BP.  I bought at $40.54 and after the fee, my cost was $410.35.  Seemed pretty good.  Now let's hope that BP isn't down for the count and weathers through all it's recent storms.

The Loyal3 buys included $50 in each of:

Mattel (MAT) - I was looking for another stock with a dividend date I could receive before the end of the year and my kids like their toys.
Kohl's (KSS) - I put the order in before the dip, but the purchase was made after the dip, so I'll take it.
Gap (GPS) - Missed the ex date, but I think this could be an OK buy as well.
Unilever (UL) - Wanted to get in on more of this one.

I'm looking to make another buy through the brokerage this week.  My greedy side wants to shoot for high yield, but my conservative side says go for something different.  Here's hoping I don't screw it up too much!
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6 comments:

  1. TawcanNovember 20, 2014 at 1:22 PM

    Very solid buys. It's great that you can do small purchases with Loyal3. The Roman Empire wasn't built in one day, neither is your dividend portfolio.

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    Replies
    1. FinancialDummyNovember 20, 2014 at 9:28 PM

      Thanks for stopping by! Step by step and eventually we'll all get there.

      Delete
  2. Wallet EngineersNovember 20, 2014 at 2:54 PM

    Hi PIIN,
    Don't shoot for high yield! Shoot for dividend growth and earnings growth! Ideally you want to look at Yield on Cost on a 5 or 10 year time horizon. I.E. if you pay $10 for a share, then in 10 years it is worth $20 and pays 3% yield your current yield is (0.03 x $20 = $0.60. Your yield on COST = $0.60/$10.00 = 6%). That's sustainable. Plenty more things to look for, but don't go chasing high yield (Unless it's something like an MLP, master limited partnership, which tends to have higher yield. Like KMI which I like).

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    Replies
    1. FinancialDummyNovember 20, 2014 at 9:31 PM

      This is one of the good reasons I put myself out there and start this blog... to learn new things. Thanks for the input. I had been debating between BP and KMI but landed on BP due to the apparent better deal right now, but would still like to get KMI eventually.

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    2. AnonymousNovember 21, 2014 at 4:38 PM

      With MLPs good luck dealing with the K1s. I was audited in 2007 and 2008 for them and sold all my MLPs in late 2008 and wait for it..... got audited again in 2009. Of course, in 2008 I sold near the bottom and could not get into a frame of mind into investing again recently. Beware of people telling you not to chase high yield unless it is ______ that reminds me of real estate agents saying housing prices never go down.

      Delete
    3. AnonymousNovember 21, 2014 at 4:43 PM

      If you go to his blog he does not have KMI in his portfolio and his accounting formulas are screwed up.

      Delete

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