Wednesday, June 14, 2017

My Dividend Stock Purchase Strategy (for now)



I’m so close to being debt-free, with a little over $4800 remaining, so on April 28, 2017, I laid out what seemed like a reasonable stock buying/investment strategy.  I know, I’m jumping ahead a little and investing before having the recommended 3-6 month fully funded emergency fund in place, but I’m 45 and I don’t want to delay this any longer.  At this point, it’s a parallel effort where I’m putting equal amounts into each effort.  My old, beat-up (paid for) cars surprisingly hold their value and they could, if needed, be liquid within a couple weeks, so if Shit Hit The Fan, I at least have the cars to fall back on.

My employer pays bi-weekly and my plan revolves around these 26 annual paychecks.  I’ll take $100 (or so as you’ll see below) from each paycheck and send it to my new TD Ameritrade account and $100 from each check to my second savings account for my emergency fund.  My plan involves dividend paying stocks and will focus on the Aristocrats.  Aristocrats are dividend stocks that have had increasing dividends over the past 25+ years.  The stocks on my short list are:


  1. Ford – (F) The only one that is not an Aristocrat – More on Ford in a later post
  2. Verizon – (VZ)  (I’m getting fed up with my bill lately and may drop VZ completely)
  3. Chevron – (CVX)
  4. Caterpillar – (CAT)
  5. IBM – (IBM)
  6. Exxon – (XOM)
  7. Pfizer – (PFE)
  8. Coke – (COKE)
  9. Proctor & Gamble – (PG)
  10. Cisco – (CSCO)
  11. Merck – (MRK)
  12. Boeing – (BA)

With $100 to spend, share quantities are extremely limited.  I set a constraint that if I cannot purchase at least 2 shares for around $100, I will wait until the next pay period to make the purchase.  Why this rule, IDK, it just seemed better than buying just 1.  If I can get 3 shares at around 30-35 per, I’ll add a little extra to get the additional share.  TD Ameritrade has a simple charge of $6.95 per order.  If you buy 100 shares in one order, they charge $6.95.  If you buy 1 share in one order, they charge $6.95.  At this stage in my investing, the trade fee is not important to me as I just want to get into investing.  I’ll just forgo a drive-thru visit that day to justify the cost!

So far, these are my orders:


  1. 04/28/17 – 8 Shares of Ford (F) at $11.48/share – Total order: $98.79
  2. 05/12/17 – 3 Shares of Cisco (CSCO) at $31.3947/share – Total order: $101.13
  3. 05/26/17 – 10 Shares of Ford (F) at $11.0352/share – Total order: $117.30
  4. 06/09/17 – 2 Shares of Brown-Forman (BF.B) at $49.03/share – Total order: $105.01
The next 2 buys are laid out as: 

  1. 06/23/17 – Archer Daniels Midland (ADM) – Agricultural Commodities
  2. 07/07/17 – Pfizer (PZE) – Pharmaceuticals

Of course, those 2 future buys may be pushed if I decide to get more Ford.

7 comments:

  1. I think it's great that you are starting your dividend growth strategy as soon as you can. Who says you can't have parallel goals? Like you, I also started with the dividend aristocrats and built up my portfolio from there. I focus on the lower yielding but safer and growing dividend stocks as opposed to the high flying double digit yields that are not as safe. There are many great names to choose from. One point. If you are looking to invest in Coca-Cola the symbol is KO not COKE. https://www.google.com/finance?q=NYSE:KO If you are curious about my portfolio it's here: http://divhut.com/portfolio/

    ReplyDelete
    Replies
    1. Keith, Thanks for the comments and the find on Coca-Cola. I'm curious to learn the difference between (COKE) Coca-Cola Bottling Co and (KO) Coca-Cola Co. I have so much to learn.

      Delete
  2. Brian, I'm a newcomer myself. Dividend Aristocrats are great to start off with. The one thing I'd mention is that Pfizer is on your list. While I think it's a fine company, I don't believe it still qualifies as a dividend aristocrat because they cut their dividends in 2008. So, I think they were removed from the list in 2009.

    That being said, you may still desire to keep Pfizer, but it would be for reasons other than they are a dividend aristocrat.

    I'm looking forward to your future purchases.

    ReplyDelete
    Replies
    1. Div Port, You're right, PFE is not on the Aristocrat list I have and now I'm scratching my head to try to figure out what brought me to them! I think my list may change soon anyway, perhaps removing some of these folks to replace with some Vanguard Index Funds, though I'm still researching these as I don't know much about them.

      Thanks for the comment and I look forward to following your progress.

      Delete
  3. Hi Brian, great to see your first steps in DGI. Like you and DivPort I am also just starting out, so hopefully we will learn together! :)

    ReplyDelete
    Replies
    1. Mr. Robot, Thank you for the comment and reading my words. I'll be sure to check out your site.

      Delete

November Dividend Income - $0.64

Income - HAHA - November was Tiny I don't feel like I even made enough dividend income in November to warrant a post, but I'm...