Wednesday, January 8, 2014

Weekly Sharebuilder Purchases - MCD, DE, CVX



I'm reporting my automatic purchases for this week (01/07):


I Bought:

$500 of MCD
$500 of DE
$500 of CVX


I used $1500 in new capital and added $44.39/year to my dividend income.  This is an average yield of  3.0%.

My forward 12-month dividend income increased to $8771.02.

Note:

These are all three stocks that I believe are at fair value.  They also happen to be below my average weight currently.  It's still very difficult to find value in this market currently.

However, I will continue to make consistent weekly purchases regardless of what the market is doing.  My purchases until April might be a little lower than the last half of 2013 due to getting ready for taxes.

Picture:

Just for some fun and to add some color I will be posting pictures of places I've been to.  It's also motivation to reach FI so I can travel and do what I want to when I want to.

This is a picture while walking in downtown Santa Fe, New Mexico last year.


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15 comments:

  1. Yeah AAI, good values are hard to come by in US stocks right now. I'm updating my wish/watch list (posted tomorrow) and looking forward to a down turn. I like your plan to consistently buy assets, and dollar cost average down. It sure beats what most people do with their hard earned cash. Cheers
    -Bryan

    ReplyDelete
    Replies
    1. Hi Bryan,

      It's getting very difficult to find companies at decent values for sure. I just plan to keep DCAing into stocks I already own for a while unless we see a nice downturn or I find a good value.

      Thanks for stopping by!

      Delete
  2. Seems like good purchases. Well done!

    ReplyDelete
    Replies
    1. Hi DD,

      Thanks. I'm trying to make consistent purchases regardless of what the markets are doing. The markets can't keep up this pace forever so I'm hoping for a correction.

      Cheers

      Delete
  3. Hi Brent, good luck in the Yakezie challenge! I will be subscribing and am looking forward to following your investing strategy!

    ReplyDelete
    Replies
    1. Hi Liz,

      Thanks and likewise. I added you also and look forward to future articles.

      Take care!

      Delete
  4. Good purchase!
    I´ll purchase MCD also next week.

    On my blog I had this week a survey: Which company to buy best next week.
    They had the choice between six companies.
    For McDonald's have voted 45% of the persons. :-)

    regards
    D-S

    ReplyDelete
    Replies
    1. Hi D-S,

      I think MCD is a decent buy here. It's not much above my cost basis. I'd also add more PM here if I didn't already have too much tobacco exposuure (8% or so).

      Take care!

      Delete
  5. I haven't done any research on Wendy's, but I'm feeling ( no data here, mind you) an upward trend. Any thoughts? I still love MCD, don't get me wrong.

    What's the long term EPS growth look like for DE?

    ReplyDelete
    Replies
    1. I recently did an analysis of DE on my site and they had a historical 10 year CAGR of EPS of 27.5%. Most recently from 2011 to 2012 they grew EPS by 16%. Also, Value Line projects 7.5% growth in the coming 5 years.

      All in all I think DE is a pretty solid company to own for the long term. And I personally like the current valuation.

      Delete
    2. @Wallet,

      I haven't looked into Wendy's much myself. A quick look from E*Trade shows a P/E of 89 and a payout ratio of 177%. These are both big red flags. They also don't have a very long history of increases. There may be an explanation but I haven't done enough research.

      It looks like Dan has already answered your other question.

      @Dan,

      Thanks, I also like DE here and will keep averaging into shares until I have a full position.

      Thanks for stopping by!

      Delete
  6. I think you made some great buys here which will not disappoint over the long term. I actually think CVX and DE offer pretty decent values at today's price points. MCD I think is pretty fair valued as well, though no bargain. I think over the long term, all three will perform very well for you!

    ReplyDelete
    Replies
    1. Hi Dan,

      Thanks! I don't think there are really any bargains so I'm trying to find some companies at a fair value that I can hold for the long-term.

      Cheers

      Delete
  7. Anonymous1/12/2014

    Those 3 stocks are on my buy list as well. Others to consider would be IBM, KO, QCOM, O, AFL, PM, MO, and KMR

    ReplyDelete
    Replies
    1. I already own KO, MO, and PM. I own KMI instead of KMR. If I add another tech company then IBM, QCOM and CSCO will be on my watchlist. I'm not touching insurance any more so I'm not interested in AFL. I like O but I don't want to add more REIT exposure at this time.

      Thanks for stopping by!

      Delete