I’ve had a few things going on lately and I’d like to update my readers somewhat about what I’m doing.
I’m going to talk about some of these things in more depth soon; one was a divorce this year, another is a possible investment in a bar and there is also a purchase of a new residence. So I’ve been saving up a little cash.
As for my weekly purchases, I put them on hold the last several weeks to save up money for an investment.
However, I did get around to rolling over a 401k plan to an IRA. I hadn’t even been tracking it but I converted it to cash and so far have used up about half of the 35k that I had in there. I purchased 4 equities so far and have updated the purchases on my portfolio:
40 shares of CMI (Cummins)
They pay a solid 3.8% dividend yield. They have grown impressively their dividends the last several years. I’ve wanted to own the company for a while and the price is now attractive to me. I believe their natural gas engines will be huge one day and I just like the company fundamentals.
50 shares of HSY (Hershey)
What’s not to like about Hershey. They are a former Dividend Champion and are back up to a 6-year streak. They never cut the dividend, but held it the same for 10 quarters during the financial crisis. S&P Capital IQ believes HSY will have a 3-year EPS CAGR of 7%. Their yield is currently 2.65% and they are sitting close to their lows for the year. They have a much lower market cap than some of their competitors at just 14 billion. I believe the company still has a lot of room for growth including international expansion.
25 shares of VOO (Vanguard S&P 500 ETF)
Basically I wanted some money into an ETF that tracked the S&P 500 but with low expense ratios. This one is cheaper than SPY or IVV. This is the only one I’ve currently set to drip.
25 shares of PJP – Powershares Dynamic Pharmaceuticals Portfolio
I wanted a basket of companies in the healthcare space and chose this ETF from Powershares. It has a low yield but high chance of more capital appreciation. It also has a 5-star rating from Morningstar and here’s their top 10 holdings that make up over 50% of the weight:
With the rest of the cash, I’m going to sit and wait for some opportunities. I may dollar-cost-average more into these positions above. I had thought about adding XOM but am already heavy in the energy sector.
With these purchases I’ve added about 400 dollars to my 12-month dividend totals.
What are you buying?