$600 of UNP
$200 of RDS.B
$269 of TD
I used $1069 in new capital and added $41/year to my dividend income. This is an average yield of 3.84%.
At these prices, UNP will be on my list until it’s a full position. I like the value here and I love companies with a large moat. UNP is a good compliment to my railroad holdings in CSX and NSC.
RDS.B is one of the best values of the majors in my opinion. The cash flow they produce is enormous and I believe their dividend is still fairly safe even at an 8% yield. It’s a company in a cyclical industry and now is the time to load up in my opinion. I’m willing to build up to a $20k position in this company over the next couple of years if prices stay depressed.
TD – TD offers a good value right now with the exchange rate practically being equal. Canada also offers some of the safest banks in the world. TD sports a dividend of nearly 4% and Morningstar rates it at 4 Stars. I’m a buyer here.
I’ll likely focus the majority of my new investments outside of the energy sector. The remainder will go into the beaten up energy, materials or industrial sectors. I love lowering my cost basis on companies I already own. I’m looking at adding more to existing positions in CAT, DE, RDS.B, BP, BBL, CVX, TD, UNP, MDT, V to name a few. I’ve also been eyeing WMT as a new investment to compliment TGT. So many companies and so little funds.
I’m getting a visit by a TABC officer tomorrow to inspect the bar. That’s the Texas Alcohol and Beverage Commission for anyone not familiar. I have to jump through hoops to get licensed to sell liquor here. Anyways, wish me luck. I hope to have the bar/restaurant up and running in March. I’m working on menus currently in addition to pricing glassware and other typical things you need for a restaurant. This is where most of my money continues to be tied up.
No new changes on the real estate front but I do plan to buy another rental sometime next year.
I hope everyone has a happy New Year!