$500 of UNP
$300 of DEO
$100 of RDS.B
20 shares of JNJ ($2018)
I used $2918 in new capital and added $93/year to my dividend income. This is an average yield of 3.2%.
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.
DEO is a brand new position. They have a lot of big alcohol brands in their portfolio and sport a pretty nice yield of almost 4%. S&P Capital IQ estimates their 3-year CAGR at 8% and Morningstar gives the company 4 Stars. I’m a buyer here. Considering I’m opening a bar, I think this one is fitting for my portfolio.
I also added 20 additional shares of JNJ to bring up the weight. JNJ is one of those “forever” companies if there is such a thing. I plan for them to be a core holding for the rest of my life.
In Recent News:
The TABC inspection seemed to go well. The officer didn’t have much of a personality but I have my fingers crossed. Apparently I’ll have to go for an in-person interview soon. I’m getting quotes on pouring some concrete for a parking lot currently, testing out some POS and credit card payment systems, working on menus and getting the bar in compliance with all the state laws. The target opening date is still in March.