I made my usual $1,000 contribution to my Robinhood individual stock account as well as $1,000 to my Vanguard VTI (Total Stock Market ETF) account. I didn’t buy anything new this December – rather I strengthened a few positions.
I’m hoping to continue on this pace of contributions, but I have some house projects that need attention, namely a crack that developed in my shower floor this morning! Even if I hold off on contributions, I’m glad to know my dividends will keep rolling in and provide some purchasing power. Hopefully it will not be an expensive fix.
Sold 1 share of STAG @ $27.50/share ($27.50)
My November 2017 was the month of selling. I am now free of all REITs except for one share of STAG. I do believe STAG is a quality REIT, but I want to clear all REITs out of my taxable portfolio. I bought one share and held it for a year. I made a nice ~21% profit, including dividends. I may add REITs later, but right now they are not part of my strategy.
I dedicated this month’s purchases to adding to some of my favorite current holdings.
Bought 8 shares of VTI @ $135.92/share ($1,087.32)
My VTI position is really starting to pile up. Right now, about 25% of my total taxable investments are in Vanguard’s VTI. This is paying me $63.52 in dividends this December. As I continue to add more VTI, I love the fact that it includes many small-cap and growth companies that I don’t otherwise have. If I want to step away from researching individual stocks, I can rest easy knowing that Vanguard is keeping holdings up to date. Would I have invested in Apple twenty years ago with my current strategy? Probably not. Would I have invested in Yahoo or Dell? Probably. VTI guards me against myself. If I have to cut back on contributions going forward due to house expenses, I will cut my VTI purchases last.
Bought 5 shares of CAH @ $58.27/share ($291.35)
I have been itching to add more CAH since buying it at $79.64 back in June. The price has dropped since then, but I still love their track record. I usually don’t buy when prices are dropping, and this is one of my few exceptions. The payoff will be a higher initial yield. The payout ratio is just 37% and the dividends have been raised 32 years running.
Bought 3 shares of MGA @ $55.79/share ($167.37)
No matter how the automotive industry changes over the next generation, I believe Magna will continue to provide the basics.
Bought 1 share of IFF @ $155.26/share ($155.26)
International Flavors and Fragrances is a self-explanatory company name, but its reach is enormous. It has 3,000 customers in 160 countries. I like that diversification.
Bought 1 share of AAPL @ $170.70/share ($170.70)
I kept thinking Apple was under-represented in my portfolio, and this continues my effort to fix that.
Bought 1 share of RTN @ $189.25/share ($189.25)
Raytheon has been one of my best performers, and my general strategy is to water the growers. I went ahead and added a bit more RTN.
Bought 1 share of ADM @ $40.21/share ($40.21)
ADM has become another of my favorite dividend growth investments when I just have a little cash left in my Robinhood account. 41 years of dividend growth and a 55% payout ratio fits my general criteria, and the initial yield is a nice 3.2%. I believe continued population growth will continue to drive agriculture and feel good about buying shares of ADM.
Bought 1 share of ADM @ $41.51/share ($41.51)
Dividends continue to roll in and when I accumulated enough, I picked up another share of ADM.
Bought 1 share of ADM @ $40.32/share ($40.32)
December was a great month for dividend income, and I used that to pick up another share of ADM. My ADM holding is now catching up and becoming significant in my portfolio, mostly funded by dividends I didn’t have to work for!