Dwell+Done

JNJ dropped a bit after posting their latest earnings report. The report itself was actually positive so I decided to use this rare opportunity to add on existing position and bought 15 shares for 100,73 USD per share. This will add 42 USD to my annual income as dividends before taxes. No specific reasoning was needed for this purchase as this is one of the best companies in the world to own a piece of. Personally I wouldn’t consider this price as super cheap but it is acceptable in the current market. I’ll consider adding on this position again in 98-101 USD range but I’m certainly going to invest as much as possible if it drops below 95 USD.

Current watch list: DE (new), AFL (existing), JNJ (existing), LMT (new but a bit far fetched at the moment)

Links: http://www.investor.jnj.com/divhistory.cfm, http://seekingalpha.com/symbol/JNJ

As much as I dislike buying something when everyone else is buying exactly the same thing, I decided to hop on to the bandwagon and bought 20 shares of Baxter International Inc. for 73,96 USD per share. All the relevant information can be found from the link below. It’s quite obvious that the expected spin-off for 2015 is the key thing here for most of the DGI investors who have had their eyes on this lately.

Recent buy analysis by dividendmatra.com: http://www.dividendmantra.com/2014/06/recent-buy-7/

Realty Income Corporation does not really fill the primary criteria I have for passive income stock but there’s another factor that has slight impact on the applied strategy. Due to tax reasons I’ve been forced to maximize the short term dividend income instead of focusing solely on the long term potential to raise the dividend. Therefore I decided to add on the position I opened last month and bough 20 shares for 43,73 USD per share.

I also opened a new position on Aflac Inc. which seems to be one of the few reasonably priced stocks out there. It also allows me to open a position on insurance sector  and provides exposure to the Japanese market. Dividend aristocrat, P/E below 10, low payout ratio and current value well below the 52 week average are properties that do fill the primary criteria I’ve set for a passive income stock. Bought 30 stocks for 61.50 USD per share. This is position I plan to add on in the coming months.

Links:

Tax reasons (only in Finnish): http://www.nordnetblogi.fi/tulo-ulkomailta-syo-verovahennyksen/03/04/2013/

Realty Income Corporation: https://finance.yahoo.com/q?s=O

Aflac Incorporated: https://finance.yahoo.com/q?s=AFL

There are few holes in my current portfolio. I didn’t have any direct exposure to realty, banking/insurance or technology but in the current market situation it’s really hard to to find any strong candidates to fill such holes. After  some consideration I decided to open a very modest position on Realty Income Corporation (O). I still have a bit mixed feeling of the company but it has some positive attributes but the most obvious one is the monthly dividend of 0.18USD per share.

Summary: bought 20 shares of Realty Income Corp. for 41,90 USD per share. Current dividend being 0.18 USD per share per month, this will increase my quarterly dividends by 10,95 USD before taxes.

Links: http://www.nasdaq.com/symbol/o/dividend-history, http://www.realtyincome.com

Valuations in general are very challenging so it wasn’t that easy to pick the stock for this month’s purchase. However after some consideration I decided to add on an existing position on AT&T (T) which seems like a reasonably safe bet. Dividend aristocrat with P/E below 10 and dividend yield close to 6% (with acceptable payout ratio) seems like a no brainer. On the downside I don’t expect to see significant increases in dividends even in the distant future. What I do expect is 0.01 USD increases annually which is fine considering the current dividend. This purchase maximizes the short term development of the quarterly dividends which eventually will be invested in companies with greater dividend increase potential.

Summary: bought 30 shares of AT&T for 33,90 USD per share. Current dividend being 0.46 USD per share, this will increase my quarterly dividends by 13,80 USD before taxes.

Links:  http://www.att.com/gen/investor-relations?pid=5675, http://finance.yahoo.com/q?s=T