I recently posted on 2 of my 4 purchases made last week – 75 shares of KMI and 38 shares of ADM. In this post I’ll briefly discuss the remaining 2 buys: 15 shares of Disney (DIS) and 12 shares of Apple (AAPL, averaged down).
I don’t have much time this week to do a detailed write up so I’ll just focus on the purchase details. This is my 3rd purchase of AAPL so you can check out the write ups of my first and second purchases if you like. I basically buy AAPL on any dips as it is by far my favorite stock (and my favorite for options trading).
As for DIS, I’ve been waiting a long time to initiate a position but I was waiting for a dip. I finally got one after the recent earnings release so I jumped in.
Unfortunately every time I go on a buying rampage the market tanks on me. KMI, ADM, DIS and AAPL have all gone down significantly since my purchases. But hey, I’m in it for the long term!
Disney (DIS) Purchase Details
- Sector: Consumer Discretionary
- Industry: Movies & Entertainment
- Purchase date: 8/5/2015
- Portfolio: Dividend Retirement Portfolio
- Shares purchased: 15
- Cost per share: $111.17
- Commissions: $14.95
- Cost basis: $1682.50
- Yield on cost: 1.18%
- Forward income: $19.80
Apple (AAPL) Purchase Details
- Sector: Information Technology
- Industry: Technology Hardware, Storage & Peripherals
- Purchase date: 8/3/2015
- Portfolio: Dividend Retirement Portfolio
- Shares purchased: 12
- Cost per share: $120.25
- Commissions: $14.95
- Cost basis: $1457.95
- Yield on cost: 1.71%*
- Forward income: $24.96
*For this purchase, not total holdings
These companies are not big dividend payers (yet) but they bring a lot of growth potential to the table. Because of the low dividends these 2 buys add just $44.76 to my projected annual dividend total, which now sits at $2243.28.
The 12 shares of AAPL brings my total to 35 in my Dividend Retirement portfolio and I also have 25.102 in my Dividend Empire portfolio. My total expected annual income from my AAPL positions are $72.80 (Retirement) and $52.21 (Empire).
My Dividend Retirement portfolio has been updated to reflect my new additions.
What are you thoughts on DIS and AAPL right now? Please let me know in the comments section below!
Good buys! Disney is going to have some huge earning reports once Star Wars releases.
I also made a couple new buys in the taxable account this week. It’s great to see some red on occasion.
Keep it going!
Blake
Thanks Blake. I’m definitely looking forward to Disney’s future earnings reports. I think the stock was overly punished for their recent “bad” report.
Take care,
Ken
It’s great to average down, and both are great companies that will be around for a while. I’m curious though — with low yields, are you mainly planning on selling for capital gains, or are you in it for the long term dividend growth ? I wonder if the lower yielding stocks will come under pressure when interest rates go up, and we see savings and CD rates go up again. Thoughts on that ?
Either way always good to lock in that forward income.
Hi AP – thanks for your comments. I’m definitely in it for the long term with these stocks. I believe that both companies will increase their dividends rapidly and up to a reasonable yield.
As for the interest rate question, I am by no means an expert but I think a rise in interest rates will mostly affect the higher yielding stocks that investors migrate to when there are low rates. I also believe that most of this has been priced into stocks already as the talks of raising the rates have been going on for a while. For these two stocks (DIS and AAPL) in particular, I don’t think most investors buy them for the dividend anyways so the rates should not have an effect.
Thanks again for stopping by!
Ken
Ken,
Nice moves!
I averaged up on DIS right around that $110 mark. Record quarterly profit and the stock falls off a cliff. Gotta love it. Wish I would have waited another day, but I doubt I’ll care 20 or 30 years from now.
Glad to be a fellow shareholder. Really high-quality businesses here.
Cheers!
Thanks DM! I’m with you – it would have been nice to get in at $105 but it really doesn’t matter in the long run. Thanks for stopping by and congrats on your amazing July!
Ken
Just discovered your blog. Both companies are true American earning machines. Good luck!
Hi there Sam. Thanks for stopping by and thanks for you support! Can’t wait to see where these stocks are in a decade.
Take care,
Ken
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