Dividend Retirement Portfolio Purchase:
I am currently in the process of converting 65% of my 401k account to dividend growth stocks, which I am calling my Dividend Retirement portfolio. This is the portfolio that will hopefully pay for my early retirement and then will be passed on to my children.
As part of this 401k conversion I recently initiated a position in Cummins Inc (CMI). For a detailed analysis on CMI, please read my recent post, “CMI Dividend Stock Analysis.” Here are some of the highlights:
- CMI dividend yield is 2.2%
- Average 5 year annual dividend growth is 32%
- Earnings have grown 33% annually over the past 5 years, and are expected to grow 12% annually over the next 5 years
- CMI has very little debt, with a debt to equity ratio of just 0.22
- I am expecting a dividend increase next quarter
CMI Purchase Details
- Purchase date: 5/26/2015
- Portfolio: Dividend Retirement
- Sector: Industrial Goods
- Industry: Diversified Machinery
- Shares purchased: 21
- Cost per share: $140.2699
- Commissions: $14.95
- Cost basis: $2960.62
- Yield: 2.21%
- Expected annual income: $65.52
Buying 21 shares of CMI adds $65.52 per year of dividend income, bringing my total up to $1,335.48. I also expect a dividend increase from CMI next quarter. If they continue with their 25% increases I can expect a $16 raise almost immediately.
This purchase brings my Dividend Retirement portfolio yield on cost down to 3.17% from 3.25%. This is acceptable given the phenomenal dividend growth CMI has shown over the past 5 years.
Dividend Empire Portfolio Purchases:
I also made a couple of purchases in my Loyal3 account today (part of my dividend empire portfolio). This portfolio is strictly for my descendants. I will never touch the money except to pay for my children’s expenses. My goal is to have this portfolio compound over many generations.
The funds I used to make these purchases came from a local bowling tournament where I won $175. Any time I make a little bit of money on the side it goes straight into my Loyal3 account. Loyal3.com is a perfect place to invest such a small amount because they don’t charge commissions.
My current holdings in Loyal3 are relatively small investments in Hershey (HSY) and McDonald’s (MCD). I am contributing $25 per month into each holding and will increase that monthly amount over the next few months.
With my $175 winnings I decided to add to my Hershey holdings and initiate a position in Gap (GPS). My analysis of HSY can be found HERE. I haven’t published my analysis of GPS yet but I will get to it at some point. Here are the details of my purchases:
HSY Purchase Details
- Purchase date: 5/27/2015
- Portfolio: Dividend Empire
- Sector: Consumer Goods
- Industry: Confectioners
- Shares purchased: 0.8023
- Cost per share: $93.48
- Commissions: $0
- Cost basis: $75
- New yield on cost (entire position): 2.30%
GPS Purchase Details
- Purchase date: 5/27/2015
- Portfolio: Dividend Empire
- Sector: Consumer Services
- Industry: Apparel Stores
- Shares purchased: 2.635
- Cost per share: $37.95
- Commissions: $0
- Cost basis: $100
- Yield: 2.42%
These purchases bring my Dividend Empire portfolio yield on cost to 3.34% and add $4.15 to my expected annual income (now $581.15). I get paid an extra $1 per quarter just for having a good night at bowling!
What do you think of these buys? Anyone else pick up these stocks recently?
It’s great that your 401k plan let you buy individual stocks. Mine won’t let me. More reason to retire and take over the account.
The $25 will add up. One of my friend put $50 per month and after a year and half, she for $1500, man! Talking about the power of growth, granted it’s been a great 6 year bull run, so she couldn’t go wrong.
Hello Vivianne. Yes I was quite pleased to find out my 401k plan offered what they call a self directed account. There is an annual fee and the trades cost me $14.95 but I still think it’s worth it. Thanks for stopping by!
Ken
Nice moves and write up! Especially liking CMI here. I really like how detailed and planned out your accounts and their purposes are. Keep getting those ‘turkeys’ to add to the loyal3 account, great job
Thanks Ryan! I appreciate the feedback. I’m taking the summer off from bowling so I’ll have to fund loyal3 some other way. I suppose it’s time to sell some of my junk on eBay.
Ken
I’d say that you have a very well positioned portfolio. I’ve been buying some zsl recently, which is a silver inverse (short) etf.
Thanks for the feedback IT. I’m not too familiar with ZSL – strictly dividend growth stocks for me these days. Looks like ZSL is trending up though. Best of luck to you.
Ken
Thanks for sharing! Great purchases! I really like CMI. Talk to you soon!
-LOMD
Thanks LOMD. I wish I would have waited a bit on CMI. It got hammered the last two days. Oh well…I’m in it for the long haul!
Ken
Solid buys all around though none happen to be in my long term portfolios. I think I like the CMI buy best. I looked at them a while back but never pulled the trigger. Thanks for bringing this solid dividend payer back to my attention.
Thanks DivHut. CMI just kept popping up in every screen I ran so I finally decided to take a closer look. I definitely liked what I saw. Glad I was able to jog your memory.
Ken
I really like the HSY and CMI buys; I’ve been eyeing them myself. Can’t really complain about MCD either. I am interested in why you chose GPS. I went for VFC in the clothing space, but a lot of people seem to like GPS. Haven’t looked at it closely myself.
Hi DD – I’ve been running a screen lately that includes various parameters for dividend and financial strength/growth and GPS came out on top in the clothing space. After their recent pull back I decided to pull the trigger on a very small position. I will take a look at VFC as well since I like to spread my money thin in my Loyal3 account. Thanks for stopping by!
Ken
374634 153509Of course like your internet site but you need to have to check the spelling on several of your posts. Several of them are rife with spelling difficulties and I locate it really bothersome to tell the truth nevertheless Ill definitely come back once more. 619613
36504 536856Valuable info. Fortunate me I discovered your web web site by chance, and Im surprised why this twist of fate didnt happened earlier! I bookmarked it. 104544
765007 100918Most heavy duty trailer hitches are created employing cutting edge computer aided models and fatigue stress testing to ensure optimal strength. Share new discoveries with your child and maintain your child safe by purchasing the correct style for your lifestyle by following the Perfect Stroller Buyers Guideline. 696644
318936 406613i always enjoy to do blog hopping and i stumbled upon your weblog .”~; 846439
621011 585165This is the proper blog for anybody who hopes to learn about this topic. You know a complete lot its almost tough to argue along (not that I actually would wantHaHa). You certainly put a entire new spin for a topic thats been written about for years. Fantastic stuff, just great! 770600
227728 407764Thankyou for all your efforts which you have put in this. very interesting info . 179870
Nice post. I was checking continuously this blog and I’m impressed! Extremely helpful info specially the last part
I care for such information a lot. I was seeking this particular information for a very long time. Thank you and best of luck.
Magnificent beat ! I would like to apprentice while you amend your website, how could i subscribe for a blog site? The account aided me a acceptable deal. I had been tiny bit acquainted of this your broadcast offered bright clear concept
Hello, Neat post. There is a problem together with your website in web explorer, might test this?K IE still is the marketplace leader and a huge portion of other folks will pass over your fantastic writing due to this problem.
43580 9936Ive read several good stuff here. Certainly value bookmarking for revisiting. I surprise how a lot effort you put to create one of these outstanding informative site. 22524
66238 867552Thanks for taking the time to discuss this topic. I genuinely appreciate it. Ill stick a link of this entry in my blog. 269712
Woh I love your content, bookmarked! .
I like this site its a master peace ! Glad I detected this on google .
Very interesting points you have remarked, thanks for putting up.
I’m still learning from you, as I’m trying to reach my goals. I certainly love reading all that is written on your website.Keep the aarticles coming. I enjoyed it!
Merely wanna input on few general things, The website pattern is perfect, the written content is real excellent. “To imagine is everything, to know is nothing at all.” by Anatole France.
Enjoyed examining this, very good stuff, regards. “What the United States does best is to understand itself. What it does worst is understand others.” by Carlos Fuentes.
I enjoy you because of your own efforts on this site. My mum really loves carrying out investigations and it’s easy to see why. We notice all about the dynamic method you produce very important solutions via your web site and strongly encourage contribution from the others on this concept and our simple princess is certainly starting to learn a lot. Have fun with the remaining portion of the new year. You have been performing a very good job.
F*ckin’ remarkable things here. I’m very glad to see your article. Thanks a lot and i’m looking forward to contact you. Will you please drop me a mail?
I?¦ve been exploring for a little bit for any high quality articles or weblog posts on this kind of area . Exploring in Yahoo I eventually stumbled upon this site. Studying this info So i?¦m happy to express that I’ve an incredibly just right uncanny feeling I found out just what I needed. I such a lot undoubtedly will make sure to do not disregard this site and provides it a glance on a continuing basis.
I’m not certain the place you are getting your information, but good topic. I must spend a while studying much more or understanding more. Thank you for wonderful information I used to be looking for this info for my mission.
It is in reality a nice and useful piece of information. I’m glad that you simply shared this helpful info with us. Please stay us up to date like this. Thanks for sharing.
As soon as I observed this web site I went on reddit to share some of the love with them.
wonderful points altogether, you just gained a brand new reader. What would you suggest in regards to your post that you made some days ago? Any positive?
I’m often to blogging and i actually respect your content. The article has really peaks my interest. I’m going to bookmark your site and keep checking for new information.
Greetings from Idaho! I’m bored to death at work so I decided to check out your blog on my iphone during lunch break. I enjoy the info you present here and can’t wait to take a look when I get home. I’m amazed at how quick your blog loaded on my mobile .. I’m not even using WIFI, just 3G .. Anyways, awesome site!
You could definitely see your expertise in the work you write. The arena hopes for more passionate writers like you who aren’t afraid to say how they believe. At all times follow your heart. “Man is the measure of all things.” by Protagoras.