It has been a very busy and expensive couple a months. I haven't had as much capital or time to invest as I'd like to update my page and pay attention to my dividend earning positions. Since I was not able to put away as much cash as I typically do. I did make a purchase this month but not at the $1,000 threshold I typically like to purchase with.
The reason I typically purchase in blocks of $1,000 is to minimize my trading fees and to keep them at a very minimal percentage since the whole goal is to grow my money and have a positive return on my investments.
I did however break my rule to invest in blocks of $1,000 since I didn't have extra cash flow to add to the Independence Fund and I saw a great opening.
On 10/20/16 I added an additional 4 shares of JNJ at $14.59 per share. Since I went against my rule of what amount of capital I like to purchase with, I was only able to add $12.8 annually per year. This is not a big amount of money added to the annual dividend payout but I wasn't able to add more capital into my fund due to expenses this month. Nerveless, I was able to average down my cost basis on my JNJ position and also have a good position with the possibility to make some good investment income off of the purchase.
A nice note to remember also is that when the annual dividend payout of a company remains the same, but the price of the stock drops, it adds a great opportunity to get in with a higher annual dividend yield percentage. Not only does purchasing lower increase the percentage of dividend yield on your purchase, it also gives the purchase a nice buffer from potential loses.
I typically like to analyze what price the stock is at and if it is near it's 52 week high, I then check the trend of the stock and determine if it is rallying higher or if the price is just sort of churning at it's current levels. if the stock is churning and support is not really high at those levels then typically it may not be the best time to buy. But if one buys on a downtrend of a stock I like to establish where that bottom may be and try to buy at those current levels of support so I can maximize my investment strengths.
Since my purchase, JNJ has dropped a bit more and I could have gotten those shares for a few dollars cheaper. I however don't over analyze the situation and I stay confident in the position I chose to purchase into. Hindsight is 20/20. you can't tell yourself in the moment you will wait for a lower price. I have done that before and the price has gone up from when I was going to buy in. I would then tell myself, I should have purchased at that level when I had the chance.
It is a hard thing to learn but, traders must detach themselves from their emotions when it comes to stock trading. Do your research, analyze market and sector trends and plot your entry or sell point. Don't let fear and greed get in the way of your decisions as it typically causes investors more in the long run.
With my latest addition my current annual dividend payout is at $725.62. I'm slowly moving on up to that $800 dollar mark and I anticipate I'll be there by the end of the year.
Another side note on to which I love dividends is that AT&T just announced a dividend increase of .04 per share or an increase of 3.125%!!! This may not seem like a big number but, once these increases keep compounding (like they should, for any healthy dividend yield portfolio that is) these little increases will turn into one nice sum at the end of my journey.
This increase is just from one of my holdings. It will make an impact on my portfolio annually of $4.22 per year. Again, this may not seem like much but, this is an increase from just one company and every company I own should be increasing their dividend payouts very soon.
I didn't have to work harder for this increase, I didn't have to work extra hours and I haven't been stressed out about this increase. It is extra money being handed to share holders just because we own a part of the company. Going into 2017 with this new increase my annual portfolio will have a projected payout of $729.84!
How has everyone else month been going? has anyone made any purchases or had dividend payout increases?