We are off to a great start with the portfolio here in February! After some realistic and meaningful goal planning, I have decided to give myself a goal to reach $1,000 worth of dividend gains for the year of 2016. I was able to leverage some extra cash and managed to put $4,500 dollar into my trading fund.
On 2/1 I bought 167 shares of F (Ford) at $11.90. which will net me $100.02 Worth of Annual Dividends.
I'm absolutely loving Ford at these levels. I feel like anything you can pick up under $13 is a great price right now. The 50 day moving average of the stock is at $12.75. They are at a -28% change from the 52 week high which tells me the stock has plenty of room to grow at these levels. The payout ratio is at 34.63% which is very healthy for some extra growth down the road. although I don't want to see this number move until the company can get some solid growth numbers across all the regions. I can see this stock dropping a little more due to fear trading but i'm not worried since I will be going long and will give me a chance to average down for some more shares. The annual payout is at .60 with an EPS growth of 28.89% over last quarter. Not to mention the company earned 10 Billion in revenue last quarter. A lot of traders are skeptical on Ford right now due to sales dropping in Europe. I think it's too soon to judge how this quarter will be for Ford but I'm confident we will see some nice growth very soon.
On 2/5 I purchased 16 shares of WMT ( Wal-mart) at $67.00. Which adds an annual dividend amount of $31.36. I don't think I have to give anyone information on what the company Wal-mart is. My goal is to Diversify my portfolio as much as possible. Some key reason why I decided to pick up Wal-mart Is because of this company's track record with dividends. Earnings per share stands at $4.66 which has continued to grow year after year. This is a very important metric because it shows the the company can earn money. Dividend yield is at a healthy 2.93%. Mind you, this percentage is above the market average for food retailers of 2.23%. Another good metric to look at for dividend stocks is the payout ratio. It is very important to look at companies with 60% or less. Although 60% is high for my liking, some argue that it is still safe. Wal-mart's current payout ratio is at 40.2% which leaves room for what???? DING, DING, DING, Growth. This is what we are looking for in long term dividend stocks. Another great Growth fact about this company is that they have grown their dividend for 43 consecutive years!
On 2/5 I also purchased 11 Shares of IBM at 127.17 which adds $57.20 To my annual gain.
So far I feel I'm off to a great start to my Goal of $1,000 this year. I'm currently at $188.58 In free Money just for owning these shares.
All the Information in this post is based upon my own research and it is in no way telling anyone of future or past gains they can achieve. I'am not a promoter, and have not been paid by any of the companies I talk about in my posts.
Page updated on 2/11/2016
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