Sorry it has taken me so long to write this article! I made some great purchases this month and am super happy with how they are trending right now. I really had a hard time trying to figure out which companies I really wanted to purchase into but a few things persuaded me to get in on the action. Walmart's ex dividend date was approaching and I wanted to get in on time for the dividend. At@T also had a great dip last week which I took advantage of and bought into the dip.
On 5/1, I purchased 29 shares of WMT at $67.40. This will give me an annual yield of $56.84.
On 5/1, I purchased 43 shares of T at a price of $38.31. This will give me an annual yield of $82.56.
With the addition of these two investments, my annual yield income from purely dividends sits at $327.20. or a 3.2% return on my investments.
This company is the mother of dividend stocks. They have continually increased dividend payout for the past 31 years straight. The current yield and payout for dividends sits at 4.97% yield and 67.4% payout. This is a great dividend stock to own right now due to the soundness of the company and the yield percentage.
A few things I'm a little worried about is the deal that they formed with direct TV. Hopefully the company will be able to generate extra cash flow so the payout ratio can hit a healthier level which intern will leave the company more room to grow the dividend down the road.
so how does this companies numbers stack up and why is it a great choice to invest in?
Revenue is up 14 billion over last year and sits at 154 billion. EPS is at 2.35 with a nice P/E of 16.49. These are really nice numbers because it shows the company is generating more revenue and being even more profitable.
Now one very important metric to look at is how much Free cash flow a company has. This is where the dividend money comes from and ensure we get out pay check. The company has an amazing 15.87 Billion of free cash flow which is up 6 billion from last year!
I truly believe this company will continue to impress and be a dividend pumping machine.
I've already stated my love for this company and I made it just in time for the next dividend payout. I was how ever late into the AT&T one.
Full disclosure: Long WMT and T
Image courtesy of renjith krishnan at FreeDigitalPhotos.net
Has anyone else made some great stock purchases lately? Let me know in the comments below.