This month has been off to a rocking start so far! I have already made two purchases now and broken a big milestone! I was really in a hurry to purchase shares of QCOM due to it's current share price and up coming Ex Dividend date. I transferred $1,000 from my personal Escrow Fund to fuel this purchase. I do know that typically, this is a big no no. However, taxes are coming up soon and I will simply repay myself the money I have removed once I get my money back. I'm expecting a nice refund this year and I will be going on a buying spree!
This purchase will be the 12th addition towards my Independence Fund and I'm already on my way to hitting my goal of owning 20 companies by the end of the year. I will work on diversifying my fund will still adding to some of my current positions that I feel need bolstering.
on 2/06/16 I purchased 19 shares of QCOM at $53.20 per share. This has affected my expected annual dividend payout by the amount of $40.28 per year bringing my new yearly total to $1,078.75. It feels great to watch this number grow so quickly this year.
So why did I choose to purchase QCOM? The company is currently under going a lawsuit with Apple that has really pushed the share price and the yield in a great position. I wanted to get in before the Ex dividend date and when a bottom was found. Their has been a lot of support in the $53 range and I felt comfortable making the purchase at these levels. This company will be around for awhile and I'm positive it will be increasing payouts for years to come. Here are some of the numbers that I'm loving.
DIVIDEND YIELD 4.01%
PAYOUT RATIO 51.8%
DIVIDEND GROWTH 14 yrs
FREE CASH FLOW 6.8 Billion 2016
The only thing I'm unsure of is how this lawsuit will affect the price on a day by day basis. The stock rally a few points or it could continue to drop a bit every day. However, I'm not to worried about losing a few dollars in the short term as I only have $1,000 invested into this one currently and I can always add to my position if I want to average down.
I'm already moving in the right direction with my account and I have purchases lined up that should put me close to the $1,200 mark by the end of next month. I will be doing a lot of purchasing due to my tax refund and I grow more eager as I count down the days. The other exciting aspect to anticipate is that I will be receiving 3 whole pay checks in the month of march and I will stashing one of those away completely!
With the addition of my tax refund, my extra paycheck and some extra capital I have laying around I expect to put my account over the $30,000 mark by the end of March! If I'm able to achieve this number I will have grown my account by about $8,000 in 3 months which is well above my $2,100 per month target!
I have a very exciting few months ahead for myself and the Independence Fund and I can't wait to document every step along the way. Thank you for everyone who has been reading and I hope I have taught you something.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net