I know this month has been off to a slow start for me and a few of my fellow dividend investors that I follow. I had a lot of unusual expenses and not to mention, I did splurge on a few home purchases that I could have spread out better. Oh well, those purchases are now in the past and I'm back on track to my usual high level of frugality and savings.
I really enjoy writing up purchase articles as everyone I write puts me closer and closer towards my goal of having 20 companies in my Independence Fund. With this latest purchase I'm now at 14 companies!
Now on to one of my favorite parts, on 3/23 I purchased 52 shares of ORI at $20.15 per share. This has affected my annual expected dividend payout by the amount of $39.52! With this latest addition my portfolio is now working hard to generate me at $1,161.47. I'm only $63.53 away from my Independence Fund earning me a whole extra paycheck this year! This will be a nice milestone and I'm looking forward to hitting it very soon!
Old Republic International can trace it's beginnings back to 1923. The company is one of Americas 50 largest shareholder-owned Insurance companies. They deal primarily with large commercial Underwriting, Dead and Title, Mortgage and guaranty and also consumer credit insurance line.
This is one of the stocks I have had on my watch list and I've had my eyes upon as soon as I discovered it. What made me pull the trigger was the stocks current 50 day moving average has been holding at the current support levels and the stock is showing a very bullish pattern. I wish I could have pulled it sooner but due to money constraints I missed out on a great opportunity.
It was a tough toss up between AFL and ORI but ultimately at my current stage in my dividend investing life cycle I chose ORI First. Now, I say first because I know down the road I will be also adding AFL to my Independence Fund eventually due to the amazing P/E ratio, Current Payout ratio and the room this company still has to grow it's stock price and dividend yield. ORI also happened to tick the boxes for me as the yield is very attractive currently at 3.78% and it's impressive dividend aristocrat track record. Check, and check.
DIVIDEND YIELD - 3.78%
PAYOUT RATIO - 52.4%
DIVIDEND GROWTH - 35 yrs
FREE CASH FLOW - $637 Million
The stock currently has an analyst price target rating of $23 with an average consensus of hold. The 50 day moving average is a solid $20.23 with the 100 day at $19.21. This makes sense since we can say the uptick around the same time the company released its quarterly earnings results and it's dividend increase.
I'm really feeling confident about this one and I know I can sleep soundly tonight and not worry about my investment. GME on the other hand. I'm stuck with what to do with this one right now. I'm not sure if I should just take the lose now or hold onto it for a bit longer. This has been a painful lesson to learn since I sold my shares of APPL at $124 and now I have lost money on the purchase I could have gotten quite a bit of capital appreciation from.
Lesson learned from my lose is that I should have stuck with the dividend aristocrats and not gotten ahead of my self by chasing high yields. I truly thought that GME would have produced some great results this quarter and I could have gotten some great dividend payouts from it.
It's safe for me to say that I'm back on track and focused back on the big dividend companies. Their is still a lot of time left this month and I know exactly what to do with my capital. I'm going to add the rest of my money towards a few companies in my portfolio as I would really like to beef up the current positions I have in my portfolio since I have accumulated a good number of companies so far this year.
Happy trading to everyone and thanks for stopping by.