Monthly Investing Recaps: January 2014

Still trying to catch up on all my posts from my planned start date of the beginning of this year. As the Starting From Zero Blog didn’t officially kick off until February, over the next few days I’ll continue updating everyone here in my financial journey so far in 2014. I’ve already given a quick run down of all my investing activity in 2013 and from now on will be doing these monthly posts highlighting all the buys and sells I made throughout the month in my brokerage, Roth IRA, and Loyal3 accounts.

Brokerage

Buys: 03 Jan: 37 shares of Realty Income (O) @ $37.43 per share.

Quick Hits: Due to Fed tapering fears, Realty Income, the self-proclaimed “Monthly Dividend Company” continues to trade at attractive valuations considering its status as a blue-chip Real Estate Investment Trust. Realty owns and operates over 3800 properties in 49 states in the retail industry and distributes its dividends monthly to shareholders.

Roth IRA: No activity this month but I continue to drip all dividends received (post coming soon on recent dividend income 🙂 ). Probably won’t be adding any money to this account until later this year. I’d like to be able to put in as much of the max as possible at once and make 1-2 trades, thus minimizing commission costs.

Loyal3 Account

Buys: 15 Jan: 1.2629 shares of Coca-Cola (KO) @ $39.59 per share.

16 Jan: .8466 shares of Target (TGT) @ $59.06 per share.

16 Jan: 3.4099 shares of Coca-Cola (KO) @ $39.59 per share.

Quick Hits: I ended up with quite a few of those Visa gift cards for Christmas and my birthday in November so I decided to use them all up this month at Loyal3 as they accept credit/debit cards as payment for stocks (how awesome is that?!). Nothing better than combining free money with free commissions. I don’t know how long this new online brokerage firm will continue with their free trades so I might as well try to take advantage of it as long as possible.

Target is a discount retailing giant with a market cap of $38 Billion and has 1797 stores in the U.S. and 124 in Canada where they recently started expanding into. Although the transition to Canada hasn’t gone as well as expected initially I believe they will be able to successful there with time. With Target’s share price dropping after their recent credit card data breech, it provided a good time for long-term investors to buy. Although it offers a low initial yield, Target has a surprisingly high long-term dividend growth rate for such a mature company with a 5 year dividend growth rate (DGR) of 21.4%. They also have nice margin of safety in their payout ratio, paying out only 46.11% of their earnings in dividends.

Coca-Cola needs no introduction as one of the greatest blue-chip stocks ever and always a staple of any dividend growth portfolio. KO continues to trade at an attractive valuation and I consider KO to be fairly valued at $40 and below and share. It doesn’t offer as much of a margin of safety as other stocks I’ve bought in the past but I’m willing to pay a premium for such a blue-chip dividend growth stock.

Full Disclosure: I am long O, KO, and TGT. This post is not intended to be a recommendation to buy these stocks and is for educational uses only. Only you are responsible for your investing and I always encourage you to conduct your own research. Good luck!

What do you think of my investments for January? Anyone else pick up shares in any of these dividend growth stocks recently?

2 comments

  1. Hі there, i read your blog ocсasionally and i own a similar one and i was just curious if you get a lot of ѕpam rеmarks?

    If so how do you prevent it, any plugin or anything you can аdvise?
    I get so much lately it’s driving me mad so aany help is very much appreciated.

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