At the start of each month I detail all the buy/sell activity here for each of my 3 individual stock portfolios: Loyal3, Roth IRA, and Taxable Brokerage accounts. It’s just one way I am chronicling my journey to financial independence here at Starting From Zero.
In addition to these 3 accounts, I also continued investing in my Thrift Savings Plan (TSP) again this month. Right now I’m contributing 4% of my base pay but may adjust this in the future. The majority of my investing will still be in my taxable and Roth accounts. The TSP is basically a 401k plan for federal employees including the military. It only offers index funds but does have probably the lowest expense ratios around, even lower than Vanguard. Right now I’m putting my contributions in the C Fund which mirrors the S&P 500 and the S Fund which is a small cap index fund. Since these deposits typically take a while to reach my account, I won’t be detailing those transactions here.
After not investing any new funds in May, I pooled all the cash I had and made one final purchase for my Roth IRA for the year and used the excess to make some smaller purchases through Loyal3.
3.43 shares of Target (TGT) @ $58.31 per share.
3.3624 shares of Dr. Pepper Snapple (DPS) @ $59.48 per share.
Quick Hits: With Target continuing to trade at an attractive long-term entry point and recently announcing a 20.9% dividend increase, this dividend champion was a no-brainer to add to.
Dr. Pepper is a new position for my portfolio. DPS is a manufacturer and distributor of non-alcoholic beverages that are sold in the United States, Canada, and Mexico. The company’s brands include its flagship Dr. Pepper and Snapple drinks, Sunkist soda, 7UP, A&W, Canada Dry, Crush soda, Hawiian Punch, Mott’s, Schweppes, and my personal favorite as a kid, Yoohoo. Unlike its main competitors, Coca-Cola and Pepsi, both of which are trading at P/E’s of 19+, Dr. Pepper’s P/E comes in at 17.5 with a forward P/E of 15.2, both of which are less than the S&P 500′s current and forward P/E ratios of 18.3 and 17 respectively. Although they have only been growing their dividend for 5 years, the stock does sport dividend growth rates of 10.4% for the past year, and 22.8% average for the last three years while still keeping the payout ratio at 47%.
23 shares of Deere (DE) @ $91.80 per share.
Quick Hits: Deere is another new position for my portfolio and one I’ve been looking to add for a while now. Growing up in a rural town and with plenty of farmers and other users of Deere tractors and equipment in my family, I guess I have a soft spot for the stock. Although earnings are expected to decrease in the coming few years, I like the long-term growth story of this company which is summed up nicely at their investor page. After keeping their dividend static for five quarters, Deere recently announced a 17.6% increase, bringing the quarterly payout up to $0.60 from $0.51. Sweet. Even after the recent run-up in price the stock continues to trade at an attractive valuation with a P/E of just 9.9.
No activity this month.
Full Disclosure: I am long TGT, DPS, DE, and KO. This post is not intended to be a buy or sell recommendation for any stock mentioned and is intended for educational/entertainment purposes only.
How was your June for investing? What do you think of my stock picks this month? Share with a comment below and thank you for reading!