June & July 2016 Buys!

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June has already come and gone and I’ve made some new purchases! I’ve also made changes to my 401k plan to start a brokerage link account to buy individual stocks.

I purchased 14 shares of MO (Altria) @ $67.47 for a total of $944.58. I’ve always wanted to own some Altria and I’ve finally done it! From my research, I don’t see a reason for me to wait until this stock has gone down in price because in viewing the history, this stock almost always never go down in price! Well except for the 2008 crash of course but then every stock went down during that time. I myself is not a smoker but even if I don’t believe in the product itself, it doesn’t mean that it will not do well in the future. I have friends who tried quitting and it is nearly impossible!

My second purchase (actually, July 11th) was in BF.B (Brown Forman). I bought 5 shares of BF.B @ 98.11 for a total of $490.55. I wanted to add more consumer staples and since I’ve already have beverage companies such as PEP (PepsiCo) and KO (Coca Cola), I wanted to buy an alcohol beverage company. Strong brand recognition such as Jack Daniels is all I needed to hear to invest in such a company. I think that the United States will have some hardships coming in the future and I’m trying to build my strength with consumer staples. People will want more alcohol during the next recession, possibly a depression! BF.B is also a dividend aristocrat with a low yield of 1.38%. With the low payout ratio of 26.82%, I think BF.B is a great growth stock.

Now the next two stocks that I bought is inside my 401k account. I recently started a new job back in the middle of March of this year and I found out that my company offers a brokerage link account from Fidelity. So I sold off a lot of my index fund and transferred over to buy some more dividend stocks! I decided to mimic my taxable account but added a couple of new stocks. I bought 8 shares of CLX (Clorox) @ $137.20 for a total of $1097.63. I really wanted to initiate a position in CLX for the longest and finally did it in my retirement account. One advantage is that I will not have to pay tax on the dividends received!

The second stock that I bought was HRL (Hormel Foods). I bought 19 shares of HRL @ $35.81 for a total of $680.39. Again this stock has a low yield but the payout ratio of 40% will allow this stock to have great growth in the future! The rest of the stocks in this portfolio is very similar to my taxable account, which is shown below:

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I started my 401k brokerage link account with a couple of gold and silver mining stocks, ABX (Barrick Gold) and SLW (Silver Wheaton). Well SLW is technically not a miner but they work with silver miners. I already have positions in my taxable account with EMR (Emerson Electric) and WMT (Walmart) but I’ve decided to add them because I find that these two companies are currently under valued. JNJ (Johnson & Johnson) is a bit over priced but I wanted to initiate a position and just because it has reached the 52 week high does not mean that it will not go any higher! I wanted to buy a position in T (AT&T) but I decided early on to chase growth rather than high yield with this account.

I hope to add more in the later half of July and in August. Every day I’m tempted to sell my Gold Miners and to add different dividend stocks from its profits but I will try to hold off a little bit longer before doing so!

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4 thoughts on “June & July 2016 Buys!

  1. Special Agent Dividend July 12, 2016 / 9:41 pm

    Thanks for sharing the purchases. That is truly awesome that your employer has the option of a linked account for your 401k. I’d love to have that option for mine but can’t beat the matching % I get from mine, even without individual stocks. You may have mentioned before, but do you receive any company matching for the 401k?

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    • Steve Yi July 12, 2016 / 9:54 pm

      Welcome, Special Agent Dividend! Yes I do get a company 401k match of 100% up to 6% of my income. Every month it buys a freedom 2045 index fund and once it reaches a certain amount, I sell a portion of it and transfer the proceeds into my brokerage link account. I try to keep around 30% of my freedom 2045 index and 70% into the brokerage link account. Thanks for stopping by!

      Like

  2. Young Dividend July 13, 2016 / 2:30 am

    Wow, Clorox. It’s a great company but I was feeling it’s a bit rich at this point.

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    • DividendLiberty July 13, 2016 / 6:38 am

      Hi Young Divided,

      I agree that CLX is a bit expensive at the moment but I wanted to initiate a position. Especially since it is in my retirement account and will be considered a never sell. I aim to never sell any of my dividend stocks but never is a long time, so instead I should say a very long time because anything could happen in the future.

      Like

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