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:
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!