I’m still putting to work some of the sale proceeds from my recent Target (TGT) & Realty Income (O) sales.  At the beginning of the trading week, I was able to acquire some additional shares for one of my existing Portfolio holdings, and also initiate a position in a new stock.

The existing holding is Caterpillar (CAT), while the new holding is Broadcom (AVGO).

Thanks to these two most recent purchases, I’ve essentially re-deployed all those sale proceeds… just a few hundred dollars left.

I’ve churned out more than my normal share of posts this month, so I’ll try to keep this recap short.

Here are the details for my latest purchases…

 

CAT

On Monday, 1/27/20, I purchased 5 shares at $135.69/sh, for a total of $678.45.  My CAT position now stands at 30.145 shares.

This CAT purchase follows one from just 5 days ago.  I mentioned in my latest Portfolio Thoughts post that I was looking to grow this position, and with the price lower than in the previous buy, I kept adding.

In fact, I’m still open to buying more CAT.  The stock price seems to be falling fairly rapidly with the market these days, so perhaps my next buy point might be in the mid $120s.

Both of my latest CAT purchases came after the ex-dividend date in mid-January, so I won’t be seeing the dividend income boost until May.

With the growing position, CAT is now the 40th largest position in my Portfolio (out of 48).  It’s behind Eastman Chemical (EMN) and just ahead of Cheesecake Factory (CAKE).

CAT shares were yielding 3.04% at my recent purchase price, about half a percent above my Portfolio average.

This purchase results in an additional $20.60 in annual forward dividend income.

 

AVGO

On Monday, 1/27/20, I initiated a position in AVGO, purchasing 5 shares at $308.90/sh, for a total of $1,544.50.

One of my goals this year is to increase my weighting in the Technology sector.  Well, this purchase gets me going in the right direction.

Broadcom designs and develops a wide range of semiconductor devices, and this makes up the majority of its business.  However, the company has been making a push to beef up it infrastructure software position in recent years, too.

While AVGO becomes the 48th stock in my Portfolio, it joins my Portfolio in the 47th position in terms of value… definitely a starter position.  However, AVGO will be a position I look to build this year as opportunities present themselves.

This stock is a bit more volatile than the average stock in my Portfolio.  In the few days I’ve owned it, it’s already seen some wild swings up and down.

AVGO shares were yielding 4.21% at my recent purchase price, well over 1.5% better than my Portfolio average.

This purchase results in an additional $65.00 in annual forward dividend income.

Here’s a look at the dividend growth history for AVGO, dating back to late 2010, when they initiated their dividend.

As you can see, this is some tremendous dividend growth.  It would be hard to do much better than this!

The last AVGO dividend raise was mid-December.  The 22.64% raise was a major dividend growth slowdown compared to previous years, but this should be expected given the payout ratio is already 56% given analyst’s average EPS estimate of $23.23 for 2020.

AVGO is showing solid expected EPS growth (~10% over the next couple of years), along with impressive dividend growth, all on top of a 4%+ yield… that’s a combination not often seen.  I look forward to seeing how AVGO performs now that it’s in my Portfolio.

 

Summary

Two purchases to bring January 2020 to a close for me.  The CAT purchase bolstered an existing position, while the AVGO purchase initiated a new one.

In the end, I invested $2,222.95, while adding $85.60 to my forward dividend income.

With the market reversing course recently, prices are looking more palatable.  I’ll remain on the lookout for more possible purchases, no doubt.

 

Did you have an active month of January like me?  Or have you been content to wait and see what values develop here in early 2020?  I look forward to your comments!