Recent Buy – GD

I recently made another small share purchase, growing one of my existing Portfolio positions.

The shares I purchased were those of General Dynamics (GD).  GD is a global aerospace and defense company headquartered in the U.S. that makes tanks, rockets and missiles, not to mention submarines, warships, fighter jets and electronic systems for all of the military entities.

Here are the details for my latest purchase…

 

GD

On Friday, 4/24/20, I purchased 5 shares at $129.90/sh, for a total of $649.50.  My GD position now stands at 40.622 shares.

With the growing position, GD is now the 31st largest position in my Portfolio (out of 51), so still in the lower half.  It’s behind Comcast (CMCSA) and ahead of Hormel Foods (HRL).

GD shares were yielding 3.39% at my recent purchase price, slightly above my current Portfolio average of 3.25%.

GD has been my watchlist for a while, even before its stock price downturn that accompanied the recent pandemic.  However, since the price has come down quite a bit in recent weeks compared to my two previous purchases, it seemed reasonable to add a few shares and lower my cost basis.

I’m still open to buying more shares of GD, especially if the price falls further.  My next target price will be in the $115 to $120 range.

This purchase results in a $22.00 increase in annual forward dividend income.

However, I won’t be seeing any of the dividend income boost until August, as this purchase came after the ex-dividend date that occurred earlier in the month.

 

Summary

A few shares added to my existing GD position.  Nothing too monumental.  Yet, it’s how the Portfolio grows… by continuing to add when I can.

I invested $649.50, while adding $22.00 to my forward dividend income.

There’s still more room to add to GD, as I’m about 10 shares shy of making it an average-sized Portfolio position.

 

Have you been deploying some of your cash in recent weeks?  Or have you been stockpiling your cash given the possibility of another leg down in the markets?  I look forward to your comments!

Posted on by Engineering Dividends

9 thoughts on “Recent Buy – GD”

  1. Nice buy, building your portfolio step by step.
    I would love to have General Dynamics in my portfolio. It is in my “unofficial” watchlist, even though I haven’t shared it in my blog. It’s just that I have quite a few companies from Industrials sector. On the other hand, GD would be very different to other companies, so it could still find place in my portfolio.
    I’m hoping the price will stay at these levels until we finish building our positions 🙂

    1. Thanks, BI. Step by step is right.
      Yeah, it’s understandable. You don’t want to load up on any particular sector if you have other options available.
      You may get your chance at GD, as it doesn’t appear to be heading back up anytime soon.

  2. I added GD on friday around the same price as yours ,still has some room to add this company if it stays in the same price range.

  3. Nice purchase here ED. I have been slowly adding to a GD position myself (4 shares over the last month). Keep building positions in these strong dividend growth companies my friend. You won’t regret it.

    Bert

    1. Thanks, Bert. As you noted, the plan is to keep building positions in strong dividend companies, and GD fits the bill. Glad you have you as a fellow shareholder.

  4. Good company, good price. I had a GD 160 May 15th put get assigned recently…but I own a GD 155 May 15th put. I’m trying to decide if I just sell the GD 155 put and call it a cost basis of ~$132. 100 shares is a big slug for my portfolio, but it’s a great long term investment. Tough choice!

    1. Welcome, Jon!
      If I understand your options correctly, it sounds like you wrote a GD put that was assigned early and thus you own 100 GD shares as a result. Also, you bought a GD put and have the right to sell 100 shares at $155. So, you are well ahead on the put you own, and have the choice of selling the put, and essentially lowering the cost basis of the 100 shares you own to ~$132, or exercising your option right and essentially selling your 100 shares of GD at $155. I would assume you come out ahead on your buy/sell of the GD shares should you exercise your right with the put?
      100 shares of GD would be a big slug of my Portfolio, too, so I can understand the tough choice.

      1. I’d lock in a loss of $500 minus my original premium if I had exercised the 155 put. There’s nothing that I hate more than locking in a loss, so I decided to sell the $155 put for ~$2,700, and wrote a May 8th $135 call. Options are so complicated but so fun ;).

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