I’m here with another Portfolio transaction update. Earlier this week I made a couple of purchases, growing my Portfolio just a bit more.
One purchase involved a company that I hadn’t bought since my initial purchase back in 2016. The other purchase involved a company I added to just last month.
Let’s get to the purchase details…
Visa (V)
When I established my position in V back in February of 2016, I never thought I would have gone so long without adding to the position. As it turned out, it took over 5 and 3/4 years to do so.
The primary reason was always valuation. Since my initial purchase, V has produced a steady climb in stock price (thank you very much) and thus the stock has always appeared overvalued.
Even though I’ve reinvested my dividends back into V during the entire time, the position hasn’t grown much due to the low yield provided by V. My initial purchase was 80 shares and prior to this addition, the position was sitting at 82.93 shares.
So, in order to get V growing a bit more in my Portfolio, I decided to add some shares of V while there seems to be a bit of recent weakness in the share price.
On 11/9/21, I bought 2 shares of V at $213.4311 for a total of $426.86. Two shares may not seem like much, but it comes close to matching what I generated through reinvested dividends over the course of nearly 6 years.
The stock yielded 0.70% at my purchase price (1.53% lower than my current Portfolio average of 2.23%).
I now own 84.93 shares of V. I’d like to get my position to a round lot of 100 shares eventually.
The share price when I established my position back in 2016 was $67.54. This time my V shares were a tad more expensive! 🙂 Still, my overall cost basis remains a very low $73.54/share.
With that low V yield, this purchase only boosted my annual forward dividend income by $3.00 – but every dollar counts, right?
One thing I really like about V is its outstanding dividend growth (something I desire given the stock’s low yield). Just last month, V raised their dividend 17.19%.
Due to recent stock price weakness from V, the stock has fallen outside my Top 10 Portfolio stocks. In fact, it currently sits a #14… quite a drop in its ranking given how many consecutive months it’s been in my Top 10. V sits behind Skyworks Solutions (SWKS) in my Portfolio rankings, but ahead of Nexstar Media Group (NXST).
Amgen (AMGN)
AMGN continues to be attractively valued in my mind. Thus, I continue to add to my position.
This is now my 5th share addition since establishing my position nearly 1 year ago.
The largest percentage of my Portfolio’s dividend income comes from my Healthcare holdings and this just solidifies that.
On 11/9/21, I bought 3 shares at $211.8233 for a total of $635.47. The additional shares boosted my AMGN position by 15.6%.
The price I paid here is slightly higher than the price I paid last month, but it still lowered my cost basis to $220.91/share.
The stock yielded 3.32% at my purchase price (1.09% percent greater than my current Portfolio average).
I now own 22.192 shares of AMGN. Just like last month, the 3 share addition boosted my annual forward dividend income by $21.12.
I’m looking forward to what should be a December dividend raise from AMGN. A double-digit raise is a strong possibility given Amgen’s raise history since initiating a dividend in 2011.
AMGN continues to move up my Portfolio rankings thanks to my share additions. Its current ranking is #45, or the last stock in my Bottom 10. This puts AMGN just behind fellow Healthcare stock Bristol-Myers Squibb (BMY), but comfortably ahead of The Walt Disney Co. (DIS).
With V & AMGN already a part of my Portfolio prior to these purchases, the number of stocks in my Portfolio remained at 54.
Summary
After well over 5 years, I finally got around to some additional capital investment into V. Meanwhile, I only let a month go by before some additional capital investment into AMGN.
The V purchase helped boost my Portfolio’s Information Technology (IT) weighting… something I continue to work on despite IT being my most heavily weighted Portfolio sector. The AMGN purchase allowed my Healthcare sector holdings to maintain their standing as my 2nd most heavily weighted sector. So, from a Portfolio sector weighting perspective, the big just got bigger.
The purchases resulted in a net investment of $1,062.33 into my Portfolio, and my forward dividend income increased by $24.12. This is an effective yield of 2.27% for my two purchases.
Do you have any stock positions you’ve wanted to add to, but haven’t done so in years? If so, what’s stopping you? Valuation? Existing position size? Please share in the comments!
Another blogger adding to their V position. Interesting to see you adding as well despite the big difference in stock price. It has definitely been kind to you so far!
My monthly purchase is coming up, V is also on the watchlist!
V has most certainly been kind to me, Mr. Robot.
V seems like one of those stocks that will rarely be on sale (which reminds me of another stock from my Portfolio – MSFT). V still seems overvalued at my purchase price, but it has pulled back some recently, and I wanted to take advantage of that and add a couple of shares.
Should the price drop further, adding more shares will be a consideration.
I bought the same two companies this Friday. Was happy to see your post afterwards, seems like we have a similar opinions on the current value of the two. I would like to see V coming just a little bit more down so that I can add another couple of share to my very small position in comparison with yours (I only own 11,3 shares of V currently). Thanks for the update ED!
Wow, very ironic that you purchased the same two companies, Fabian. There are lots of stocks to choose from, so the fact that we decided on purchasing the same ones is amazing.
I’d consider adding to V again if the share prices drops further. It wouldn’t be a big purchase though, but a share or two to keep me on that path to owning 100 shares total.
Many of the big winners namely V and MSFT I was too worried about the expensive valuation and rarely added. It’s a shame because the portfolio would be that much bigger and strong if I had. Averaging up has been something I’ve struggled with but it’s honestly one of the better problems to have. Much better than consistently averaging down in a position. Especially if you’re still talking about averaging down 2-3 years after your initial purchase. I’ve been DCA more into V and am looking at adding more around here. Slow and steady!
It’s been tough pulling the trigger on additional purchases of V and MSFT, but at least V has become appealing to me at current levels, JC.
At least DCA into such stocks makes it a bit more palatable, as even if you do purchase at an elevated price every now and then, you’ll get some lower-priced shares to even things out.