Hey everyone. I made a pair of buys during the last week of April that I’d like to share.
With the stock market still rather volatile, price swings have been significant. Several stocks from my watchlist have fallen below my target prices, so I’m adding small shares counts as I can.
Both stocks I bought were already existing Portfolio holdings. However, one stock is quite new, while the other has been a long-time holding.
Let’s check out my purchase details…
Verizon (VZ)
I initiated my VZ position in late March, so it hasn’t even been 1 month that the stock has been in my Portfolio.
While VZ doesn’t offer earnings growth or dividend growth that I desire, it does offer a yield north of 5% and very good dividend safety. I added the stock to help replace some of the dividend income my Portfolio lost when I purged Omega Healthcare Investors (OHI).
I purchased my initial VZ shares at $51, which I thought was an attractive price. So, when the price dropped below $50, I thought I’d add to my position.
As it turns out, the stock preceded to dip well into the mid $40s after a lackluster earnings report where revenue and earnings forecasts were moved to the lower end of expected ranges. However, I made my purchase well before the majority of the decline.
On 4/26/22, I bought 10 shares of VZ at $49.863/share, for a total of $498.63. This was a 20% increase in the size of my position.
The stock yielded 5.13% at my purchase price (nearly double my current Portfolio average of 2.62%).
I now own 50.552 VZ shares after receiving my first VZ dividend this week. The purchase lowered my VZ cost basis to $50.77/share. With the stock below $48 now, perhaps I can add some more and drop my cost basis below $50/share.
This purchase increased my annual forward dividend income by $25.60.
In terms of my Portfolio value for VZ, it remains in my bottom 10 rankings. It stands as the 7th smallest position in my Portfolio of 57 stocks. This puts it behind REIT Medical Properties Trust (MPW), but in front of fellow Portfolio newcomer Cummins (CMI).
T. Rowe Price Group (TROW)
TROW has been absolutely hammered in 2022. The stock started the year at $196.64 after peaking over $220 just months prior. It was my 4th largest Portfolio holding to begin the year.
Since then the stock has dropped almost 35%, and no longer resides in my top 10 holdings. However, that hasn’t changed my attitude toward the stock.
If fact, I see the decline as an opportunity to bolster my position, especially since I haven’t been able to add at such a low P/E multiple before.
My last purchase of TROW was back in January, 2017… over 5 years ago! Adding to such a strong dividend grower in my Portfolio makes me smile.
On 4/28/22, I added 3 shares of TROW to my holdings at $128.50/share, for a total of $385.50. This was a minor 2.44% increase in the size of my position.
The stock yielded 3.74% at my purchase price (a yield better than 1 percentage point above my current Portfolio average).
I now own 126.065 shares of TROW. The purchase caused my TROW cost basis to tick upward to $79.53/share.
This purchase also boosted my annual forward dividend income by $14.40. I love keeping that Portfolio income growing!
As noted earlier, TROW has plummeted in my Portfolio value rankings in 2022. It’s currently my 15th largest holding. However, I suspect TROW will grace my Top 10 again. TROW is sandwiched in between BlackRock (BLK) and Nike (NKE) in my rankings – two more of my favorite Portfolio positions, not to mention former Top 10 holdings.
Should TROW continue to fall, I’ll consider adding a few more shares.
Summary
I added to a pair of existing Portfolio holdings, VZ and TROW, in the last week of April.
My VZ purchase was the 2nd of the stock in less than a month, while the TROW purchase was my first in over 5 years.
The pair of purchases resulted in a net investment of $884.13 into my Portfolio, increasing my forward dividend income exactly $40. This is an effective yield over 4.5% for the combined purchases!
Both VZ and TROW are candidates for additional Portfolio purchases should their stock prices continue to fall.
What stocks are tempting you to purchase them after a stock price decline to begin 2022? Please share in the comments!
Good choice! I have also made some purchases in the last week and days: CMCSA, BLK, GOOGL, SWKS, TTWO, TROW, MPW, SBUX, IIPR and SWK.
I wonder what your reasons are for VZ instead of T? I chose T because the payout ratio is lower (EPS and FCF). I would take both, but I am wary of adding too many slow-growth stocks.
Some good choices you’ve listed, DivRider. I like it.
I’ve never been a fan of either telecom due to their slow growth, but as a customer of AT&T I was disappointed, so I didn’t want to put my investment dollars there.
I’ve been adding some VZ as well and will probably add a bit more on Friday too. That yield on TROW is looking pretty good at nearly 4%. I hadn’t realized it had pushed up that high. I added CMI to my portfolio on Thursday and plan to continue adding in small-ish chunks until I get it built up. Outside of that it’ s just been DCA into companies like MSFT, AMZN, GOOGL, SPGI, BLK and a handful of others.
Yeah, the TROW yield is looking tantalizing, JC.
Glad to hear you’ve joined me as a CMI shareholder again. I like it below $200, but am hopeful I can add more below $190.
I like all your DCA choices… keep adding as you can.
Nice! TROW and VZ were two of my choices last month. They are looking even better now to double down on. 🙂
Wonderful to have some company with regard to stock selection, MDD! You are right… they get even more appealing as the price drops.