As we get close to wrapping up the month of August I have some more transaction activity to provide an update on.
After 3 buys earlier this month, I decided to bookend the month of August with another 3 buys. Once again, all 3 buys were of stocks that are existing Portfolio positions.
My purchases were also stocks from 3 different sectors. One of the sectors I’ve been working to increase my weighting in.
One of the three purchases stood out as the largest. It roughly equaled the total investment in the other two.
The stock yields at my time of purchase were fairly tightly grouped around my current Portfolio average. Thus, no needle-movers in the group.
All 3 stocks also sport better than 8% annualized dividend growth over the past 5 years, with two of them topping 12%. That’s a stat I love to see.
Alright, wait no longer, let’s get some details on my purchases…
Comcast (CMCSA)
Ever since CMCSA dipped under $40 I’ve been looking to add some shares. The stock has been on my watchlist more than once in the past few months.
Despite some concerns about broadband subscriber losses, I like the current valuation and decided to get a purchase done.
It’s been over two years since I last added to my CMCSA position. CMCSA is in the Communication Services sector.
On 8/22/22, I bought 10 shares of CMCSA at $37.95/share, for a total of $379.50. This was a 5.76% increase in the size of my position.
The stock yielded 2.85% at my purchase price (a bit more than my current Portfolio average of 2.71%).
I now own 183.455 CMCSA shares. The purchase raised my CMCSA cost basis ever so slightly to $37.03/share.
This purchase also increased my annual forward dividend income by $10.80.
With regard to my Portfolio value for CMCSA, it’s right in the middle of my Portfolio. It stands as the 30th largest position in my Portfolio of 58 stocks. The stock is tucked in between Gentex (GNTX) and Omnicom Group (OMC).
Skyworks Solutions (SWKS)
Here’s another stock that I’ve wanted to be a bigger part of my Portfolio. It too has been on my watchlist a few times in the recent past.
I’ve been looking to add 5 shares, recouping the remaining shares I previously sold.
I sold 10 shares back in Feb. 2021, at $190.05, when the stock looked overvalued. I bought back 5 of those shares at $136.75 in Feb. of this year. Thus, 5 more shares to be whole again.
SWKS looks attractive to me at current levels (and certainly cheaper on a P/E basis than my last SWKS buy), so I made sure to get this purchase in the books.
The stock has continued its downtrend this year, but has recovered a bit after dipping under $100 in the past few months.
On 8/22/22, I added 5 shares of SWKS at $103.95/share, for a total of $519.75. This was a 4.3% increase in the size of my position.
The stock yielded a solid 2.39% at my purchase price (yet this falls short of my current Portfolio average).
I now own 121.299 shares of SWKS. The purchase raised my SWKS cost basis some, to $79.11/share.
This purchase boosted my annual forward dividend income by $12.40.
Despite my purchase, SWKS didn’t quite reach my top 20 holdings. It resides in my #21 spot, slightly behind General Dynamics (GD), but a decent amount ahead of CVS Health (CVS).
One side benefit of this purchase… it boosted the Information Technology weighting in my Portfolio… one of my bonus goals this year.
Medtronic (MDT)
Lastly, I have added yet another stock from my watchlist. MDT has been mentioned there several times in recent months as well.
This Healthcare stock is a relatively new Portfolio stock of mine, entering my Portfolio on the first day of this past June. Since then, I’ve added shares twice, doubling my position.
While the shares only look fairly valued at current levels, I wanted to continue building out my position, especially since this is close to its lowest price since the depths of the pandemic.
On 8/23/22, I added 10 shares of MDT at $89.95/share, for a total of $899.50. This was a healthy 49.6% increase in the size of my position.
The stock yielded 3.02% at my purchase price (my highest yield of the purchase group and about 0.3% better than my current Portfolio average).
I now own 30.153 shares of MDT. Thanks to this buy, my MDT cost basis dropped to $93.29/share.
The purchase also boosted my annual forward dividend income by $27.20.
In my Portfolio value rankings, MDT is still small. It’s the 51st largest position, or the 8th smallest, depending on how you’d like to look at it. MDT is a smaller position for me than that of The Walt Disney Co. (DIS), but larger than that of Medical Properties Trust (MPW).
There’s still a long way to go to get MDT to be a significant part of my Portfolio. I’ll keep adding to my MDT position as I see opportunity.
Summary
I added shares to 3 of my existing Portfolio holdings during the second half of August.
I selected stocks from the Communication Services (CMCSA), Information Technology (SWKS) and Healthcare (MDT) sectors.
The investments in CMCSA and SWKS were fairly equal in size, but the one for MDT was roughly double the respective sizes of other two.
The set of 3 purchases resulted in a net investment of $1,798.75 into my Portfolio, boosting my forward dividend income by $50.40. The effective yield of this group of buys was 2.80%.
What do you think of these 3 buys? Do you like one more than the others? Do you already own shares of any of these stocks? Please share in the comments!
MDT <$90 looks pretty good to me and I've been adding a bit every time it dips down there. It's only offered a higher initial yield a handful of times dating back to the early 1990s. I don't really follow CMCSA or SWKS but I'm glad you were able to keep building up those positions.
Hey JC! I’d been holding off on my CMCSA and SWKS buys and it actually worked to my benefit this time around. Usually, it seems I reach my initial price target, I make my buy, and the stock keeps falling in price. I had targets for those stocks months ago that were higher, so getting them at current prices seems like a deal. Time will tell.
MDT just keeps drifting lower. I like the stock below $90 as well. I’ll keep trying to build out that position. It’s still my smallest position of the 3 stocks I purchased, so don’t be surprised if I add again, especially at lower prices.