I’m somewhat tardy on posting about my last pair of transactions.  So, it’s time to catch up!

As July drew to a close, I recorded a couple more transactions within my dividend Portfolio.  Both were buys of existing Portfolio positions.

One stock I bought is from the Financials sector, while the other is a Consumer Discretionary name.  My Portfolio is overweight in Financials, so the buy there didn’t help that sector weighting.  However, I am underweight in Consumer Discretionary, so there was some benefit with that purchase.

As I’ve done a couple of times recently, I added to one of my Top 10 holdings.  The buy wasn’t planned, and the stock wasn’t on my watchlist, but I made the move anyway.

I invested a little more than $1.1K with the two buys, with one stock getting about twice the investment of the other.

Both stocks yield less than my current Portfolio yield.  One of the two stocks has a sub-1% yield, so there wasn’t much in the way of additional forward dividend income from my buys.

Let’s get those details for my most recent Portfolio transactions…

 

Visa (V)

Despite its low yield, I like V as a Portfolio holding.  It offers more EPS growth and dividend growth than many of my other holdings.

My last V purchase was almost 2 years ago, back in October 2022.  At that time I scooped up a couple of shares at just under $187/share.

V recently dipped to the point of trading just under its normal P/E ratio, so I made the buy.  This stock usually trades at a premium, and I thought the shares were fairly valued.

On 7/24/24, I bought 3 shares of V at $253.50/share, for a total of $760.50.  The stock yielded 0.82% at my purchase price, which is less than a third of my overall Portfolio yield of 2.66%.

The purchase raised my share total by 3.23%, and my V position has grown to become 95.829 shares.  I hope to cross the 100 share mark in the not too distant future.

Due to the low yield offered by V, the purchase added a rather small $6.24 to my annual forward dividend income.  Still, every amount counts.

With the addition, my V cost basis rose by $5.29/share to become $89.72/share.  My low cost basis is due to purchasing the majority of my shares back in February 2016.

V was my 6th largest holding before my purchase, and remained my 6th largest holding afterwards.  V is currently wedged in between AbbVie (ABBV) and Lowe’s Companies (LOW) in my value rankings.

In my quest to reach 100 shares, I’ll look to add more V below $250.

 

Nike (NKE)

Ever since late 2021, NKE has been in the midst of a share price plunge.  NKE took it to the next level late last month when the stock tanked further on the heels of a revenue guidance cut.

That downward move over the past month has absolutely put the stock on my radar.  I already purchased some NKE shares earlier this month at $73.226/share, and I was looking to add more on further price weakness.

The buy earlier this month was my first for NKE in nearly 7 years.  It’s been that long since shares have traded at a similar valuation.

Of course, NKE has work to do.  Earnings are expected to fall further over this upcoming year before a turnaround hopefully commences.  No short-term recovery is expected.  This will be a bet on the long-term.

On 7/24/24, I bought another 5 shares of NKE at $71.50/share, for a total of $357.50.  The stock yielded 2.07% at my purchase price… 0.59 percentage points below my overall Portfolio yield.

The purchase boosted my NKE share total by 3.53%.  I now own 146.536 shares of the company.  The purchase added $7.40 to my annual forward dividend income.

My NKE cost basis rose by roughly $0.41/share, and now sits at $60.10/share.

NKE didn’t move up in my value rankings despite the addition.  It remains my 25th largest holding.  It sits below Texas Instruments (TXN), but ahead of Air Products & Chemicals (APD).

Further share purchases of NKE are still on the table.  I’ll be targeting a drop below $70.

 

Summary

I finished off the month of July with two more Portfolio transactions.  Both transactions were buys, with one of the stocks (V) garnering twice the investment of the other (NKE).

Both are notoriously highly-valued stocks that have shown a more reasonable valuation as of late.

The two buys required an investment of $1,118.00 into my Portfolio.  My annual forward dividend income rose by a rather small $13.64 due to the relatively low yield of my primary purchase.  The effective yield of the set of transactions was 1.22%.

My cost basis in both stocks rose, with the cost basis rise in V being much more significant than the rise in NKE.

With both V & NKE already being a part of my Portfolio, the number of stocks in my Portfolio held steady at 57.

 

Do you own either V or NKE?  Have you bought either recently?  If not, what have you been buying?  I look forward to your comments!