Wednesday, July 31, 2013

July Trades made

Just a quick trading update before the month end results are published in the next day or two.  Going forward, I expect no more than 1 trade a month in the dividend part of the portfolio.  MAT is the only stock that is I'm trying to trim, but my firm has been denying the trade for the last 6 months.  I'm happy to keep it and reinvest the dividends in the meantime.


July 2 - bought 15 shares of Philip Morris (PM) at 87.20 to get to my target weight of 4%.  While I believe the stock to be fairly valued according to Fast Graphs, I added so that I now have a full position in this name.   PM's yield is 3.9% and I am plan this to be a long-term holding.

July 25 - bought 45 shares of Southern Co (SO) at 44.90.  This trade was made to establish my first utility position.  While this isn't trading at a discount to fair value, I was willing to invest sub-45 for the 4.5% yield.  I added this to the brokerage account and not the roth-IRA account.

July 31 - sold 30 shares of Anheuser-Busch (BUD) at a gain of $1,371, or roughly 100% over what I purchased it for in September 2011.  This is my second sale of BUD, executed for three reasons.  First, I have a target weight for BUD of 3%.  In June, BUD's weight was approaching 10% of my portfolio.  Secondly, I think BUD has run ahead of itself and Fast Graphs clearly indicates it's overvalued.  Thirdly, BUD's yield is only around 2%, paid annually, and the dividend can be a bit choppy.  Not the best way to compound dividend growth.

I now have roughly $3700 in cash and need to think about where to deploy it.

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