I was finally able to transfer about $1500 into TradeKing, part of my Dividend Empire portfolio, after a long drought. Since commissions are so low in this account I decided to split the cash into two purchases, one of which I will detail in this post.
I first initiated a position in Ford (F) back on April 1, 2015 with the purchase of 100 shares at $15.89. After a short run up, shares have slid down to under $15 per share.
The bad news is I also own 7 call contracts with a $15 strike (Jan 2016 exp) from my option trading days. I was hoping to eventually sell some of these for a profit in order to fund the exercise of 1-2 of the contracts. Ford would have to rise to at least $17 per share by January 2016 for this to happen.
The good news is that the recent decline in share price has pushed the Ford dividend yield over 4%. I still feel the same way about the company as I did back in April so I took this opportunity to add to my position.
Ford (F) Purchase Details
- Sector: Goods
- Industry: Auto Manufacturer
- Purchase date: 7/7/2015
- Portfolio: Dividend Empire Portfolio
- Shares purchased: 54
- Cost per share: $14.7099
- Commissions: $4.95
- Cost basis: $799.28
- Yield on cost: 4.1%*
- Forward income: $32.40**
These 54 shares of Ford bring my total share count to 154.978. This purchase adds $32.40 in forward dividend income bringing the total for the position to $92.99** and raises my portfolio total to $690.22.
The higher dividend yield (4.1%) on this purchase increases my Ford yield on cost from 3.77% to 3.86%* and my portfolio yield on cost went from 3.51% to 3.53%.
My Dividend Empire portfolio has been updated to reflect the addition of 54 shares of F.