Two Recent Buys – WMT and TGT

This has been one of the busiest months of my life and thankfully it all worked out in the end.  We got our new house and moved in last Friday!  With the purchase and move completed I thought I would have some free time to write, but I forgot about the unpacking part.  We are about halfway done with the important stuff and I’m hoping I’ll be back to my 2-3 posts per week by mid-August.

With all of this stuff going on I still managed to squeeze in two purchases over the last week.  I decided to buy Walmart (WMT) in my Dividend Retirement portfolio and Target (TGT) in my Dividend Empire portfolio.  Unfortunately I don’t have time to get into my analysis on these stocks so I will just provide a few notes and the purchase details.

I had a large limit order on WMT set at $65 and another small limit order set at $70 but I lost my patience.  Most analysts and bloggers (including myself) are very bullish on WMT and I just didn’t want to miss the boat.  I moved my smaller limit order to $72 and got filled Friday, July 24.  My large ($5k) limit order at $65 remains but I think it’s a long shot.

Walmart (WMT) Purchase Details

  • Sector: Services
  • Industry: Discount, variety stores
  • Purchase date: 7/24/2015
  • Portfolio: Dividend Retirement Portfolio
  • Shares purchased: 40
  • Cost per share: $72.00
  • Commissions: $14.95
  • Cost basis: $2894.95
  • Yield on cost: 2.71%
  • Forward income: $78.40

With this purchase I have reached a mini milestone, breaking $2000 in forward annual dividend income ($2008.73).  My new retirement portfolio yield is 3.19%.

 

I was also able to accumulate $500 this month mostly through selling some items around the house.  My wife did most of the work to raise this cash so I let her select one of the dividend paying stocks available at Loyal3.  We do a lot of shopping at Target and the two stores we go to are always packed.  The stock also had a small dip recently so it looked like a reasonable buy – either way it’s her pick!

Target (TGT) Purchase Details

  • Sector: Services
  • Industry: Discount, variety stores
  • Purchase date: 7/28/2015
  • Portfolio: Dividend Empire Portfolio
  • Shares purchased: 6.2305
  • Cost per share: $80.25
  • Commissions: $0
  • Cost basis: $500
  • Yield on cost: 2.79%
  • Forward income: $13.96

Adding this $13.96 to my forward income seems insignificant but it actually completes one of my annual goals.  Well, hopefully it does.  If all of the companies in my Dividend Empire portfolio pay out on schedule with no dividend cuts, this TGT addition pushes me over $500 worth of dividends in the Empire portfolio by the end of the year!

Both portfolios have been updated with these purchases.  Hope everyone is having a great month!

 

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12 Responses

  1. Ken,
    I’m glad you finally got moved in and had a little free time to share your purchases. I also just recently moved into my new house last week. I know what you are talking about…Its tough work and a lot of hidden costs. For myself, I had a lot of other expenses such as furniture etc. Anyways, WMT and TGT were very good moves at a perfect time. I think WMT is near its yearly low and should only increase as the holiday season approaches. Keep in touch.
    Michael

    • Dividend Empire Dividend Empire says:

      Hi Michael – Congrats on your new house!

      I’m really glad this move is almost over. It really takes over your life for a while. It was painful to abandon my blog for so long and I’m looking forward to being active in the DGI community again.

      I’m really happy with these buys and ready / willing to triple down on WMT if it happens to drop down to $65.

      Take care,

      Ken

  2. d says:

    Ken,
    I like the WMT purchase. TGT is still a bit high for me the last time I looked. I will revisit my analysis again. Thanks for sharing your purchases!
    D4s

    • Dividend Empire Dividend Empire says:

      Thanks for stopping by D4s. I agree with you on the TGT purchase. I went ahead with it because it was a relatively small purchase and my wife earned the right to buy whatever stock she wanted. If TGT drops more I’ll be happy to average down.

      Ken

  3. Congrats on getting moved in! I also remember it being a pain… I moved here 5 years ago & still have unopened boxes in the basement :)

    I love WMT in the low 70s. Great call on moving around those limits, I know that procedure much too well.

    Keep up the good work!

    • Dividend Empire Dividend Empire says:

      Thanks Blake! I’m the same way. Half of my garage at the old house was unpacked boxes which I stupidly moved again to the new house. If I didn’t use them in 6 years clearly I don’t need them!

      It was a tough decision to move the limit order. I’ve really been working on my patience to make sure I buy at the price I want. In the case of WMT I managed to wait almost a month. I think it was fair to move it $2 though since my view of the stock changed.

      Take care,

      Ken

  4. Vivianne says:

    I’ve been busy with traveling and investment property hunting. If it wasn’t for you, I’d totally forget about walmart. I should continue to average down.

  5. We own both companies in our family’s dividend stocks portfolio. We plan to keep both in our long term portfolio but our favorite of the two right now is WMT. At current prices, we feel WMT is the better value of the two.

    Way to continuously add to that passive income stream. Keep up the momentum! AFFJ

    • Dividend Empire Dividend Empire says:

      Thanks for the support! It feels great to have one of my annual goals somewhat locked in. WMT is definitely my favorite as well and I hope I can add to this position at some point.

      TGT probably wasn’t the best option out there but it was a great way to get my wife involved in DGI. She is actually really excited about the purchase and has already posted a bunch more household items to sell! If she can get rid of junk AND turn it into dividend growth stocks she can buy whatever she wants :) .

      Ken

  6. Great buys of solid companies. My wife is an big fan of both stores, and a new Walmart just opened 5 minutes from our house. They are here to stay. I think growth especially for Walmart is going to be difficult. Which is probably why their div growth rate is quite conservative. I think they have to crack the online code, and have made great progress the past years. Free shipping to store is great, as it gets value to people AND gets them in the store. Long term you can’t go wrong with these.

    • Dividend Empire Dividend Empire says:

      Thanks for your comment! I couldn’t agree more. We haven’t used WMT too much for online shopping but my wife shops online at TGT all the time. They have so much room to grow online and in the meantime the stores are always packed. I’m going to hold these for many years to come.

      Ken

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