Verizon is always welcome in my portfolio

Tuesday: deposited $79, bought 2 shares of VZ and was paid a dividend.

When I took a peek at my holdings earlier today, and noticed Verizon was one of my worst performers of the morning, I knew I needed to make a move … and no, I didn’t sell like a ton of other people seem to be doing with the stock down some 13% in the past year.

I made a quick deposit and bought more because, well, why not? The two shares I grabbed for $44.98 lowered my average cost by about $2 from $50-plus to just over $48 a share.

I was a fan of my first Verizon purchase, when I opened a position with a single share for $53.83 last August. I have since added four more shares to my position, lowering my cost-basis each time. I now have five shares worth $224.55 (1.71% of my portfolio) … numbers which I’m sure will only grow in the upcoming weeks, months and years.

Another great thing about the two shares I scooped up is the combined $4.62 of annual dividend income they’ll create. As long as the share price slides, the dividend yield – currently at 5% – will continue to rise. Meaningless, I know, but a 5% yield is certainly easy on the eyes … especially when you have a holding period of forever.

In addition to the purchase, I earned a dividend: $0.75 from United Healthcare (UNH). I only own one share, so the amount wasn’t life-changing, but it was a 19% increase from the $0.63 dividend the company paid me back in March. Can’t beat a 19% raise.

The dividend put me over the $30 mark for the month, giving me a combined $30.33 so far in June.

That’s it for now. What are your thoughts on Verizon? Are you buying, selling or staying away?

2 Responses to “Verizon is always welcome in my portfolio

  • I also own Verizon. For no other reason than they have never disappointed with their service. That is quality and I will always invest in those types of companies.

    Every month I pay my bill, helping the dividend machine build up. HA!

    • Nice! I use Verizon as well … I think I’m going to start buying a share or two every time I pay my bill. Before long, they’ll be paying me to use their service!!

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