Changing the game(plan)

March toward $1,000,000: Week 4 (Aug. 20-25)

Those of you who followed my initial foray into investing know I built my portfolio’s foundation piece by piece, in the form of one or two shares of 100-plus companies. Once I was happy with that, I began adding on.

Well, this time I’m doing things a bit different … almost the exact opposite, in fact. Instead of scooping up one or two shares of a friggin’ boatload of different stocks, I’m going to hitch my ride to a select handful of companies. I’ll build out, eventually – the longterm vision is still to get paid at a super-consistent clip by 100-plus companies – but I want to have some significant share counts to brag about before that.

Right now, I’m at a nine-company portfolio. In the next few months, I’ll probably settle into 15 (five that pay quarterly dividends in January, April, July and October, five that pay quarterly in February, May, August and November and five more that pay in March, June, September and December. I’ll shoot for as much diversification as I can get within those 15 companies and allocate an even-ish amount of cash to the stocks along each of the three schedules so my monthly dividend payments remain somewhat consistent.

Sound good? Good.

Now that you know the plan, time to get into this week’s steps. Here’s what went down:

This Week’s Purchases

I bought three shares of AT&T (T) for a combined $98.73 ($32.91/share). Those shares will earn me an extra $6 in dividend income over the course of the next year. I’m up to nine shares (22.51% of my portfolio). The $2/share annualized dividend means the company will be paying me $4.50/quarter and $18/year … until I buy more (probably next week).

I like AT&T for a lot of reasons, mostly the Time Warner acquisition and potential of 5G. That’s a big-time combo. Getting the rights to the award-winning content HBO consistently spits out can’t be a bad thing and, well, 5G most certainly won’t be a bad thing, either. It’s the future. There’s no doubt in my mind AT&T will be a key player in that future (connected cities and such) and shareholders will get to collect a dividend currently yielding more than 6% until that future starts to come into focus.

The stock is a ridiculous value right now, too (P/E ratio of 6.38).

Oh, and as long as we’re on the subject of beaten-down value plays, I also scooped up five shares of Ford (F) for $48.55 ($9.71/share). Those will earn me another $3 in the coming year. I’m up to 15 shares of the automaker (11.11% of my portfolio). Ford has even even lower P/E ratio than AT&T at 5.73.

This Week’s Dividends

I earned my first dividend payment since starting my march over from scratch: $0.72 for the two shares of Starbucks (SBUX) I purchased at the beginning of the month. It feels good to be back in the dividend-earning club, people. I’m glad to be back!

In case you missed what went down in week’s 1-3, here are the links …

Week 1, Week 2, Week 3

March on!

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