Buying the dips … and then some

March toward $1,000,000: Weeks 12 and 13 (Oct. 15-26)

week13

If your portfolio is anything like mine, it went through more downs than ups over the course of the last two weeks.

Yeah … the dips aren’t fun.

It’s OK, though. There’s good news. If you’re a long-term investor like I am, there’s really no need to squirm through the stock market’s mood swings. The best move would be to simply not pay any attention to it at all. This month’s speed bump won’t mean much in the grander scheme of things anyway, right?

Unfortunately, we’re all human. Like the fender-bender we creep past on the highway despite it being off on the berm – despite knowing we won’t see anything good – we can’t help but look.

I looked.

I saw a lot of red, for sure, but I saw something else. I saw opportunity. That’s another plus to falling stock prices. The more they fall, they better the deal. I’m a sucker for the dips and, well, I don’t know about you, but I bought ’em over the course of the last two weeks.

I spent more than I normally do on a weekly basis, but I’m glad I did. Here’s the rundown …

This Week’s Purchases

I started the most recent two-week stretch of my march by opening a pair of new positions. I bought two shares of Lear (LEA) for $270.07 and a share of Waste Management (WM) for $88.87. Lear is way off its 52-week high of $206.36 and Waste Management, along with pretty much everything else, is significantly off its highs as well.

The goal with both was to further diversify my core holdings. Lear, in my opinion, is a great way to get exposure to the automobile sector without having to pick a specific manufacturer like Ford or General Motors. It produces seating and electric components (e-systems) for manufactures all over the world.

It’s also one helluva DGI stock.

Lear, which pays an annual dividend of $2.80 a share (2.18% yield and 13% payout ratio) has increased its payment each of the last six years, most recently at an average rate of 40.67% over the course of the last three. That’s right, 40.67%.

The company payed $1 a share back in 2015. What a difference a few years makes, am I right? It’s also a small/mid-cap company with a market cap of 8.25 billion.

Waste Management, meanwhile, is just a boring, but dependable dividend-paying stock. The growth isn’t great, but it’s stable.

Other purchases included Starbucks (2 shares for $117.32), Phillips 66 (1 share for $101.99), Caterpillar (1 share for $119.69) and AT&T (6 shares for 187.06).

Phillips 66 and Caterpillar are new positions, meaning I’m currently up to 23, while the purchases of Starbucks and AT&T brought my share counts to 8 and 12, respectively. Starbucks is now my third-largest holding, making up 8.66% of my portfolio.

This Week’s Dividend

I also earned a dividend this week, getting a cool $0.33 from Cisco for the one share I own. That dividend, when reinvested, bought me another 0.0073 shares. That’s a sneeze-worthy number for sure, but one that increased my forward annual dividend income, even if only by $0.01.

Stats (Through 13 Weeks)

Portfolio Value: $5,367.07 (+$454.76 over last 2 weeks)

Overall Gain/Loss: -$360.48 (-$245.36 over last 2 weeks)

Estimated Annual Income: $136.43 (+$28.99 over last 2 weeks)

Total Number of Positions: 23 (+4 over last 2 weeks)

Previous Posts

Week 11

Week 10

Week 9

March on!

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