Sale going on at AbbVie if you ask me

March toward $1,000,000: Week 28 (Jan. 28-Feb. 1)

Sorry I’m a few days late, but I wanted to get last week’s post up before it’s time to pass along this week’s. Nothing overly exciting to report, although that’s the best kind of investing if you ask me.

Hedge fund guru, George Soros agrees: “If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.”

Tough to argue with him.

This week’s purchases

I bought a share of AbbVie for $79.82 on Friday. The purchase boosted my position to 3.0219 shares – shares which will produce an estimated $12.93 in annual dividend income.

I was in the red with my other shares, so figured I’d add at under $80 to lower my cost-basis a bit.

AbbVie is trading right around its 52-week low, has a dividend yield of 5.33% (pays out $4.28/share annually) and has been raising that dividend at an average rate of 20.68% over the course of the last five years. I like the growth and the stock … pretty much everything but the payout ratio (82%) and debt levels. With $40,423,000,000 in revenue, though, I’m hoping they’ll be able to manage those things. Pharma and biotech aren’t going anywhere anytime soon and AbbVie is a big player in both segments.

This week’s dividends

I have just more than 27 shares of T — shares which earned me a $13.82 dividend on Friday. When reinvested, that divi turned into another 0.45603 shares.

The reinvestment increased my forward annual dividend income by almost $1. I’m still a really, really, really small-scale investor, but DGI works no matter where you are in your investing journey.

The bottom line

Between the recent purchase and dividend, I increased my forward annual dividend income by $5.21, up from $218.54 to $223.75.

March on!

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