Thursday, August 7, 2014

Sharebuilder DRIP Purchases- MCD, GE, PM, AFL

Catch up post.  Reporting my buys that went through over the past 3 weeks.

7/22 Purchases (Dow 16,946):
  • $150 of MCD at $96.25. Yield 3.37%.
  • $150 of GE at $25.85. Yield 3.39%
$300 of new capital invested adding $10.14 to my annual dividend income.

Last weeks purchases 7/29 (Dow 16,912):
  • $200 of MCD at $96.02. Yield 3.37%.
  • $150 of PM at $84.97. Yield 4.43%  
 $350 of new capital invested adding $13.38 to my annual dividend income.

This weeks purchases 8/5 (Dow 16,429):
  • $250 of MCD at $93.66. Yield 3.46%.
  • $250 of AFL at $59.00. Yield 2.51%
  • $200 of PM at $81.45. Yield 4.62% 
 $700 of new capital invested adding $24.15 to my annual dividend income.

Note: I'm now over $1200 go forward annual dividends from PM.  Even though it's my second largest position, I still can't help myself buying at these levels.

MCD is getting close to 3.5% initial yield.  Will continue to add here and lower.


  1. Hey AA,

    Do you pay a fee for each transaction, right?

    Do you still consider feasible to invest small amounts in stocks and pay the fees on each transaction?


  2. AA,

    Nice purchases. Also as a larger Kinder shareholder, I was wondering what your thoughts are on the Kinder consolidation that was recently announced.


  3. Unkown, I am enrolled through a program with Sharebuilder where I pay $1 per transaction for 12 transactions a month. So my charge for all of these smaller purchases is $12 a month. Unfortanetly this program is not available any longer to new clients. A Frugal Family's Journey is enrolled in a pretty sweet program through Merrill where he gets a ton of free trades. Check out his blog for more details.

    Thanks for the comment,

  4. MDP, I need to do some more DD on this but so far the market has spoken and loves the consolidation. I am long KMI but actually have quite a bit more KMR in my portfolio. I will actually lose some div income on this but long term with the divend growth Richard Kinder has outlined, I will come out ahead. One thing is for sure, I trust Richard Kinder and am happy to have him the steward of my capital.

    cheers, AA

  5. Great buys AA! We already owned AFL and I just picked up MCD and GE also. Although we dont own PM, we do have our eye on PM. All are attractively priced though...keep it up!

    Wishing you continued success on your journey! AFFJ

  6. Great buys, the Sharebuilder program sounds great. I wish I can find a broker that has similar offer.

  7. AFFJ, thanks man! I like GE and obviosly MCD at these levels. PM is a rare stock with high current yeld and high dividend growth. I think it's real good value mid $80's and below. If it gets low enough for a 5% initial yield, start backing up the truck!

    Cheers! AA

  8. Tawcan, I have been a huge fan and proponent of the Sharebuilder program and it's unfortunate they have closed the premimium option to new investors.

    You are building quite a stream of dividend income yourself. Keep up the good work!

    Take care, AA