Tuesday, November 13, 2012

Sharebuilder DRIP Purchases

We have had a small correction since Obama was re-elected last week as attention has focused to the fiscal cliff and the realty of another 4 years of Obama.  With that said, some stocks are starting to look attractive again.  Among my favorites, McDonalds and Intel are both sitting at 52 week lows.  Intel is looking especially attractive sitting at $20.28 and a 4.4% yield.

Exelon (EXC) is also sitting at a 52 week low ($29.94..7% yield) and has been pummeled over the last week after the CEO announced a possible dividend cut sometime in 2013.  I believe it is oversold here and may average down.

Today's buys went through on another down day and was off 59 points to close at 12,756.
  • $400 of MCD at $85.26. Yield 3.61%.
  • $200 of PM at $85.25. Yield 3.99%.    
  • $200 of MO at $31.53. Yield 5.58%.  
  • $200 of KMI at $32.75. Yield 4.40%.

Total purchases of $1000 adding $42.40 to my annual dividend income.  


  1. Those are some nice buys. I recently picked up some more MCD and KMI myself. I've been wanting to start a position in PM but the price was never right whenever I had the capital free to invest and now I have no capital available. Oh well, I'm sure that Congress will give us plenty of more dips due to their lack of progress on the "Fiscal Cliff".

    How does sharebuilder work? Is the commission low enough to justify small purchases? My commission on a $400 purchase would put me in almost a 2% hole.

  2. Passive Income Pursuit,

    Thanks for visiting!

    I agree that KMI and MCD are good buys right now..and will probaly get better if today's 185 point drop is any indication of where we are headed!

    I am enrolled with Sharebuilder.com where I get 12 orders each month for $12. Each additional purchase is $1.

    The cavaet is that the purchases go through on Tuesdays of every month. Before each Tuesday, I decide how much I will invest and in which companies.


  3. Nice buys!

    I really like MCD and KMI at these levels.

    Sharebuilder DRIP seems like an innovative method towards investing.


  4. Hrmmm...that's interesting. That's some super cheap commission, although I do like my freedom to purchase on whatever day I want. That could be useful with a core holding of stocks, just DCA into solid companies like clockwork and with $1 commissions even $100 purchases are only taking up 1%.

    By the way, you've had some very impressive months for dividends. I'm looking forward to the day when I have $8k in forward dividends. Congrats on that!

    Do you have a specific income target before you'd call it quits?

  5. FI Fighter,

    Thanks for stopping by!

    Yes, I have been happy with Sharebuilder and find it a great way to build a porfolio! I do use limit orders for larger purchases and the price is $7.95.

    FYI, I checked out your blog..nice btw!..and am in the same boat as you with EXC.


  6. Passive Income Pursuit,

    Yes, I use the Sharebuilder program to DCA with smaller purchases into core positions. I do use limit orders for larger buys.

    I just try to always add to my dividend income every month. I changed my investment philosphy to DGI about 3 years ago so I have had some time to reach my current dividend income level. You will be there also..it just takes time!

    I would like to retire in about 10 years so I will keep working my investment plan til that day comes.