Buys and Sells for the Week 3/26

Markets are trading sideways and not giving up much to main street investors. Still managed to find a couple worthy buys to keep me going, here are my buys for the week:

  1. Oil-Dri Corp. of America (ODC) – increased position –  Prices retreated on this micro-cap. Not a bargain basement sale but good enough for this market. Grabbed 6 shares @ $34.17 and a 3.04% yield.
  2. Telus Corporation (TU) – increased position –  Telus (TU) is looking to accelerate 5G investing and a recent stock offering to fund it. Not crazy about the share dilution but welcome the investment into 5G. Grabbed 9 shares @ $20.07 and a 4.88% yield.

Buys and Sells for the Week 3/19

It is always a good week when you get a dividend increase and Williams-Sonoma (WSM) came through for me with an 11% raise to put a smile on my face. Hunting for value in this market is still tough and I will continue to buy in small amounts, here are my buys for the week:

  1. AbbVie Inc. (ABBV) – increased position –  AbbVie stock price significantly dropped Wednesday after the FDA requested additional information to assess the benefit of their new drug Rinvoq. Grabbed 2 shares @ $103.40 and a 5.03% yield.
  2. Algonquin Power & Utilities (AQN) – increased position –  My fidelity brokerage account does not allow a DRIP into AQN and have to remember to pick up some additional shares on occasion to compensate. Grabbed 12 shares @ $15.46 and a 4.01% yield.

Buys and Sells for the Week 3/12

32,778…and the Dow keeps growing, more importantly the S&P 500 index closed at 3,943 and if this breaks into the 4000 range it may start even more momentum. As far as buys or sells for the week I chose to be a bystander and did nothing.

Lockheed Martin (LMT) had a decent price earlier in the week but I failed to take action. Merck (MRK) and Pepsico (PEP) remain priced to buy but I have full positions in those. It has been quite some time since I had a week where I missed buying anything. With luck next week may bring something.

Collecting AT&T Dividends in Retirement

It seems there are never a short supply of articles and blog posts on whether or not AT&T (T) deserves a position in your portfolio and it is either a love it or hate it topic. From my perspective, whether you do or do not own T depends on each person’s portfolio, investment strategy or financial position in life as no two people are in the exact same situation.

However, I do know of one person that utilizes the ownership of T for generating income in his retirement in a way that is slightly unique from what I have seen amongst other investors. The person I am referring to is my father-in-law.

If you ask any investor what the dividend yield is today and most would say around 7.3%. Ask my father-in-law and he would say 6%. It does no good trying to correct him (I tried) because he has a different spin on it and once you hear his story 6% will make sense.

When banks started paying miserly interest on CDs and money markets my father-in-law needed a better yielding investment to better fund his retirement and so began his hunt for better yield. One of the investments he chose was to invest a portion of his retirement savings into T with their oversized yield. Instead of going through a brokerage he opened a T DRIP account that is administered through Computershare. His reasoning for this was very simple, he knew that T had little dividend growth and had potential for not increasing at all. To compensate he had one simple need; to find a way to automatically collect 80 to 85% of the dividend and reinvest the remaining 15-20%. Essentially he resolved himself to live off a 6% yield and that is where the DRIP program steps in.

Computershare allowed him to do exactly what he was looking for that no brokerage was able to do. When setting up his account the investment form ask how you would like your dividends reinvested; partial or full. It was simple math at this point he just calculated how many whole shares were 85% of his investment that would pay out cash dividends. From there he would adjust the number annually guaranteeing a bigger paycheck every year.

The only reason I am aware of this technique was due to my father-in-law’s age and the fact everything moved to being online that he had recently asked I take over adjusting his annual percentage mix which I have proudly been doing on his behalf since 2019. To this day, he refuses direct deposit , loves to receive the check and has my wife drive him to the bank to cash it. The man truly loves his dividend checks.

One could argue you could follow a similar strategy simply using a 4 or 5% rule for your portfolio but this is about how he is generating growing income with one stock and not an entire portfolio. I actually think this approach is brilliant for high yield/low growth dividend payers. If my brokerage ever allowed a % payout I just might embrace it during my retirement.

Buys and Sells for the Week 3/5

31,496…If anyone said one year ago the Dow would blow through 31K I would have laughed at them. Recovering back to 29K or even touching 30K I thought was a slim possibility but I honestly did not expect a full recovery until the summer of this year. I don’t know if the markets are overheated but it just makes the hunt for weekly buys that much more of an adventure. Here are my buys for the week:

  1. Duke Energy (DUK) – increased position –  Friday morning was a slight reprieve on stock price. Grabbed 2 shares @ $86.40 and a 4.47% yield.
  2. Algonquin Power & Utilities (AQN) – increased position –  I have not seen the share price below $15 since October 2020. Grabbed 13 shares @ $14.96 and a 4.14% yield.