It’s been a long while, but today’s transaction signals my shift in strategy back to dividend growth stocks. It’s kind of hard for me to believe, but prior to today’s purchase, I hadn’t picked up ANY dividend stocks since late 2012!
Two years later, I’m back where I started from. I used today as an opportunity to pick up 30 shares of Chevron Corporation (CVX) at $101.93/share.
With oil prices falling like rocks, the energy sector is down and there are a lot of good deals to be had. True, prices might still continue plummeting, but when the overall markets are sitting near all-time highs and you can snatch up CVX at over 4.0% dividend yield, it’s hard to resist. Actually, I wouldn’t mind if the share price continues to drop some more and the dividend approaches 5.0% yield… Wouldn’t that be something!
With that said, I’m noticing a number of stocks that look enticing right now, but unfortunately capital is light at the moment, so I’ll have to wait until the next round to act again. Kind of a bummer, but what can you do?
As I mentioned in the last few posts, my early FI gameplan is starting to shift to being more defensive (I have enough properties and I’m over-leveraged). I have quite a number of future appreciation plays in the portfolio (Bay Area rentals and Alibaba (BABA) stock), so what I really need to do is stash more cash and pick up some solid blue-chip dividend stocks. The supplemental income from the dividend stocks will surely help, but more importantly, I will have access to liquid capital that should be more immune to market noise than your typical growth stocks.
So, just like I was doing in 2012, I’m going to focus on the core with most of my new investments. Sure, I’ll probably still pick up some shares of Tesla Motors (TSLA) and BABA along the way (so hard to resist… like today!), but they won’t be my main focus.
I’ll swap out McDonald’s (MCD) for some telecoms like AT&T (T) and Verizon Communications (VZ). The rest of the core, I would like to keep the same and build around: CVX, Johnson and Johnson (JNJ), Procter and Gamble (PG), and The Coca-Cola Company (KO). PepsiCo (PEP) is another one I like as well.
But we’ll see how things go… Man, I almost forgot how EASY it is to buy stocks! Speaking of which, I’m still working on trying to secure a loan for Rental Property SH #3… And that’s not easy at all! 😉
Until next time!