I had a feeling today might be a “disappointing” day for buying. Over the weekend, members of Congress re-iterated their confidence that a deal to avert the Fiscal Cliff could be reached before the end of the year. As such, even though an official deal still hasn’t been made at this time, the markets have rebounded nicely today on the positive news.
Time to Move On
I was afraid something like this would happen, which is one of the reasons why I elected to make a small purchase with The Southern Company (SO) last week. I had some more cash on hand, which I was hoping to deploy today to score deals on some more bargains.
Unfortunately, with the markets rebounding, prices didn’t dip to as low as I would have hoped for. Nonetheless, I decided to use some cash today to make my final purchase of 2012. I added 61 shares of LinnCo (LNCO) at $36.00/share. LNCO was on my most recent watchlist, and I believe the current price is attractive. Last time around, in early November, I purchased 63 shares for $39.15/share.
Today’s action allows me to average down my cost basis on LNCO, and add $43.31/quarter ($173.24/year) in dividend income, using the current dividend payout of $0.71. This should give my February payout a big boost. LNCO is currently sporting a 7.86% yield. As I’m seeing just now, LNCO also no longer trades at a discount to Linn Energy (LINE), which closed today at $35.24.
The Fiscal Cliff looks like it may very well come and go without making any lasting impact on the market. Go figure. With all the news and media coverage this (non) event has generated, I must say, this would rank it up there as perhaps the biggest dud of the year (right up there with the Mayan Apocalypse). This goes to show the importance of sticking with a plan. By this time next year, will anyone even remember the Fiscal Cliff of 2012? Probably not, so let’s just ignore this short-term news and keep building up our portfolios.
Happy Hunting and Happy New Year’s everyone!