Well, I became more consistent and maintained my eye sight on Johnson & Johnson (JNJ) last week. I decided to re-up on my position on Tuesday, as I had a free trade for that day and the stock price actually went in my favor. I had wanted to increase my position to approximately $1,500 and I was able to do that with this purchase. After this, I feel like I’d want this position even more rounded, at an even $3,000 amount. Let’s take a look at the quick purchase:
The JNJ Purchase
I spent $792.00 to pick up an approximate ~8 shares of JNJ for $100.05 per share or 6 cents less than my last purchase 4 days prior to this! Something about that first purchase made me realize – I should just re-up on them the next chance I had spare capital, as a 3% yield coupled with an over 7% dividend growth rate, equated to an approximate 10% dividend factor for me.
JNJ is a dividend aristocrat that has increased dividend for over 52 years and are, in my eyes, the most consistent dividend paying, dividend growing, legendary stock there is. That is one of the reasons why I feel they are a foundation stock for a dividend income producing portfolio. I won’t bore you with the details as you can go back to my first purchase article just less than weeks ago to check them out, but they have strong valuations from a dividend diplomat stock screener perspective. Don’t worry I’ll stop my linking to JNJ and won’t pull a Bert move by talking about why he sold his damn ARCP investment, Bert I really think we get it now, the stock sucked, right? Joking, joking. But in all seriousness, I hope with reinvestment, increases and the like, this will increase my yield on cost (YOC) over time and it will be a truly fruitful investment.
Summary of Purchase: I purchased JNJ for a total of $792.00 for 7.9162 shares for $23.75 added to my annual dividend income total
It’s interesting though. Sitting here hanging with the Bert man at his & his girlfriend’s place on the west side of Cleveland. We were talking about stock positions and I’ve been thinking about it quite a bit lately. Shouldn’t we really get to a position we want in our portfolio for certain stocks? I own, currently, 32 individual stocks in my dividend portfolio for my taxable account. I’m great with that, but am sensing that I have quite a bit of “smaller” positions such as Tupperware (TUP), Rockwell Automation (ROK), Dow Chemical (DOW) and even Diageo (DEO). I want more of them and JNJ and you know what – that’s the direction of my extra capital and where it will head. Unless, of course, an amazing value buy comes across the table.
What is everyone’s thoughts with that? Do you have a pre-established mark that you want to get to for an investment? I know it’s weird, but it’s all about how much capital you have and I’ve been running dry almost every few weeks, so that’s the reason I ask, as I would have invested $3K into JNJ immediately if I had the cash, but I did not. Thoughts everyone? Appreciate the visit, as always, as well as your guidance and thoughts to my last paragraph above! Keep pushing yourselves!