Saturday, December 5, 2015

Bought: ADM, KMI

I purchased the following stocks on 12/3/2015 for my Roth IRA:

  • 36 shares of Archer-Daniels-Midland Company (ADM) at $35.9999 per share.  Dividend yield is 3.11%.
  • 60 shares of Kinder Morgan, Inc. (KMI) at $20.0000 per share.  Dividend yield is 10.20%.
These purchases add $162.72 to my non-taxable dividend income.

There seems to be a lot of speculation around KMI these days, whether there will be a dividend cut or not.  I am an investor for the long haul, and as long as KMI does not go bankrupt (which I don't think it will), I'm not going to sweat it.  For me, I see KMI as a great opportunity to capitalize on other peoples' fears.  I should have waited a little longer though since it's a little under $17 at the time of this post.  I actually thought that it would jump back up the next day and therefore decided to pull the trigger, but I was wrong.  I'm never good at buying at the very bottom of a dip, but I still got the opportunity to average down on my cost basis and I'm looking forward to the future.  Even if there is a dividend cut of 75%, I would still have a dividend yield on cost of 2.50%, which is decent.  If they don't cut the dividend, I'm getting a nice juicy dividend yield of 10.20%.

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