Wednesday, February 10, 2016

Bought On Loyal3: AXP, TGT, VFC

I purchased the following stocks in my Loyal3 account on 2/9/2016:


  • 0.1892 shares of American Express Company (AXP) at $52.86 per share.  Dividend yield is 2.19%.
  • 0.1445 shares of Target Corp. (TGT) at $69.20 per share.  Dividend yield is 3.24%.
  • 0.1772 shares of V.F. Corporation (VFC) at $56.42 per share.  Dividend yield is 2.62%.
This purchase adds $0.80 to my taxable dividend income.

AXP and VFC are both new positions for me, whereas TGT is a company I already own.  I decided to take advantage of the drop in stock prices of these companies.  AXP, TGT, and VFC are all trading close to their 52-week lows.  While AXP is not currently a company with a long dividend growth record, I believe AXP is a solid company which at a minimum, will generate a nice return on capital over the long haul at the price I bought it at.  TGT and VFC, on the other hand, do have a long dividend growth history, and I'm glad to have bought some shares.

My stock purchases have been in very small increments lately since my goal is to aggressively knock out my mortgage as soon as possible.  Once this mortgage is eliminated, I will shift my focus and energy to aggressively invest in dividend growth stocks.  In the meantime, my plan is to invest in small increments every month on Loyal3, as this allows me to buy partial shares of stocks in companies with small amounts of capital.

What do you think of my purchases?  Do you own any of the companies?

4 comments:

  1. I like the VFC buy the best. It's been a great holding for me the last 8 years or so and is one of my top performers. The company is facing headwinds because of a strong U.S. dollar and weaker demand from Asia and Europe but it's just a cyclical trend and not something inherently wrong with the company. I view VFC as a clothing staple company and not a fashion play. Thanks for sharing.

    ReplyDelete
    Replies
    1. Hi DivHut,

      Thanks for your input. I agree with you that this is just a cyclical trend and not something inherently wrong with the company. I'm usually skeptical about investing in clothing stores, but as you said, this is a clothing staple company in my opinion. I only wish I had discovered this company sooner; it just recently got on my radar.

      Thanks for stopping by and commenting.

      Delete
  2. Nice buys. AXP recently got added to Loyal3 and it is a stock I would like to add to my portfolio.

    ReplyDelete
    Replies
    1. Hi Gareth,

      I initiated a very small position in AXP through Loyal3 since I think it's trading at a discounted value right now. I'm also hoping that it will be able to give increased dividend payouts over many years, but if not, I'm hoping to at least see a nice long-term gain on my investment.

      Thanks for stopping by and commenting.

      Delete