Wednesday, September 21, 2016

Bought: ADP, CLX, PEP

The stock market has been really interesting these past few days... There was a huge pullback where many companies saw a drop in their share prices.  But then in just a couple of days, the prices are pretty much back where they were.  During the slight market sell off, I made a few more purchases to my Roth IRA account, maxing out my Roth IRA contributions for the year.

On 9/16/2016, I invested in three companies in my Roth IRA.

I purchased 12 shares of Automatic Data Processing, Inc. (ADP) at $86.5399 per share.  This is a dividend yield of 2.45%, adding $25.44 to my non-taxable dividend income.  This is a new position in my portfolio.  ADP provides business process outsourcing services worldwide.  It offers payroll services, benefits administration services, talent management, human resources management solutions, time and attendance management solutions, insurance services, retirement services, and tax and compliance solutions.  I have wanted a position in this company for a while and I'm glad I finally was able to get my foot in at a decent price in my opinion.

I purchased 9 shares of The Clorox Company (CLX) at $122.55 per share.  This is a dividend yield of 2.61%, adding $28.80 to my non-taxable dividend income.  This is a new position in my portfolio.  CLX offers laundry additives, home care products, naturally derived products, professional cleaning and disinfecting products, charcoal products, cat litter products, digestive health products, bags, wraps, containers, dressings, sauces, walter-filtration systems and filters, and natural personal care products.  This is another company I have wanted a position in for a while and I'm glad I finally was able to initiate a position at an attractive price in my opinion.

I purchased 11 shares of Pepsico, Inc. (PEP) at $105.21 per share.  This is a dividend yield of 2.86%, adding $33.11 to my non-taxable dividend income.  This is an existing position that I added more capital to since the amount I had invested in PEP in my Loyal3 account was de minimis.  PEP is a great food and beverage company which I have wanted to own a larger position in for a while, and with the recent pullback, I'm glad I was able to initiate a position in this company.

After these purchases, my non-taxable dividend income will increase by $87.35.

What do you think of my recent stock purchases?

3 comments:

  1. Congrats on the buys. Never a bad thing to add to the passive income. CLX seems so overbought at this point. I really want to own it too but the graph just looks like it's taking off compared to its earnings. What are your thoughts?

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    1. Hi Adam,

      Which graph are you referring to?

      For me, there are a group of stocks that I have wanted to purchase (CLX being one of them) that always seem to be overpriced. I have been waiting for several years for those stocks to drop, but they never really had any major pullback. So for me, my plan is to initiate a position in all the companies I have been really wanting to own, even if that means paying for them at a premium because it seems like these companies' share prices only continue to move up. I'm not sure if this is the best strategy as I'm not a financial advisor, but this is my own personal conviction.

      Thanks for stopping by and commenting.

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    2. Well, I was just referring to the stock price graph. Since 2011 its been on a tear higher and higher and the earnings have not been increasing the same amount. But, to be fair, many other stocks have been too. I do like the recent pullback in CLX, so you probably picked as good of a time as any to enter. Like you said, some stocks you have to pay a premium on because they will never look attractive from a price standpoint. Anyway... thanks for the response, I was just looking for your reasoning, helps me make my own decisions.

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