As I'm writing this blog post on Friday, December 27th, the temperature here in Central Wisconsin is going to reach a high of 41 degrees Fahrenheit. For this time of year, I'll take it.
Now that the month (and year) is just about complete, I'll take a look at my stock purchases for December 2024. Without further ado, let's dig into it!
Stock Purchase #1: Amazon (AMZN)
The first stock that I purchased for the month was an additional five shares of Amazon at an average price of $210.82 a share. Curious readers can check out my November Seeking Alpha article or December 2024 Stock Watch List blog post for my investment thesis.
Stock Purchase #2: Ares Capital (ARCC)
The next stock that I added in December 2024 was another 40 shares of Ares Capital at a cost per share of $22.15. I intended to buy units of MPLX LP. However, the partnership surged about 10% between when I highlighted it last month and when I deployed capital for this month. In my view, ARCC was a suitable substitute. That boosted my net annual forward dividends by $76.80, which works out to an 8.67% net dividend yield.
Stock Purchase #3: Meta Platforms (META)
The third stock that I purchased was another share of Meta Platforms at $591.96. Readers can find my investment thesis in my December 2024 Stock Watch List blog post linked above. This transaction lifted my net annual forward dividends by $2, which equates to a 0.34% dividend yield.
Dividend Stock Sale: Broadcom (AVGO) and Crown Castle (CCI) and Innovative Industrial Properties (IIPR) and Brookfield Asset Management (BAM)
I sold 10 shares of Broadcom for a total of $236.76 each. This had nothing to do with the overall fundamentals and more to do with the valuation. AVGO is priced at a forward 12-month P/E ratio of nearly 37, which is getting a bit rich in my opinion. Thus, I decided to sell 25% of my position and recover 170% of my overall cost basis. That took my weighting in AVGO from a somewhat lofty 6%+ back down to about 5%. So, I'll now be holding from here for the time being. This move reduced my net annual forward dividends by $23.60.
I also sold out of my eight share position in Crown Castle (CCI) at $90.26 each and my six share position in Innovative Industrial Properties (IIPR) at $76.54 each. The driving factor in both of these sales was the lack of future growth potential. These moves reduced my net annual forward dividends by $50.08 and $45.60, respectively.
I also sold off about 40% or 21 shares of my Brookfield Asset Management (BAM), with the closing of the position in my IRA at $54.51 apiece. This wasn't done because of poor fundamentals, but the big runup in the share price in recent months. Long term, I'm still a believer in the company. However, I wanted to take money off the table and redeploy proceeds into more of a value pick. This reduced my net annual forward dividends by $31.92.
Stock Purchases: Nvidia (NVDA) and Rexford Industrial Realty (REXR) and British American Tobacco (BTI) and Enterprise Products Partners (EPD) and Enbridge (ENB)
I added another nine shares of Nvidia at a cost of $127.82 a share. Curious readers can check out my January 2025 Stock Watch List blog post for the gist of my investment thesis. This transaction added $0.36 to my net annual forward dividends.
I also opened a 30 share starter position in Rexford Industrial Realty at an average price per share of $40.56. This lifted my net annual forward dividends by $50.10. My rationale is largely unchanged from my October Seeking Alpha article.
I added another 13 shares of British American Tobacco at a cost of $36.26 apiece. This is because the stock's 8.1% yield appears to be reasonably safe. The company's plans to transition to a smoke-free sales mix remain on track. Shares also look to be undervalued, with the forward P/E ratio coming in below eight. This transaction boosted my net annual forward dividends by $38.35.
I also purchased an additional 24 units of Enterprise Products Partners at a price per unit of $30.78. Interested readers can check out my November Seeking Alpha article or my October 2024 Stock Watch List for my investment rationale. This decision lifted my net annual forward distributions by $50.40.
Lastly, I added 29 shares of Enbridge (ENB) at a cost of $41.50 a share. For curious readers, my buying rationale is the same as it was in my September 2024 Dividend Stock Watch List. This decision added $77.72 to my net annual forward dividends.
Retirement Account Reinvestment: Capital Income Builder (CAIBX)
I reinvested the $499.76 in net dividends and capital gains distributions that I received from Capital Income Builder in my retirement account from my former employer. That upped my share count by 7.335 to 202.235. This lifted my net annual forward dividends by $16.94, which equates to a 3.39% net dividend yield.
Concluding Thoughts:
In December, I allocated $3,031.81 in fresh capital. Given the $95.74 in net annual forward dividends that these purchases added to my portfolio, that is equivalent to a 3.16% weighted average dividend yield. Capital redeployment added $65.73 to my net annual forward dividends.
My net annual forward dividends were also boosted by $24.778 from December 2024 Dividend Increases. A $16.55 upward adjustment in my CAIBX net annual forward dividends also factored into my net annual forward dividends rising from approximately $5,255 heading into the month to roughly $5,455 heading into January 2025.
Discussion:
How was your capital deployment in December 2024?
Did you add any new stocks during the month as I did with REXR?
Thanks for reading and I welcome your comments below!
No comments:
Post a Comment