As I'm writing this blog post, it's Saturday, February 8th. The temperature is expected to reach a high of 24 degrees Fahrenheit here in Central Wisconsin today. But for the six to 10 inches of cumulative snowfall expected in the coming hours, the weather would be ideal for this time of year.
Now that January has concluded, I'll be taking a few moments to outline the dividend stock purchases that I made in January 2025 with fresh capital. I'll also go over my sales for the month and the stocks into which I redeployed the capital proceeds.
Stock Purchase #1: Amazon (AMZN)
The first stock that I purchased with fresh capital in January 2025 was three more shares of Amazon at an average of $228.00 a share. Interested readers can either peruse my November Seeking Alpha article or my December 2024 Stock Watch List blog post for my investment thesis.
Stock Purchase #2: British American Tobacco (BTI)
The next stock that I purchased with fresh capital for the month was 24 shares of British American Tobacco at an average price per share of $37.05. Curious readers can find my investment thesis in my February 2025 Stock Watch List blog post. This transaction lifted my net annual forward dividends by $70.80, which equates to a 7.96% net dividend yield.
Stock Purchase #3: Alphabet (GOOGL)
The third stock that I purchased with fresh capital in January 2025 was four shares of Alphabet at $197.05 apiece. Readers can check out my investment thesis in my January 2025 Dividend Stock Watch List blog post. This transaction increased my net annual forward dividends by $3.20, which works out to a 0.41% net dividend yield.
Dividend Stock Sales: CVS Health (CVS), Exxon Mobil (XOM), Shell plc (SHEL), BP plc (BP), Williams-Sonoma (WSM), STAG Industrial (STAG), Kimberly Clark (KMB), and Starbucks (SBUX)
My first stock sale was 15 shares of CVS Health at $46.03 each. Challenges to the business model and the frozen dividend led me to close my position in CVS.
In my next series of moves, I sold out of my 11 share position in Exxon Mobil (XOM) at $106.69 apiece, my nine share position of Shell plc (SHEL) at $64.56 a share, and my 11 share position in BP plc (BP) at $31.11 each. These sales were made to transition my portfolio away from more cyclical positions.
The next set of moves I made was to sell 10 shares out of my 20 shares of Williams-Sonoma (WSM) at $198.60 apiece, closing my 21 share position in STAG Industrial (STAG) at $34.01 a share, and exiting my four share position in Kimberly Clark (KMB) at $125.98 each. I like WSM as a company, but view the stock's valuation as being quite elevated right now. For STAG and KMB, I have been displeased by the meager dividend growth in recent years.
My final sale of the month was closing my 23 share position in Starbucks (SBUX) at an average of $109.09 a share. I think that SBUX can execute a turnaround. However, the stock is already priced as if that has happened. Thus, I saw this as a good chance to exit with a nice profit.
These transactions resulted in a $258.87 decrease in my portfolio's net annual forward dividends.
Stock Purchases: Enterprise Products Partners (EPD), Nvidia (NVDA), Realty Income (O), and More Amazon (AMZN)
I added another 67 units of Enterprise Products Partners (EPD) at an average price per unit of $32.27. For interested readers, my buying rationale is pretty much the same as it was in my October 2024 Stock Watch List blog post.
I also purchased another 10 shares of Nvidia (NVDA) at an average cost of $136.76 a share. Curious readers can find the gist of my investment thesis in my January 2025 Stock Watch List blog post linked earlier.
I boosted my position in Realty Income (O) by 50 shares at an average price per share of $53.87. The basics of my investment thesis can be found in my August 2024 Dividend Growth Stock Watch List blog post.
I purchased another nine shares of Amazon (AMZN) at an average cost of $230.89 a share.
Concluding Thoughts:
I deployed $2,361.40 in fresh capital in January 2025. Against the $74.00 in net dividends added from these transactions, that is equivalent to a 3.13% net dividend yield. Capital redeployment boosted my net annual forward dividends by $40.63 during the month.
My net annual forward dividends were also lifted by $21.41 from January 2025 Dividend Increases. These variables led my net annual forward dividends to rise from over $5,455 to begin January 2025 to nearly $5,600 heading into February 2025.
Discussion:
How was your capital deployment in January 2025?
Did you add any new stocks during the month?
I appreciate your readership and look forward to your comments below!
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