May 2022 Dividend Stock Purchases

As I'm writing this blog post, the temperature is in the low-70 degrees Fahrenheit range today in Central Wisconsin. And it will remain that way over the next few days. That's why I'm very much looking forward to getting outside as much as possible during this ideal weather.

Now that it's early June, I will shift my attention to the dividend stock purchases (and one non-dividend stock purchase) that I made in May 2022.

The first stock purchase that I made in May was a share of Innovative Industrial Properties (IIPR) at a cost of $139.28. Just as I explained in my April 2022 Dividend Stock Watch List post, IIPR is the leader in providing financing solutions for state-licensed operators in the budding cannabis industry. And if that wasn't enough, the massive dividend is quickly growing and the stock is priced at a bargain-bin valuation. Since I added $7.00 of net annual forward dividends to my portfolio, this works out to a 5.03% net dividend yield.

I also added two shares of JPMorgan Chase (JPM) at an average cost of $123.22 a share. Simply put, JPM is a well-run bank that I believe was attractively valued at the time of my purchase. Factoring in the $8.00 in net annual forward dividends that I added to my portfolio, this equates to a 3.25% weighted average net yield. 

The third stock purchase that I executed in May was a share of PepsiCo (PEP) at a cost of $169.88. Readers looking for a more in-depth explanation of why I added to my position should check out my Motley Fool article on the stock published earlier this month. Given the $4.60 boost in the net annual forward dividends of my portfolio from this transaction, my net dividend yield was 2.71%.

I added four shares of Main Street Capital (MAIN) to my portfolio at an average cost of $39.49 a share. As I explained in a Motley Fool article published back in January, MAIN is arguably the best business development company around and the dividend looks to be safe. Not considering the special dividends paid by MAIN, this purchase added $10.32 in net annual forward dividends to my portfolio. This is equivalent to a 6.53% weighted average net yield.

The fifth stock purchase that I completed in May was three shares of Leggett & Platt (LEG) at an average cost of $36.83 a share. Interested readers can check out my Motley Fool article from April for a detailed explanation of why I like LEG. Factoring in the $5.28 boost in my net annual forward dividends from this transaction, this works out to a 4.78% net dividend yield.

I also added a share of Cummins (CMI) at a cost of $203.15. Readers can peruse my Motley Fool article from last month on Merck and CMI for more details on the factors that led me to ultimately led me to add to my position in the latter. Given the $5.80 in net annual forward dividends that this purchase added, this equates to a 2.86% weighted average net yield.

The seventh stock purchase that I made in May was 0.04 shares of Amazon (AMZN). This is because AMZN has gradually evolved from a dominant e-commerce retailer to the leading cloud computing company and a leading advertising company. 

I opened a three share position in FedEx (FDX) at an average cost of $214.15 a share. As I noted in my May 2022 Dividend Stock Watch List post, FDX's growth potential is related to e-commerce. Few industries are going to grow as fast as e-commerce in the years ahead and this should lead to increased shipping volumes for FDX and United Parcel Service (UPS). Factoring in the $9.00 boost in my net annual forward dividends from this purchase, this is equivalent to a 1.40% net dividend yield.

The ninth stock purchase that I executed in May was three shares of Eastman Chemical (EMN) at an average cost of $103.42 a share. Given the $9.12 in net annual forward dividends that this transaction added, this works out to a 2.94% weighted average net yield.

I also added three shares to my position in Digital Realty Trust (DLR) at an average cost of $126.48 a share. I put my money where my mouth is, which is exactly why I added to my position in DLR a couple of weeks after my Motley Fool article on DLR and VICI Properties (VICI) was published. Factoring in the $14.64 boost in my net annual forward dividends from this purchase, this equates to a 3.86% net dividend yield.

The 11th and final stock purchase that I completed in May was 17 shares of KeyCorp (KEY) at an average cost of $18.42 a share. Given the $13.26 in net annual forward dividends that this transaction added, this is equivalent to a 4.23% weighted average net yield.

Concluding Thoughts:

I deployed $2,761.03 in capital during May 2022. These stock purchases allowed me to add $87.02 in net annual forward dividends to my portfolio. And this isn't even including the $10.20 boost that I received from dividend increases announced during the month. This explains how my net annual forward dividends soared from over $2,690 at the start of May to nearly $2,790 heading into June.

Discussion:

How was your May 2022 for dividend stock purchases and capital allocation?

Did you open any new positions like I did with FDX?

I appreciate your readership and welcome your comments below!