September 2022 Dividend Stock Purchases

As I'm writing this blog post, the high temperature is expected to reach 68 degrees Fahrenheit here in Central Wisconsin today (September 30). After a cold snap, the temperatures are finally looking good over the next few days. Needless to say, I will be getting outside as much as I can during that time.

With that aside, I'll be going over my stock purchases for the month of September 2022.

My retirement account from my former employer with the mutual fund holding Capital Income Builder (CAIBX) paid $75.94 in net dividends to me, which were reinvested. This purchased 1.199 additional shares, which added $2.55 in net annual forward dividends to my portfolio. That is equal to a 3.36% weighted average dividend yield.

I began my taxable dividend stock purchases by adding a share of Albemarle (ALB) at a cost of $277.21. As I explained several weeks back in my September 2022 Dividend Stock Watch List post, ALB is poised to benefit from a massive expansion in the electric vehicle penetration rate over the next decade. This will lead to an explosion of demand for lithium that goes into EV batteries, which is primarily why I am bullish on the stock. This dividend stock transaction lifted my net annual forward dividends by $1.58, which is a 0.57% net yield.

The first non-dividend-paying stock that I increased my position in was Amazon (AMZN), which I purchased a single share of at the price of $116.89. As I noted a couple of weeks ago in my August 2022 Dividend Stock Purchases post, AMZN is the undisputed leader in cloud computing and e-commerce. This is why I plan to continue buying a share of AMZN each month for the foreseeable future.

The other non-dividend-paying stock that I bolstered my stake in was Alphabet (GOOGL), which I bought 1.5 shares of at an average cost of $99.93 per share. Whereas AMZN is the leader of the cloud computing and e-commerce industries, GOOGL is the most dominant in digital advertising. That explains my rationale to buy the stock each month.

The second dividend-paying stock that I purchased was five shares of Bristol-Myers Squibb (BMY) at a cost per share of $70.22. That's because it is one of the most dominant pharmaceutical companies in the world with a stacked drug pipeline. This boosted my net annual forward dividends by $10.80, which is equivalent to a 3.08% weighted average dividend yield.

The third and final dividend-paying stock that I added to was three shares of Philip Morris International (PM) at an average cost of $95.74 a share. This rationale hinges on the fact that PM is the most established tobacco company on the planet and is set up well for the future as more cigarette smokers seek less harmful alternatives. This helped my net annual forward dividends to surge $15.24 higher, which equates to a 5.31% net dividend yield.

Concluding Thoughts:

I put $1,258.25 in capital to work during the month of September. Given the $30.17 in net annual forward dividends that these transactions added to my portfolio, this works out to a 2.40% weighted average dividend yield.

Including the $20.114 in dividend increases that I have received for the month as of this afternoon, my net annual forward dividends spiked from more than $3,125 at the start of the month to a bit more than $3,175 heading into October.

Discussion:

How was your capital deployment during September 2022?

Did you add any new holdings to your portfolio?

Thanks for reading. I look forward to your comments below!