I buy investments twice a month; around the first and third Tuesdays of each month. This is a way of dollar cost averaging and it also allows some minor tweaking on my individual stock weighting since I buy shares from the lowest performing sector in my portfolio at that point in time.
With that out of the way, read on to see my first purchase in May.
Stocks by Sector (5/4/2014)
So my individual stock portfolio looks like this
This is a screenshot from my portfolio excel file  which groups my stocks into 10 sectors. It shows their value relative to each other, the target value needed for equal weighting and highlights the lowest performing sectors in nice warm colors – red for 10th place, and orange for runners up in 8th & 9th place.
Individual Stock Purchases
My lowest value sector this time around is Utilities where I have GXP, LNT, AWR and VPU. I have $180 to invest this week so I’ll be buying GXP, LNT and AWR in proportional amounts to weight the sector more evenly.
Great Plains Energy [GXP] is a $4B public utility company in Missouri; its P/E ratio of 16.5 is lower than the industry average (20) and the S&P (18). Its debt-capital ratio has improved each year for the last three years and now stands at 65%. Likewise its dividend payout ratio has decreased from 66% to 54% over the same period, but it has also increased dividend payments each year for the last three years and it currently yields 3.45%.
Alliant Energy Corp [LNT] has increased its dividend for the last 8 years, and its dividend is $0.51 a share with a yield of 3.4%. Similar to GXP, its P/E ratio of 17.2 is lower than both the industry average and the S&P. LNT’s payout ratio is currently 59.5% and has been improving since 2011.
America States Water (AWR) has increased its dividend for the last 59 years and its dividend is $0.20 a share with a yield of 2.66%. Its dividend payout ratio increased to 47.2% from 45% last year, but debt-to-capital radio has improved in the last 3 years from 68% in 2010 to 62% in 2013. Its P/E ratio (18.9) is both higher than the industry average (14) and the S&P index (18).
In summary, here’s what I’ll be buying this week.
These investments should increase my yearly dividend income by about $20.
What are you buying this month?
Slow but sure moves the might of the gods.
 I seriously love Excel and writing macros, especially now that I’ve found out how to download stock prices automatically.