I’ll be making more stock purchases this month as I have more monthly cash available after my house sale. I’m still using Sharebuilder for my purchases at the moment and I’m on their automatic plan which charges $12 for 12 stock purchases in a month. The $12 is paid via credit card out of my monthly living budget so I don’t really think of it as a commission fee even though it is.
Stocks by sector (June 1, 2014)
Here’s a view of my Portfolio grouped by market sector with the lowest valued sector highlighted in red and the next two lowest sectors in orange.
The chart shows some additional details such as the target value needed for equal weighting and if stocks are over or under that target.
Individual Stock Purchases
My lowest value sector this time around is Consumer Cyclical where I own LB, HD, MCD and MAR. I have $330 to invest this week so I’ll be buying HD and MAR in proportional amounts to weight the sector more evenly.
L Brands [LB] is probably more well known by its main brands, Victoria’s Secret and Bath & Body Works. It’s a $17B retail company based in Columbus, OH. I originally picked this company because of its strong brand names and the fact that its products more or less sell themselves. Its P/E is 18.3, a little lower than the industry average of 21. Its current dividend yield is around 2% although it does have a tendency to pay out special dividends  in addition to its regular ones. Payout ratio is a reasonable 39% (from Morningstar; it shows as 15.5% on my Porfolio page due to the calculation of dividends per share / earnings per share).
Home Depot [HD] has been increasing its dividend steadily over the last 14 years, and its dividend is currently $0.47 a share with a yield of 2.3%. Its P/E ratio of 20.4 is higher than the industry average of 18. HD’s payout ratio is a reasonable 41.7%.
McDonalds [MCD] has increased its dividend for the last 37 years and its dividend is $0.81 a share with a yield of 3.19%. Its dividend payout ratio has been increasing over the last 6 years and now stands at 57.4. Its P/E ratio (18.4) is lower than the industry average of 28.5.
Marriot International [MAR]. Based on market capitalization, MAR is the second largest hotel operator after Hilton. It has increased its dividend since 2009 when it lowered payouts, and the yield is currently 1.30% with a payout ratio of 32.4%. MAR is a stock I own ‘just for fun’  as I am loyal to the brand and the rewards program.
In summary, here’s what I’ll be buying this week.
$250 Vanguard High-Yield Dividend Fund (VHDYX)
$100 Vanguard Total International Stock Index Fund (VTIAX)
$100 Vanguard High-Yield Corporate Fund (VWHEX)
$330 Individual Stocks (MAR, HD)
These investments should increase my yearly dividend income by about $22.
Full disclosure: I am long MAR, HD, LB and MCD.
What are you buying this month?
Live life fully while you’re here. Experience everything. Take care of yourself and your friends. Have fun, be crazy, be weird. Go out and screw up! You’re going to anyway, so you might as well enjoy the process. Take the opportunity to learn from your mistakes: find the cause of your problem and eliminate it. Don’t try to be perfect; just be an excellent example of being human.
 Special dividends are taxed at regular tax rates, not the discounted rate for qualified dividends.
 Or possibly that I have more money than sense! But I believe in the company and that it will continue to grow.