Recent stock purchases – October 2016 edition

Towards the end of October I bought more shares of two companies that I already own. Read on to see what and why.

Intel Corporation (INTC)

Intel Corporation INTC
Dividend Yield 3.09%
Payout Ratio 39.1%
5-Year Dividend Gr. Rate 5.87%
Dividend Gr. Length 2 Years
Payout Schedule Mar, June, Sep, Dec
Increases Mar

Intel doesn’t need much of an introduction – it’s the largest semiconductor company. It’s been under pressure due to declining PC sales, and missed out on gaining market share in the mobile market. ARM has replaced AMD as its chief rival due to the popularity of low powered phone processors. Things are starting to turn around in the mobile space however as it won some business in Apple’s latest iPhone 7.

I bought 25 shares of INTC at $35.79 and now own a total of 38 shares. INTC provides a total of 2.9% of my individual stock dividend income with a projected yearly amount of $39.52. I try to keep any individual stock from contributing more than 5% income to reduce the impact of a cur or frozen dividend.

INTC has a short 2-year dividend growth history, having frozen the dividend in February 2014 before resuming increases. Dividend increases are typically declared in January. Its yield is above the market average at around 3% and it has a good payout ratio at 39%.

Lockheed Martin (LMT)

Lockheed Martin LMT
Dividend Yield 3.08%
Payout Ratio 59.7%
5-Year Dividend Gr. Rate 15.8%
Dividend Gr. Length 13 Years
Payout Schedule Mar, June, Sep, Dec
Increases Dec

I also decided to consolidate my LMT holdings in one brokerage and took the opportunity to add some more shares.

Lockheed Martin is the world’s largest defense contractor and produces the new F-35 sixth generation fighter aircraft. It is organized in five divisions: Information Systems, Aeronautics, Missiles & Fire Control, Mission Systems & Training, and Space Systems. It’s largely reliant on the US Government for revenue but has been diversifying internationally lately.

I originally bought LMT shares as part of a Sharebuilder plan back in October 2014 and again in April 2015 for a total of 0.7033 shares. I then bought 5 more shares in September.

At the end of October I bought 4 more shares at $248.24 for a total of $994.96 including a $2 commission. I also sold 0.7033 shares at $246.38 for a total of $166.33 including a $6.98 commission. I now hold a total of 9 shares with a projected yearly income of $65.52. LMT currently contributes 4.5% of my individual stock income.

Summary

Taken together the total $1723 purchase adds $50 projected income, a 2.9% yield. INTC should also be increasing its dividend in January but LMT won’t review theirs until the end of next year, having just announced a dividend increase.

Did you buy any stocks in October? Do you own LMT, INTC or similar stocks? What stocks are you buying?


Quote of the Day

Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy.

6 thoughts on “Recent stock purchases – October 2016 edition”

  1. I like the LMT pick up. I have that name on my watch list for a while now but still have not pulled the trigger. I just added GD in the same space to my list. One day I’d like to diversify into the defense sector with one or two holdings. Thanks for sharing.

    1. Hi DivHut,
      It’s a little cheaper now since I bought it, but I like LMT for the long-term and think they offer a diverse range of products. I think in the future that expensive aircraft will be replaced by large quantities of cheap drones and LMT has the technology base to benefit from that.
      Best wishes,
      -DL

        1. Yes that was quite a ride. I was watching the future’s drop like a stone last night and thought there might be some bargains this morning; but industrials and defense shot back up. EMR, UNP,RTN and LMT that I hold all had 4%+ daily gains, as well as PFE and TROW.

  2. INTC and LMT are both top stocks with solid dividends.

    I don’t own either at the moment, but I am considering it now.

    I own some shares in CAT and I am happy that it has been doing well since the election.

    1. Hi SymbolSurfing,
      I think both LMT and CAT have good prospects post-election, as the Defense and Industrials sectors have in general.

      CAT should do well out of any infrastructure investment that’s been proposed. I like CAT; they have a good yield and payout ratio too but it seemed to be struggling a little each time I looked at it so I’ve never ended up buying any. It has certainly gained some momentum this year though.

      Best wishes,
      -DL

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