Thursday, July 6, 2017

This week's purchase

My first transfer came over from my paycheck today, about a week later.  I'm not sure if the July 4th holiday slowed this down or not.  I guess I'll find out in 2 weeks.

I've taken to assessing my income and where it is going.  While I do this often, I'd like to increase what I put into my brokerage account.  This same desire pushed me to work 110 hours the past 2 weeks.  This should help pay down some small debt which had crept up.

I had been researching SO and ABBV to add to my list.  Both are attractive, but SO would be my THIRD electric utility, and my 4th utility in general.  I had intended to buy ABBV, which would be my third in the healthcare sector, so on that score they were pretty even (and not very diverse for my portfolio).  Like I said they were both attractive enough for me to consider them over everything else in my watchlist.

My funds came in this morning, and with the jobs news positive, I was ready to buy at the bell before the run-up.  I took a look at both, and as I could purchase more shares of SO and add almost $28 to my annual divvy income, I pulled the trigger on that one.  Well, there was no run-up today.  In fact, the only stock of mine in the green was little ZN, about 200% up from when I bought it.  It still isn't much money, so I'll hang onto it to see if they strike oil.

SO thankfully remained flat for the day.  The other reason I liked SO was that it's yield, while a bit high at 4.89%, helped bring my portfolio average over 3%.  I want to maintain being over, but not too much over, that yield target.  I think the price drop of many of my shares also drove the yield up a bit as well.  I don't think we will get much more gain in the market for a while until we get some positive news on the healthcare repeal and the tax cuts.

SO - Southern Co. - Utilities: Electric - 12 shares
Cost Basis:  $575.6
Cost/Share:  $47.97
Closing Price:  $47.40
Market Value:  $568.8
Weight: 2.91%
Div/Share:  0.58
Yield: 4.89%
Annual Div Est: $27.84
YOC: 4.84%
Beta: 0.12
P/E: 17.62

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