Month: July 2014

In attempt to streamline my current portfolio I decided to sell all the exchange traded funds I had. The position on those was not significant to begin with and I feel that limited set of dividend oriented stocks is the way to go for now. For this operation I didn’t inject new money but reallocated the funds received.

First I opened a new position on Deere & Co and bought 20 shares for 87,33 USD per share. This was high on my watch list and this reallocation allowed me to open this position sooner than expected. DE seems fairly valued as the P/E is around 10 and it yields about 2.60.

Rest of the money went to strengthen an existing position on Realty Income Corporation. The key factor here was the need to focus on the short term income due to tax reasons as described before so I bought 25 shares for 44,78 USD per share.

Links:  http://seekingalpha.com/symbol/DE, http://seekingalpha.com/symbol/O

Current watch list: LMT and weapons & defense sector in general, OHI (REIT, exposure to the healthcare sector), AFL (reasonably priced company and position I plan to add on)

JNJ dropped a bit after posting their latest earnings report. The report itself was actually positive so I decided to use this rare opportunity to add on existing position and bought 15 shares for 100,73 USD per share. This will add 42 USD to my annual income as dividends before taxes. No specific reasoning was needed for this purchase as this is one of the best companies in the world to own a piece of. Personally I wouldn’t consider this price as super cheap but it is acceptable in the current market. I’ll consider adding on this position again in 98-101 USD range but I’m certainly going to invest as much as possible if it drops below 95 USD.

Current watch list: DE (new), AFL (existing), JNJ (existing), LMT (new but a bit far fetched at the moment)

Links: http://www.investor.jnj.com/divhistory.cfm, http://seekingalpha.com/symbol/JNJ