Wednesday, July 3, 2019

Recent Buy - BAC


 After receiving my biggest dividend of my portfolio, I pulled the trigger on a purchase I’ve been looking forward to.  

I picked up 20 shares of Bank of America (BAC) this morning for $584.07.   I’m now at 74 shares in the portfolio, with a goal of getting that to around 130.

Even though I will never be a customer of Bank of America with great credit unions out there, it's hard to turn down a growth share when it come to funding my retirement...

After passing the latest Federal Reserve's Comprehensive Capital Analysis and Review (the stress test), they have been given the green light for  their capital plan and retuning $37 billion to their shareholders between dividend increases and stock buybacks.   There will be a 20% increase of their dividend to 18 cents per share from 15.  
That’s what I call a no brainer for hitting buy...  They were not on my normal watch list, but instantly jumped to the front of the pack with this announcement.   So I pulled the trigger.   I did not care about the valuation at this point, I just wanted to get in on it.  Their P/E is at 10.84.  Seems low, but the industry average is only at 10.51.  Still, they are in good financial health and I just could not ignore a 20% rise in dividends.

I picked up 20 shares of Bank of America (BAC) this morning for $584.07.    This increases my annual dividend by $12 before the official announcement.  With a 20% increase, my dividend will go up by $20.88 per year. 
I’m now at 74 shares in the portfolio, with a goal of getting that to around 135.   I’m using $4,000 cost basis for a full position at this time.

I just love buying shares of a company I know I will hang onto forever.

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