November 2021 will go down at the single most epic month of stock purchases in my life. Hands down.
91 purchases of 86 companies... $277,613.39 invested. Increasing my annual dividends by $9,742.77. A 3.51% yield out of these purchases.
That's epic. I put the hammer down!
How do I normally pick what to buy? In a normal month, I screen for a few parameters to ensure I find the best value. These are listed in importance to me.
- A TRACK RECORD OF DIVIDEND INCREASES
This is the most important requirement to be a dividend growth investor.
- A LOW P/E RATIO
- A LOW DIVIDEND PAYOUT RATIO
Can a company sustain their dividend and have room to raise it? A company that is paying out a large majority or all of their profits have a hard time keeping up their dividend. I look for under 60%
- AN EARNINGS PER SHARE GROWTH OF 5% OR MORE
- A LONG TERM TRACK RECORD OF EPS GROWTH
A LOW PRICE TO EARNINGS GROWTH
- A MARKET CAPITALIZATION OF $3 BILLION OR MORE
Normally, I follow these parameters. This is not a normal month. This is abnormal.....
I decided to add to most of my positions. Not all, but most. Since all of them had pretty much passed my screener, adding to them makes perfect sense. I did not want to sit on the funds and take forever screening so many stocks. I also did not want to sink most of it in one or two companies.
I decided to increase my holding for most of my stock to about a $5,000 cost basis. I used to stop at $4,000 for most of my holdings. Adding a thousand to that max made perfect sense and I did not want to wait for all of them to be at the ideal price. Time in the market is better than timing the market.
Of course I had a few that I went beyond the $5K limit. These were mainly the ones I had sold earlier this year to cover my mom's care. I got them back to what they were at before that went down.
My biggest buys were:
- 91 shares of Target (TGT) adding $327.60 to my annual dividends.
- 51 shares of Williams-Sonoma (WSM), adding $144.84 to my dividends per year
- 33 shares of Microsoft (MSFT), adding $81.84 to the dividends.
- 2,550 shares of Whitehorse Finance (WHF), adding a bad-ass $3,621 per year in dividends.
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