I'm overdue updating everyone with the stock purchases I've been making. So this will be a multi month posting.
My goal is to purchase shares in companies that pay a dividend to create passive income. Not only pay dividends, but companies that regularly increase these dividends. And not just pay dividends and increase them regularly, but also have room to increase that dividend on a regular basis.
If a company is around 60% or under in paying out dividends from their total income, then they have room to grow. Once the payout ratio gets too high, they are paying all of their income to dividends and not able to grow their company, Eventually it results in a cut of that dividend. That's a no go for me.
The result is a steady stream of passive income. Income just for being alive!
When I make stock buys I think of it as purchasing income.
Here's what I have done since March of this year...
I did make a few sells. In September I jettisoned both KD and WBD. Both were spin offs and neither paid a dividend. I also lowered my holdings in Williams Sonoma (WSM) and wanted to earn a higher dividend in another company. I decided to buy lots of Walgreens (WBA) stock.
The result is investing $18,845.80 and increasing my annual dividend income by $604.97. Six thousand of that 18K was income I added to my portfolio. I have a goal of adding $1K per month for this. The rest were earned dividends and the stock sale income.
The purchases resulted in a 3.21% return yield. I think that's a wise way to store my income.
Thanks for reading!