A Reason To Love The Red: A New Stock Purchase

It’s warming up outside and it’s a beautiful day.  The stock market on the other hand is cold as can be.  However, there are positives to these red days.  When the majority of people are freaking out and selling like mad, or thinking they’ll never make their money back, people like us are taking advantage and making purchases of our “waiting list” stocks while they are cheap.  Today was one of those days for me.  The market has been doing iffy lately, and today it was abysmal, so I decided to make another purchase to add to my portfolio.  I am very excited about this one!

Universal Health/Realty Income Trust (UHT) was on my list for a while now and I’m happy to have finally made the buy.  UHT is a “Dividend Champion”, and has been providing timely and steadily increasing dividends to their shareholders for over 25 years.  Their most recent dividend was $0.63.5 cents, and they just announced another disbursment about two weeks from now.  UHT is an REIT that deals with the healthcare industry.  It sports a very attractive yield % of 5.14, and like I said, the Champion class (like the AT&T purchase recently).  UHT’s P/E is around 12, which is attractive to me – as an established company with a low PE I am estimating it will stay pretty steady over the years to come.

Another reason for this buy was to further add to my diversity inside the portfolio.  Before this buy, I had two powerhouse large-cap stocks including Telecomm: Industry and Cyclical Consumer Goods/Services: Industry.  This will add some cap diversity with the introduction of a small-cap stock and another sector (Financial: Industry).

I am looking forward to having UHT deliver some excellent dividends to DRIP and amplify my holdings!

Portfolio overview:
Ford – 5.086 Sh – 84.90 Basis – 3.28 Total Div – Large Cap – Cyclical Consumer Goods/Services: Industry
AT&T – 7.099 Sh – 239.97 Basis – 3.30 Total Div – Large Cap – Telecommunications: Industry
UHT – 7 Sh – 346.43 Basis – 0 Total Div (4.44 coming Mid-March) – Small Cap – Financial: Industry
Total – 19.18 Sh – 671.30 – 6.58 Total Div
Total “Eaten” Commission – 14.85 – This is not counted in Basis, I choose to “eat” the commission – pay it once and forget about it, never to be seen again.  Not to be included in the portfolio at all.

Disclaimer: I am not a professional and am not to be taken as such.

A New Buy

After researching several articles and sources of high dividend yield stocks, I decided to make a recent purchase to add to my portfolio.  AT&T was my decision for my second investment (Ford was first).  It has a great return of 5.56%, and it’s a “Champion” which means it’s been handing out steady dividends for many, many years.  I see AT&T as a solid company and I don’t think they are going anywhere for a long time.  I was able to purchase 7 shares at 33.81.  T’s 52 week range is 31.74 – 37.48, so I acquired it at a fair price.  T has shown positive gain over the years, and has remained fairly steady over the past 5 years.  I am comfortable with this purchase, and am looking forward to seeing some dividend returns to be DRIPped into this stock!  I actually will be receiving my first dividend on Feb 2nd already, as they announced the ex-div date as next Wednesday!

Stock Order:
Stock: AT&T (T)
Quantity: 7
Price: 33.81
Cost Basis: 236.67
Commission: 4.95
Total Cost: 241.62
52 Week: 31.74 – 37.48
P/E: 10.37
Dividend/Yield: $.47 / 5.56%