Scottrade FRIP Purchases – January 2016

I have been making Scottrade FRIP purchases at the beginning of each quarter for a few quarters now. My last quarter purchases was little over $660.00. This quarter, my purchases ended up being lower at $554.40. The following are the FRIP purchases I made on 1/4/2016.

  • PG – 2 shares@77.97 ($155.94)
  • KMI – 12 shares@15.209 ($182.51)
  • BP – 7 shares@30.85 ($215.95)

As earlier, I added positions to my existing stocks.

  • My PG position continues to be relatively small. Though the price increased by about 10% compared to my previous FRIP purchase in October 2015, the stock is still a good buy. Also, I am just adding couple of shares.
  • This is my first purchase after the initial KMI position. The price has since dropped by over 60% and the dividend has been cut by 75%. The stock is still a risky play, but chose to do it since the purchase amount is very small (under $200) and it reduces my average price by about 10%. Still a long way off and don’t think the price is going to rebound to my average price anytime soon if at all. But using this timeline to acquire shares at these low levels and see where it goes.
  • I also added to my BP position after a while. Last quarter’s FRIP purchases had me adding shares in XOM, but this time I wanted to add to BP. Again, like KMI and rest of the energy related stocks, the dividend is a risky play and can be cut anytime. But BP, with its downstream refining business provides some cushion and cash flow.

I invested total of $554.40 for the 3 purchases. Since these were FRIP purchases, there was no commission. These purchases add $28.10 to my annual projected dividends. This results in a yield of 5.06%. I plan to continue my quarterly FRIP purchases, but will keep an eye on my FRIP balance and purchase earlier if something comes up.

These purchases increase my total annual projected dividends to $3,303.95.

Disclosure: Long on all stocks mentioned above

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