Following the sale of BAX and BXLT, I was looking for an opportunity to deploy that capital as soon as possible. I ended up buying Schwab U.S. Dividend Equity ETF (SCHD). I already hold position in SCHD and mentioned my reasoning here. I decided to add to the position since the ETF is very close to my investment goals. Though I have few ETFs in my portfolio, they form a small percentage of my overall portfolio. In fact, I haven’t purchased an ETF in a long time.
My previous purchase of SCHD was in January 2014 at a price of $35.20. Of course, this ETF being a dividend ETF doesn’t have much capital appreciation, but the dividends have been growing steadily over the last couple of years I have held this ETF.
I purchased 53 shares at $36.40 on 2/8/2016. With commission, the total cost comes to $1,936.20. With a quarterly dividend of roughly $0.2775/share, the yield comes to 3.05% and this purchase adds $58.83 to my forward annual dividends.
With recent dividend cuts from COP and KMI as well as the sale of BAX and BXLT, this projected dividend increase was nice.
This purchase increases my total annual projected dividends to $3,291.24.
The portfolio page will be updated soon to reflect this purchase.