Scottrade FRIP Purchases – April 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 $550.00. This quarter, my purchases ended up being higher at $677.08. The following are the FRIP purchases I made on 4/4/2016.

• COP – 4 shares @ 39.3875 ($157.55)
• F – 11 shares @ 12.785 ($140.64)
• KMI – 10 shares@17.1577 ($171.58)
• BP – 7 shares@29.615 ($207.31)

As earlier, I added positions to my existing stocks.

• Added to my COP position to average down from the big paper loss that is out there.
• Also added to my F position after the stock dropped back 12s. This is a very risky/speculative play due to the cyclical nature of the auto industry.
• Continued to add to my KMI position after last quarter’s FRIP purchases. Using these small purchases to average down.
• Also continued to add to my BP position after last quarter’s FRIP purchases. Like rest of the energy related stocks, the dividend is a risky play and can be cut anytime.

I invested total of $677.08 for the 4 purchases. Since these were FRIP purchases, there was no commission. These purchases add $32.40 to my annual projected dividends. This results in a yield of 4.78%. 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 $3,323.25.

Disclosure: Long on all stocks mentioned above