Tuesday, September 18, 2012

Dividend Increase

For the first time since we bought our initial set of stocks back in July, one of our holdings announced a dividend increase.  MSFT will pay 3 cents more per share in December.  This brings our yield on cost to about 3.2% (up from about 2.8%).  Certainly not a huge difference, but nice to see the yield over 3%.  Hopefully some other dividend increases are in our future.

Speaking of MSFT, we received its September dividend last week, along with AMAT, PBI, and MCD.   WM is scheduled to pay on Friday.

I also opened a new position in EXC.  This is an electricity utility which is trading near its 52-week low.  Though the company doesn't have a track record of regular dividend increases, its current yield is just under 6%.  This certainly beats the paltry yield of the money market fund in my brokerage account.  I'm not looking for huge capital appreciation from this one, just a steady regular flow of dividends over time.  It should serve as a more stable, conservative anchor to help balance out some of the high-yielders in the portfolio.

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