Today I bought shares of Vodafone Group (VOD), a multinational telecommunications company headquartered in the United Kingdom.
I wrote about some of the reasons why I like VOD when I initiated a small position in the stock in March. At that time I indicated that I was planning to buy more shares pending the availability of cash and a price that remained attractive. Today's dip of nearly 2% in the stock's price provided me with the opportunity for which I had been waiting, enabling me to increase my position in VOD before the ex-dividend date of June 6 for the final dividend payment in 2012 (VOD pays semi-annual dividends).
I bought 50 shares of VOD at the price of $26.87 per share, which happens to be the same price at which I initiated my position. Consequently, I now have a total of 80 shares at the price of $26.87 per share, giving me a 5.40% yield on cost. At the current dividend rate, excluding any special dividend, I can expect to receive $116.84 in annual dividend income, which is $73.03 more than before. I am now satisfied with the size of my position in VOD, so I do not have any additional purchases of the stock planned at this time.
That said, I also have no other purchases planned for May because I have depleted the cash in my brokerage account. Thus, I will simply be watching the market from the sidelines for the next 2-3 weeks until I have more capital to invest from monthly savings.