Today I bought more shares of Exxon Mobil (XOM), the largest publicly traded oil and gas company in the world. Last week I published an article about XOM on Seeking Alpha that summarized some information gathered during my research.
I bought 15 shares of XOM at the price of $85.90 per share plus commission, giving me a 2.92% yield on cost. At the current dividend rate, I can expect to receive quarterly dividends of $9.45 from this purchase, which will add a total of $37.80 to my annual dividend income. My forward 12-month dividend total increases to $2,852. This purchase was made in my Roth IRA with new capital that maxed out my contribution for 2013. I now have a total of 30 shares of XOM (15 in my taxable account and 15 in my Roth IRA) and I will receive combined quarterly dividends of $18.90.
When my monthly paycheck hit my bank account yesterday, I determined how much money could be allocated toward investments and transferred $2,800 in new capital to my brokerage, of which $1,235 went into my Roth IRA and $1,565 went into my taxable account. When I looked at my watch list today, I saw that XOM was trading slightly lower than where I had purchased it last week, so I decided to go ahead and double my position. I am now satisfied with the overall size of my XOM position, which is about equal weight (in terms of both market value and dividends) with my CVX position.
I also noticed that another stock on my watch list had reached my target price, so I made a second purchase today, using the new capital in my taxable account. It is a new position in my portfolio and I plan to write an article about it soon for Seeking Alpha. In the meantime, can you guess what stock it is?
Update: A few readers guessed correctly that I started a position in WMT. I just finished submitting an article about WMT to Seeking Alpha that will hopefully be published in the next day or two.