Bi-annual buy-a-thon

It’s that time of the year again, folks.

If you’ve been following my blog for a bit you’re probably aware that I only initiate new positions or add to existing ones twice a year. I do this for two reasons.

First, my wife and I are both in school right now, so we don’t really have enough income to purchase stock every month. Instead, we contribute $125 to our brokerage firm ever month, then buy stock in June and December. This allows us to initiate new positions that are large enough to create increases in our forward dividend income that are significant, given our income.

Second, because we only invest $125 a month, we want to avoid brokerage fees. We currently pay $8.95 in fees for each trade we place. Ideally, we would have a brokerage account with a firm that has lower fees, but our brokerage account is through the same bank as our car insurance. The discount we receive for having both car insurance and a brokerage account is significant enough that paying the added fees comes out to far less than we save through bundling.

That said, we would still rather limit our trades. Paying $8.95 a month and buying stock once a month would be a little more than 7% of our yearly investment paid in fees. Our current system allows us to reduce that to just over 1% of our yearly investment lost to fees.

Our June Stock Purchases

So, what did I buy this month?

In the past, I’ve only initiated new positions each time I’ve purchased stock.


Because I get too excited looking at new companies I can buy, and I can lie and say I keep buying new companies because I’m trying to diversify our portfolio.

This time, I’ve forced myself to do the unthinkable. Instead of starting a position in a new company, I’ve built our positions in three companies:

AG Mortgage Investment Trust – Bought 13 shares

PennantPark Investment Corporation – Bought 32 shares

Annaly Capital Management – Bought 17 shares

The reason I bought additional shares in each of these companies and the reason I bought the number of shares that I did is that I’m trying to push our yearly dividends from each of them over $100. We also added nearly $70 in forward dividend income!

I view this as a way to protect our dividend income since it means that if any one of our companies cuts a dividend we’ll be less impacted overall.

With these three companies over $100 a year, we have 3 out of 7 of the companies currently in our portfolio over the mark. My plan for right now is to start a new position in December and then add to our existing positions in June until we’re over $100 a year in dividends for each of them.

In fairness, the more likely thing is that I’ll be graduated and working full time before that happens, but it’s the plan for right now.

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