After failing to purchase NSRGY earlier today, I instead used a portion of my funds to complete my position in Coca Cola. I needed to purchase a little over a thousand dollars’ worth to achieve my desired cost basis of $2500.
While KO was a little cheaper earlier in the week, I am content with my price of $38.62 for 37 additional shares. This gave me a very slight ‘averaging down’ in the price per share of my whole position – bringing it down to $39.52. Overall I believe this was a reasonable price to buy, but not a huge discount to fair value. I am confident that their business will continue to produce solid returns, and my position has a solid chance of being very lucrative in the long term.
With this soda company purchase complete, I will put my thoughts of buying to buy PEP (Pepsi) or DPS (Dr Pepper) on the back burner. While they appear reasonably valued, I would like to diversify my portfolio into some other sectors with my next few purchases.
Overall position is 64 shares of KO at $39.52, for a cost basis of 2529.28. Overall dividend yield at time of completion of position is 2.83%. Dividend Reinvestment enabled. Initial dividend income $71.68 annually.
UPDATE – added to KO position!