Completion of KO Position

KO Logo

KO Logo

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.

My earlier Coke trades are documented first here, and second here.

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!

Trading Requirement – Merrill Edge SafePass®

I finally decided to purchase a chunk of Nestlé S.A. ADR today (NSRGY), I signed into my brokerage to place the order and ran into a little bit of a roadblock.  To purchase Nestle in my brokerage account there are some additional security requirements.

Due to Nestle being a Pink Sheet ADR, my ML self-directed account prompted me to enroll in their SafePass program – the SafePass® card is required in order to trade Over-The-Counter and Pink Sheet securities.  This card is a physical card that produces a code authorizing a trade.

Merrill apparently considers Nestle to be a high risk security.  I do understand the thinking, as since NSRGY is not officially US listed they could in theory have all sorts of funny stuff going on in their accounting.  I am not at all worried however, as it doesn’t get much more blue chip than Nestlé!

I went ahead and enrolled for a SafePass®, now I have to wait for it to arrive before I can authorize the purchase of NSRGY. Hopefully the price will not go up in the interim!

UPDATE: The Safepass device arrived from Merrill roughly a week after ordering.  It is a small credit card sized/shaped gadget that has little touch sensitive panel you hold down to generate a 6 digit number in a small display. The envelope included instructions for activating the device – which walks you to the appropriate screen on your Merrill Edge account and has you generate and enter two random numbers using the card.

I have placed my Safepass with my sock drawered credit cards – I used it once to place my NSRGY limit order – as I won’t need to use it often but want to be sure I can find it when needed!


August 2013 Dividend Earnings

August offered slim pickings for my dividend investments.  Only one of my holdings paid out this month – the agricultural and construction equipment behemoth John Deere.

HoldingDividend/Shr# SharesDividend TotalReinvestedNew SharesAccount
DE$0.5130$15.30YES0.184ROTH IRA

While best known my most people for the deep green of their lawn and farm equipment, my chief interest in the firm is the green of the first cash dividend I received from them this month!  Due to automatic dividend reinvestment in my Merrill Edge account, this became an extra 1/6th of a share.

There is not much to say about a mere $15 income for the month – better than nothing perhaps?  I really hope some of the future purchases I build will have dividend payouts in August just to eliminate future recurrences of this dismal result.