Portfolio Holding Pattern – Status as of November 2013

One reason I have made no new purchases of dividend stocks for my portfolio recently due to some unexpected expenses.  Between a brand new Air Conditioner and Furnace for my home, and catching up on some significant maintenance and repair work on my old Lexus, I had to payout roughly $10000.

Both these expenses were originally charged to my American Express Fidelity rewards card (that offers 2% cash back to my Fidelity brokerage account on all purchases).  This gave me in effect $200 towards future investments once I start making purchases again.

As for the $10000, I did a no fee balance transfer to my existing Pentagon Federal Credit Union card which periodically offers 4.9% for the life of balance.  As a compromise to avoid having the high balance on the card impact my credit I am in the process of paying $4000 of that additional debt, the other $6000 will remain on the card for now and be paid off slowly over time while incurring minimal interest expense.

I’m looking forward to redirecting my free cash flow to dividend yielding investments again next month, when I have completed paying off the 4000 dollars I mention.

As of today I have only funded my Fidelity ROTH for 2013 for $4500 (rather than $5500) as I’m not clear yet if my income will allow me to make the full contribution.  For now additional funding is funneled to my Taxable Brokerage account at Merrill Lynch.  Once I have completed my taxes early in 2014 I will determine if I can add the extra $1000 – or at least part of it – to my ROTH using the appropriate IRS worksheets.

Regardless of what the forms say, I will commence my 2014 ROTH contribution in January – adding at least a few thousand dollars to start with.  Overall this means that my Merrill Brokerage account will get any future contributions I make until December 31st, at which point activity will switch to Fidelity.

There is also a second reason for my lack of purchases of late.  My old Traditional IRA account still has a significant amount of cash equivalents that have yet to be deployed into dividend paying investments, I currently have GTC limit orders that would make use of a large chunk of this money if only prices of the targeted shares would drop low enough.

I have orders for roughly $2500 – my standard full position – of General Mills (GIS) at $40, Doctor Pepper Snapple (DPS) at $39.60, Proctor and Gamble (PG) at $66.35 and BP at $39.49.  While BP was getting close to triggering at one point, with the recent surge in the markets I don’t think any of these orders will fill anytime soon.

I guess this is the curse of the dividend investor purchasing for the long term.  When the market is bullish the stocks you want get too pricey!  For now I’ll keep renewing these orders (they are GTC but only for 30 days at a time).

 

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