The most important and also the most exciting part of building a solid dividend growth portfolio is to consistently add new positions to the portfolio, or to reinforce existing positions.
Every time I am adding a new position in my dividend growth portfolio, I am posting this short report. Inside this report, you will find what I actually bought, an overview of the financials of the investment, and finally what this new purchase added to my annual investment income.
These reports are here to show you how I reason before making an investment, but also to give you the motivation to do the same and start building your online empire.
Today, I added 13 shares of Boeing to my portfolio, at $117.92 per share.
Boeing is a multinational corporation, mainly known for manufacturing & selling commercial aircrafts. They are also active in the aerospace sector, for example by manufacturing satellites.
The company was founded in 1916, and is still growing today with nearly $100 billion in sales in 2015. I especially like the fact that they are very active in the aerospace field, which is definitely preparing the company to do even better in the future.
The current valuation of the stock is at $117.92 with a P/E ratio around 24.18 according to several estimates. This is a bit above what I usually pay (I like P/E ratios below 20), but I really wanted to add this excellent company to my portfolio.
The current dividend, which is distributed quarterly, is at $1.09. This makes the stock yield at 3.31%. I like to buy dividend paying stocks that have a yield of at least 3%, so I was satisfied with the yield of my purchase.
The stock also has a solid dividend history, with an excellent 5 years dividend growth of 21.01%, which is quite good for a dividend paying stock. They also have a payout ratio of 78.56%, which leaves some margin for the company to grow the dividend in the future. They also have been growing their dividend for the past 31 years, which is a really good indicator for the future as well.
This purchase will add $56.68 to my yearly investment income, based on the current dividend distribution. Thanks for reading this purchase report, and if you have any comment please leave it below!