On my other blog, The Financial Blogger, I discussed why I am borrowing $10,000 to invest in such a volatile market. Since the market has gone crazy over the past 4 months, I’ve decided to accelerate my investing strategy and make a contribution to my retirement account right away (and I’ll be paying off the loan with my year-end bonus). So here are my 4 trades made on August 12th:
Adding more Coke –KO
You already know my opinion if you read my KO dividend stock analysis. After reviewing my asset allocation, I felt I needed a little bit more stable stocks. Adding more of a dividend aristocrat never hurt! I’ll sit on this trade for several years so I should be able to earn a decent dividend payout in the future. Dividend Yield: 2.78%
Going Techno with Intel – INTC
I will probably write a full analysis of Intel next week. In the meantime, I think that INTC is definitely undervalued considering its sales growth and potential over the next 5 years. With a lot of cash in its bank account and a dividend yield at 4%, I can’t miss my target with this one. Dividend yield: 4.04%
Adding more Telus – T
Here again, I bought some Telus not so long ago and I think it was the right move to add another high paying dividend stock with a strong balance sheet. Since the telecom market is pretty regulated and there a very few players in Canada, it is much easier to predict the future of this company. I definitely think that the future is bright! Dividend yield: 4.12%
Increasing my exposition to volatility with 5N Plus – VNP
Even though I’m building a dividend portfolio, I couldn’t help it to add more of VNP! This stock is definitely more risky and will have its share of volatility. However, I am confident that it will either surge or be bought by a bigger company in the upcoming years. This is my “bet” in a more stable and safer portfolio. Dividend yield: none!
Final Thoughts on my latest trades
When the $10k got deposited in my investment account, I felt like a kid on Christmas morning. And that was quite dangerous. Buying companies when you are hyper is never a good idea. At first, I wanted to add more National Bank (NA) and increase my position in Chevron (CVX). This is when I decided I needed a break in my trading to take the night off and think about it. The next morning, I realized that even if these trades still seemed good (and both NA and CVX went back up), it was not in line with my asset allocation. I was adding more financial and energy to my portfolio while I was already overweight in both sectors. Since I am periodically adding money in my National Bank stocks and I already have 2 oil related stocks, I thought it was safer to go with KO, T and INTC.
The only risk I took with that additional 10K was to drop more into VNP. On the other hand, I went from a much riskier portfolio back in 2010. So 1 stock at risk is not too bad, don’t you think?
Have you made any moves recently? What is your best pick from the recent drop?Google+