New Buy - Dividend Growth Investing

New Buy - Dividend Growth Investing

Hello everyone,

I wanted to post an update of a purchase I made this week.  I'll provide more details later on, as I have a busy weekend planned.  Also, I have some other small purchases to detail in my weekly summary that I'll hopefully post in the next day or so.  

This week I decided to pull the trigger on BHP Billiton PLC (BBL), as it was hitting 52 week lows.  As many fellow DGI bloggers have pointed out, finding value is difficult but not impossible in this bull market.  In my opinion, BBL is very attratively valued with the current weakness in energy and the de-merger issues.  BBL has been on my watchlist and I couldn't resist buying when I seen it hitting the lows.  

"BHP Billiton PLC was incorporated on May 9, 1996. It is engaged in minerals exploration, development, production and processing, and oil and gas exploration, development and production. Its operating segments are Petroleum and Potash, Copper, Iron Ore, Coal, & Aluminium, Manganese and Nickel. The Company has operations in Australia, United Kingdom, China, Japan, North America, South America, and Southern Africa." Summary provided by USAA Brokerage.

Purchase information:

BBL:  Bought 11 shares at a purchase price of $50.13 per share.  

This purchase adds $27.28 in annual forward dividend income.  At the purchase price, the Yield on Cost (YOC) was an impressive 4.94%.  Sadly, I didn't have much capital saved, so I only bought 11 shares.  With some freebie trades, I don't mind making smaller purchases, especially at great deals.  The very next day, BBL was up substantially.  I'm hoping it stays down though, so I can double my position soon.  

I'll update this post soon with additional details.  Thanks for stopping by! 

Special Agent Dividend