Portfolio Shifts – XOM, KO, VIG and SHPG

I’ve been away for a little bit with some travel for work and with life events happening around me.  Entering a busy period of travel coming up due to some redesigning of the way we handle our operations at work so I get to beef up the travel points in the near future.  I made some changes to my portfolio today and I think I’ll be making more as time goes on in the near future.

Today I sold SHPG (Shire plc) which was a drug firm I inherited after Baxter spun off a portion of their company and it was scooped up by Shire.  I only had 15 share, but selling them for $175.9947 (love the hundredths of a penny I got there), gave me $2,632.91 in free capital in my rollover IRA.  I coupled this with the dividends that I had in the account built up and added to my VIG position.  VIG is Vanguard’s dividend appreciation index, meaning it is involved in dividend growth stocks and I was able to add 86 additional shares at a cost of $91.4047 per share.

VIG currently yields 2.00% and while it is near all time highs, it’s made up of a basket of stocks across all industries so it also provides a blanket of safety in the uncharted market highs we are in.  The top ten holdings include Microsoft, Johnson and Johnson, Pepsico, 3M Co, and Union Pacific to give an idea of the breadth of industries in the basket.  It also is a typical Vanguard fund as the expense ratio is only 0.09% so I am comfortable with the risk reward given that I expect that this will end up DRIPping for a couple more decades.   Overall I now own 292.37 shares of VIG so I expect I will be eclipsing 300 shares quite soon.  This adds $158.24 a year to my snowball towards early retirement.

In my Roth IRA I also decided to deploy capital and purchased 100 share of Coca Cola (KO) for$43.029.  Coke is a brand that is arguably one of the most valuable on the planet.  In 2016 it was the third most valuable brand name in the world and will only continue to be a household name.  People love Coke and the stock has had a fantastic run over the last couple of decades.  It is also a dividend aristocrat, meaning it has increased its dividend every year for at least the last 25 years.  I consider Coke to be one of those hold it forever kind of stocks, and anyone who has a recipe hidden in a vault like this has to be doing something right.  This adds $148.00 to my dividend income annually going forward.

Finally in my investment account, the one that will let me get to experience financial freedom sooner rather than later, I purchased 100 shares of Exxon Mobile (Xom).  People still hate oil right now and there is still a glut in the pipeline so to speak.  Right now the stock is around its three year lows and it is another dividend aristocrat.  The company has been around for decades and has continued to raise its dividend even when oil was under $20 a barrel in the late 90s.  In fact they just increased their dividend another $0.08 this week showing that even with the challenging operational environment we are still seeing in the oil industry, they are still able to increase their dividend by 2.67%.  This position gives me another $308.00 in dividends going forward.

Overall I pulled the trigger on some stocks I’ve wanted for a long time and have been dovish about with the strength of the market, but I don’t think waiting on the sidelines forever will ultimately get me where I want to be in five years.  The income provided by these stocks adds $614.24 a year and will also increase as I will DRIP these stocks.  That’s a decent bit of capital deployed that will ultimately pay me back handsomely over the next few years.


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