My November Stock Buys

I've been busy shopping in November, the only kind of shopping I like is when I get to buy high quality stocks at fair or near fair value. In this post, I will be sharing my November buy transactions along with reasons for buying these shares.

My This Year's Winners And Losers

We are almost at the end of the year, and I'm pretty much done buying stocks for the year. It is also a good time to look back and see how my this year's stock purchases have done so far.

I Did The Unthinkable

I bought shares in Tesla stock. It doesn't pay any dividend, nor does it has cash to pay dividends. It also doesn't have any decent fundamentals, such as earnings or even a good credit rating. You may be asking, have I gone nuts?

I can assure you, I'm fully aware of what I'm doing, even though it may seem like out of a character for a dividend growth investor to even look at a stock like TSLA, let alone buying it.

So what happened? How did I end up buying Tesla's stock?

It's Raining Dividends!

I don't mind rain, especially when it's my favorite type of rain "The Dividend Rain".

The dividend rainy season starts each quarter when most companies announce quarterly reports and dividend payouts. The dividend rain increases in intensity and volume as more and more companies, announces their dividends, with many increasing their dividend payments.

The season normally ends with one or two lightning bolts of a few big dividend increases and payments. In this post, I will show you what my dividend rain is made of.

Quick Update On T

Since my last blog post on T here, the stock has further declined a bit while I've been dollar cost averaging.

At this point, I've maxed out my T allocation with a bit overweight at 6.16% of Portfolio Value. I normally like to keep allocation of blue chip companies around 5%. So, T has been an exception for me.

I thought, it might be helpful for my readers who may still be contemplating on whether to buy or wait on purchasing T, if I share updated valuation charts:

My Dividend Paradise

In this blog post, I'm going to talk about my dividend paradise, which is built on high quality dividend paying stocks. I'll also shed some light on how I track and ensure high credit quality across all my stocks. Below is an illustration of my paradise with its foundation supported by dividend paying stocks.

AT&T: A Telecom Giant On Flash Sale (Part 2)

As of Friday's closing stock price, T is trading at about 23% discount to its fair value of $40 as determined by a P/E of 15 multiplied by its 2017 earnings estimates.

On the downside, historically T has never traded below a P/E of 11 since last recession. Therefore, the P/E of 11 becomes our worst case support for this stock and translates into a risk of additional 9% downside from Friday's stock price.