Spoiler Alert: I now have a portfolio worth roughly $7,000 and with an average yield of 3.43%. It generates $21.04 a month. To give you some perspective, my portfolio generates enough monthly income to buy 70% of the items in Walmart, a nice dinner out or a subscription to both Netflix and Spotify ($10 each). This is cool, because I have literally done nothing to earn this. I just invested in companies I believe in and they pay me in dividends. Thank you companies.
Lately, I have bought positions in only a few companies. I often like to invest in companies that have a sustainable cash flow like REITs that they have 20-year leases where they can depend on those clients to continually pay monthly rent.
I also like Verizon (VZ) because those stores are always packed and if people are willing to wait 45 min to get a new phone, they will likely continue to stick with this company for their phone plans. In fact, this month I have bought 10 more shares of VZ at $51.10. They are having some issues with employee strikes so the stock price has decreased a lot, but I don’t see this lasting. In fact, I’ve been trying to pick up more shares. Verizon has large network and they can rely on their clients to continually pay for their phones and let’s face it, people like their phones.
Otherwise, I have been trying to average down on a number of my current positions like Wells Fargo (WFC), Procter Gamble (PG), Digital Realty Trust (DLR) and Iron Mountain Realty (IRM). Mainly because I believe in these companies and I’ve done the research to know that it’s a fair price. The biggest thing is I’ve had some extra cash lately and rather than looking for new positions, I’d rather just increase my positions in my current companies. Remember it’s not always about buying more companies, but rather having a portfolio of companies that you believe in. That can be as big or small as you’re comfortable with. Currently I’m comfortable at owning 14 companies.
Another fun company I’m excited to be with is Comcast Corporation (CMCSA) which I’ve written about before, but I have been thinking about increasing my position with them. I now own the internet! Comcast and Time warner have a nice monopoly on access to the internet and let’s face it, people want/need the internet. We keep talking about cloud networks, apps, and cat videos on YouTube and Comcast is one of the kings to the gates of the internet. When you move into a new apartment (which I’m doing soon) internet is likely the first thing you’ll buy. More likely before food to be honest. I know I will. I have ramen and protein shakes, now give me my internet!
I will note that I’ve increased my positions in both VZ and CMCSA because while Comcast is one of the leading internet providers, I see VZ as an up and comer taking a piece of this market. There may be a time where people get their internet all from their phone via satellites using Verizon’s network. I am not positive this is the way that the market will grow, but I see it as a possibility, and I’m comfortable increasing my positions.
Do you have any recommendations for companies with subscription-based business plans?
Have you recently bought any of these stocks?
What would you buy with an extra $20?