Latest Stock Buys – How To Own The Internet
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.
Now, what companies have I invested in? Check out my portfolio and income reports to figure out which stocks I’m into and how much I make from them.
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?
Wallet Squirrel is a personal finance blog by best friends Andrew & Adam on how money works, building side-hustles, and the benefits of cleverly investing the profits. Featured on MSN Money, AOL Finance, and more!
I really like how you have a small position but want to focus on stocks that you understand well. I have been watching Verizon as I am trying to start a dividend portfolio once I graduate from school. I rather have a smaller portfolio, that is diversified, than a large portfolio of 30 stocks I do not understand.
Thanks Millenial Budget!
I definitely don’t have thousands of dollars each month to throw at their portfolios so I just take whatever extra money I can muster (no more fast food for me) and apply it to my dividend portfolio. Since I have $0 trade fees, I can purchase a few stocks at a time and not worry about fees.
Glad we agree that having a small portfolio that you understand is way better. Otherwise, I’d just invest in a mutual fund. Albeit a dividend mutual fund =)
Good luck with your Accounting specialized MBA (yea I stalked your website)!
Thanks for checking out my website haha. How do you have $0 trade fees? Are you using Robin Hood or some other platform like that?
Also the benefit of what you are doing is dollar cost averaging. Not sure if that was your goal but it is supposedly better for long-term investing. Before you know it your dividend income will be substantial enough to give you thousands of dollars to invest 😉
Yea I just wrote about my experience with Robinhood last week (hyperlink). I used it for the last 6 months and love it. I would not be buying 4 shares at a time paying $7 trade fees Ha!
I’d love to be at that stage investing thousands of dollars each month. I’ll get there though, I’m finding the way to get there is through making additional money ontop of dividned investing. I should have a couple more income streams coming up soon in my future income reports. 😉
After I sent my reply I started looking at your portfolio and other post and began to laugh as I answered all my questions haha. Really enjoyed your in-depth Robin hood post. I am signed up with them but have no invested yet as I am college broke :'(. Hopefully soon.
To live off dividend income it will take years for the average person aka. you, me, and 99% of people. Keep pushing through and you will get it. Look forward to your upcoming articles.
Thanks Millennial Budget,
I have a few ideas on how to make extra cash so you can invest it in more stocks. Sign up for my email list (I don’t spam, I promise). I’d love to send you some ways that I’m making extra cash right now.
The spoiler alert is a nice and good start. It puts some perspective around things. I demonstrates a lot of enthusiasm to me.
It looks like you are doing some good research to invest in companies you understand. Keep investing!
I view Costco as a subscription based company. Something like 80% of revenue comes from annual memberships. And Costco just announced that membesrhip rates are increasing.
I usually hate when someone puts all the good information at the end of the article and I have to drag my way through all the fluff to actually get to the meat of the content. Glad you liked my approach!
I love it, I never thought of Costco as a subscription type company like Verizon and Comcast, but that totally makes sense! I’ve officially added it to my Watchlist.
You’re awesome!
WS,
I see you moving on up! Nice.
Great buy!
DM
Thanks Dividend Miracle!
Squirrel,
Nice job with your purchases, I’ve been looking at VZ a heck of a lot lately, especially since my brother works there – no strike news from him though, I should ask him how it is all going, however. Congrats and keep staying consistent! New or same companies – it’s all about how you feel comfortable!
-Lanny
Thanks Dividend Diplomats, like you know I like my subscription based companies. I picked up a bunch of shares lately at $52 and wish I had more money to pick them up now at $50.
Glad to hear he’s not being affected by the strike, but like all strikes they’ll end eventually and prices will rise back up. Thanks for visiting!
Look at you with all the great names. You made solid purchases for sure. Great job! I wish US-CDN currency was favorable. I will have to be patient until the time comes again!
Cheers!
BeSmartRich
Thanks BeSmartRich, it’s been a lot of fun and I’m really digging these stocks.