I have finished contributing to my Roth IRA for 2015 and invested the money into securities. I prefer to be fully invested in my ROTH and make my purchases as quickly as possible. I can’t say why I prefer to do it this way, but I just feel like it I guess. The contributions for this account were accumulated last year, with a little arriving in my first few paychecks of 2015.
Criteria for this year
I wanted to avoid adding to my oil positions at this time, due to my Black Friday purchase. Prior to my investment, my ROTH was paying me a little under 2k in dividends. I choose to reinvest these automatically because I would rather not wait 6 months between investments, I may reconsider this strategy once I am collecting around 1k per quarter. The following is the criteria I wanted:
- High yields or high dividend growth.
- Since I am reinvesting I wanted to make the most out of compounding
- At least one REIT purchase
- I want a little more of my portfolio in REITs after I sold my ARCP a few weeks ago.
- As Blue Chip as possible
- I am fairly protective of the cash in my ROTH. This vehicle grows and will be withdrawn tax free, so I want to preserve it as much as possible
- Add under represented sectors
For an additional income of about 278.
I chose a combination of high growth rate dividend payers (PM, KMI, OHI) and higher yield but slow (T,VZ). I think this will give me a solid income base over the next several years.
I did end up adding to KMI because I think that the company has great prospects going forward (in spite of oil) and wanted to add a few additional shares. I gues
OHI has been doing very well as of late and they are on my short list of REITs that I feel comfortable with. OHI works in the healthcare segment, which adds tangentially to the healthcare portion of my portfolio (JNJ is a little pricey, but BAX may be worth buying).
PM is my largest position both in dollars and in dividends, but I wanted to take the opportunity to lower my cost basis.
VZ,T are more like utilities to me and they were added to increase my exposure to the telecommunication industry. They both have low dividend growth rates, but because they are being dripped the high yield +dividend growth will increase the income from each by 7-8% per year.
This increased by 12-month forward dividends to ~5040.
Disclaimer: Long PM, KMI, OHI, T, VZ, BAX, JNJ