Roth IRA Purchases for 2015

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  This vehicle grows and will be withdrawn tax free, so I want to preserve it as much as possible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

Purchase

Company Shares
PM 12
KMI 25
OHI 30
T 30
VZ 27

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

Bookmark the permalink.

6 Responses to Roth IRA Purchases for 2015

  1. ILG, great purchases here. I own PM, KMI, and OHI and wouldn’t mind picking up some VZ and T. I missed snagging them earlier when they dipped to 52-week lows, but should hopefully find a place for them sooner rather than later.

    Congrats on crossing the $5k mark in forward 12-month dividends as well!
    writing2reality recently posted…Grabbing the Moon AND the Stars, My 2015 GoalsMy Profile

    • ILG says:

      Thanks W2R!

      Yeah, this post had been a couple weeks in the making, I ended up buying these near the beginning of the year. I lucked out with OHI, the REITs have been on a tear this year (DLR,O,OHI up 9+ so far).

      I like VZ and T for their relative bondlikeness and couldn’t decide which one, so I hought both =)

      Take care!

  2. DivHut says:

    That was fast. I have been fully funding my ROTH for several years now but usually don;t finish investing till about the last quarter of the year. In all, your picks are pretty solid and high yield which should be nice for your ROTH dividend income in 2015. There are many great companies I would like to invest in but PEs and yield seems a bit too high (PE) and low (yield) for my liking. Names like GWW, BDX, BCR and VFC come to mind. Thanks for sharing your recent buys.
    DivHut recently posted…Recent Stock Purchase – January 2015My Profile

    • ILG says:

      Hi DivHut!

      I usually start saving around October for my Roth contributions the next year. I wouldn’t have made it this year but I sold ARCP and worked more overtime in December than I wanted to :/

      I agree with you on the PEs and yields. I have just been adding to existing positions because I know them the best. Hopefully, I will spend some time looking at a few companies I want in February but are out of reach at the moment.

      Thanks for stopping by!

  3. ILG,

    Looks like some solid purchases there. You’ve got a great yield there and you’re spread out across a few different sectors.

    OHI has been a blockbuster for us, hasn’t it? The only downside is that it’s hard to buy more here.

    Awesome job funding the Roth so early in the year. You’re all set!!

    Best regards.
    Dividend Mantra recently posted…Recent BuyMy Profile

    • ILG says:

      Thanks DM!

      REITs are moving along pretty aggressively so far this year! Wouldn’t have minded a slower uptick.

      I think they will be good purchases and one goal down already!

      Thanks for stopping by!