I bought some Coca-Cola (KO) stock on Tuesday. I had a buy stop limit order on it so if it kept going down, I could buy cheaper and if it went up 2% my order would trigger. It triggered.
Why did I buy Coca-Cola?
– It’s a Dividend Aristocrat
– It’s near it’s 52 week low of $41.90. Looks like I bought it lower than 52 week low at $41.5157.
– KO’s current dividend yield of 3.34% is almost .77% higher than it’s 5 year average yield of 2.57%. A better way to look at it is (3.34-2.57)/2.57 = 29.96% higher yield than 5 year average.
– It’s due for a dividend raise on the next dividend declaration day. That will make the dividend yield for me every higher.
– It’s a well run company with one of the best known brands in the world.
The biggest reason I bought this stock:
It’s on sale. Attention Kmart shoppers, the blue light is on!
The KO purchase will add $644 of annual dividend income for my family. And we should see a dividend raise announced around 2/18/2017 since KO is a Dividend Aristocrat.
Below is the only chart I looked at when making the purchase decision. All the numbers I mention above are there.
Thanks for stopping by and hope the post has been helpful.