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The Coca-Cola Company Message Board

axpkocop 199 posts  |  Last Activity: 1 hour 38 minutes ago Member since: Aug 24, 2008
  • Reply to

    Grandma Buys More MO @ $35.53

    by axpkocop Jan 30, 2014 10:20 AM
    axpkocop axpkocop Jan 31, 2014 10:47 AM Flag

    Bought more PM @ 78 and MO @ 35 in IRA #1. Liquidated a BBB rated, six year bond with a yield of only 3.6% per year to fund the buys. The stocks I bought currently collectively yield over 5.2% and should both double their dividends in the next 7-9 years.

  • Purchase was made in IRA #1 and was financed through selling a 6 year bond that was priced to yield 3.6% with a BBB rating.

    In 7 years both these stocks could be paying me 10% via their dividends.

    More cash will be available when February options expire 2/22 so if they're lower I'll be adding more shares in just three weeks.

    How low will they go?

  • 24-19 Seattle

    Manning will throw 5 touchdown passes but two of them will be to the wrong team.

  • She raised her position by 74% using proceeds from a bond and CD sell yesterday.

    She went from earning an average of 2% to 5.4% via the MO dividend which could be as high as 6% next September.

    MO currently makes up 2.6% of her portfolio and is her 12 largest holding behind KO at 3%.

    PM is her largest holding at just over 15% of her net.

    All dividends are federally tax free for Grandma and interest income is taxed as ordinary income which is why she made this move.

  • Reply to

    Grandma Buys More MO @ $35.53

    by axpkocop Jan 30, 2014 10:20 AM
    axpkocop axpkocop Jan 30, 2014 10:23 AM Flag

    MO currently makes up 2.6% of her portfolio and is the 12 largest holding behind KO at 3%.

  • She upped her position by 74% using proceeds from a bond and CD sell.

    She went from earning an average of 2% to 5.4% via the MO dividend which could be as high as 6% next September.

  • Buying some MO under 36 for its dividend that yields over 5% and should double over the next 10 years.

  • axpkocop axpkocop Jan 30, 2014 9:20 AM Flag

    "In December 2013, Altrias Board of Directors (Board) declared a regular quarterly dividend of $0.48 per common share. The current annualized dividend rate is $1.92 per common share. As of January 24, 2014, Altrias annualized dividend yield was 5.1%.

    Altria expects to continue to return a large amount of cash to shareholders in the form of dividends by maintaining a dividend payout ratio target of approximately 80% of its adjusted diluted EPS. Future dividend payments remain subject to the discretion of the Board.

    During the fourth quarter of 2013, Altria repurchased approximately 6.8 million shares of its common stock at an average price of $37.29 for a total cost of approximately $252 million. During the full year, Altria repurchased 16.7 million shares at an average price of $36.05 for a total cost of approximately $600 million.

    Altria has approximately $457 million remaining in the current $1 billion program, which it expects to complete by the end of the third quarter of 2014. The timing of share repurchases depends upon marketplace conditions and other factors. The program remains subject to the discretion of the Board."

    MO trades at 14 times this year's earnings and is only growing at 7% per year, however they payout 75-80% of their earnings in the form of a dividend which in my opinion makes it a compelling value. Would you rather own a 5 year treasury yielding 1.7% or MO that yields 5.1% and will likely yield 10% in 10 years?

  • Moved some PM and MO shares from my IRA to my Roth IRA today.

    Haven't been given the execution prices yet but they should be around 79.2 for PM and 36.25 for MO.

    Note: this is what's called a partial conversion and the total proceeds becomes taxable income for 2014.

  • Current price-74.91 Down 0.17(0.23%)

  • Reply to

    Why so cheap ?

    by harus Jan 29, 2014 10:54 AM
    axpkocop axpkocop Jan 29, 2014 1:23 PM Flag

    Nice buy.

  • She's sold options against her position since she bought it years ago. She's still down 30-40% but it could have been much worse.

    Today she sold the June 12.5 call options and was paid .85/share. If called away she'll use the loss to offset gains already taken and the option premium will be used to pay her bills.

    She's looking for more dividend payers because in her case all dividends are federally tax free.

    EZPW was priced at about 11.55 up 2.2 when the order filled.

  • axpkocop by axpkocop Jan 29, 2014 12:04 PM Flag

    She sold a BANK OF AMERICA 5.15- DUE 03/15/16, that's currently priced at over 7% above par. This is the first time she's ever sold a CD.

    She'll invest the proceeds in equities because the dividend is federally tax free for her tax bracket.

  • Reply to

    Grandma Buys More PM @ $81.81 & her new top 10:

    by axpkocop Jan 10, 2014 12:35 PM
    axpkocop axpkocop Jan 29, 2014 11:09 AM Flag

    She bought more PM today at 80, increasing her position by 9.5% and making it her largest position again overtaking BRK.

    Current top 10: PM 15.3%, BRK 15%, LO 8.1%, JPM 5.4%, WFC 5.2%, IBM 4.9%, MSFT 4.6%, AIG 4.2%, USB 3.9% and COP 3.4%

    She's 16.5% bonds, 3% convertible preferreds, 1% cash and the balance in equities.

  • Reply to

    Any -one buying down here?

    by notsoobviousman1 Jan 29, 2014 9:44 AM
    axpkocop axpkocop Jan 29, 2014 10:51 AM Flag

    Bought more at 80 for Grandma and 79 in IRA #3.

    Grandma increased her position by 9.5% to 15.2% of the assets in this account making it her largest position and IRA #3 went up by 26% to 7% of the total account value making it the 2nd largest position behind BRKB which is 14.5%

  • Like you I occasionally sell puts against it and I have some very small positions in several IRAs. I plan to start adding shares if it drops under 475 what are your thoughts?

  • Reply to

    Even here, DO NOT SELL PUTS

    by biglefthook_00 Jan 28, 2014 8:10 AM
    axpkocop axpkocop Jan 28, 2014 9:35 AM Flag

    In my case I don't have any cash available until options expire 2/21/2014, so I hope it drops to 450 by late February. If it drops under 475 in the next few weeks I will buy a few shares however.

  • Reply to

    KO

    by mvmitchell99 Jan 26, 2014 1:04 PM
    axpkocop axpkocop Jan 27, 2014 11:59 AM Flag

    I would like to buy more MO if it trades at 36 or lower before the next dividend in March so I sold the Feb, 28, 36.5 put options for $.59/share today in IRA #3. If the shares are put to me the dividend yield should be over 5.5% by next September, but regardless what happens I'll keep the option premium which gives me a one month return of 1.6%

    KO should raise its dividend to $1.2 per share in March which gives you a yield of 3%, but in my opinion both KO and MO are going to grow at about the same rate so I'd rather be adding to my MO holdings over KO because it trades at a lower P/E and has a much higher dividend yield. In my opinion KO is a hold until it trades at 35 or another year goes by and it's still priced the same.

  • Reply to

    PM hits

    by notsoobviousman1 Jan 24, 2014 2:45 PM
    axpkocop axpkocop Jan 24, 2014 3:06 PM Flag

    It's almost at a 2 year low-it lasted traded lower in February of 2012.

    One positive is that their lower P/E helps their share repurchase program.

  • This was in IRA #2--increased position by about 11% to 8.55% of the assets in this account. PM at this price should give it a dividend yield of 5% by next September.

    Funded with cash on hand. More cash available in this account in March which will also go into PM if it continues to trade lower.

KO
40.72+0.13(+0.32%)Apr 17 4:00 PMEDT

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