Otherwise, I added to my Roth account today. I have been mostly neglecting my Roth account due to our former single income set up, and because my focus is now heavily on the taxable income positions that I want to build. Still today is my Roth's day.
Today, I added to a new position by purchasing shares of Broadcom Inc (AVGO) in my Roth account. I bought 5 shares, with a total cost of $1,091.04 ($216.82 / share, includes commission). The current yield is 2.29%. For a detailed summary of their history, etc. please visit: AVGO's Seeking Alpha Profile.
AVGO is a major producer of semiconductors and other technological components; I will borrow the Seeking Alpha description:
"Broadcom, Inc., is a holding company, which engages in the design, development and supply of analog and digital semiconductor connectivity solutions. It serves four primary end markets: wired infrastructure, wireless communications, enterprise storage and industrial & other. Its products include data center networking, home connectivity, broadband access, telecommunications equipment, smartphones and base stations, data center servers and storage, factory automation, power generation and alternative energy systems, and displays. In April, 2018, Broadcom redomiciled from Singapore to the United States. The company was founded in 1961 and is headquartered in San Jose, CA. "
AVGO has been growing its dividend at a massive clip for the last 8 years. In addition, the payout ratio is super low and the stock is clearly undervalued at this point. However, what is most exciting is that they are a direct supplier to something that will definitely only become more important over time - technology. I already own MSFT and AAPL, but this perspective is one of the physical needs that drive technology production and efforts. Sure having a smartphone is a necessity for life, but it is clear that people find it harder and harder to separate themselves from technology. I try to get away from it all the time, but it is nearly impossible to avoid it - even when you work hard to do that. So in the meantime AVGO and similar companies will make the chips and materials that feed the tech beast.
This purchase will add $35 to my forward 12 month dividend income.
AVGO is a major producer of semiconductors and other technological components; I will borrow the Seeking Alpha description:
"Broadcom, Inc., is a holding company, which engages in the design, development and supply of analog and digital semiconductor connectivity solutions. It serves four primary end markets: wired infrastructure, wireless communications, enterprise storage and industrial & other. Its products include data center networking, home connectivity, broadband access, telecommunications equipment, smartphones and base stations, data center servers and storage, factory automation, power generation and alternative energy systems, and displays. In April, 2018, Broadcom redomiciled from Singapore to the United States. The company was founded in 1961 and is headquartered in San Jose, CA. "
AVGO has been growing its dividend at a massive clip for the last 8 years. In addition, the payout ratio is super low and the stock is clearly undervalued at this point. However, what is most exciting is that they are a direct supplier to something that will definitely only become more important over time - technology. I already own MSFT and AAPL, but this perspective is one of the physical needs that drive technology production and efforts. Sure having a smartphone is a necessity for life, but it is clear that people find it harder and harder to separate themselves from technology. I try to get away from it all the time, but it is nearly impossible to avoid it - even when you work hard to do that. So in the meantime AVGO and similar companies will make the chips and materials that feed the tech beast.
This purchase will add $35 to my forward 12 month dividend income.
I will update my portfolio page at the end of the month.
What do you think of AVGO?
- Gremlin
- Long AVGO, AAPL, MSFT
Interesting pick up. I'm very familiar with this company and what they do but do not really see it among the many DGI portfolios I follow online. Maybe I should take a look under the "financial hood" a bit :) Nice tech diversification for you. Thanks for sharing.
ReplyDeleteKeith,
DeleteThanks for the comment as always. This is one that recently popped onto my radar as well, so I read up on them. I was choosing between them and a few other names for my Roth and I went here because I have no tech in my Roth and I see the capital and dividend gains as being massive. Since its not my main fund, the chips need to work a little harder!
- Gremlin
Interesting purchase. Nice mention in Barron's this last weekend. I have Texas Instruments (TXN) but AVGO looks very similar in their dividend growth.
ReplyDelete