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May 20 2017

My Latest Buys: WDR, TIXC

stock_buy
This week I made two stock buys. First, I bought 100 more shares of Waddell & Reed Financial (NYSE:WDR) at $16.9265 per share, bringing my total number of WDR shares to 300.

My next buy is quite different than my usual stock aquisitions. I bought 300 shares of Tix Corp. (OTCMKTS:TIXC) at $0.89 per share (penny stocks! Yikes!). With its quarterly dividend of 5.5 cents per share, TIXC has a “Holy S**t!” yield of 24.7%!!! Dividend investors reading this are probably rolling their eyes and questioning my sanity, exclaiming “Are you out of your mind?? That kind of yield is unsustainable!!” And they would be right. Yes, such an insanely high yield will inevitably be cut, and it will probably happen with next quarter’s dividend distribution. But unlike my usual dividend stocks that I buy and keep just for the dividend, my TIXC buy is purely a capital gains play with the dividend only being the side show and not the main attraction. The 52-week high for TIXC is $2.33 and if the share price ever reaches $2.00 or more, then I will sell.

These two stock buys will add $20.83 to my projected average monthly dividend income, which puts me a little closer to my 2017 goal of a projected annual dividend income of $10,000.00 per year (or $833.33 per month).

Finally, just a quick side note that HQL announced their upcoming dividend distribution, raising it from 36 cents per share to 41 cents. I always avoid stocks with unstable dividends, but HQL is the one oddball in my portfolio with erratic dividends. While the increased dividend is nice, I’m sure that HQL’s next dividend distribution will be anything but 41 cents.

Image Credits: PublicDomainPictures (shopper, money), (pixabay.com); NYSE logo © New York Stock Exchange

2 comments

  1. FerdiS

    Interesting acquisitions and I hope these work out well for you!

    For me, I’m less risk tolerant and prefer to invest in dividend growth stocks that are a bit safer.

    1. Dividend Quest

      Thanks for visiting FerdiS! I hope these stock buys work out too! Dividend growth stocks are something I would like to include in my portfolio, if for no other reason than to mitigate the damage from dividend cuts my more riskier stocks experience.

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