On September 11, 2019, I bought 50 shares of People's United Financial (PBCT ) at $15.72 per share. With its quarterly dividend of 0.1775 cents per share, this latest buy has a dividend yield of 4.51% and will pay us $8.87 every quarter (before tax). Awesome!
I bought this share for our little baby girl's stock portfolio. Our almost 14-month-old baby girl has a dividend stock portfolio generating already $59.57/mo. I'm looking to grow this portfolio towards $70 by the end of 2019. The latest buy has made a nice little boost of $2.51 (after tax) to our monthly dividend income.
PBCT is already the tenth stock in our child investment portfolio.
I come up with a plan to build a high-yield $10,000 child investment portfolio by the time our baby girl will turn 2. (July 2020). Right now we are looking at $80-$100 monthly dividends by the time she will turn 2.
Our child portfolio now has as TTM at $714.84, giving daily $1.96 and hourly 0.08$. Literally can't wait to see what it will grow by the time our baby girl will become a young lady.
I like PBCT for many reasons - it is the so-called dividend aristocrat stock, the company has raised its dividend for the last 12 years.
PBCT has a reasonably good dividend (above 4%), despite that currently most of our dividend stocks are with much higher ~ 10% dividend yield, I want to have some peace of mind having a blue-chip in our stock portfolio.
Last but not least PBCT is a good stock to sell options (puts and calls).
Just shortly I bought 50 shares of PBCT, I sold November 15, 2019 put with strike price $15 and get $35 premium. In case I will get assigned 100 shares of PBCT until November 15 - I will start selling covered calls.
By now PBCT takes 4.25% from our US stock portfolio and will contribute to dividend income in the following months: February, May, August and November. As these are the lowest income months it feels great having PBCT
For the rest of the year, I'm looking to take $7.53 (after tax) from this buy, which is about 0.36% from my $2,045 goal for 2019.
In total PBCT now contributes about $30.12 yearly to the dividend income portfolio.
Together with T we now have 2 dividend aristocrats in our US stock portfolio.
People's United Financial, Inc. is a bank holding company that owns People's United Bank. The bank operates 403 branches in Connecticut, southeastern New York State, Massachusetts, Vermont, Maine, and New Hampshire.