What did I buy today?

As the stock market continues it's roller coaster ride brought to you by COVID 19 I continue to buy as much as I can with a preference towards stocks that pay dividends.  Today I decided to do a little bit more buying after the markets closed down yesterday.  So what did I buy today?

The first things I bought wasn't actually a stock it was an ETF.  What is an ETF you might ask?  An ETF is a Exchange-Traded Fund which is basically a basket of securities that are traded like a stock.  This means you can buy into the fund and not have to worry about the individual performance of specific stocks.

First Trade of the day:

I bought 8 shares of SPDR Portfolio S&P 500 High Dividend ETF(SPYD) at a cost of $25.68 each.  This ETF tracks an index of the 80 highest-yielding stocks from the S&P 500, so instead of having to buy into 80 different stocks I bought into a fund that contains 80 different high dividend yield stocks and when they payout dividends those dividends are divided among the share holders of the ETF. 

Why did I buy this?

SPYD is currently trading about 35% lower than it was 3 months ago before the crash when it was trading at almost $40 a share.  I see value in the current price if it was trading at almost $40 just three months ago, so if the price returns to pre-crash level then I get a 35% return on the money I invested via the value of the stock.  Then there is the dividend that will be paid out quarterly that becomes passive income that will more than likely be rolled right back into more stocks to help accelerate my portfolio growth as well as the passive income I get from dividends.

Second Trade of the day:

The second thing I bought was 7 shares of  ARC Document Solutions(ARC) at a cost of $0.67 each. 

Why did I buy this?

Basically the only reason I bought this was I had about $6 left from my deposit, so I took a flier based on a positive P/E ratio and the fact that it pays out a dividend.  This is another stock that has lost a lot of value over the last three months, losing 50% in value.  So again if it returns to pre-crash value then I double my money and collect dividends in the process.

Personally I would love to dump a lot more money into the market, but real life is not going to allow that so I have been adding what I can right now and will probably make a better habit of depositing into my brokerage account.  This is a long game and I would like to see how much passive dividend income I can build over that long run and if you are looking to get into the market and would like to pick up a free stock valued at between $2.50 and $250 then sign up for Robinhood and start building your investment portfolio today.

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