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New trade – Legacy Reserves Lp (LGCY)

Are you looking for a stock to buy? I am too! I had cash available in my TD account to invest and I wanted a stock which has a solid dividend growth and nice yield.

Since I started my portfolio accumulation unlike some of my fellow investors (for example Dividend Mantra, who started very early and is accumulating like crazy) quite late, I tend to be looking for a higher yield and higher growth investment. I need to catch up with my late start.

For that reason I am even willing taking in more risk in exchange of higher yield. I still plan on 20 years of intensive saving and investing, but if I am able to shorten this period I will go for it.

REITs and MLPs can offer such opportunity of higher yield. I thing that MLPs offer safer yield and growth than REITs. Although I still invest in REITs, I am fully invested in this industry, so I needed to look for an alternative, which MLPs could offer. This was the case for my last week search. What stock can offer higher yield, higher growth and be safer than REITs?

I believe that that stock was Legacy Reserves (LGCY). It offers nice 8.40% yield at 12.1% 5yr annual avg. growth. It has risen the dividend for 2 consecutive years and although it is not a dividend champion I think it is an acceptable trade for me.

Legacy Reserves, LP, is engaged in the acquisition and development of oil and natural gas properties mainly located in the Permian Basin, Mid-continent and Rocky Mountain regions of the United States.

Today I bought 36 shares of this stock which added $83.52 annual dividend to my portfolio. My projected annual dividend payout is now $897.12 or $74.76 monthly dividend (getting close to my $100 monthly dividend goal!).

Trade detail

08/09/2013 15:37:10 Bought 36 LGCY @ 27.1

Stock detail

Total shares held as of today: 36
Estimated annual dividend: $83.52
Consecutive Dividend Increase: 2 years
Dividend yield today: 8.55%
Dividend 5yr Growth: 12.10%
Dividend paid since: 2007




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