Final Stock Purchase for the Year

I am planning on making one more stock purchase for the year (about $260). Currently in my Dividend Portfolio I hold AOD, BGF, BGS, DUK, GE, GLW, HTE, PGH, PVX, and TTM. AOD is out because I just purchased some earlier this month, and I also want to know what they are going to do for the next 3 distributions (which shouldbe coming any day now). I am not looking to add to my ConRoys right now, so that excludes HTE, PGH, and PVX. TTM only pays dividends 1/year, so right now I am not looking to purchase more of that. GLW doesn't have much of a dividend (about 2%), and the current outlook for it is a little bleak, so that one is out.

That leaves BGF, BGS, DUK, and GE. I really like DUK. It has a consistent dividend, and it has been relatively stable over the past few months (when very few stocks were). GE is at an all time low, and it had a steady dividend. However, I really don't like the recent announcement from the president that they would no longer be offering the quarterly guidance.

BGF and BGS have done very well in my portfolio. The dividend is nice (currently at 13% for BGS). I listened to the last shareholder presentation/conference call in October and I was really impressed. Unlike other companies' conference calls I've listed to, they seemed very open and honest.

At today's prices this is what I would have gotten (whole shares):

BGF: 25 shares, $9.61 Q Dividends, $38.45 Y Dividends (14.7% Yield)
BGS: 49 shares, $8.33 Q Dividends, $33.32 Y Dividends (13.0% Yield)
DUK: 17 shares, $3.91 Q Dividends, $15.64 Y Dividends (06.3% Yield)
GE: 15 shares, $4.65 Q Dividends, $18.60 Y Dividends (07.1% Yield)


Based on that comparison, I think BGF is going to be the best one. BGF is a combination of 1 share of BGS and a debt note. The debt note is for $7.15 at 12%, due in 2016. It can be called before then at a premium. Until the note is called, each note receives a quarterly interest payment of 21.45¢ in addition to the normal quarterly dividend for the common shares (currently 17¢) for a total of 38.45¢. So at today's prices, buying a share of BGF for $10.36 would be buying one share of BGS at $5.23, and then the $7.15 bond for $5.13.

Assuming that the notes are not called earlier, I will receive a total of $12.30 from now until January 2016 (I'm not sure of the exact date they are due). This consists of $5.15 in interest payments and the $7.15 note. When the note is paid, all that will be left is a share of BGS.

So my investment of $261 will pay me $307 over the next 6 years. I'd say that's a pretty good investment. I have confidence in the company and I look forward to adding more shares to my portfolio over the next few months.