IAG are my biggest % in my portfolio and I'm loving it.....

IAG are my biggest % in my portfolio and I'm loving it.. purchased 5k worth of shares when they were at $5.20 (973 shares in total) and since they've had the Wesfarmers insurance division acquisition and they pay a healthy dividend, the most recent one being 26c which according to asx.com is a nice 6.27% yield.

I've subscribed to the dividend reinvestment plan so bi-annually I get around $250 worth of shares to top up my holding. You know what you're going to get with this mob and they budget for catastrophes and natural disasters. It would take a pretty shocking chain of events or a major disaster to go over budget in my opinion.

The other thing is with the above acquisition being so recent, we haven't had a yearly financial statement released yet with the added revenue from the previous Wesfarmers division yet, so if a quarterly/yearly is released with a big % increase on quarterly/yearly profit due to the Wesfarmers division hitting the ground running, then I believe this would increase the next dividend and cause a short-term explosion in share price.

It works both ways though and if Wesfarmers isn't contributing as much as first thought or don't hit the ground running, we might see a retrace or a stale share price for a couple of quarters until an announcement indicates otherwise. So far we only have predictions and forecasts of what the Wesfarmers division has brought or is going to bring. We'll know the actual figures in the next few months and if it's positive news, I can't see this stock staying under $7 for long.