April Highlights

Hello everybody!  April is over and now it is time to see how I have done.  I haven’t made as many purchases as I would have liked, but I have been busy helping a sick family member.   Additionally, I spent some time investigating a rental property, which slowed down my purchases.

Once again, my month has been rather uneventful investing wise.  Which is pretty great to say the least.

Roth Activity

This account is fully invested and the positions are dripped.

No action here (sells then buys).

Additions

I made one additional purchase of TROW price (15 shares @ ~78). I should have bought a larger position when I began collecting this company in March.

I have been wanting to make one purchase every two weeks, but I slowed down a little bit while I investigated a rental property.   I may end up doing 2-3 purchases in May.

Raises

This month 6 companies gave me a raise.

Company Raise
JNJ 7.1
KMI 9.1 (YTD)
OHI 3.8 (YTD)
PG 3
UL 6
XOM 5.8

KMI and OHI having continued the streaks of raising the dividend a penny a quarter.  KMI raised it 3 cents and is on pace for $2 a share by the end of the year.   I am a little disappointed that PG gave me such a low raise, but they are in the middle of selling off a few brands, so we will see how that goes.  XOM gave me about what I expected with the current market environment.

Dividends Earned

During April I collected $343.56 in dividends, a YoY increase of 38%.

$1677.85 of $5750 (29.2%).

My dividends are higher than they would have been if OHI hadn’t given a prorated dividend after the AVIV acquisition.

Forward Dividends

At the start of the month, my 12 month forward dividend was $5305.32 and ended up at $5401.51.  My future income is 35% higher than this time last year.

My goal is to increase this to $6100 (increase of ~1339).  I am 644.85 of 1339 or 48% of the way there.

Fitness Goals

I gave up running a mile everyday last month and have still been dealing with a strained calf (although I think it is now in the IT band).  Good times!

Squatting/Deadlifting is going well and on track.

Conclusion

Another month of watching paint dry, but the more I think about it, the more I realize the hobbies I like most tend to require long term commitment with small incremental progress overtime.

Have a great May!

Disclaimer: Long all stocks mentioned.

April Mid-month update!

Yikes!  It has been a while.  April/March turned out to be busier than I had planned it to be.   I have taken up learning some Spanish for my trip to Latin America near the end of the year, my sister came into town for two months :),  work was been busy and I have been doing several DIY projects around mi casa.

Quick March Recap

Income

Dividend income in march spiked up to 692.07 from 440 last year.  This is growth of 57% YoY, the third month of each period tends to be my highest.

$1334.29 of $5750 (23% accomplished).  I am not sure if I will hit this amount, I will explain in a few paragraphs.

Forward Dividends

At the start of the month, my 12 month forward dividend was $5202.29 and ended up at $5305.32.  My future income is 39% higher than this time last year.  I am on pace to hit my goal of 6100.

Exercise goals

I had to stop running everyday mid month, I injured my calf somehow.  However, my weightlifting goals are still progressing nicely.

Now on to April

At the beginning of April I added some additional shares to TROW.  I should have bought a larger share when I initiated my position in March, but the price hasn’t changed much, so the only thing I am out is a few dollars for the trade.  Additionally, I added to KO and MAT in my Loyal3 portfolio with the dividends received in it (no new cash additions).

Potential Rental Opportunity

I am pretty much 100% invested in the market.  My company allocations are from a variety of sectors, at the end of the day they are still invested through the same method, i.e the market.

I have been looking around for a possible purchase of a house/duplex for rental purposes.  On Friday night, I found a duplex that I believe would be a good candidate for a rental (at least at face value).  The property is currently a cash flow positive property and would remain that way after I put down what lenders require for rental properties (25-30%).    The only issue is, where to I come up with the money?  I have some cash on hand, but not nearly enough to cover closing costs + down payment.  My three main options are to sell some of my companies, borrow from my 401k, a combination of both or work with another.  Either option will result in slowing down my investments (at least in the short term). Each option has trade-offs.  A few that come to mind include:

Selling Stock: Taxes (many of my companies have paper gains) and reduction of dividend income.

Borrowing from 401K: Like taking out another loan (reduce cash flow from deal) and if I loose my job there is a penalty if I can’t repay it.

Multiple Investors: Reduces income from property.

Over the next few days I am planning on exploring the in and outs of this deal to determine if it will work for me.

Summary

So that is a short update to what I have been doing.  Time to start my day.  More demolition, lawn care and researching the real estate opportunity.

Take care!

Disclaimer: Long all stocks mentioned.

March Mid-month update

March has been full of activity.  I have been busy with snow, cutting down trees, taxes, learning Spanish, researching ideas and I haven’t been reading many blogs! I realized that when I checked out my RSS reader and had over 600 items to read!  It’s crazy how much content is produced in a few short weeks.  Unfortunately, aside from skimming a few topics, when my backlog gets that high I just hit “Mark all as read” and move on.

The weather is supposed to be amazing the next few weeks, so I can’t say I expect to be inside on the computer.

Buys so far

I have been watching the market fairly closely and a few companies that I had interest in purchases where close enough to my buy price that I felt adding some additional shares was warranted.   On March 7th, I made two purchases:

T. Rowe Price (TROW):  This company has been paying a dividend for 20+ years, has a fantastic balance sheet (no debt! which I love) and have a very low cash flow payout ratio(~40%).  They sell mutual funds and manage assets.  It would appear they have been rather popular and several bloggers I follow have bought shares over the last few weeks.  So I guess I am in good company!  Take are read at Dividend Mantra for a solid breakdown of their business.

Baxter International (BAX):  BAX is right around my original entry point and I felt that it was a good a time as any to add to it.  I have been building out my healthcare allocation over the last few buys.  Along with my purchase of JNJ, I still feel a bit under represented in healthcare and I would like to add an additional company or two to the rolls.  No need to get too concentrated in one or two companies!

That’s it for now

Just a short update today.  I have to practice some Spanish now!

¡Hasta luego!

Disclaimer: Long BAX, TROW

February Highlights

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It decided to snow in North Texas yesterday!  It gets crazy around here when people attempt to drive in it, unfortunately it canceled my plans to visit my brother for the weekend!  Ohh well, better to be safe.

February has once again been a rather uneventful month for me.  Which is great, I made a few trades and added a few high quality shares to the portfolio, but otherwise a good month.

Roth Activity

This account is fully invested and the positions are dripped.

I have watching the situation with SYY as it attempts to buy US foods. I have disliked the additional measures that SYY has taken to help the merger along and it would appear to me that the situation is not as beneficial as it once was.   SYY is probably one of my slowest compounding machines in my portfolio (~3% yield + 3% growth).  While slow growth isn’t necessarily an issue for me, I have come to the conclusion that there are many better potential candidates than SYY.  I sold my SYY position on Monday.  The total return was positive but not great, I held the position for about 2.5 years and ended up with a 33% return vs a 50% return for the S&P 500.  This reduces my income by $60.

I have been researching Canadian banks and wouldn’t mind avoiding some foreign taxes and freeing up some space in this account would be beneficial from that point of view.   After spending some time doing research, the choice came down to TD and BNS.   I ended up choosing BNS due to its track record of paying (never lowering dividends) for over 100 years and due to its diversification of its area of operations.  I like the more conservative nature of the Canadian banks and felt like now was a good time to buy, even if oil prices continue to drag on the Canadian economy.  This increase my income by around $85.

Additions

I purchased some additional shares of JNJ. This increases my exposure to the healthcare sector, which I am currently low on.

Raises

Six of my positions increased their dividends this month.

Company Raise PE (TTM)
Cisco (CSCO) 10.5 17.7
Dr. Pepper Snapple Group (DPS) 17.1 22.13
Hasbro (HAS) 6.97 19
Coca-Cola (KO) 8.2 26.32
Pepsi (PEP) 7.3 23.23
WalMart (WMT) 2.1 16.89

With the exception of Walmart, healthy raises all around.  The raises are at or above my desired 6-8% target.  On the slightly disappointing note, all of the beverage companies are above a 20 PE TTM.  However, my allocation to Technology is 8.19% by weight (6.28% by dividends), which is lower than the 10% desired weight.  I would like to have the chance to buy more CSCO, MSFT of INTC, but probably at a lower price.

Dividends Earned

I earned a total of $311.45, which is 40% higher than last January ($222.53).

$642.22 of $5750 (11.2% accomplished)

Forward Dividends

At the start of the month, my 12 month forward dividend was $5103.66 and ended up at $5202.29.  My future income is 38% higher than this time last year.  Which is great YoY, but growth like that won’t last.

My goal is to increase this to $6100 (increase of ~1339).  I am 441.29 of 1339 or 33% of the way there.

Fitness Goals

I have run at least a mile every day this year (or up to this posting).  I got a little sick and tired last week, but that passed without becoming much.  The weather has gotten a “little bad” in the last few days, but nothing like the Northeast.  I can run a mile even in 18 degree weather =) Just have to layer enough!

Conclusion

Disclaimer: Long all stocks mentioned besides SYY (which I no longer own).

February Mid-month Update

February has been a quiet month on the investing side of things.  I have been reading, checking earnings reports and staying abreast of the news for the various companies I have a stake in.  I haven’t really seen much that has been troubling to me.  The stronger dollar continues to hit some of the companies with more international exposure and be a boon to some that don’t.

Twitter!

I am not really a social media person, but I decided to create a Twitter account and see how that works out.

Recent Purchase

I have been adding to companies that I own for the last few months.  I have been doing this because I am the most familiar with those companies and value in the market has become a little bit stretched.   I have identified a few companies I would like to start a position in, but need to first determine what I think fair value is and go from there.  Before the end of the month, I plan on making a post about one of those companies and provide insight into how I make buy/don’t buy decisions.

However, I have added to Johnson and Johnson (12 shares@100).  I have wanted to add to JNJ for some time,  as my last non-drip purchase was 12/20/2012.  The price has come down somewhat and I felt that it was as good a time as any to add to it.  The price is basically around fair value in my opinion, which is about as good as it gets right now (aside from the oil market, which I have a large allocation to right now).

Why JNJ?

It’s not necessarily JNJ, but the type of stock that it is.  Right now, with the markets at all time highs, I am doing my best to make purchases that are “safe”.  By “safe”, I mean investments that are less likely to loose all the money that is invested.  Companies like JNJ (PG, XOM too) that have paid dividends for a long time, have wide moats and provide services that can be described as necessities in all business climates (expansion/recessions).

Currently, JNJ pays out 2.80 in dividends per year.  In the last 10 years, JNJ has had more Free Cash Flow(FCF) than their current dividend (lowest was 2005 with $3.07 per share).   Currently, they are on pace to have even more FCF this year then last.   They have well managed debt with Debt/Equity ratio of .17 and an Interest Coverage Ratio of 40!  Debt is something that is easy to have a lot of when times are good, but then can be a millstone during harder times.  Revenue has been growing fairly steadily over the last decade and should not disappoint at the end of the fiscal year.

These are just a few numbers, but looking over the earnings reports and additional financials solidifies my rational for adding to this position at this time.  I don’t expect to be surprised by anything with JNJ over the next year, so it’s as good a time as any to add.

Depending on how things go, I may add to this position next month during my next purchase.

Happy Presidents Day!

I hope everyone has a safe and happy holiday.  Hopefully you have the day off and the sun will be shining!

Take care!

Disclaimer: Long, JNJ, PG, XOM

Maintenance Complete!

February has been fairly quiet for me.  The market continues to seesaw, but a few companies that I have expressed interest in have been heading in a slow downward direction.  JNJ comes to mind at the moment, it finished the day a bit below $100.   However, I am not here to talk about stocks, but to describe what I did with my domain and hopefully give people a little primer on how things work.

What did I do?

My term for my previous host was coming to an end and I had never had trouble with the provider.  My website doesn’t need any fancy functionality, but the amount that the previous provider was charging for renewal was fairly high for what I need.  I shopped around a little bit and since I am relatively lazy I looked at GoDaddy first (Brand name recognition!).   I had two main objectives:

  • Domain Privacy
  • Low cost

What is Domain Privacy?

Every website can be looked up in the Who Is Directory (whois.net).  Go ahead take a look.  This website can provide a lot of information about the owner of that site.  This information can include:

  • Name
  • Address
  • Email
  • Geographic Location

Having this information public can potentially lead to security issues, including identity theft.  This was the main issue I was concerned with. With so much available, having the above information can be used and abused by third parties.  If you have Domain Privacy, then depending on your provider, they may or may not shield all of this information from public view.  My name was available with my original provider, but the rest was not.  However, having an individual’s name is about all you need with Google these days.  Not very private if you ask me.

Low Cost

While I know my way around the WordPress source code, MySQL databases, HTTP servers and code necessary to get a website up and running, I don’t need or what that access.  With my previous provider I could have done just about anything to the underlying server my site was running on.  I never looked into any of that over the last year (with the exception of adding some security features).    The price for that functionality is wasted.  So I had to find a cheaper provider that does little more than provide with with a hosted WordPress install.

Enter GoDaddy

I had originally only planned to use GoDaddy as my domain registrar and use their Domain Privacy service.  They have a setup using something called Domains By Proxy, which will keep your personal details hidden.  In addition to that service they provide other features that protect your domain from harassment and spam.   The process for transferring a domain took the longest.  Since I had Domain Privacy on my other service I had to turn it off, transfer the domain to my  control and initiate a transfer with GoDaddy.  Once GoDaddy had requested the transfer, it took about 5 calendar days to complete.  If this transfer is made in error you have time to cancel the transfer with your current domain registrar.

Once I had the transfer initiated, I began to look for a new home for my WordPress install.

GoDaddy Once again

I didn’t travel very far to find a new home.  I looked at what GoDaddy offered in terms of hosting and they had a plan for $3.49 a month for a managed WordPress install.  Basically, they take care of everything for you and all you have to do is write blog posts!  This was ideal for me and I began the transfer after signing up for a 3 year term.  The total cost was around $20 more expensive than a 1 year renewal at my previous hosting service.

Additionally, if your blog is small they provide a tool that you can use to read your WordPress install on your current provider and port it over to their servers.   After a little work setting up the appropriate FTP accounts (File Transfer Protocol) and reducing some of the security I added, I was  able to copy my entire site (files and databases) in about 10 minutes.

While my domain name was being transferred, I verified that all of the functionality still worked appropriately.  GoDaddy gives you a temporary domain that looks like garbage when you transfer a site.  This domain enabled me to log into my site and verify that everything made it.  Easy!

Domain Transfer complete

Now that I had transferred my domain and website to my service, all I had to do was associate my website with the domain name and the domain name servers (DNS).  What is DNS you ask?  Every web address www.whatever.com(org, etc) is associated with an IP address.  An IP address looks something like 123.456.123.145, which to most humans is gibberish.   How would you feel if you had to type 74.125.196.106 into your web browser every time you wanted to search Google?  And then again for each website you liked to visit, it would not be fun to surf the web!  What a DNS does is associated the name of your website with the IP address it can be accessed at.

GoDaddy makes this very easy and with little effort I was able to make these changed to my managed WordPress site.

Conclusion

That was what I did to change my website from one provider to another. There are probably cheaper providers than GoDaddy, but they met my needs.  I am pleased with the overall easier than expected transition from one hosting/domain registrar to another.

Being self sufficient was something that was important to my Grandpa.  It didn’t matter what type of work it was.   I hope this will help anyone else who is contemplating transferring there site/domain to another provider.  The steps will largely be the same, but of course will vary.

Disclaimer: Long JNJ 

Site Changes and a few companies on my mind

I am changing my domain registrar and if I don’t do it right, I might disappear until I figure it out!

Potential Purchases

As I have been looking over the current positions in my portfolio, I don’t have a lot of positions that I would really want to add to at the moment.   I wouldn’t mind adding some more oil, but with the recent surge and already large size of my portfolio, I am planning on looking around in a few other sectors.

Below are some potential ideas that I may purchase at some point in the future.

Healthcare is something that I have very little exposure with.  I currently own JNJ and BAX.  I think that both of these positions are around fair value and might add to one or the other by the end of the month.

Food has been on my mind lately as well.  Owning companies that sell necessities will increase the “sleep at night” factor of my portfolio.  I currently own K and GIS in this space.  I have been considering adding  JM Smuckers (SJM).   I am planning on doing some research over the next few weeks.

I would like to add to the Financial portion of my portfolio.  I am a little leery of this sector and may look north of the border for an addition.  There are several solid Canadian banks including RY, BNS and TD.

Wish me luck!

Here we go! Maintenance time.

Disclaimer: Long JNJ, BAX, K, GIS

January Highlights

January proved to be a fruitful month for me.  I made some investments, crossed some goals off the list and watched as a variety of news hit the various companies I have ownership in.

A few themes that have emerged during earnings season are the appreciation of the US dollar and the concern for Oil. Several companies I own (PM, MSFT, PG) have had issues with currency impacts to EPS.   This doesn’t worry me overall, the dollar rises and falls over time.  In fact, I wouldn’t mind a few shorter minded folks to sell out of these shares and allow me to pick up a few at cheaper prices.  I am looking specifically at JNJ and PG.

I am having a hard time not pulling the trigger on more Oil stocks.  I have XOM and CVX on my mind and may end up buying more or each depending on how earnings go.  Both of these are investments I am willing to hold for a long time, so maybe a bad earnings report would make me happy right now…

Roth Purchases

As described earlier, I fully funded my ROTH for the year.  I made these purchases near the beginning of the month and apparently that was right before REITs decided to take off.  DLR, O and OHI have returned ~12, ~15.5 and ~15 percent so far this year.  That’s pretty nuts for any asset class, unfortunately I am not sure these can be considered bargains.  I am planning on holding off for the time being on adding to my REIT positions.

New Purchases

About a week ago I added another 22 shares of EMR to the family.  I have been reading over EMRs recent results and I am pretty pleased overall with their performance and direction. The ~9% recent raise didn’t hurt either.  EMR is currently at a better price than my purchase and if it falls to the low 50s, I will probably add another 20ish shares.

In my Loyal3 account I had $19 and used an additional $50 out of the spending budget (I talked myself down from $100) to invest in UL.  This bought me about 1.4 shares.

Raises

It was a month of small raises.  KMI and OHI raised both of their dividends by a penny, following a trend.  I am happy that KMI is raising it slowly, I know there is a lot of eagerness for the $2 dividend that was promised after the merger.  However, the market is a little rough and it seems prudent to be more patient.  I expect both of these companies to continue raising by at least a penny over the next 3 quarters.

O raised their dividend by 3%, this was the largest raise since 2013.

NSC raised their dividend by 3.5% (2 pennies).  I would expect them to potentially raise it once more this year.

Dividends Earned

I earned a total of $330.77, which is 37% higher than last January ($241.09).

$330.77 of $5750 (5.7% accomplished)

Forward Dividends

At the start of the month, my 12 month forward dividend was $4761.37 and ended up at $5103.66.  My future income is 45% higher than this time last year.  Which is great YoY, but growth like that won’t last.

My goal is to increase this to $6100 (increase of ~1339).  I am 342.28 of 1339 or 25% of the way there.

Fitness Goals

I have run at least a mile every day in January (or up to this posting).  Feeling great.  Weightlifting is on schedule, my first lifting cycle is complete and I am in an active recovery till February 2nd, when cycle 2 will commence.

Conclusion

January just hummed along.  No hiccups, I didn’t get any large raises, but all the companies who raised will most likely raise again before the end of the year.

Disclaimer: Long KMI, OHI, NSC, DLR, O,  XOM, CVX, EMR, UL

Roth IRA Purchases for 2015

I have finished contributing to my Roth IRA for 2015 and invested the money into securities.  I prefer to be fully invested in my ROTH and make my purchases as quickly as possible.  I can’t say why I prefer to do it this way, but I just feel like it I guess.  The contributions for this account were accumulated last year, with a little arriving in my first few paychecks of 2015.

Criteria for this year

I wanted to avoid adding to my oil positions at this time, due to my Black Friday purchase.  Prior to my investment, my ROTH was paying me a little under 2k in dividends.  I choose to reinvest these automatically because I would rather not wait 6 months between investments, I may reconsider this strategy once I am collecting around 1k per quarter.    The following is the criteria I wanted:

  • High yields or high dividend growth.
    • Since I am reinvesting I wanted to make the most out of compounding
  • At least one REIT purchase
    • I want a little more of my portfolio in REITs after I sold my ARCP a few weeks ago.
  • As Blue Chip as possible
    • I am fairly protective of the cash in my ROTH.  This vehicle grows and will be withdrawn tax free, so I want to preserve it as much as possible
  • Add under represented sectors

Purchase

Company Shares
PM 12
KMI 25
OHI 30
T 30
VZ 27

For an additional income of about 278.

I chose a combination of high growth rate dividend payers (PM, KMI, OHI) and higher yield but slow (T,VZ).   I think this will give me a solid income base over the next several years.

I did end up adding to KMI because I think that the company has great prospects going forward (in spite of oil) and wanted to add a few additional shares.  I gues

OHI has been doing very well as of late and they are on my short list of REITs that I feel comfortable with.  OHI works in the healthcare segment, which adds tangentially to the healthcare portion of my portfolio (JNJ is a little pricey, but BAX may be worth buying).

PM is my largest position both in dollars and in dividends, but I wanted to take the opportunity to lower my cost basis.

VZ,T are more like utilities to me and they were added to increase my exposure to the telecommunication industry.  They both have low dividend growth rates, but because they are being dripped the high yield +dividend growth will increase the income from each by 7-8% per year.

This increased by 12-month forward dividends to ~5040.

Disclaimer: Long PM, KMI, OHI, T, VZ, BAX, JNJ

2015 Goals

I have already described how I plan on saving my income this year using my Savings System.   Today, I want to discuss my goals for 2015.

Goals

Dividend Income

I want to receive 5500 5750 in income by the end of the year.  I think that this will be a little bit of a stretch.  I am current sitting at ~5040 dividends for the year, but I think that through raises and investments that 5750 will be a little bit of a stretch for me.

Note:  writeyourownreality  asked me a question that caused me to rethink this goal.  I had previously forgot to consider my dividend income when making this goal (pretty amazing oversight!).  I will now be attempting to receive 5750 this year instead of the previous 5500, which after adding in my earned dividends, would have been easy to achieve.

Forward Estimated Dividends

By the end of the year I want to reach 6100 in expected dividends for 2016.  This is a little above what I think is attainable, but with a little extra cash, raises and reinvested dividends this should be possible.

I am basing this number on an average yield of 3.5% and 7.5% weighted average raise.

Run a mile everyday, do a Marathon and break 1:30 on the Half Marathon

I enjoy running and decided on the 1st that I was going to try to run a mile everyday.  This will be interesting to try.  I have tried doing something for 30 days and then stopping, but never for an entire year.  I need to be a little careful here and make sure my run distance doesn’t inflate!  I normally run 3 days, so this challenge amounts to 1 mi on the other 4 days a week.

I have never run a marathon before, but why not.

Weights

Deadlift 405 twice and Squat 350 (low-bar position) once.  I really enjoy moving heavy weight, it is much easier to see changes in fitness when you are putting actual weight on the bar.

I suppose I am crazy considering I have a running goal and a Weightlifting goal, which are supposed to be in conflict with each other, but well see.  It is fun to experiment with my body.

Conclusion

A few fun and basic goals.  We will see how things turn out!