Recent Buys

It has been an interesting weekend to say the least!  Dallas had a quick but powerful storm Thursday night.  Gusts of 100 miles per hour!  I ended up loosing power and didn’t have any until late Sunday night.  As strange as it may sound, I had a pretty good weekend without it.  I spent lots of time outdoors, used a lantern, hung out with some friends, climbed a tree and cleaned up plenty of debris.  The wind even did me a favor and blew down a rotten portion of fence that I had been meaning to tear down and replace.   A few caveats though, it was a very cool weekend and I had hot water.  If it had been a month ago and this had happened, I may have been singing a different tune.

Purchases

Company Shares Income!
CVX 10 42.80
K .8169 1.60
MAT 1.5822 2.40
XOM 12 33.12

This adds a total of 79.92 to my yearly income.  Which brings me to about 4,435.  Well below my goal of 5k, but the year is not over yet.

Buying some oil stocks

Oil has had a rough quarter.  The price of oil has fallen steadily over the last quarter, most of my oil companies hit a high around that time and then are steadily falling.  I took the opportunity to add to both XOM and CVX.  I had wanted to add to XOM recently and I took advantage of the price weakness of CVX to add another bite to my overall portfolio.  CVX is one of my larger positions so I may wait a while before I add to it again, unless of course Mr. Market provides me with another shot.

Mr. Market starts to deflate a bit

I am happy to see the market slowly down and even falling a bit.  I have a few other positions I want to add additional funds to.  They include:

  • PG
  • UL
  • COP
  • BAX
  • JNJ
  • AFL

A pretty solid basket right there.  I am looking to add to those(some) positions in probably the next month.  I may get a little more aggressive with some backup funds depending on what happens over the next few months.  There is no time like the present, so I plan on spending some time over the next few weeks looking over my positions and ones I do not currently own.  A few I do not own that are on my radar are:

  • ADP
  • GPC

I am looking to add a little higher growth to the portfolio in the 2.5 to 3.5% yield range.  My YoY increase is a little lower than I would like, so I will probably be looking for positions that are growing dividends at the 8+% range.

Happy buying!

What are you considering buying?

September Portfolio Highlights

It has been a fairly active September for me.  Lots of work!  It is good problem to have.  I am very fortunate to be in the position that I am.  September has been very active on the Loyal3 front and I acquired enough dividends + contributions in my main investment account to make an additional purchase.   The market continues to slowly cruise southward, I am looking at deploying some funds I have in savings and I have already increased my Loyal3 purchases to 100$ per week from 50.    And a few interesting portfolio developments!

Walmart (WMT) has partnered with Green Dot to offer checking accounts to their customers.  I like this move, the goal is of course to get more foot traffic in the stores.  That matters more than whatever fees/money they could make on the checking accounts.   Additionally, WMT added the CEO of Instagram to the board.  I am not exactly sure about that, publishing selfies is a different business plan (none) than running an e-commerce website.

Dividends

Last year I received $342.02 in dividends.  This year I increased that by almost 50% and ended with $510.93.  Pretty solid year over year!  I improved on June by a few dollars.  My 3rd quarter income was $1,039.14, which is pretty awesome and higher than the 2nd quarter, so overall slow but steady progress.

You can see my Progress page for additional information.

Dividend Increases

It was a great month for dividend increases:

Raises
Company %
ACN 10
LMT 12.8
MCD 5
MSFT 11
PM 6.4
VZ 3.8

All raises about what I expected and overall raises that I am happy with! So far 36 of 42 companies have given me raises this year.  INTC does not appear to be set to raise, however I have not added to the position and probably won’t sell it.  It is in a taxable account and the tax would probably take a lot longer to recover.  Now if they cut the dividend, then I will sell.

New Positions

No new positions this month.

Added Positions

I bought an additional 1% of GIS (20 shares), after a few days the market made it cheaper. I am going to have to consider adding more, however with the decent pullback there are a few other positions I would like to add too.

I have added cash steadily to my Loyal 3 Positions and it has been a pretty solid month.

Loyal3 Additions
Company Cash Shares
DPS 25 .3958
K 50 1.1986
MAT 100 3.0467
UL 50 1.1171
WMT 75 .9817

I have returned my ROTH account to a drip because I don’t accumulate enough cash in there to be doing anything but reinvesting.

Dividend Decreases

None.

Sales

None.

Conclusion

Another good month and quarter.  I would like my savings rate to be a little higher and with my house expenses settling in, I think I should be able to make that happen.  We shall see!

How was your month?

Disclaimer: Long all stocks mentioned

Recent Purchases: Sept 9th to 18th

It has been a fairly active investment cycle over the last couple weeks.  I finally acquired enough cash in my investment account through dividends and additional contributions to buy another position.   Here are my trades over the last few weeks.

Loyal3

Each week on Thursday I try to make several small buys in the range of 25-50, depending on where I am budget wise for the week.  The goal is to invest 50$ at a minimum.  So I have been able to do this consistently over the last few weeks.    I place my trades Thursday evening and they execute on Monday.  It is always nice to start the week off increasing my dividend income!  Lets see what I bought

9/8/2014

WMT : .3263 shares @ 76.6
MAT: .7139 shares @ 35.02

9/15/2014

UL: .5726 @ 43.66
K : .3924 @ 63.71

9/16/2014 Bonus!

This last purchase was possible due to dividends I have collected in the account since my last order.  The 25$ went to…

DPS: .395 @ 63.16

Small purchases, but they will make a difference over time.  Even though my funds aren’t accumulating as fast as I would like right now, being able to buy a little each week is good to do.

For the remainder of the year, I will invest as little as 100 per week.

A full purchase of…

General Mills (GIS). I bought 20 shares at 51.22 yesterday.  I like GIS here and had wanted to increase my position (as I have been doing with others over the last few months).  General Mills is struggling a bit, but through signing new deals (Yoplait with MCD), buying other businesses (Annie’s Homegrown) and cost cutting measures,  I think they will continue to do what they have been.  Maybe a few rocky quarters, but over the long haul I am happy with their prospects as well as their financials.

A random opportunity…

I recently purchased a house and placed a sizable amount of money in the House account to cover about six months worth of interest, principal and insurance.  This account has an interest rate of about “ridiculously terrible”.  I was loosing out to inflation by probably 3%.   About 2 weeks ago, I received an email inviting me to open a CD with a 5% APY (Or 4.88% interest).  After pondering this opportunity, I chose to use half of my funds in the house account to fund the CD.  There is not really a downside to this for me.  Worst case, I have to break the CD and loose some interest and best case I make 4.5% more interested over the life of the CD vs keeping it in a savings account.  Now, I suppose your wondering how long did I have to commit to in order to get a rate like that?  Well, the answer may surprise you, the life of the CD is only 1 year!

This is a good opportunity because I wasn’t going to invest the money anyway, it is still in an insured product and beats out on the interest of the savings account.

Back to being busy

Well my few weeks of not working a lot are over.  I will probably be working somewhere in the neighborhood of 60 hours per week.  The bright side is that I will be giving myself a 50% pay raise over the next three months!  My plan is to direct most of the additional funds to investments.  Fortunately, getting a little bit larger pay check doesn’t encourage me to spend more!

Take care!

Disclaimer:  Long GIS, MCD, DPS, K, UL, WMT, MAT.

Is “follow your passion” good advice?

I am not particularly fond of the idea of following your passion.  I feel like the idea in and of itself, indicates that everything will work out if you do something you like.  I think there is more to it than just doing something you like.

I would say that I am an individual who gravitates towards things that I am good at or because they are hard.  I earned a Math degree in college because I didn’t feel like changing my major (apathy).  Once that I finished that, I realized employers didn’t think I had to skills to work in software, so I went to grad school and picked up a Computer Science masters.  I am good at both, but I wouldn’t say I am passionate about either.  I enjoy solving puzzles and get as much enjoyment out of writing a computer program as I do painting a wall.  I am a fixer/builder by nature so I suppose this makes sense in context.

Attempting to follow my passion

After I left college, I assumed that I was going to be getting my dream job.  I really enjoyed programming and was hired as a computer programmer!  At first I was pretty happy, but as with all jobs there is always going to something that is a bummer about it.   I spent a lot of time worrying about what sucked and lamenting the lack of awesomeness about it.

I didn’t like it, but didn’t know why exactly.  As time moved on, my opinion has flipped, I enjoy it very much and thinking of doing anything else is fairly hard.  The transition just kind of happened.  Recently, I stumbled across a book that gave me a new perspective on what may have caused my frame of mind to change.

An interesting book!

I was perusing the web recently and I came across a blog called, The Art of Manliness, it’s basically a blog about being a man.  I found it when I was looking for reviews of the best brand of Reel Lawn Mower (mower with spinning blades).  Being several months ago, I promptly placed it in my RSS Feed and would read an article here and there.  Eventually, I came across a post that contained a link to the book, So Good They Can’t Ignore You: Why Skills Trump Passion in the Quest for Work You Love. (Look it up on Amazon (non-affiliate) or get it from the library like I did!).  I think it is worth a read, even if you disagree!

The idea behind the book is that the advice of “follow your passion”, is the worst advice that you can possibly give to someone or follow yourself.  The author, Cal Newport, then goes through a series of individuals in order to demonstrate why he believes this type of advice is bad and what common traits other individuals had that enabled them to find a job(calling is probably a better word here) they became passionate about (or very happy with).  Like any good engineer, he provided a problem and then the solution he felt got these people to where they wanted to be.

These steps include:

  1. Career Capital (Build a valuable skill set)
  2. Control
  3. Mission

The author believes that you must first create “Career Capital”, that is a skill set that is valuable and hard to come by.  Career Capital also includes demonstrating the skills to employers/whomever is applicable to it. Next, once you have acquired enough Career Capital, you are able to have more control over your work life.  This can mean anything from creating your own schedule, being autonomous, etc.  Finally, it is important to have a mission to work towards, which is hard to determine.  Most of the individuals took small steps which eventually lead them to where they didn’t know they wanted to be.

How this applied to me

After reading this book and reflecting on my own work life, I can see some of the parallels.

I got a Master’s Degree in Computer science.  After the first few years, I switched positions in my company to move over to a position that required more cutting edge technologies (that I didn’t know) and invested time outside of work to learn these skills.  This was kind of like a spider web, as I learned more about those skills, I began to pick up others that were related.

As my reputation grew at work, I was able to use the skills I learned outside of work to pitch new functionality to the customers.  This gave me enough control to effectively write my own ticket and use whatever tools I wanted (as long as I can provide a good reason why).  This is a big deal to me, because I get bored if I am not constantly pushing the envelope a little bit.

The two paragraphs above have happened repeatedly throughout my career, neither has led to a water shed event that has entered into my dream job.  However, I have opened various opportunities in my company and I could probably find jobs elsewhere if I was looking.

I am not 100% sure what my mission is though.   I have never thought about this before.  Something to chew on!  None of my goals (or future life) is linked to work, aside from the income it provides to fund those activities.  Maybe my mission is to be very successful at work so I can be successful at retirement 😉

Is following passion bad advice?

Disclaimer: Each individual is different.

For me, trying to follow my passion didn’t work.  I view work as something that needs to be done, so working is probably not a situation where following my passion will give me much of a “bump”.  I am not trying to rag on those who prefer to follow their passion.  There are people out there who are doing exactly what they loved and always loved.  The book includes some of those people, but demonstrates that their journey was far more deliberate than simply doing something they liked.

How about for investing?

Investing is very much like work for me.  I am not particularly passionate about investing, it is something that needs to be done.  I have  a mission ( 😉 ), in that I want to achieve financial freedom and be able to assist my siblings and retire maybe a little earlier.  This is a deliberate act of educating myself (reading company news, financials, conference calls etc) and being frugal enough to get ahead a little each month.

I am putting it together one dollar (or brick) at a time.  After all, I am builder so this is right up my alley.

 

What do you think?  Have you followed a similar path to doing something you love?

 

August Portfolio Updates – It’s been a while!

Howdy internet!

It has been a while since I posted, I have been busy with work and other life activities.  It has been a not to bad summer and so I like to get out and about while I can.  The fact that I work on a computer all day makes it difficult to get continue when I get home.  I will do my best to recap the last few months.

Sales

Well, I ended up making a sale over the last few months.  I sold LO shortly after the merger/buyout from Reynolds was announced.  I wasn’t that interested in holding onto to Reynolds and fortunately an opportunistic event occurred.  The event that finally pushed my decision to sell over the edge was WAG taking a 15% dive after they decided against moving their tax location.  I didn’t realize other “investors” had put that much value in the possibility of that taking place.  I took the opportunity to buy some more with some of the cash from selling LO (the remainder plus some additional funds were used to buy more ATT and VOD).

At the end of the day I walked away from LO with about 40% profit + dividends.  I can’t complain and I got to add the funds to several positions I have wanted to increase.  On the bonus side, this was in my Roth account so I don’t have any costs but the trading fee.

Purchases

I have continued to make purchases even though some prices are higher than I would like them to be!  In addition to WAG, T, and VOD. I have added some funds to AFL and GE.  I want to continue building my current positions since I know these companies the best and there are a handful that I don’t think are overly expensive and maybe even slightly undervalued.

In my Loyal3 account, I have been making $50-100 worth of purchases every week.   I have been splitting these funds mostly between MCD, KO, MAT and UL.  Although, I am sure I have added a few dollars to some of the other positions.

Going forward

I am planning on trying to keep things up to date and write a post or two every month that is not purchase/sell related.  I probably won’t recap my Loyal3 purchases weekly, since buying .25 shares at a time isn’t that exciting and the rational behind adding a small amount of money to MCD or KO won’t change frequently.

Conclusion

The last time I posted I was expecting to earn $4021.37 over the next twelve months.  As of September 1st, I am expecting to receive $4209.23.  A modest increase and I do not think I will be hitting the 5k goal over the year, but I feel like I can easily hit 4.5k.  There are some raises that I think will be a reasonable size coming down the pipe (MSFT, MCD and PM).

Finally, halfway through August I earned as much in dividends as I did in 2013.  This is great!  That is progress that is easy to see and tangible.  I have yet to regret my decision to change my investing style.

Disclaimer: Long T, KO, MCD, WAG, VOD

Loyal3 Purchase: Target

Late last week I initiated a transaction for TGT in my Loyal3 account.   When you use a credit card (or a portion of the transaction goes on a card) it takes approximately 2 business days for the transaction to complete.  I had collected about $21 dollars in dividends and used another 29 from my budget for this transaction.  The purchase executed the following:

.8740 shares @ $57.21 adds ~$1.82 for the year

This purchase still leaves my portfolio with plenty of room for additional shares of TGT, which I may buy a larger stake soon depending on the availability/valuation of other dividend stocks.

TGT has had an interesting year.   TGT continues to have fallout from the customer data breach of last year.   This is the sad reality of the ever changing technology landscape.  Coming from a software background, the frequency of these events doesn’t surprise me and on a number of occasions my credit card has been stolen.   Fortunately, I have an aggressive bank that “knows me” well enough to stop those charges.  TGT is taking the event seriously and rolling out a series of changes that I feel will help mitigate future issues.  They have since hired Brad Maiorino to serve as the Chief Information Security Officer.

Oh Canada! TGT has struggled in Canada.  Have you seen those pictures of TGT stores with empty shelves? Google away if you haven’t.  Since that escapade, TGT has axed the leader of their Canadian operations.  I am not surprised that they struggled in Canada, WMT did too.  It does boggle me a bit that they didn’t learn from WMT’s mistakes.  As long as Target realizes that “Canadians are not Americans”, they should get on the right track.

The latest news is a massive dividend increase of 20.9%.  This raises the current yield to about 3.6% with $2.08 paid out yearly.  This was very surprising, I had expected a smaller dividend increase than the previous years given the preceding events.  I do like this move, it tells me that they are serious about the dividend and that it remains a priority.

Depending on the moves of the market, I may continue to add to TGT or one of the other positions that I currently hold in the Loyal3 account.

Thanks for reading!

Disclaimer: Long WMT,TGT

Recent Purchase: GE and a Blog Roll!

GE Purchase

The market has been on a slow but steady upward path over the last few weeks, with the occasional dip for a day.    In light of this, I had some time to do some research and came to the conclusion that General Electric would be a good candidate for my portfolio.  It helps diversify my portfolio and I feel like they have learned their lesson with the GE Capital debacle a few years back.

Thursday I pulled the trigger and bought 50 shares at a cost basis of 27.25.  I could have waited and bought for a lower price, but if I could tell the future I would have been a millionaire a long time ago =)  Even though the market is higher than I would like, I still want to make sure I purchase(add) at least 1 to 2 positions a month.  This does not account for any Loyal3 purchases through savings in my budget and dividends paid in that account. Those will be invested ASAP.

GE and I have a little bit longer history than a few days.  I purchased GE back in 2008 during the financial crisis not long before they cut their dividend and dropped in price.  I luckily sold the position for a minor loss prior to this event.  What was the catalyst you wonder? Did I do my due diligence and realize a dividend cut was coming?  Well no, I had some qualms about who they were doing business with at the time and fired them from my portfolio because of that.  It was fantastic timing, but had nothing to do with what was about to happen.

GE has been on my mind lately.  With doing all the housework and wondering what type of energy efficiency efforts I could make.  The first time that comes to mind is to change the light bulbs.  GE invented the light bulb back in the day, what a bright idea!  Luckily, the previous home owners were fairly energy conscious so I don’t have that many bulbs to change.  Plus, I am probably going to wait until they start to burn out, why spend money until you have to?

My house was built in 1955 and updated at some point in the past.  No idea, but I know that my HVAC system (air condition/heater) is old and will probably need to be replaced in the next few years, as well as the oven.  Luckily, GE makes a wide variety of Energy Star related products for the home consumer.  Including fridges, ovens and air conditioners.

On the business side, I thing GE (as well as other industrial/technology companies) are posed to do well as the economy picks up and companies reinvest in their businesses.  The economy is going well around here and my company is pretty close to a refresh cycle on their PCs and there is a lot of construction in my area.

GE itself is very diversified.  They have their hands in Healthcare, Software, Oil &Gas, Power generation (Wind turbines! Going up like crazy in West Texas) and much more.

Even though GE has been on my mind.  It has met my entry criteria and subsequent analysis.

  • Dividend growth: > 3years
  • Dividend yield: > 2.5
  • FCF Payout Ratio: < 60
  • Net Issuer of Shares? : No, buying back.
  • PE < 20: Yes, 18.99
  • Debt?: Looking good. Long term debt has been dropping over the last 5 years.

Revenue Concern

Revenue has held pretty steady over the last three years.  I would like to see this rising, but I am not concerned enough to avoid a small position at this time.

Blog Roll

I have added a Blog Roll.  These are the blogs I follow and read regularly, even if I don’t do much commenting.  I haven’t fully completed the list, so I will be adding more as time allows.  Instead of doing an analysis of GE above, I thought I would include some of my favorite bloggers posts.  I use these to expose me to different dividend stocks.  I do not however, use these as a sole source of information or to make a decision.

Dividend Mantra: A little older post, but a good one

Compounding Income makes another weekly purchase of GE.

The Dividend Engineer provides some useful information about GE.

Time for painting.

Well, I would like to continue pointing out some great blogs and talking about stocks, but I got fed up with some of the dings in the walls the previous home owners left and I am in the process of painting the bedrooms.  I started last weekend, did nothing during the week and need to finish up today.  Otherwise, I will continue sleeping on my couch, which is comfy but it would be nice to actually use those rooms and all.

Take care!

Disclaimer: Long GE

Tagged

May Portfolio Highlights

Well, as I saw in April, this was a seesaw month, where nothing really happened.  It seems that all news is good or bad depending on the day! The month was quiet all around.  Not much action on my part and not many increases.  I suppose all things considered, that is nothing to complain about.

The only thing that has been going crazy is Buyouts, Spinoffs and Acquisitions.   A few of note:

  • As mention previously, SBSI is buying another bank called OMNI American.  A bank with a presence in the Dallas-Fort Worth metroplex.
  • LO appears to be on the verge of merging/getting bought by Reynolds.
  • ATT wants to buy Direct TV.
  • ARCP was going to spinoff a part of the business, then sold it to another buyer and bought the Red Lobster properties.
  • BAX has announced it is going to split itself into two in 2015 (news from April).
  • Buffet has been rumored to be interested in making a big deal. Some speculation has included K and WEC.

Lots of action, should be an interesting few years

Dividends

Last year I received $120.20 in dividends.  This year I increased that by over 100% and ended with $248.72.  That is great, I would love to see this big of a jump next year, but that doesn’t look like it will be the case.  I am investing slowly and even if I invested every dollar that I could, my yearly total would raise by about 1k (at an average yield of 3%).

You can see my Progress page for additional information.

Dividend Increases

It was a slow  month for dividend increases:

  • Bax : 6.1%
  • SBSI : 5%

Raises I am happy with.  Of course, SBSI also gave me some shares, so the total dividend increase for the position is higher than 5%.

New Positions

No new positions this month.

Added Positions

I did not add much cash:

  • New Cash: TGT, MAT MCD,  SBSI, UL

No positions drip with the exception of OHI.

Going forward I want to add at least 100 dollars out of my budget to my positions in the Loyal3 account.  I am not going to worry that much about valuations because the cash will be small amounts and this is basically a drip.  However, I will not be adding any to INTC until they raise the dividend again.

Dividend Decreases

None.

Sales

None.

Conclusion

I have been pretty busy and have not had much time for research and the market is boring me right now.  I will probably be slow over the next few months, which works out because I have some home improvement and trips to take!

Over the next twelve months I expect to receive at least $4021.37.  This is an increase of about $50 from last month and I broke 4k!

Disclaimer: Long all stocks mentioned, with the exception of RAI and DirectTV

Loyal3 Purchase: TGT, MAT, MCD, UL

The house is moving right along.  I had a few extra dollars from the budget and so I decided to use it to add to a few of my existing positions in my Loyal3 account.

Changes to purchases

Recently Loyal3 changed how you can buy with a credit card.  You are able to buy up to 2500 dollars of an individual company per month.  Now, the total amount is the same, but if you use a credit card you can only buy in 10, 25 or 50 dollar lots.  I’m guessing people were taking advantage of the credit card rewards of several percent and then selling the stock quickly.  This would increase the transaction cost to Loyal3 and goes against the purpose of the brokerage.  They want to foster long term ownership and brand loyalty.

I added $25 to…

Mattel (MAT):  .6447 @ 38.77 (Executed on May 19)

Unilever (UL):  .5453 @ 45.84 (Executed on May 19) – I had erroneously stated that my only exposure to products of consumer goods was PG.  UL is one of my positions that I forget I have, along with EMR and LEG.

McDonalds (MCD): .2445 @ 102.22 (Executed on May 19)

Target (TGT): .4403 @ 56.77 (Executed on May 21)

I actually goofed and used my bank account for the TGT transaction, which takes longer to execute. In this case it benefited me because TGT had a reasonable drop from May 19 to 21.

Goal going forward

I am planning on trying to use 100 dollars each month from my budget to add to my Loyal3 positions.  I feel like this is possible and probably not much of a stretch goal.  I will probably not worry too much about portfolio weight, value or dividend yield when picking among my positions in the account.  The 100 dollars will be split anywhere from 1-4 companies.

I had added the goal to my goal pages and will update my positions page to reflect the new shares at the beginning of June.

Disclaimer: Long EMR, LEG, MAT, MCD, PG, TGT, UL

 

Purchase: SBSI, Banking in Texas

It has been a busy few weeks for me.  I haven’t been able to do as much investing as I wanted.  A combination of being busy with the house, enjoying the nice weather and making up hours from a vacation that lasted too long (from works perspective).    However, I have had time to keep up with all the M&A action that has been going on.   One that struck me as particularly interesting was SBSI purchase of OMNI American.

OMNI American Bank is a small bank that is located in Fort Worth, Texas.  They have fourteen branches located throughout Fort Worth and its suburbs.  They have no presence within about 30 miles of Dallas.  They have about 1.4 billion in assets and had an EPS of .57 cents over the last few months.  SBSI agreed to buy them for ~.45 shares and 13 dollars per share of Omni.    Being that this is already a done deal,  I am not worried about whether or not they overpaid for the bank.  I personally don’t believe they did.

I look at SBSI and one aspect that I do not like about the bank is were most of its branches are located.  They are located in smaller towns with a token presence in Fort Worth and Austin, with two SBSI branches in town or in a suburb.  Cities like Dallas and Houston do not have any.  I have wanted SBSI to increase it’s footprint in at least one of the fast growing metro areas in Texas.  According the the census, four of the top 10 metro areas with the largest population growth were in TX.   These cities were Houston, Austin, Dallas and Fort Worth in that order.   It makes sense to expand in these areas from a banking perspective.

Texas has done very well in recent years.  Some large companies have been moving activity from other states to TX.  Chevron (moving personnel), Occidental Petroleum (LA to Houston) and Toyota come to mind.  The housing market did not collapse like it did in AZ or CA.  There was a rather modest fall from the peak of the housing bubble to the trough.   As we speak, the housing market is going gang busters in the Dallas Area and construction is booming.  As I walk around the area there are help signs practically everywhere I go.  Anecdotal evidence for sure, but sometimes that is good information.

In light of this move by SBSI, I re-evaluted my thesis and asked the question.  Does the purchase of SBSI add to the growth potential of this bank?  After reading, looking at macro factors and considering SBSI management track record, I chose to purchase additional shares of this company.   I placed a limit order yesterday, but did not have my order filled even though the price of SBSI hit my price! Frustrating for sure and it lead to me missing out on the ex-dividend date of today.

No worries though.  Today I purchased 42 shares of SBSI for a cost basis of 25.99 (including commission).  This will round out my position of SBSI to a little over 100 shares and add 35.28 to my yearly income.  After the 5% increase for SBSI recently and this new purchase my forward dividend income has now…

Broke 4k in forward dividends!

This is a great accomplishment and at this point I feel like my snowball with move forward without adding any additional outside funds.  However, I have no planes to not continue saving as much as I can.

Disclaimer: Long SBSI