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).

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

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!