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.

February Highlights

IMG_20150227_135637118

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

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

December Sale

Winter break now!  Work has wrapped up for the year and now I am about to head home to visit my family.  I hope you all have a safe and Happy Holidays!

As I had eluded to in my November Highlights,  I have contemplating selling several of my investments.   I haven’t done enough analysis to make decisions on all of the positions I listed, with the exception of one.

My sale

I decided to sell ARCP over the last few weeks.  I have watched the drama unfolding and have decided that the investment is not worth the risk associated with it.  I made several mistakes while researching and buying this investment:

  1. I projected the success of O onto ARCP’s future
  2. Reached for yield

O has an impressive track records.  They have raised the dividend for several decades through boom and bust.  As I researched ARCP, I felt like I could be getting into an “O” type investment at the early stages where the initial dividend increases would be higher than they will be when the company reaches O’s maturity level.  I feel like the triple net lease REIT space is great for investments, but ARCP proved too opaque for my research.  Truth be told, of all the positions in my portfolio, ARCP has bothered me the most, even on the day I bought it for the first of two times.  That in and of itself should probably have told me not to bother with it, but I did.

If you have an reservations with your research, do more research.

In the end this will be a tax loss and a lesson learned for me.  I sold the position on Thursday at 8:28 per share.  I will loose about 162 dollars of income and I am pushed back below my previous milestone, but the proceeds from the sale will be reinvested and should add an additional 50 dollars to my income.  A temporary set back of 110 dollars or so.  I received around 200 dollars in dividends from this investment, for a total loss of 400.

Sailing down memory lane

Ahh reaching for yield, I’ve committed this sin before.  Years ago I bought an investment called Paragon Shipping (PRGN). Shipping was in a golden age in early 2007.  Spot prices were high and shipyards were stuffed with orders! Unicorns and rainbows were around every corner, the DOW was almost at 14k.  Paragon was adding capacity to its fleet and the fleet was locked into long term leases at high rates!  What could go wrong?

PRGN had something like a 8% dividend.  Not crazy, but once the market crashed, the Baltic Dry Index went from over 10k to 1k in less than year.  PRGN crashed and so I bought more and more and reinvested dividends.  Dividends of 20%! When all was said and done, I lost somewhere in the neighborhood of 5k (and some of it in a ROTH account).  The total loss was probably 80-90% of invested capital.  Easily my worst “investment” of all time.

Ironically, I was researching on how to become a dividend investor at the time.  This was the first time O came on my radar, but it’s yield at the time was to “low”.  Sigh… I supposed one of the first mistakes a dividend investor makes is focusing on yield over ensuring that dividend is safe and sustainable over decades.  Put O and PRGN on the same chart and see how that turned out.

The Fear or Missing out or FOMO

Why did I hold onto PRGN for so long?  Even though hindsight is 20/20, it does appear that things were bad enough that I should have considered getting out of PRGN (or never getting in).  The main driver in holding onto the stock (and adding to it), was the fear that once I sold, it would go up and all the money I lost would have been recovered. If I sold, I was locking in losses and loosing money, but if I bought more now, my gains would be even better (and it would have to go up less to be in the black!).   Or that is probably how my thought process went.  I was pretty good about telling myself the recovery was right around the corner!

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” – Warren Buffet

Right?  I was definitely being greedy, but I was also being an idiot.  At the time, I don’t think I had enough knowledge about both PRGN and the shipping industry in general to be making those purchases. I also had bad timing, but I’ve had good timing too, so that evens out.  I like this quote from Warren Buffet, but I think there is a caveat of knowing what your doing, which I did not at the time.

Why would I sell an investment?

Over the last few months, I have been pondering whether or not I should sell some of my slower growing dividend growth stocks.  This would put companies like T (~2.1%), VZ (3.4%) and SYY(3.4%) into that bucket.   I will be examining over the next few weeks and will hopefully put a coherent post together about why I would choose to sell one of those positions.

A small purchase

I hadn’t expected to make a purchase this month, as I am saving up funds for my ROTH come January 2nd. However, I have accumulated enough funds in my Loyal3 account (52 to be exact) and decided to buy some MCD with it.  That will execute on Monday ( I put it in to late on Friday).

Conclusion

No one wants to make mistakes, but if you can learn from them, then they aren’t all bad.  I would rather make this mistake with a small investment now, than make a large investment in the future and have my income setback much future.

Take ar!

Disclaimer: Long MCD, O, T, VZ, SYY

SNAP! An unsexy business I never thought about…

One of the nice things about visiting blogs and investing sites like SeekingAlpha/Motley Fool/Morningstar, is being exposed to things you wouldn’t think about.  There are a lot of industries out there and it actually takes time to figure out what the boring ones are.  Not because we don’t realize what sounds boring, but because we (at least I) don’t regularly think about boring industries and these positions are not something that pop into our heads when we think about dividend producing stocks.  What company do you think about when I say dividends?  ATT? MCD? KO? or maybe PG?

So I was reading some posts on SeekingAlpha and came across the article, Dividend Challengers (And Near-Challengers): 57 Increases Expected By New Year’s Day.

Snap-On (SNA)

Heard of this company before?  You may have seen their trucks leaving an auto repair shop like Firestone or Midas.  The truck is one of their mobile selling units and brings the tools to the location where they are needed.  This approach was pioneered by SNA.  SNA has been viewed for a long time as the vehicle repair tools company.  However, SNA, provides tools for aviation, aerospace, military, mining, power and others.  Additionally, they operate in 130 countries around the world, including; US, UK, Brazil, Russia and China.   They operate in 4 business segments:

  • Commercial and Industrial Group
  • Snap-on Tools Group
  • Repair Systems and Information Group
  • Financial Services

What about the dividend?

SNA has paid (and never lowered) a dividend since 1939.  They have raised it since 2009 and should be raising it again shortly for the 4th quarter payout.  Here is how dividends have looked since 2009:

Year Dividend ($) Raise (%)
2009 1.20
2010 1.22 1.6
2011 1.30 8.3
2012 1.40 7.7
2013 1.58 12.9
2014 1.32

With a current yield of 1.33%.

Not bad!  This is a Compound Annual Growth Rate (CAGR) of 7.12%.  While I like to see a longer dividend growth streak, if a company meets my other criteria then I am willing to lower the number of consecutive years.  SNA has a much longer history of paying dividends, but never lowering them, which I believe would qualify them for my portfolio.

Does SNA have what I’m looking for?*

When initially looking into a stock, I look at a few metrics to help me determine whether future research is warranted or should I just throw the stock away?

Payout Ratio < 60 %?  Yes, 26.7 for the TTM.  In fact it has remained below 40 since 2010.

Cashflow Payout Ratio < 60%? Yes, At the end of 2013, Cash Flow Per share was 5.45 and dividends paid was 1.58, which is about 29%.

Stagnant/Falling share count? Yes. Shares have remained between 58-59 million for the last decade.  They have repurchased shares each year for the last four years.

Growing Revenue? Yes. Revenue has grown from 2.4 billion (2004) to 3.057 billion (2013), with TTM revenue of 3.2 billion.  Revenue reached a low point in 2009 with 2.36 billion (~ 40 million less than 2004).

Debt Manageable?  Yes.  InterestCoverage Ratio is 12.  Total debt is approximately 1 billion and they have issued very little debt over the last 4 years (< 20 million per year).  In fact, they have payed back more than they issued in 3 of the last 4 years.

 Future Review Warranted

I like what I see.  They have payed dividends for a very long time (57 years), but have not raised it when the company couldn’t afford to do it.  This is a big plus in my book, the dividend has never been cut and is one of there selling points in there company report.  Their main market is very large (fixing cars) and is not going around anytime soon.

The main concern I have is that the starting dividend yeild is low 1.33% (< 2.5% I like).  This wouldn’t necessarily be an issue if they had higher consistent raises (like an SBUX for example), but that is not the case.  However, I will keep look into this company some more and may be a good candidate to add to on a pull back.

*Data provided by Morninstar

Have you found an interesting boring dividend growth company?

Disclaimer: T, MCD, KO, PG

October Portfolio Highlights

What a crazy month.  We had the market going up and down like crazy.  A few of my companies missed some of the expected Quartely EPS numbers.  Notably, KO, MCD and ARCP has to restate earnings for several quarters.  I did my best to take advantage of some of this craziness and was very busy with my dividend purchases.  Aside from ARCP (which has a legitimate problem), I take Q-EPS numbers with a grain of salt.  Very few things make or break a business in three months and nothing from MCD or KO report surprised me. These are issues they have been dealing with for a while and how they are handling them (or plan to) over the next few years is what matters.  However, I always love an over reaction that enables me to buy a solid business at a lower price!

It was a pretty good month.  I am continuing to look through the wreckage and attempting to find a few additional dividend gems.  The market seems to have responded pretty forcefully to the downturn with a pretty sharp recovery.  However, I can’t worry about that.  There are several positions that I would like to add/increase and will do so as I am able.

Dividends

Last year I received $122.14 in dividends.  This year I increased that by over 100% and ended with $263.63.  My dividends for this month was 5% higher than July.  Slowly but surely heading in the right direction!  I wont be able to get such a large increase going forward (even to next quarter), but I would be very happy if I was able to increase it by 5% per quarter.

You can see my Progress page for additional information.

Dividend Increases

It was a quiet month for dividend raises.

Raises
Company %
AFL 5.4
OHI 1.9 (8.33% YTD)

So far 38 of 43 companies have given me raises this year. BP raised it earlier this year.

New Positions

After the market took a dip, I looked into a variety of the hardest hit companies.  Including KMI, CVX, COP, XOM and BP.  I have had my eye on BP for a while, but didn’t pull the trigger.  It appears that most of the issues relating to there oil spill are being resolved and there earnings are quite robust.  I took the opportunity to add it to my portfolio (with additional large purchases of CVX and XOM).

Added Positions

I bought an additional 1% of CVX, XOM and AFL during the brief downturn.

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

Additions
Company Shares
AFL 20
BP 25
DPS .3958
K 1.1986
MAT 7.2418
MCD .2739
UL 4.8233
WMT .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

I feel like I did a good job taking advantage of Mr. Markets bi-polar activity this month.  I could have bought a few other companies at good values, but didn’t pull the trigger fast enough.  That is okay, I have plenty of time to make up for it.

After all of this months activity, I raised my 12 month forward dividends to from $4358.9 to 4557.88.  An almost $200 increase, which leaves me less than $300 from my next milestone  Fortunately, most of the positions I added pay out in December, so that will be a nice Christmas present!

How was your month?

Disclaimer: Long all stocks mentioned

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

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

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