Tuesday, January 31, 2012

January Recap

January was a solid month.  The market was mostly sideways, but made a small push upwards towards the end of the month.  It was difficult to recognize any screaming buys.  I played it safe and made one small investment to help round out my portfolio.  I'm trying to conserve cash for better opportunities.  I'm fully aware this might be market timing and could backfire.  In my head it doesn't make since that only two months ago the same companies producing the same products were so much more attractively priced.  I was a kid in a candy store late November, but maybe the market overreacted to reach such lows.  Looking forward I still have doubts about the U.S. economy and the situation in Europe. 

New Purchases:
60 shares Southside Bancshares (SBSI) providing $43.20 annual income.  I picked this up slightly over $21/share.  The limit order was filled at a price lower than I entered, always nice.

Sales:
None

New Capital:
$610 in January.  $300 added to ROTH IRA, $310 added to taxable account.  I received a small raise and bumped up these automatic investments.  I have been doing well with my budget, plus made money on the side.  I expect to contribute somewhere around $1000 in February.

Dividend Increases:
1) LTC .14 to .145 per month.  This will add $12.06 annually

Dividends Received: $157.83
Pepsi (PEP) - $41.20
Illinois Tool Works (ITW) - $10.44
Phillip Morris Int. (PM) - $60.06
Exchange Income Corp (EIFZF) - $16.97
LTC Properties (LTC) - $29.16

Options/Bonus:
The covered call I wrote on INTC expired worthless this month, making me $23.  I have not wrote another call yet because the premiums are low.  I might initiate calls on LTC and/or INTC in the future.

2 comments:

  1. Good stuff!

    Looks like a pretty solid month to me. You saved some cash and you made a solid buy. I don't know much about SBSI, as I lack knowledge in the finance sector altogether. It might be something I should take a look at, as my portfolio is heavily weighted toward consumer, health care and energy stocks.

    Best wishes and I hope February is another successful month. Your dividends this month were right about what I received as well.

    Keep up the great work.

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  2. Thanks DM

    Your blog is a lot more impressive than mine. The progess you've made in a year is awesome. I highly respect the sacrifices you've made to reach your goals. For me, most of 2011 was transforming my old etf/mutual fund portfolio into a dividend growth portfolio. I already had the money, I've been saving for a long time.

    I'm not a big fan of the financial sector, but still want to own a few financials to diversify. I chose SBSI because it was the best candidate at the time I researched. I do not expect massive growth from it, but the dividend policy is great. You'd have to spend some time on their website to evaluate it.

    February should be my best month ever. It is the biggest dividend month due to AT&T and MLP payouts. I am expecting to see a bunch of dividend increases too. Hopefully no freezes.

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