Wednesday, October 31, 2012

October Recap

It seems like the months are just flying by.  The stock market retreated a bit recently which has been more than welcome!  I've been toying with the idea of dripping stocks next year, but utimately couldn't justify it.  I'm going to continue to selectively reinvest dividends into what I deem to be the best companies and/or best value.

DOW: 13,107 /// S&P 500: 1,412 /// 10-YR BOND: 1.75%

New Purchases:
1) KMI: 36 shares at $35.10.  $50.40 income per year (the dividend has since increased)
2) LO: 17 shares at $115.54.  $105.40 income per year
3) APD: 16 shares at $77.54.  $40.96 income per year

Sales:
none

Dividends Received:  $194.89
Coca-Cola (KO) - $19.89
H.J. Heinz (HNZ) - $12.36
Illinois Toolworks (ITW) - $11.02
Philip Morris (PM) - $66.30
Corporate Office Prop. Pref L (OFC-PL) - $22.59
Exchange Income Corp (EIFZF) - $17.60
Realty Income Pref F (O-PF) - $6.76
LTC Properties (LTC) - $26.06
Toronto-Dominion Bank (TD) - $12.31

Dividend Increases:
1) SNH: $.38 to $.39 per quarter.  $2.24 per year
2) KMI: $.35 to $.36 per quarter.  $1.44 per year

New Deposits: $1,210
$300 to ROTH IRA; $910 to taxable account

Lending Club:
Added $50.  So far no problems, everything is current.  I'm still learning the system and not comfortable putting a lot of money in this yet.

Options/Bonus:
$4.51 from OFC-PL.  This was the first payment for series L, which included some days from the previous quarter since it is a new issue.  I only included the normal amount in my monthly totals.  The extra couple bucks will not be accounted for in my quarterly updates either because it will not happen again (isn't sustainable).

8 comments:

  1. Nice month. We both purchased LO and I think KMI and APD both look attractive. I don't have many payers on the J/A/J/O schedule so this month with be low for me in regards to dividends received.

    You do have a few stocks that pay out in Oct. that I would like to eventually own including KO, ITW and PM. However, I'm not to worried about smoothing out the dividends received each month since I'm still in accumulation mode.

    I also agree with you that selectively investing dividends is probably the best route. I just started doing this myself. Good luck!

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    1. I might pick up some more KMI this month, it's still looking attractive. I also like MCD right now and am really hoping KO goes down a bit! ITW is not a bargain right now, other stocks are priced better.

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  2. CI,

    Great month! Solid purchases, and our purchases that coincided with the same companies at almost the same time was very cool!

    I believe selective dividend reinvestment is best, but you have to do what's best for you. I find the additional paperwork itself not worth it, not to mention the fact that I think it's an inferior way to invest. Too many drawbacks, in my opinion.

    Hopefully November treats us just as well, with some strong dividend and additional market pullbacks.

    Best wishes!

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    Replies
    1. When I did my taxes last year I discovered Turbo Tax will automatically do all the work if you use the import feature. The paperwork hangup is a moot point for me now. Regardless, I like having control of my money and will continue to selectively reinvest. I will also selectively drip, HAHA! I recently turned the drip back on for SBSI because it's reasonably priced, yet I don't want to add new capital to it. So I just have to hope it's still reasonable in December. haha

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  3. A solid month -- keep up the good work! I also purchased KMI in October.

    I favor selective dividend reinvestment. The way I look at it, if I'm selectively investing new capital, then why not do the same with dividends? I did a simulation study and found that there are situations in which selective dividend reinvestment can produce superior long-term results compared with automatic DRIPS. Here is a link to my article about it on Seeking Alpha:

    http://seekingalpha.com/article/829981-selective-dividend-reinvestment-can-boost-long-term-dividend-income

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    Replies
    1. Thanks for the link, pretty sure I read that one. The only reason I was thinking of dripping is that next year I plan to save less. Past June/July I won't be making new purchases every month. It will be more like every 2 months. So I could drip + make ~1000 purchases bimonthly. or Make ~1700 purchases bimonthly. I'm going to continue what I'm doing, but honestly was thinking of turning on all drips.

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  4. Another solid month with some great additions to the growing portfolio. I picked up some KMI and APD this month as well.

    It's nice to see that you've got solid dividend payers for each month, which helps keep the cash flowing in. This part of the rotation (October) is the leanest for me, with only KO dividends coming in.

    Hopefully more good buying opportunities will arise in November!

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    Replies
    1. 3 of those pay monthly which I like a lot. I want to add O common stock in addition to the preferred holding. That would be another monthly payer. If O goes down a few bucks I might have to jump on it! O-PF is not a buy at todays prices, plus the common started making meaningful raises again.

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