Thursday, February 28, 2013

February Recap

February was a monster month for dividend increases.  I am thinking about replacing all or most of my UNS shares.  The past two increases were disappointing

DOW: 14,054 /// S&P 500: 1515 /// 10-YR BOND: 1.89%

New Purchases:
1) 21 shares TD at $82.42 - $64.68 annual income (the dividend has since increased)
2) 27 shares KRFT at $46.87 - $54.00 annual income
3) 2 shares EMB at $118.44 - $10.00 annual income

1) 24 shares HNZ at $72.44 - ($49.44) annual income

Dividends Received: $453.74
AT&T (T) - $82.35
General Mills (GIS) - $23.28
Raytheon (RTN) - $28.50
Air Products (APD) - $10.24
Linn Energy (LINE) - $72.50
Abbvie (ABBV) - $21.60
Abbott Labs (ABT) - $7.50
Exchange Income Corp (EIFZF) - $17.77
Kinder Morgan, Inc (KMI) - $27.01
Procter & Gamble (PG) - $43.84
Realty Income series F (O-PF) - $6.76
Senior Housing Properties (SNH) - $21.84
Boardwalk Pipeline (BWP) - $64.43
LTC Properties (LTC) - $26.06

Dividend Increases:
1) AVA: $.29 to $.305 per quarter. $9.42 annual income
2) LO: $.517 to $.55 per quarter. $11.20 annual income
3) OMI: $.22 to $.24 per quarter. $7.12 annual income
4) PEP: $.5375 to $.5675 per quarter.  $9.60 annual income
5) KO: $.255 to $.28 per quarter. $11.30 annual income
6) UNS: $.43 to $.435 per quarter. $2.12 annual income
7) TD: $.77 to $.81 per quarter (Canadian).  $5.92 annual income

New Deposits:
$1000 to taxable account

Lending Club:
Deposited $100


  1. Why would you sell HNZ?!?! Defintive buyout price at 75.00 by Buffett + 2 dividends before closing. Ridiculously low risk. I might unfollow you now....

    1. The buyout price was $72.50 unless something changed recently. Staying put for a couple dividends doesn't seem like a good move to me. I have already redeployed the money into a replacement stock that will pay me more than what HNZ would have paid, plus TD already announced a dividend increase to boot. The only downside of switching is paying an extra commission, the money has already been made with HNZ.

      Staying put with HNZ is pretty similar to holding a bond that pays 2.8% I will pass.

      Anyways thanks for stopping by!

    2. Do you find the foreign taxes on the TD dividends eating into your profit there? For me it seems to be 20-25% ends up going to foreign tax as a separate transaction.

      Good work, I recently found your blog and am following you closely.

    3. I hold TD (and 2 other Canadian equities) in my ROTH IRA. No taxes are withheld. US and Canada have a tax treaty for retirement accounts. I will do a post and show screen shots of this soon. A lot of people don't know this.

      The only thing is that the dividends are subject to exchange rates.

      I cannot comment on the laws from other countries besides the US, not sure where you're from.


  2. Great month CI! All of those dividend increases coupled with the $4,800 per month milestone! Keep it up!

  3. Great month! Over $400 in dividends is sweet -- I look forward to eventually reaching that mark myself. You also had a nice batch of dividend increases. Keep up the good work!

    1. Thanks DGM! Only one stinker in the batch this month, not bad at all!

  4. CI,

    I'm with you on UNS. It's had quite a run and is now sitting with a P/E over 20. The yield is also fairly low for a utility and the increase was disappointing. What would you replace it with? SO?

    Great month. You had a hell of a month with dividends. Much better than me. That's some really fantastic stuff. You also had an otherwise great month of increases. AVA has been kind to us.

    Keep up the great work! Really inspiring.

    Best wishes!

    1. Thanks man!

      Selling UNS is going to be a tough decision. I've held it for over 2 years and while the dividend growth did not cooperate with my plans, the share price sure did. What started as a medium sized position is now one of my larger stakes. I'm not sure I want a replacement utility to start out as a large holding if I sell all of it. Not only that but I hold shares in both my taxable and ROTH to further complicate matters. I have a lot to think about here. For now I'm going to wait for it to go ex and do some research when I come back from leave. I don't want to spend too much time right now, it's going to have to wait a week or two.

      I did a quick screen and came up with PPL, WR, PEG, and SO as possible replacements. I'm not in a rush here.


  5. CI,

    Great work! Over $450 in dividends is awesome! I'm guessing you'll be cracking $500 for March and over $1k for the quarter. I've still got a lot of work to do to catch up. Hopefully soon rather than later. Keep up the great work!

    1. Thanks! Yes I think I will break $500 this month. I would never had believed it 2 years ago, pretty crazy!

  6. Great month of dividends! I noticed you increased your deposit to the Lending Club to $100. Do you feel more comfortable about LC?. Ive been thinking of signing up but as off yet have not.

    1. Yes I am feeling more comfortable with LC. The returns have been excellent so far! I wouldn't mind putting a few grand into it, but I plan to do it slowly.

    2. I had $50 in Lending Club when they had some sort of promotion going on for making a deposit. Everything was fine for about a year, but you know the adage, don't put all your eggs in one basket. Well I had all $50 in one loan there that ended up getting written off. I think with enough money and a good spread of the risk at LC it is an good investment, but you have to spread the money around as to spread the risk.

  7. As usually, it is great to see your achievements. CI, as you mentioned you would like to know more about investing with Lending Club, I decided to post my method during next week. So stay tuned and later check my website.

    1. Ok I'll be on the lookout. I'm on vacation right now, that's why I haven't really kept up to date with other blogs. Cheers!

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