Thursday, October 31, 2013

October Recap

Pretty solid month although I worry the stock market might have gotten ahead of itself.  My plan was to put some money to work and also increase my cash position for greener pastures.  Mission accomplished.  Nothing major to report investing wise other than I'll be looking to replace SNH during November. 

I've been extremely busy getting ready to deploy to Afghanistan.  That's why my blog activity was so low.  Other than that I'm hoping for snow so I can enjoy some Colorado skiing (best in the world?) and a white Christmas before I ship off in a few months.

DOW: 15,546 /// S&P 500: 1,757 /// 10-YR BOND: 2.54%

New Purchases:
1) 20 shares TGT at $62.32: $34.40 annual income


Dividends Received: $410.32
Baxter Int (BAX) $10.78
Coca-Cola (KO) $40.60
iShares Emer Mkt Bnd (EMB) $2.61
Illinois Tool Works (ITW) $12.18
Philip Morris Int. (PM) $97.76
Corporate Office Properties series L (OFC-PL) $22.58
Exchange Income Corp. (EIFZF) $17.30
Realty Income (O) $15.64
Realty Income Series F (O-PF) $6.76
W.P. Carey (WPC) $19.78
Linn Energy (LINE) $24.16
Kraft Foods Group (KRFT) $14.28
Bank of Nova Scotia (BNS) $36.77
LTC Properties (LTC) $28.58
Raytheon (RTN) $31.35
Toronto-Dominion Bank (TD) $30.06

Dividend Increases:
1) LTC: $.155 to $.17 per month.  $30.24 annual income
2) KRFT: $.50 to $.525 per quarter. $2.72
3) ABT: $.14 to $.22 per quarter. $17.28
4) KMI: $.40 to $.41 per quarter. $6.12

New Deposits:
$1,365 to taxable account; $25 to Lending Club

Lending Club Interest:

Saturday, October 26, 2013

October Dividend Increases

LTC Properties (LTC) raised its dividend 9.7% from $.155 to $.17 per month.  Obviously I'm very pleased to see a hefty increase on a holding that is already high yield.  High yield + high dividend growth is a potent combination, I need to find more companies like this.  However LTC tends to increase dividends at irregular intervals meaning it's not automatic like a PG or JNJ.  Anyways I like the management here and expect to enjoy additional increases over time with LTC.

Kraft Foods Group (KRFT) raised its dividend 5.0% from $.50 to $.525 per quarter.  This was the first ever dividend boost for the post spinoff Kraft.  Earlier this year the KRFT CEO stated the company was targeting mid single digit dividend growth.  5% is exactly on par so there is nothing to complain about here.  I want to add more KRFT shares, but unfortunately I find the share price to be fully valued at the moment.

Abbott Laboratories (ABT) announced a 57.1% dividend increase from $.14 to $.22 per quarter starting Q1 2014.  This is by far the largest increase my portfolio has ever seen, holy cow!  ABT used to be a dividend champion (with a 40 year streak) before it split into two companies earlier this year.  It is technically no longer a dividend champion but I decided not to penalize the company because the total ABT + ABBV combined dividends is larger than the old company.  Anyhow the new ABT's stance on dividend growth is now crystal clear.  I plan to accumulate more shares and probably even elevate ABT back to core holding status as it was before the Abbvie spinoff.

Kinder Morgan, INC (KMI) boosted its dividend 2.5% from $.40 to $.41 per quarter.  While that number might seem rather low, KMI tends to do similar increases every quarter.  I'll take any increase I can get.  Each and every dividend increase puts more money in my pocket and moves me a baby step closer to financial independence. 

Senior Housing Properties (SNH) FROZE its dividend at $.39 per quarter.  I need to spend some time and figure out what the heck is going on here; freezes are almost always unacceptable!  If a company can't even a muster the usual 2.5% raise it tells me something is wrong.  I don't intend to sell positions very often, but I am likely to do so here.  On the bright side, it shouldn't be terribly difficult to find a replacement REIT with a similar yield.  I haven't had much time to do research the past few weeks.  More to follow on the unfortunate SNH turn of events.

Tuesday, October 8, 2013

New Purchase - TGT

I'll be out of town on a mission the next few weeks and I don't think I'll have internet access while away from home.  I decided to put some money to work right now by buying a few shares of Target.  TGT is the 37th equity position in my portfolio and I'm very pleased to add another high quality dividend champion to the lineup.  This purchase came with a 2.76% yield and will pad my annual passive income stream by $34.40.  I was not charged a commission since I still have free trades from my new Scottrade account.

Symbol: TGT
Core Position: No
Speculative Position: No
Expectations:  7% dividend growth; steady income
Automatic Sell: Dividend is frozen/cut. 
Consider Selling:  Business fundamentally changes, management becomes untrustworthy, fundamentals deteriorate, stock price is wildly over valued, or position fails to meet expectations.

I also entered a lowball XOM limit order in case the market tanks while I'm out of the loop.  Anyone following the news knows we are in the middle of a government shutdown, this could very well be an extremely volatile period for stocks.  Since I will not have the luxury of being able to follow the markets closely for the time being, I must rely on limit orders.  Anyways if XOM hits $80.60 I'll own more shares.