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
Sales:
none
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:
$8.75
Thursday, October 31, 2013
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.
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.
Monday, September 30, 2013
September Recap
I feel like I've been on autopilot for a long time and somehow managed to stray from my frugal roots. This month I challenged myself to see if I could increase my savings rate. All I did was drive less, eat at fewer restaurants, and curb energy drinks. It feels good to save additional capital and be motivated again!
DOW: 15,130 /// S&P 500: 1,682 /// 10-YR BOND 2.62%
New Purchases:
1) 26 shares PM at $83.84. $88.40 annual income (the dividend has since increased)
2) 36 shares KMI at $34.66. $57.60
3) 22 shares BAX at $66.84. $43.12
Sales:
1) 92 shares INTC at $22.98 ($82.80) annual income
Dividends Received: $539.90
Intel (INTC) $41.40
ConocoPhillips (COP) $41.40
Southside Bancshares (SBSI) $14.28
Southern Co (SO) $14.72
iShares Emer Mkt Bnd (EMB) $2.76
Chevron (CVX) $29.00
Emerson Electric (EMR) $22.55
Exxon Mobil (XOM) $10.71
Johnson & Johnson (JNJ) $39.60
Lorillard (LO) $46.20
Norfolk Southern (NSC) $29.64
Avista (AVA) $47.89
Exchange Income Corp. (EIFZF) $17.28
Linn Energy (LINE) $24.16
Realty Income (O) $15.61
Realty Income Series F (O-PF) $6.76
McDonald's (MCD) $43.12
LTC Properties (LTC) $26.06
Owens & Minor (OMI) $21.36
Pepsi (PEP) $45.40
Dividend Increases:
1) O: $.1815417 to $.1818542 per month. $.36 annual income
2) PM: $.85 to $.94 per quarter. $37.44
3) MCD: $.77 to $.81 per quarter. $8.96
4) WPC: $.84 to $.86 per quarter. $1.84
New Deposits:
$1,100 to taxable account; $50 to Lending Club
Lending Club Interest:
$7.22
DOW: 15,130 /// S&P 500: 1,682 /// 10-YR BOND 2.62%
New Purchases:
1) 26 shares PM at $83.84. $88.40 annual income (the dividend has since increased)
2) 36 shares KMI at $34.66. $57.60
3) 22 shares BAX at $66.84. $43.12
Sales:
1) 92 shares INTC at $22.98 ($82.80) annual income
Dividends Received: $539.90
Intel (INTC) $41.40
ConocoPhillips (COP) $41.40
Southside Bancshares (SBSI) $14.28
Southern Co (SO) $14.72
iShares Emer Mkt Bnd (EMB) $2.76
Chevron (CVX) $29.00
Emerson Electric (EMR) $22.55
Exxon Mobil (XOM) $10.71
Johnson & Johnson (JNJ) $39.60
Lorillard (LO) $46.20
Norfolk Southern (NSC) $29.64
Avista (AVA) $47.89
Exchange Income Corp. (EIFZF) $17.28
Linn Energy (LINE) $24.16
Realty Income (O) $15.61
Realty Income Series F (O-PF) $6.76
McDonald's (MCD) $43.12
LTC Properties (LTC) $26.06
Owens & Minor (OMI) $21.36
Pepsi (PEP) $45.40
Dividend Increases:
1) O: $.1815417 to $.1818542 per month. $.36 annual income
2) PM: $.85 to $.94 per quarter. $37.44
3) MCD: $.77 to $.81 per quarter. $8.96
4) WPC: $.84 to $.86 per quarter. $1.84
New Deposits:
$1,100 to taxable account; $50 to Lending Club
Lending Club Interest:
$7.22
Thursday, September 26, 2013
Could I Semi-Retire in 5 Years?
I believe I might be able to pull off an early exit from full time work within the next five years. Man it would be awesome to own more of my time! Here's how it might look.
Passive Income Stream:
I currently expect to receive about $460 per month (on average) from my investments. This figure includes dividends from the portfolio listed on this public blog plus a small amount of interest from Lending Club. I believe that by early 2018, this figure will balloon to $800-$1,000 per month based on conservative dividend growth assumptions (4.5% dividend growth), and a moderately aggressive savings target ($1,000 per month + annual tax return). I might hit the high end of the target if my name is called for another combat zone deployment.
Army Reserve/National Guard:
Pay: $400 for one weekend per month; full time pay two weeks per year.
Benefits: Inexpensive healthcare, pension, military perks
Other: Transfer accumulated service, opportunity to lace my boots
Not Enough:
I'm up to roughly $1,200 - $1,400 income per month so far, have health insurance, and am working towards a pension. Not a bad place to be, but unfortunately I can't live off a sum this small. I would need to find supplemental income sources.
Option 1:
Work I enjoy/part time job. This could be seasonal work as a ski instructor or maybe as a raft guide. Can't get any better than that as far as paid work goes. I might have to settle for a lousy $10/hour job if the fun jobs don't pan out. Maybe 20 hours per week doing something like retail or as a Subway cashier if it comes to that. I would only need to earn enough to cover the rest of my bills, perhaps $800 - $900 per month or so. My stress level would be tiny plus I would own the majority of my time.
Option 2:
Between the Montgomery GI Bill and the Army College Fund in my contract, I am set to receive roughly $65,000 of college money. I don't want to get into the details (because it doesn't matter), but basically I would choose the old option and would receive this amount over a three year period. I'm not really interested in furthering my education... however, I am open to receiving ~$22,000 per year for taking 10 credit hours of underwater basket weaving at a cheap community college, then pocketing the rest. Lasts three years tops.
Possibilities! hmm...
Passive Income Stream:
I currently expect to receive about $460 per month (on average) from my investments. This figure includes dividends from the portfolio listed on this public blog plus a small amount of interest from Lending Club. I believe that by early 2018, this figure will balloon to $800-$1,000 per month based on conservative dividend growth assumptions (4.5% dividend growth), and a moderately aggressive savings target ($1,000 per month + annual tax return). I might hit the high end of the target if my name is called for another combat zone deployment.
Army Reserve/National Guard:
Pay: $400 for one weekend per month; full time pay two weeks per year.
Benefits: Inexpensive healthcare, pension, military perks
Other: Transfer accumulated service, opportunity to lace my boots
Not Enough:
I'm up to roughly $1,200 - $1,400 income per month so far, have health insurance, and am working towards a pension. Not a bad place to be, but unfortunately I can't live off a sum this small. I would need to find supplemental income sources.
Option 1:
Work I enjoy/part time job. This could be seasonal work as a ski instructor or maybe as a raft guide. Can't get any better than that as far as paid work goes. I might have to settle for a lousy $10/hour job if the fun jobs don't pan out. Maybe 20 hours per week doing something like retail or as a Subway cashier if it comes to that. I would only need to earn enough to cover the rest of my bills, perhaps $800 - $900 per month or so. My stress level would be tiny plus I would own the majority of my time.
Option 2:
Between the Montgomery GI Bill and the Army College Fund in my contract, I am set to receive roughly $65,000 of college money. I don't want to get into the details (because it doesn't matter), but basically I would choose the old option and would receive this amount over a three year period. I'm not really interested in furthering my education... however, I am open to receiving ~$22,000 per year for taking 10 credit hours of underwater basket weaving at a cheap community college, then pocketing the rest. Lasts three years tops.
Possibilities! hmm...
New Purchase - BAX
I thought I was finished buying shares for September, this purchase was not planned...
This BAX purchase will bolster my annual passive income stream by $43.12 on a 2.93% yield. I was not charged a commission, since I received free trades as a bonus for singing up for a new Scottrade account. I like BAX a lot at current levels ever since it took a rather large share price hit the other day. This purchase will meet my expectations if it can boost annual dividend payments by 7% (hopefully supported by 6-7% earnings growth).
It appears the reason for this particular stock decline was based on a downgrade. Apparently disruptive products from competing companies are thought to have diminished BAX's market share (product is 16% revenue) faster than expected based on telephone surveys. Analysts believe competition will continue taking market share for the foreseeable future. Analysts usually do have insight on the stocks they follow, however the upgrades/downgrades are meant for the short term investor in most cases. Long term I like Baxter.
I thought this stock was undervalued before all this happened, I think it's now even more undervalued. While the competition and BAX's debt load are something to keep an eye on, I like this company, the sector it is a part of, and more importantly the valuation on its common stock shares. I do not see Baxter as a core holding, however I do plan to accumulate more shares as long as the company continues to pay higher dividends.
Sunday, September 22, 2013
New Scottrade Account
Time to diversify brokers.
Although I will receive 3 free trades, this move wasn't meant to play broker favorites or attempt to benefit from bonus perks. I am simply more comfortable diversifying my wealth across a variety of financial organizations. Up to this point my wealth was divided between a taxable Fidelity account, tax-exempt Fidelity Roth IRA, taxable Lending Club account, tax-deferred Thrift Savings Plan account, and taxable bank account. If one organization goes under, I want to be able to access capital from other sources while lawyers sort out the mess. This is especially relevant to stock brokers where the bulk of my assets happen to be parked!
Enter Scottrade. I was specifically looking for a second brokerage with the following characteristics:
-A reputable company that has been in business for a minimum of 20 years.
-Above average customer service.
-Low trading fees.
-Physical branches (minor consideration).
Scottrade has been in business since 1980 (33 years), has over 500 branches including one in my city, and offers exceptional customer service according to the reviews I read. Stock commissions are very low at $7 per trade and compares favorably to my current broker at $7.95/trade (Fidelity). I would note that I have had absolutely zero problems with Fidelity. I highly recommend Fidelity and will continue to use their brokerage service for my Roth IRA. Fidelity also has physical branches in my neck of the woods. Honestly Fidelity's trading platform and research tools seem to be a few steps ahead of Scottrade, and I love quick responses to my questions they are happy to provide. I can't speak highly enough about Fidelity!
The plan for my new Scottrade account:
-All new taxable deposits go here
-Funnel all taxable dividend & interest payments to this account
-Transfer the ~$6,000 cash left in my taxable Fidelity account over here
-Shares already held in my taxable Fidelity account are to remain in that account
-Treat all the accounts as one; don't need to rebuy companies I already own
It's going to be a pain when it comes time to update my blog. However, I think this move will allow me to sleep well at night and be better prepared for the future.
If I happen to make a purchase the next few weeks, it will probably be at Fidelity. The cash transfers are still pending!
Although I will receive 3 free trades, this move wasn't meant to play broker favorites or attempt to benefit from bonus perks. I am simply more comfortable diversifying my wealth across a variety of financial organizations. Up to this point my wealth was divided between a taxable Fidelity account, tax-exempt Fidelity Roth IRA, taxable Lending Club account, tax-deferred Thrift Savings Plan account, and taxable bank account. If one organization goes under, I want to be able to access capital from other sources while lawyers sort out the mess. This is especially relevant to stock brokers where the bulk of my assets happen to be parked!
Enter Scottrade. I was specifically looking for a second brokerage with the following characteristics:
-A reputable company that has been in business for a minimum of 20 years.
-Above average customer service.
-Low trading fees.
-Physical branches (minor consideration).
Scottrade has been in business since 1980 (33 years), has over 500 branches including one in my city, and offers exceptional customer service according to the reviews I read. Stock commissions are very low at $7 per trade and compares favorably to my current broker at $7.95/trade (Fidelity). I would note that I have had absolutely zero problems with Fidelity. I highly recommend Fidelity and will continue to use their brokerage service for my Roth IRA. Fidelity also has physical branches in my neck of the woods. Honestly Fidelity's trading platform and research tools seem to be a few steps ahead of Scottrade, and I love quick responses to my questions they are happy to provide. I can't speak highly enough about Fidelity!
The plan for my new Scottrade account:
-All new taxable deposits go here
-Funnel all taxable dividend & interest payments to this account
-Transfer the ~$6,000 cash left in my taxable Fidelity account over here
-Shares already held in my taxable Fidelity account are to remain in that account
-Treat all the accounts as one; don't need to rebuy companies I already own
It's going to be a pain when it comes time to update my blog. However, I think this move will allow me to sleep well at night and be better prepared for the future.
If I happen to make a purchase the next few weeks, it will probably be at Fidelity. The cash transfers are still pending!
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