2016 1st Quarter Summary

02 Apr 2016 14:15
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The first quarter of 2016 was definitely interesting with the markets dropping throughout all of January through mid-February only to see it rally throughout all of March. Market gyrations aside here is a summary of where I am.

Portfolio

My dividend quarterly income increased by 13.28% in comparison to the first quarter of 2015 which is slightly behind my goal of 15% growth. Helping with the growth were dividend increases from Maiden Holdings (MHLD), Bar Harbor Bank (BHB), Omega Healthcare (OHI), HCP Inc (HCP), and Waste Management (WM).

In regards to new purchases I added T. Rowe Price (TROW) and Westwood Holdings (WHG) in early January which were bought primarily with my end of 2015 dividends. I have not really added any new funds as I have been focusing all my extra cash into reducing my debt.

DRIP Portfolio

For the quarter I did make some minor changes as to which stocks I use a DRIP method. I cancelled the DRIP for HCP as I am not comfortable with their forward guidance and instead will just collect the dividend and reinvest elsewhere until I feel more comfortable.

I did however change the status of Ford (F) and Garmin (GRMN) to DRIP as I see both being attractive but not enough to warrant investing new money so DRIP’g the dividend to acquire more shares is a nice alternative.

Holding DRIP Start
CMI - Cummins Jun 2015
HCP - HCP, Inc. removed
MHLD – Maiden Holdings Mar 2015
MSFT - Microsoft removed
OHI - Omega Healthcare Investors Dec 2015
PG - Procter & Gamble Aug 2015
QCOM - Qualcomm Mar 2015
THO – Thor Industries Mar 2015
New F – Ford Motor Feb 2016
New GRMN - Garmin Mar 2016

Personal Update

On the home front we finally have my daughter all set for college. We completed all of the FASFA forms and she received $22,500 in scholarship money leaving a balance of $9,000. We received the financial aid package from the university and qualified for $6,000 in government loans so we have instead elected to pay the balance out of her college savings which should be enough for the first two years of tuition assuming she does her part and maintains a GPA of 3.0 or better to keep the scholarships.

On the debt front I shocked the family when I showed them we were paying $4.83 a day in interest. I have since put up a big sign on my refrigerator with the figure $4.83 to remind and inspire the family to reduce spending. It seems to be working as everyone is being very conscientious about what and how much they are buying. Another trick I am employing is paying down my credit card weekly instead of monthly. I should get my first monthly bill around mid-April and will see how effective this is.

I moved all of my old 401K assets into a rollover IRA but I was only able to invest 45% of the assets leaving me with a significant amount of cash still to deal with. For now I am not including any of the IRA dividends I am currently receiving as part of my portfolio income as it would skew the goals I have in place for my normal taxable account. I’ll keep on marching towards 100% invested by years end and will set 2017 goals for dividend growth.

I opened a ROTH IRA. It is a small balance ($100) and will probably remain that way till September as right now I am funneling 100% of surplus money into paying down debt. My goal is to eventually max this out every year going forward.

Finally I got my annual review and raise at work. The review was excellent but the raise came in at a paltry 2% which barely covers the increase in my 2016 out-of-pocket medical insurance. Comparing the 2% raise to my annual dividend growth of 13.28% actually inspires me that dividend growth investing is the right path to be on and the faster I can get off of the corporate employment path the better.

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