Follow the dividend investment decisions of a person who has no background in financial investment and wishes to take control of their financial future to retire from their full-time job at 60.

Taking a Break - 16 May 2020 16:14

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Just to let folks know I'll be taking a break for a couple of months to focus on other projects that have gotten away from me. I will still be posting my monthly reports but weekly posts will be on hiatus for a bit. - Comments: 0

April Dividend Income - 05 May 2020 22:50

Tags: monthly_income

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After 33 years of clocking in and out of work and religiously saving 10% annually every year, in good times and bad, I have decided to share my monthly dividend income to show what regular saving and investing can accomplish.

For the month of April I made $2,869; a decrease of -4.9% versus this time last year. This month’s decrease took me a bit by surprise but as I looked closer between last year and this year I found the culprit to be end of month dividend payers and it also helps explain why last month's income shot up 38%!

Last year I had certain holdings that would normally payout on the last day of the month however because I was using a DRIP the funds did not credit my account until the next day which would have been April. This year I eliminated my DRIP plan for those holdings and was credited the dividends in March instead of April. The biggest culprit was Brookfield Renewable Partners (BEP) which paid $285 on 4/2/19 and $317 on 3/30/20. Two other holdings, GATX Corp (GATX) and Garmin (GRMN), also fell into this category by paying out $109 in March instead of April.

As of today I do not foresee any significant drop in monthly income until June when my General Motors (GM) holding will cease to pay a $238 quarterly dividend.

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Overall my main portfolio and 401K closed out April in the black (barely) but my M1 Finance account is much younger as all of the buys were in the last 7 month at the top of the market. Needless to say my M1 account took a sharper drop and has yet to recover. I continued with my weekly $120 contribution for a total of $480. The overall dividend yield of my M1 pie decreased to 3.915% due to the market recovering from its March lows.

Overall my M1 Finance accounts contributed $8.07 to this month’s dividend totals. Patiently keep building this up and maybe by years end every month will start consistently delivering double digit dividends.

I also provided a link to my M1 Pie for those interested in seeing all of the individual holdings.
https://m1.finance/NCB--FZCZ

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My age 53 goal (I’m 51 for those not in the know) went backwards again by -1.25% all from the recent dividend cuts. This will be a recurring regression for the next 3-6 months until the Covid-19 crisis passes and economies stabilize.

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For those not familiar with my Age 53 goal, I plan in 7 year increments and targeted to have 57% of my expenses to be covered via dividend income and to be at 115% for my next 7 year target at age 60. Why 115%? This was based on a multiple bear market/crash analysis I performed back in 2018 that showed my optimal portfolio to withstand a long term bear market with high inflation would be to have dividend income of 115% of expenses and the equivalent of 9 months of expenses in cash. - Comments: 0

Weekly Portfolio Summary - 02 May 2020 11:56

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Tough week as two more companies suspended dividends, General Motors (GM) and Weyerhaeuser (WY). Of the two GM was the biggest hit at -$952 in annual income as I made a sizeable investment awhile back when their share price fell to $28.

I made no stock purchases this week but I did sell one position, Marine Products (MPX). I bought MPX 3 years ago at $7.99/share and sold half at $16/share and the rest at $10/share and netted a 67% return. I was actually considering selling my entire MPX even before the COVID-19 crisis as their long term liabilities had been increasing since the start of 2019 and the crisis helped hasten my decision. Their loss of revenue from this crisis will not be recovered easily as they are a discretionary purchase and with unemployment so high I don’t expect their revenues to return to normal for about two years and may see their share price drop below my initial buy price during that time. If the share price drops to $5 I may buy back in but for now the risks outweigh the reward.

Portfolio Activity

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Portfolio News - (In Case You Missed These Headlines)

AbbVie (ABBV)

Avangrid (AGR)

Air Products (APD)

Preferred Apartment Communities (APTS)

Bar Harbor Bankshares (BHB)

Cummins Inc (CMI)

Chevron (CVX)

General Motors (GM)

Goodyear Tire & Rubber (GT)

Hasbro (HAS)

Kraft Heinz Company (KHC)

3M (MMM)

Medical Properties Trust (MPW)

Merck (MRK)

Microsoft (MSFT)

Newtek Business Services (NEWT)

Newell Brands (NWL)

Pepsico (PEP)

Pfizer (PFE)

Phillips 66 (PSX)

Qualcomm (QCOM)

Ryder System (R)

T. Rowe Price (TROW)

United Parcel Service (UPS)

W.P. Carey (WPC)

Weyerhaeuser (WY)

Interesting Blog Posts or Articles

Blog Posts

Weekly Portfolio Summary - 25 Apr 2020 12:07

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Made it through another week of COVID-19 isolation healthy. No dividend cuts this week but I am starting to have concerns I may be furloughed in June if this shutdown lasts another month. In that light, I have begun selling some positions that suspended their dividends and reinvested to generate passive income.

Portfolio Activity

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Portfolio News - (In Case You Missed These Headlines)

AbbVie (ABBV)

Air Products (APD)

Preferred Apartment Communities (APTS)

Discover Financial Services (DFS)

First American Financial (FAF)

International Business Machines (IBM)

Johnson & Johnson (JNJ)

3M (MMM)

Merck (MRK)

Newtek Business Services (NEWT)

Pfizer (PFE)

AT&T (T)

Walmart (WMT)

Interesting Blog Posts or Articles

Blog Posts

Articles

New Buys for the Week - 24 Apr 2020 21:58

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This week of buys was slightly different. I decided to unload Apple Hospitality (APLE) and Chatham Lodging Trust (CLDT) as they were not large positions and at this point generating no passive income. The proceeds from those sells were redirected to buying Iron Mountain (IRM) and Prudential Financial (PRU).

All together the new buys added $180 to my forward dividend income. My new investments provide an overall yield of 9.17%.

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Weekly Portfolio Summary - 18 Apr 2020 12:55

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Made it through another week of COVID-19 isolation healthy. My portfolio received yet another dividend suspension, this time from Goodyear Tire (GT). GT is a small position but it was enough to wipe out my dividend increases from PG and JNJ.

Stay home and stay safe everyone. For those with COVID-19 I’ll keep you in our prayers.

Portfolio Activity

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Portfolio News - (In Case You Missed These Headlines)

Armanino Foods of Distinction (AMNF)

Artesian Resources (ARTNA)

Cummins (CMI)

Camden Property Trust (CPT)

Chevron (CVX)

Fastenal (FAST)

Goodyear Tire & Rubber (GT)

Johnson & Johnson (JNJ)

3M (MMM)

Merck (MRK)

Procter & Gamble (PG)

Qualcomm (QCOM)

T. Rowe Price (TROW)

Walgreens Boots Alliance (WBA)

Interesting Blog Posts or Articles

Blog Posts

Articles

New Buys for the Week - 17 Apr 2020 22:35

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The markets are not giving up its gains making for limited opportunities this week but I still made a few small buys. One buy was Bar Harbor Bankshares (BHB) which I have not felt the need to buy since 2014. Its not because I thought BHB was a bad company it just didn't have that value appeal since 2014 that was until this week.

All together the new buys added $12 to my forward dividend income. My new investments provide an over all yield of 5.99%.

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Weekly Portfolio Summary - 11 Apr 2020 12:47

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Made it through another week of COVID-19 isolation and no dividend cuts this week. First time in 3 weeks I bought no stocks. Not sure which way the market is headed so I just sat this week out and will continue to watch.

Stay home and stay safe everyone. For those with COVID-19 I’ll keep you in our prayers.

Portfolio Activity

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Portfolio News - (In Case You Missed These Headlines)

AbbVie (ABBV)

Avangrid (AGR)

Cummins (CMI)

Compass Minerals (CMP)

Kraft-Heinz (KHC)

3M (MMM)

Merck (MRK)

Newtek Business Services (NEWT)

Pfizer (PFE)

Prudential Financial (PRU)

Domtar (UFS)

Interesting Blog Posts or Articles

Blog Posts

Articles

Some Good News Amongst the Chaos - 10 Apr 2020 20:35

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Even during a crisis you can still get good news and that is what today's post is about. My oldest child graduated from college with a BS in Biology just this past December and her research work on using alternative means of virus detection was published a short time later. Talk about timing! With COVID-19 you would think that this skillset would be in incredibly high demand but for some odd reason after sending out hundreds of resumes my daughter sat unemployed for three months. She had just two rejection letters both of which cited a lack of full-time lab experience as a factor. Other than that she received no other rejection letter or return calls from the other 100+ applications, just radio silence.

Finally she gave up and went the route of working with a contractor who, after 3 weeks, finally found her work in a lab! Not just any work but a lab that is only 20 minutes away and is aligned with her published research paper, she couldn’t be happier. Of the 10 people hired, my daughter and one other were handpicked by their lead scientist to assist and perform actual lab work while the remaining 8 people were designated to simply assemble COVID-19 test kits. Today she is now working on new approaches to detecting SARS, Anthrax, and a host of other viruses. I could not be happier for my daughter landing her dream job and the upside to all this is the timing in relation to student loans.

Due to the COVID-19 outbreak, the President & Congress suspended all interest on student loans until September 30th. My daughter owes $10K in student loans and she has plans to take full advantage of this once in a lifetime opportunity to obliterate her entire student loan by the end of September. Best part is it will not be that painful. With all of the non-social shelter at home policies there is no big draw on her income so she will be redirecting all disposable income towards debt elimination. Additionally, her new job just does not benefit her it also benefits me and my wife.

Last week, my wife was notified that after the end of April she is being furloughed until September. We expected this was eventually going to happen and cut back expenses $250 a month back in February. Even with that we were not sure if we had to dial back our savings but now things have changed. With my daughter having a full-time job she can absorb all the costs associated with car ownership, paying for her own cell phone plan, health care and buying her own clothes. This frees up an additional $300 per month which places my budget back in the black without my wife’s income.

So there you have it, a win-win scenario! - Comments: 0

Weekly Portfolio Summary - 04 Apr 2020 12:02

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Made it through another week of COVID-19 isolation and no dividend cuts this week. Stay home and stay safe everyone. For those with COVID-19 I’ll keep you in our prayers.

Portfolio Activity

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Portfolio News - (In Case You Missed These Headlines)

Air Products (APD)

Preferred Apartment Communities (APTS)

Ares Capital Corp (ARCC)

Johnson & Johnson (JNJ)

Leggett & Platt (LEG)

3M (MMM)

Marine Products (MPX)

Merck (MRK)

Newtek Business Services (NEWT)

Pfizer (PFE)

Ryder System (R)

Sabra Health Care REIT (SBRA)

Walgreens Boots Alliance (WBA)

Weyerhaeuser (WY)

Interesting Blog Posts or Articles

Blog Posts

Articles

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