Follow the dividend investment decisions of a person who has no background in financial investment and wishes to take control of their financial future.

Portfolio Experiment - Month 6 - 31 May 2017 22:40

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Month six into the Motif portfolio experiment and the markets keep chugging upwards as the portfolio return grew to 9.56% from last month’s 6.75%. As a basis the S&P has grown 7.73% so we have a nice beat versus the market.

Dividend Income

Projected April dividend income $35.77
Actual April dividend income $36.64
Growth of +$0.87

Income grew thanks to raises from P&G (PG), Petmed Express (PETS), Omega Healthcare (OHI), Apple (AAPL) and Artesian Resources (ARTNA).

Good news received came from Cracker Barrel Restaurants (CBRL) who announce a dividend increase and a special dividend for the next quarter so we should see a nice pop in future dividends.

Portfolio Value

Pre-Retirement Retirement
Starting Value $10,000 $10,000
Current Value $10,956 $10,956
Cash Balance $170.84 -
Cash Distributed - $170.84
Total Portfolio Value $11,126 $10,956
Total Return 11.13% 9.56%

What happened to sell in May? The market keeps on moving higher and my tech stocks (AAPL & MSFT) keep leading the charge but they were not alone for driving portfolio returns.

Petmed Express (PETS) knocked it out of the park when they reported earnings and the market rewarded them by sending their stock price from $24/share to $35/share. Another contributor was 3M (MMM) as this stock soared above $200/share and has risen 18.6% since it was acquired.

In our pre-retirement account after we factor in dividends the total return is a whopping 11.12%. Never did I believe the portfolio would be at this point by May.

From a sector perspective, Commodities are still getting severely hit (down 18%) but all other sector are positive however I will note that financials did retreat slightly.

Portfolio Sector & % Allocation Gain/Loss
BASIC MATERIALS - 4% -17.75%
CONSUMER DISCRETIONARY - 12% 2.42%
CONSUMER STAPLES - 12% 19.33%
FINANCIALS - 10% 1.7%
HEALTHCARE - 10% 10.5%
INDUSTRIALS - 10% 11.7%
REAL ESTATE - 15% 11.8%
TECH/COMMUNICATIONS - 13% 17.38%
UTILITIES - 6% 14.83%
BONDS & INCOME - 8% 4.13%
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- Comments: 0

Investment with Unlimited Dividends - 29 May 2017 13:45

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There is an investment that has paid unlimited dividends that I will never take for granted. What is this magical investment you wonder? It is the human investment our service men & women make to ensure the safety and freedoms we enjoy are guaranteed. Their commitment and service allows me to:

  • Express my opinions without fear of persecution.
  • Walk safely out of my house without fear of my life.
  • Envision a future for my children.
  • Pray to any God I so wish to.
  • Own my own home.
  • Marry who I want and when.
  • Being charitable.
  • Imagine and plan for a peaceful retirement.
  • Opportunity to build wealth and invest freely

These are elements that support what is precious to me and many men and women have sacrificed their lives or livelihoods to ensure my freedoms. The responsibility hoisted upon their shoulders is immense but never do you hear them complain, in fact they do so willingly.

Please do not take this for granted. The next time you pass a grave marker of a fallen soldier bow your head in respect. When you see a servicemen thank him for his service. And finally when they return home from a deployment welcome them with open arms and cheer for them.

Enjoy Memorial Day and Remember! - Comments: 0

Investing for Tomorrow - 13 May 2017 12:42

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Recently, a friend at work asked my opinion about buying Facebook (FB) in a Roth IRA for his adult children. My response was it sounds like a decent investment and possibly a motivator for his young adult children to save. He responded that he plans on keeping the accounts a secret and surprise them with it 20-30 years later when the FB investment would be worth a small fortune. Wait…what?

This made me wince and change my response entirely. You want a set-it and forget-it investment in one stock for 20-30 years! While Facebook is currently a great technology company you have no idea if it will be relevant that far into the future. 20 years ago Microsoft was the king of technology and today they are trying to rediscover their mojo to remain relevant. Facebook could be in the same or worse position that far down the line. He appreciated the comment and understood the gravity of his 20-30 year time frame and that maybe Facebook was not the right long term investment.

This little exchange with a co-worker got me thinking, what industries today will still be relevant in 20-30 years that I should be basing my long term portfolio on? After thinking it over here is my list:

  1. Toiletries - Folks will still be going to the bathroom and showering and still coveting their personal grooming products. Toilet paper is still king of the bathroom.
  2. Garbage & Recycling - People have been making trash for thousands of years and will continue on.
  3. Medicine - Over-the-counter, first aid, or prescription medication. Can’t stop folks from getting hurt or sick.
  4. Water - Unless we somehow evolve into a new species we will need clean drinking water.
  5. Shipping of Goods - Even as we evolve in our shopping trends someone (or some robot) still needs to move goods from point A to point B.
  6. Communication - Unless we develop ESP there will still be a need to communicate with others.
  7. Food - Food has been a necessity since the dawn of time.
  8. Shelter - You have to sleep safely somewhere.

Did I miss any? Let me know - Comments: 0


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