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.

Weekly Portfolio Summary - 14 Sep 2019 10:28

Tags:

Fairly quite this week with Markets closing the week on the upside and no buys or sells on my end. As boring as this sounds the dividends continue to roll in and get reinvested creating more cash flow.

Portfolio Activity

weekly_326.png

Portfolio News - (In Case You Missed These Headlines)

Air Products (APD)

Brookfield Renewable Partners (BEP)

Cummins (CMI)

Hospitality Properties Trust (HPT)

Iron Mountain (IRM)

Johnson & Johnson (JNJ)

Kraft Heinz (KHC)

Omega Healthcare Investors (OHI)

Ryder System (R)

Sabra Health Care (SBRA)

T. Rowe Price (TROW)

United Parcel Service (UPS)

VEREIT (VER)

Walgreens Boots Alliance (WBA)

W.P. Carey (WPC)

Interesting Blog Posts or Articles

Blog Posts

Articles

Weekly Portfolio Summary - 07 Sep 2019 12:20

Tags:

Had a surprise this week when I received an unexpected $1500 bonus in my paycheck. Being the good saver I am I directed $650 into my new M1 Finance account and $350 towards my cash savings goal. The remaining $500 I’m setting aside as I need a new car and this will help with the down payment.

Portfolio Activity

weekly_325.png

Portfolio News - (In Case You Missed These Headlines)

Iron Mountain (IRM)

Kraft Heinz (KHC)

Merck (MRK)

Prudential Financial (PRU)

Qualcomm (QCOM)

United Parcel Service (UPS)

Interesting Blog Posts or Articles

Blog Posts

Articles

2 New Fun Calculators - 03 Sep 2019 22:46

Tags:

I was tipped off to check out the blog Engaging Data. The blog author (Chris) works in the wonderful world of statistical data analysis and modeling. A a side hobby to keep his skills updated and fresh he spends time publishing various data analysis and creating models to understand and learn about the world. Pretty cool stuff but in particular I want to point out two useful models I found under his “Financial” category called; “Rich, Broke or Dead – Early retirement and longevity” and “Early retirement calculator – When can I retire?

Rich, Broke or Dead

Personally my favorite financial tool website is Portfolio Visualizer where you can back test portfolios or run a Monte Carlo Simulation. The “Rich, Broke or Dead” tool performs a similar function as a Monte Carlo simulation but adds in another factor that takes into account the potential of your death.

I bump into quite a few folks (age 50 and above) who are always worrying about outliving their money to the ages of 90 or 95 so much that it stresses them out or they are over-saving and not enjoying life. This is a great visual aid to help explain the odds of them even living that long and when I entered my numbers as a male there was a 95% chance I would be dead at age 95 and for my wife her odds were slightly better with a 90% chance of death.

You can also use this tool at the other end of the spectrum for those retiring super early like at the age of 40. If we pick a 50% death rate and I change my retirement starting age to 40 the results show I will be 80 when I hit the 50/50 odds of death and as a kicker I had a 27% chance of being broke. The story here is your funds starting at age 40 need to last at a minimum 40 years (more likely 45 years) so you need to plan well to last that long.

RBD_Chart.png

When Can I Retire

This one is a really nifty tool. You simply plug in your after tax income, current expenses and what you believe will be your annual retirement expenses and it will spit out what your potential savings rate is and when you can potentially retire. But how reliable is this?

One thing I love to do is analyze, plan and create a strategy to achieve a goal. In my case, I determined to successfully retire while having enough funds to mitigate market downturns & inflation I would need a passive income equal to 115% of my expenses and an emergency cash fund equal to 9 months of expenses. Based on my current investments and savings rate I estimated that I can achieve this by age 60. This target age has been a goal on my blog since 2013 so lets see how my guesstimate compares…

After entering my data it returns a result that says I can retire in 8.8 years or 2 ½ months shy of my 60th birthday. Dang that is pretty close to my calculations and if this was a game of horseshoes I would have scored a point!

FIRE_Chart.png

So there you have two new fun calculators to play with, give’em whirl and let me know what you think. - Comments: 0

August Monthly Income - 31 Aug 2019 12:27

Tags: monthly_income

clocking_in.png

After 32 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 August I made $2,305; a decrease of 4.45% versus this time last quarter. The difference between quarters was due to Canadian Imperial Bank of Commerce (CM) whose dividend payment did not clear into my account until the following month of May so it inflated the earnings. Discounting for CM it would have increased 2.43%.

For the month I made 3 stock purchases in each account with 3M (MMM) for my brokerage, Apple Hospitality (APLE) in my Roth and Prudential Financial (PRU) in my IRA. All three purchases will begin contributing in September.

On Tuesday I will make my monthly Roth IRA contribution of $540 but the balance will be too small to make a purchase next month so no new buys for this account until October.

month_bar_323.pngmonth_table_323.png

Earlier this month I decided to no longer add additional funds to my Fidelity brokerage account and instead will make weekly contributions of $120 to my new M1 Finance account. I have only a few weeks contributing so the balance is very low but as with any account steady contributions will grow this in no time.

M1_323_1.png

As of August 30, my Pie currently has a dividend yield of 3.5% slightly below the 3.54% when I first created the Pie. Since creating the Pie I did decrease my allocation to Telcoms from 9% to 7%. This was mostly due to the fact that since I only have two holdings in Telcom (Verizon and AT&T) they were getting a much larger dollar allocation and by reducing the sector to 7% it has been more reasonable but it did bring the portfolio yield down a bit.

Considering how volatile August was, the portfolio performed overall satisfactory with only my Financials sector under-performing. With all of the lower interest rates and inverted yield talks it was no surprise that this sector under-performed.

M1_323_2.png

Looking at my 3 year goal metric I improved my percent complete by 0.64% from last month. This was a much better improvement from last month and hopefully the combination of using M1 finance and a reduction of auto-reinvesting dividends (I will manually invest dividends in select stocks) in my old accounts will keep this growth rate.

chart.png

Progress on my last goal of saving an additional $2,000 of emergency cash remained the same as last month with a balance of $650. Summer is behind me and as are family vacations. I hope to get back on track as spending should begin to slow down. - Comments: 2

Weekly Portfolio Summary - 24 Aug 2019 11:28

Tags:

Portfolio Activity

weekly_322.png

Portfolio News - (In Case You Missed These Headlines)

Preferred Apartment Communities (APTS)

Cummins (CMI)

General Mills (GIS)

Hasbro (HAS)

Newtek Business Services (NEWT)

Pfizer (PFE)

Qualcomm (QCOM)

Ryder System (R)

United Parcel Service (UPS)

Walgreens Boots Alliance (WBA)

Interesting Blog Posts or Articles

Blog Posts
Leaderboard: Monthly Dividend Income From The Blogging Community by Dividend Driven
Stockboard: What Stocks The Blogging Community Are Buying This Week by Dividend Driven
How To Invest In Peer-To-Peer Lending by Mini Millionaire
5 Reasons Why Dividend Investing is a Great Strategy
How to Invest a Lump Sum of Money by The Dividend Guy
How I Went From Poverty To $100k In 6 Years by Winning to Wealth
Why Do So Many Engineers Retire Early? By The Frugal Engineers

Articles
How to Turn Your Retirement Plan Into an Early-Retirement Plan
This couple fought $25,000 in fraudulent credit-card charges after falling prey to identity theft — then things got even worse - Comments: 0

Weekly Portfolio Summary - 17 Aug 2019 12:27

Tags:

Portfolio Activity

weekly_321.png

Markets continue their slow slide with a 3rd straight week of loses but those dividends just keep rolling in :). For the week I also invested some money ($100) into M1 Finance but have decided to keep my M1 updates separate from my weekly portfolio updates. Since I will be investing a steady $120 per week and M1 investing diversifies that investment over 54 stocks it will probably be more convenient to report out monthly.

Portfolio News - (In Case You Missed These Headlines)

AbbVie (ABBV)

EPR Properties (EPR)

Iron Mountain (IRM)

Medical Properties Trust (MPW)

Newell Brands (NWL)

Prospect Capital (PSEC)

Qualcomm (QCOM)

T. Rowe Price (TROW)

United Parcel Service (UPS)

Walmart (WMT)

Interesting Blog Posts or Articles

Blog Posts
Leaderboard: Monthly Dividend Income From The Blogging Community by Dividend Driven
Stockboard: What Stocks The Blogging Community Are Buying This Week by Dividend Driven
Case Study: Grandparents In Michigan Contemplate Moving by Frugalwoods
Portfolio Charts Tool Tests Flexible Withdrawals in Retirement by MYMONEYBLOG

Articles
8 people who retired before age 45 reveal how the decision changed their money habits
Here’s the Reality About What We’ll Spend in Retirement
CEOs are paid 278 times more than the average U.S. worker
The sad truth about who is abusing older adults the most - Comments: 0

My Taxable Account is now in M1 Finance - 12 Aug 2019 21:55

Tags:

Last December I opened an M1 Finance Roth IRA account under my wife's name and after 8 months I was so impressed I opened a brokerage account with my first $100 deposit. Starting in this week I will no longer be making my usual monthly $500 deposit into my Fidelity account but instead will deposit $120 a week into my new M1 Finance account.

M1_12.png

This account will be used strictly for stocks that pay qualified dividends so no REITs, MLPs, BDCs, Bond ETFs, Preferred Stocks, or CD cash interest. These other assets types I will continue to use my IRA or Roth IRA. For those curious I do not plan on transferring my existing Fidelity brokerage account and will let those assets remain where they are as I just do not want to pay a fee to Fidelity for the rollover.

The new M1 account has a total of 54 dividend paying stocks with 50 of 54 that have dividend growth history of at least 10 years. I modeled the portfolio to have pies within pies. This is a similar approach used by Joseph Carlson as seen on his youtube channel. I have been following his show for a couple months now and like the simplicity and look of managing by sector. Overall the total portfolio has a dividend yield of 3.54% and I have target annual organic growth of 6% and an expense ratio of 0% as all trades are free. Here are all of my sector pies and % allocation:

M1_13.png

So what were the final selling points that inspired me to go all in?

  1. All of my cash gets immediately invested
  2. I can easily adjust entire sectors up or down for future cash contributions if I see a sector under performing
  3. The buying algorithm is always opportunistic
  4. My dividends get reinvested in many stocks and not one
  5. I love the flexibility for payouts when the day comes to live off my dividends which I posted about here

The only downside is this will affect my weekly and monthly portfolio summary reports. I am not positive how or what format those posts will look like but expect some variation as I experiment with different concepts.

Well that is it for today and I'm pretty excited as my first weekly contribution starts tomorrow and will be recurring every Tuesday. - Comments: 0

Weekly Portfolio Summary - 10 Aug 2019 12:19

Tags:

Portfolio Activity

weekly_319.png

Portfolio News - (In Case You Missed These Headlines)

AbbVie (ABBV)

Apple Hospitality REIT (APLE)

Preferred Apartment Communities (APTS)

Artesian Resources (ARTNA)

Compass Minerals (CMP)

EPR Properties (EPR)

Hospitality Properties Trust (HPT)

Johnson & Johnson (JNJ)

Kraft-Heinz (KHC)

3M (MMM)

Newtek Business Services (NEWT)

Omega Healthcare Investors (OHI)

Sabra Health Care REIT (SBRA)

VEREIT (VER)

Walgreens Boots Alliance (WBA)

Interesting Blog Posts or Articles

Blog Posts
Leaderboard: Monthly Dividend Income From The Blogging Community by Dividend Driven
Stockboard: What Stocks The Blogging Community Are Buying This Week by Dividend Driven
Case Study: Grandparents In Michigan Contemplate Moving by Frugalwoods
I’m 65 and Times are Tight. Should I Get a Reverse Mortgage? By Penny Hoarder
Is The CFP Board Finally Ready To Enforce The Standards Its Public Awareness Campaign Promotes?

Articles
4 Steps to Make Retirement Less Complicated
Five Great Money Saving Tips People Hate - Comments: 0

Another Reason Why M1 Finance is a Great Platform for Dividend Growth Investors - 08 Aug 2019 22:07

Tags: m1_finance

M1_11.png

Back in January I did a write up on my experience opening an M1 Finance account and creating a pie based primarily on dividend growth. Flash forward 7 months later and I am still making steady deposits and continue to be impressed with the platform.

One feature I recently discovered and missed in my initial review is what I believe to be extremely useful for dividend growth investors and a feature not talked about in any other review of M1 Finance. Many of you are probably expecting a feature to help you improve your dividend growth investing but that is not what I am writing about today. Instead I’d like to discuss what to do at the end of your investing journey when you want to start living off your dividend stream and how M1 Finance can enable this.

The feature I discovered was “Scheduled Withdrawals” in the funding section. I am not sure why I didn’t see this before but when I entered the funding screen to do a one-time deposit I noticed that the calendar had a “Scheduled withdrawal” legend which of course made me curious so I clicked on the Withdraw feature to see what options are available.

M1_8.png

Sure enough in the withdrawal window was a “Set a schedule” toggle and after hitting it I had the option to schedule withdrawals weekly or monthly by date or monthly on a given week. This feature allows you to create a weekly or monthly paycheck… how frick’n awesome is that!

M1_9.png

When combined with the Cash Balance Control feature it opens a powerful feature of how and when dividends are withdrawn and/or reinvested.

For example:
3 months before I retire I see that I collect $12,000 in dividends every quarter but I only need $10,000 to cover expenses and would like to reinvest the $2,000 difference. To accomplish this I would simply set the Cash balance control to invest anything over $10,000 and let the dividends collect for one quarter.

I would then schedule a monthly withdrawal of $3,333 (or $833 weekly) to begin in the first month of the following quarter. In theory since I already have a $10K balance and I am withdrawing at a slower pace than I am receiving dividends then approximately $2,000 every 3 months will get reinvested back into the portfolio.

m1_10.png

In this example, once a schedule is setup you would only have to revisit once a year to increase everything to account for inflation which should be minimal between organic dividend growth and the extra $2,000 invested every quarter. - Comments: 0

New Buy MMM - 07 Aug 2019 14:04

Tags:

Brokerage Buy: 3M Company (MMM)

3m.png

Purchase Price: $158.78/share
Increase in Forward Annual Div: $23
Inflation Beating Streak: 19 Years
Div Growth Streak: 61 Years
Yield: 3.63%
Payout Ratio: 61%
Most Recent Dividend Increase: 5.88% / Feb 2019

This is was small buy of only 4 shares. Dropping below my targeted $160's range was too good to pass up. - Comments: 0

page 1 of 7123...67next »

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License