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.

August Monthly Income - 31 Aug 2019 12:27

Tags: monthly_income

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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.

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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.

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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.

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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.

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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

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Portfolio Activity

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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)

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Weekly Portfolio Summary - 17 Aug 2019 12:27

Tags:

Portfolio Activity

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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)

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

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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.

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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:

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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

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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)

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

Tags: m1_finance

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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.

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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!

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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.

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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

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Brokerage Buy: 3M Company (MMM)

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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

New Buy APLE - 06 Aug 2019 10:52

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Roth IRA Buy: Apple Hospitality REIT (APLE)

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Purchase Price: $14.84/share
Increase in Forward Annual Div: $94
Inflation Beating Streak: 0 Years
Div Growth Streak: 0 Years
Yield: 8.09%

I realize Apple Hospitality (APLE) is not a dividend growth stock but my REIT diversification is light on Hotel REITs so I took advantage of a price drop and scooped up a small position with a 8% yield. I already own Chatham Lodging Trust (CLDT) but now I get a bit more diversification with APLE.

Overall I am still $2000 away from balancing out the hotel sector of my REIT portfolio and plan on investing an additional $1000 in both CDLT & APLE. Since I put away $580/month into my Roth IRA, in theory a $1,000 investment should take the remainder of my 2018 contributions.

For those curious about my REIT diversification here are the different REIT sectors I try to maintain an even spread with:

  • Data Storage
  • Entertainment Facilities
  • Hospitals
  • Hotels
  • Industrial Facilities
  • Residential Apartments
  • Retail Stores
  • Senior Housing
  • Timber
  • Warehouses - Comments: 0

July Dividend Income - 04 Aug 2019 11:46

Tags: monthly_income

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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 June I made $3,226; an increase of 6.9% versus this time last quarter.

For the month I made only 1 stock purchases in 3M (MMM) for my brokerage account. This purchase will contribute $8.5 beginning in September.

On Thursday I made my regular monthly deposits to my brokerage & Roth accounts ($500 & $580) which will increase my ROTH IRA account balance to over $1K so I expect next month’s stock purchase to be in this account. Since I have turned off reinvesting dividend in my IRA my cash balance there topped $1K but I wasted no time in letting it sit and already purchased Prudential Financial (PRU) after it crashed from ~100/share to $88/share.

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Looking at my 3 year goal metric I improved my percent complete by 0.43% from last month. I noticed the slow progress last month due to inflated stock prices limiting dividend growth. I have since turned off DRIP programs for approximately 25% of my holdings and instead will accumulate the cash and buy select stocks. I should start to see improvement in the next quarter and if not I may have to consider increasing my monthly investments.

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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. July is a big vacation month for me & the family and we used all cash to avoid credit card debt. - Comments: 0

Weekly Portfolio Summary - 03 Aug 2019 15:18

Tags:

Portfolio Activity

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Portfolio News - (In Case You Missed These Headlines)

Preferred Apartment Communities (APTS)

Ares Capital (ARCC)

Brookfield Renewable Partners (BEP)

Chatham Lodging Trust (CLDT)

Cummins (CMI)

EPR Properties (EPR)

General Motors (GM)

Iron Mountain (IRM)

3M (MMM)

Medical Properties Trust (MPW)

Merck (MRK)

Newtek Business Services (NEWT)

Newell Brands (NWL)

Pfizer (PFE)

Procter and Gamble (PG)

Prudential Financial (PRU)

Prospect Capital (PSEC)

Qualcomm (QCOM)

Ryder System (R)

Domtar (UFS)

Westwood Holdings (WHG)

W.P. Carey (WPC)

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