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.

June Dividend Income - 05 Jul 2020 12:27

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 June I made $2,869; an increase of +13.03% versus this time last year. As planned, my dividend growth was muted due to the dividend suspension of 3 decent size holding and if not for them my growth would have been double at 26%:

  • GM - General Motors dividend suspended
  • EPR - EPR Properties dividend suspended
  • WY - Weyerhaeuser dividend suspended

There was one dividend cut for June and it was Armanino Foods of Distinction (AMNF) who cut their dividend from $0.0275 to $0.0175. I see this as temporary with an expectation that the old dividend rate will return by Q1 2021.

I spent much of June repositioning cash in other equities while also accumulating a cash pile in case the markets give back some of their recent gains from March lows. As the summer rolls on and earnings roll in I still see August as a risky time with corporations and markets starting to get a better grasp of the COVID-19 economic shutdown effects and the recovery will be longer than they initially expected.

For June I sold no stocks and started increasing my position in utilities by buying Dominion Energy (D), Duke Energy (DUK), and PPL Corp (PPL). I did not plan to start rotating into utilities for another 4 years but this recent pullback motivated me to start buying now instead of waiting. With a low rate interest environment and once Covid-19 is behind us I expect income seekers will push prices up again.

One other stock I started a new position in was Kimball International (KBAL). KBAL is an office furniture supplier to government and commercial clientele which currently is 50% off its 52 week high and has a price to book value of 1.7 versus 3.1 a year ago.

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I continued with my weekly M1 Finance contribution of $120 for a total of $600. The overall dividend yield of my M1 pie slightly decreased to 3.837% as the market continues its recovery.

Overall my M1 Finance accounts contributed $19.60 to this month’s dividend totals and is the largest monthly dividend payout to date. I did finish up my Federal taxes and received a decent refund of which I plan to redirect $1,000 to my M1 Finance account and another $1,000 to my wife’s Roth IRA account.

I also provided a link to my M1 Pie for those interested in seeing all of the individual holdings.
https://m1.finance/iCDyjkqucd1B

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My age 53 goal (I’m 51 for those not in the know) has finally begun moving forward again! May marked the last of the large dividend suspensions which stopped the negativity and my recent repositioning of cash to equites has jumped my percent complete up significantly by 7.62%.

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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: 3

May Dividend Income - 31 May 2020 18:16

Tags: monthly_income

clocking_in.png

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 May I made $2,207; a decrease of -8.5% versus this time last year. One factor for the reduction was my CM dividend credited my account on April 30 unlike last year which credited my account on May 1. Even accounting for this my portfolio was still down -0.7% as dividend cuts & suspensions began creeping in. Here are the holdings for May that cut or suspended payments:

  • APLE suspended
  • CLDT suspended
  • SVC 98% cut
  • SBRA 33% cut
  • WRK 57% cut

June will be my first full effect of dividend cuts and it will be painful indeed. Hopefully some recent buying activity offsets some pain.

For May I sold out of my hotel holdings, sold Marine Products (MPX) at $11/share and I sold 80% of my Walmart (WMT) holdings at $128/share in an attempt to build a sizeable cash position. I have a feeling August is going to be a very bad month in the markets as the effects of a partially closed economy and a slow recovery begin to settle in. Also, if COVID-19 concerns and negative China relations in regards to Hong Kong and Taiwan persist it could send markets down as early as late July. I could be a little paranoid, however, I would rather be prepared with money on the sidelines than being caught flatfooted as I was in March missing out on quite a few buying opportunities.

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I continued with my weekly M1 Finance contribution of $120 for a total of $480. The overall dividend yield of my M1 pie decreased to 3.847% due to the market rallying at the end of May with my total portfolio return sitting at -3.53%.

Overall my M1 Finance accounts contributed $10.99 to this month’s dividend totals. Inching ever so closer to consistently delivering double digit dividends! Luckily this portfolio has had no ill effects of dividend cuts.

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 this time by a whopping -5.78% all from the recent dividend cuts with the largest coming from EPR Properties (EPR). Since this goal is using forward dividend payments it should stop going negative for a few months and hopefully the worst is over.

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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

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

clocking_in.png

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

M1_391.png

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.

Age53_391.png

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

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