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 at 60.

New Buys PEP and ABBV - 11 Jan 2019 15:35

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Friday morning I added to my Pepsico (PEP) position picking up a few shares at $107.83/share with a 3.45% dividend yield of which will add $34 to my annual forward dividend income.

I love Pepsi products this time of year as it is the top product for Super Bowl parties everywhere! I can't remember a single party where their chips, dips, or soda wasn't available to munch on. Guess that makes PEP my Super Bowl pick for 2019 :)

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My buying did not end with PEP, I also grabbed a few shares of AbbVie(ABBV) at $87.82/share with a 4.7% dividend yield that will add $47 to my annual forward dividend income.

ABBV is going ex-dividend on Monday so this was a buy with a quick dividend payout and I was lucky that the market discounted the price just before. - Comments: 0

Book Review: The Snowball Effect - 06 Jan 2019 12:15

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Published in 2016 I am a little late getting around to reading this book but I did receive it as a Christmas present (it was on my list for Santa) and was thrilled when I unwrapped it. Now that I have finished reading the book here is my take.

The book is broken up into 7 chapters but the most powerful chapters that deliver the strongest message are the first three chapters. The first chapter focuses on explaining market risks and debunking the myth that stocks always go up. He walks you through each secular bear market starting in 1906 through 2011 and shows the reader through factual data that secular bear markets are more common than secular bull markets. Being a history buff I loved how the author walks the reader through secular bear market and the historical events unfolding that influence each event.

The next two chapters focus on how dividends are an important of the market return and the power of compounding (dividend reinvesting) and like the previous chapter uses actual data to prove his points. The message of these first three chapters is fairly direct; average investors should not focus on market price but invest for dividends and let the power of compounding do its thing to give you the “Snowball Effect”

The following chapters 4 thru 7, while not as powerful as the first three, are still significant. The reason they are not as strong is that they are not intended to deliver a message. Instead these chapters walk you through the various income paying market instruments that can create the snowball effect. Chapter 4 discuses small/micro-cap dividend paying stocks, chapter 5 discuses bonds, and chapter 6 discuses covered calls (options). The final chapter 7 is a summation of his Top 100 dividend paying stocks and how to develop a portfolio and provides an extensive appendix resource listing of various stocks.

Overall I enjoyed this book and highly recommend it to anyone who is about to venture into investing, The only thing I wished the author focused on a bit more was inflation risk and dividend growth. While the author does touch on the subjects as well as their importance, it is my opinion that a couple chapters devoted to just these concepts would have made this a perfect book

If you haven't read this yet then go grab a copy. The first chapter alone was worth the price. - Comments: 0

New Buy T - 05 Jan 2019 01:31

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I'm a little late on reporting this one but I got one last buy in before the end of the year. Last Monday on New Years Eve I picked up a small position in AT&T for $28.46/share and a 7.16% dividend yield which will add $48 to my annual dividend.

I realize T is far from a growth stock and its annual dividend raise isn't even big enough to beat the rate of inflation but when the yield is up above 7% its pretty hard to ignore.

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- Comments: 0

Scheduled Update to Inflation Beaters Index - 05 Jan 2019 00:10

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Just letting everyone know I am working on updating the Inflation Beaters Index. The final 2018 inflation rate does not get published until mid-January. Once the final number is out I'll be hitting the keyboard, updating formulas and adding & deleting new members.

With all that said I am hoping to have a new list and summary of changes by mid-February. In the meantime thanks to everyone for supporting. - Comments: 0

December Dividend Income - 01 Jan 2019 12:29

Tags: monthly_income

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After 31 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.

This month I made $2,470 and it was a nice way to wrap up 2018. This is my first month I can do a historical comparison as I just recently started tracking month to month dividend income. Quarter over Quarter my monthly dividend increased $217 or 9.65%. However, this number is slightly inflated as my ETFs make a double distribution payment in December. If we discount the extra ETF income the increase is $86 or 3.83%. Not too shabby and extremely pleased.

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Looking at my 3 year goal metric I improved my percent complete by 0.25% from last month. This was a little less than I had hoped but it was the holidays and I may have spent more than normal. From here on forward over the next 36 months it needs to improve by 0.833% a month. Hopefully things pick up on the income front or I can reduce an annual expense.

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On the expense front I have kept my credit card debt down to zero. With the holidays behind us and all college tuition bills paid my expenses should be fairly stable until July. I did have an unplanned expense as I had to buy a new stove at total cost after taxes and delivery was $556. Two years ago this would have set me back but with my credit card & mortgage debt gone I had the money but it came at the expense of not buying a snow blower I had been saving for.

I realize a snow blower to some is a luxury but two months ago we had an early season snow storm and I had a sore shoulder for three weeks after shoveling. Went to the doctor and discovered I have early onset of arthritis in my right shoulder. It should be fine as long as I limit the stress I put on the shoulder. Luckily, our winter has been mild since that time and we have not had a snow storm since. Looks like I will have to wait until next month to get the snow blower and hopefully mother nature will be accommodating. It is a bit of a gamble as I live in the northeast and the odds are against me.

To wrap things up I’d like to wish everyone a Happy 2019 New Year and hope that all your plans, goals and ambitions for the New Year come true! - Comments: 0

Weekly Portfolio Summary - 29 Dec 2018 13:10

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Portfolio Activity

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An interesting week to say the least. Had a couple of my business development companies pay dividends this week and with the markets down they DRIP’d at some pretty low share prices.

I would not mind stock prices leveling off at these levels so I can capture some more nice DRIP conditions especially since the first month of a quarter is my largest dividend paying month.

Portfolio News - (In Case You Missed These Headlines)

AbbVie (ABBV)

Brookfield Renewable Partners (BEP)

International Business Machines (IBM)

Interesting Blog Posts or Articles

Stocks Get Cheap on Christmas Eve by the Conservative Income Investor
2019: The Year Without A Beer by Cheesy Finance
When You Know You are About to be Laid-Off by Dividend Dozer - Comments: 0

New Buys KHC and VER plus some last minute selling - 28 Dec 2018 11:04

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On Monday I decided to trim back my portfolio and sold three stocks; Versum (VSM), Keurig Dr. Pepper (KDP), and Analog Devices (ADI). All three stocks were acquired from buyouts or spin-offs, however, their position in my portfolio was so small that it was becoming a labor to track all three so I decided to cut them loose. These sells reduced my forward annual income by $66.

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On Wednesday I bought Kraft-Heinz Corp (KHC) at a price of $42.52 with an annual dividend yield of 5.88%. At this price it was just too cheap to ignore so I made the move to capitalize. This buy adds $58 to my annual forward dividend income,

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My second purchase was a small increase in my VEREIT position inside of my ROTH IRA at a price of $7.10/share and a yield of 7.89% which adds $24 to my forward annual dividend. Luckily I bought this a day ahead of the ex-dividend date so it will immediately start contributing next month.

Overall between the sells and buys my forward dividend netted out to an additional $16. Not the greatest jump but and increase none the less. I still have a little cash left over from the selling action so not sure if these are the last buys of 2018. - Comments: 2

Weekly Portfolio Summary - 22 Dec 2018 14:35

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Portfolio Activity

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The last week has been pretty rough for the markets and many a portfolio. But now is a time to relax and enjoy time with family and friends. Thanks to all the readers and have a great holiday!

Portfolio News - (In Case You Missed These Headlines)

AbbVie (ABBV)

Air Products (APD)

Preferred Apartment Communities (APTS)

General Mills (GIS)

Hasbro (HAS)

Merck (MRK)

Newtek Business Services (NEWT)

Pfizer (PFE)

Qualcomm (QCOM)

Ryder System (R)

Sabra Health Care (SBRA)

AT&T (T)

Interesting Blog Posts or Articles

Five lessons I learned while making a documentary film about FIRE by Get Rich Slowly
HOW “NO” HAS CHANGED MY LIFE by Mr Free at 33
This is exactly how much families must earn in each state to afford housing, child care and food
Dear Young Boys: Let’s Talk About Money - Comments: 0

New Buy R - 21 Dec 2018 21:57

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Transports have been getting whacked on the markets as of late and it is hard to ignore when big names like UPS & FedEx are dropping to new 52 week lows. I already have a sizable position in UPS so I opted to place a limit order for Ryder System (R) and it only took two days to trigger my limit buy order.

On Friday I increased my position in R at a price of $45.60/share and a dividend yield of 4.74%. This new purchase will increase my forward annual dividend income by $47 and represents my last stock purchase for the year as I am out of cash until 2019 kicks-in.

For those not familiar, Ryder System provides transportation and supply chain management solutions worldwide. The company operates through three segments: Fleet Management Solutions (FMS), Dedicated Transportation Solutions (DTS), and Supply Chain Solutions (SCS). Ryder System also has a 15 year dividend growth history and a 13 year inflation beat record and a 10 year dividend growth rate of 8.76% with its most recent 3.85% increase announced back in July. - Comments: 0


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