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.

July Dividend Income - 06 Aug 2020 01:18

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 July I made $2,946; a decrease of -8.7% versus this time last year. The decrease was not a surprise as most of my REITs paid in the first month of a quarter and we are all familiar with REITs and dividend suspensions.

For July I sold my position in Dominion Energy (D), which I just bought in June, over the Berkshire Hathaway deal. This was a one sided deal and I think D just rushed the sale and what little capital the will receive for the deal will be redirected towards stock repurchase which I believe is a terrible use of cash. D management’s inability to adequately redeploy cash to generate more future cash flow was enough for me to question leadership so I sold.

I made no significant purchases in July as I was more focused on enjoying some long overdue vacation time with some fishing, relaxing around the house and catching up on some home projects.

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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 slightly decreased to 3.705% as the market continues its recovery.

Overall my M1 Finance accounts contributed $9.35 to this month’s dividend totals.

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) moved backwards -1.5% due to my sale of Dominion. My plan is to redeploy cash reserves during the month of August so things should be moving forward once again.

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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

June Dividend Income - 05 Jul 2020 12:27

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 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: 5

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

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

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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

March Dividend Income - 01 Apr 2020 21:24

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 March I made $3,324; an increase of 38.94% versus this time last year. I target a growth rate of 12.5% but my tracking metrics show the bulk of my year over year growth occurs in the last month of a quarter. With the current events of COVID-19, $20/barrel oil and near 0% fed interest rates, I am sure this will be my last good month of growth. During March I was already notified of two suspended dividends and one dividend cut. I am sure this will not be the last so I’m bracing for more.

In regards to buying, I did change my strategy from buying stocks in $1000 lots to buying individual shares. The buying process is quite a bit longer but stretching my buys out during all of this volatility will hopefully let me buy at decent prices.

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Overall my main portfolio and 401K closed out March in the black (barely) but my M1 Finance account is much younger all of the buys were in the last 7 month at the top of the market and took a dramatic drop which has yet to recover. I continued with my weekly $120 contribution for a total of $600. The overall dividend yield of my M1 pie increased to 4.507% due to the market drop. My M1 portfolio has no REITS so there is less exposure to possible dividend cuts.

Overall my M1 Finance accounts contributed $13.04 to this month’s dividend totals. Finally double digit monthly income.

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) actually went backwards by -0.55% all from the recent dividend cuts. Not pretty to watch but hey if it wasn’t a challenge where would the fun and satisfaction come from.

Age53_381.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: 2

February Dividend Income - 01 Mar 2020 13:55

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 January I made $2,409; an increase of 9.94% versus this time last year. I target a growth rate of 12.5% but my tracking metrics show the bulk of my year over year growth occurs in the last month of a quarter so I am not too concerned being under my target.

In regards to buying, I increased my position in Prudential Financial (PRU) and Brookfield Property REIT.

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In my M1 Finance account, I continued with my weekly $120 contribution for a total of $480. The overall dividend yield of my M1 pie increased to 3.816%. While there have been a few dividend raises the bulk of the increase was attributable to the massive market sell-off in the last week of February.

Overall my M1 Finance accounts contributed $7.56 to this month’s dividend totals. Finally getting closer to double digit monthly income.

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) improved by 0.65%. This was a nice positive step forward.

Age53_372.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

January Dividend income - 02 Feb 2020 13:15

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 January I made $3,224; an increase of 10.6% versus this time last year. I target a growth rate of 12.5% but my tracking metrics show the bulk of my year over year growth occurs in the last month of a quarter so I am not too concerned being under my target.

In regards to buying, I increased my position in Weyco Group (WEYS) and started a new position in WestRock (WRK).

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In my M1 Finance account, I continued with my weekly $120 contribution for a total of $480. The overall dividend yield of my M1 pie increased to 3.361%. While there have been a few dividend raises the bulk of the increase was attributable to market loss as the DOW & S&P 500 retreated in the last few days of January.

Overall my M1 Finance accounts contributed $4.49 to this month’s dividend totals. Not breaking any speed records but it is nice to see whole dollars versus cents.

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) improved by 0.85%. This was a nice positive step foward.

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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

December Dividend Income - 01 Jan 2020 14:17

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 December I made $3,090; an increase of 25.1% versus this time last year. I target a growth rate of 12.5% and as I predicted last month it appears the bulk of my purchases and dividend raises seem to impact that last month of a quarter which was validated.

For the year I made a total of $‭32,382.65‬ which was a 14.4% increase from my 2018 dividend income and almost a full 2% better than my targeted growth rate of 12.5%. Hopefully 2020 will be as kind to me.

In regards to buying, I increased my positions in Pfizer (PFE), IBM (IBM), Goodyear Tire (GT) and started a new position in Brookfield Property (BPR). I did have a rare sell when I sold-off Westwood Holdings (WHG) which does not look capable of supporting the dividend going forward and this sell will not affect my dividend income until the second quarter of 2020.

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In my M1 Finance account, I continued with my weekly $120 contribution for a total of $600. The overall dividend yield of my M1 pie decreased yet again to 3.238%, There were no dividend cuts so this was all attributable to market returns as the DOW & S&P 500 continue their streak to record levels.

Overall my M1 Finance accounts are finally starting to gain dividend momentum as it contributed $7.68 to this month’s dividend totals. Not breaking any speed records but it is nice to see whole dollars versus cents.

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) improved by 0.48%. This was lower than last month but not surprising due to selling of my Westwood Holding (WHG) position.

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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

November Dividend Income - 30 Nov 2019 12:48

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 November I made $2,375; an increase of 11.4% versus this time last year. I target a growth rate of 12.5% to meet my FI goal and came in below my target. After tracking year over year monthly gains it appears the bulk of my purchases and dividend raises seem to impact that last month of a quarter so I am expecting a much better December growth rate.

In regards to buying, I made only one small transaction this month in my IRA buying a small position in the Weyco Group (WEYS).

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In my M1 Finance account I made a mistake with the type of account and luckily noticed it before the portfolio became too big. I originally thought I opened a joint account but it was a single account. This is important to me in case I pass away as none of the assets will be tied up in any probate and my wife can access the funds with no issues. I decided not to sell the old account as I did not want to have 55 short term capital gains to file for fractional shares so instead I located the beneficiary form and added my wife as the beneficiary. That said, I hit the reset button and going forward I will only show the new joint account balance & return.

For the month I contributed $480 and for being only a month old I still made a small gain. The overall dividend yield of my M1 pie decreased yet again to 3.254%, There were no dividend cuts so this was all attributable to market returns as the DOW & S&P 500 continue their streak to record levels.

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) improved by 0.5%. This was lower than last month but not surprising as I limited my stock purchases this month.

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On the home front, we are getting excited as my oldest will graduate from college next month. Taking AP classes & college night classes while she was in high school eliminated a semester which saved her $6000 in tuition. Her next major milestone will hopefully be to secure a career in the field of Human Biology. She has been focusing on completing a research grant, which she wrapped up last week, and has not yet focused on job hunting. Fingers crossed that she starts and someone makes her an offer. - Comments: 0

October Dividend Income - 04 Nov 2019 22:14

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 October I made $3,224; an increase of 11.2% versus this time last year. I target a growth rate of 12.5% to meet my FI goal and came in below my target. Most of my REIT holdings payout this month (hence the large sum) but the downside is they have slower dividend growth rate so the bulk of the YoY increase came from reinvested dividends.

In regards to buying I made 4 stock purchases with 2 in my IRA; Ryder Systems (R) and IBM, Apple Hospitality (APLE) for my Roth and Goodyear Tire (GT) for my brokerage account. All four will payout a dividend before the end of the year so they will immediately start contributing. Looking into November I am currently watching 3M (MMM), Texas Instruments (TXN), and WestRock (WRK),

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In my M1 Finance account I added $600 in regular contributions. The portfolio continues to grow from an overall value perspective but comes at the expense of portfolio dividend yield which dropped from 3.35% to 3.29%.

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) improved by 0.9%. This was a large improvement over previous months and puts me back on track to where I want to be.

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On the home front, for more than a year I have had no debt and it has been fantastic but that changed as I had to buy not one but two cars. Long story short, I gave my son my old car so he can commute to college and then my wife’s ancient mini-van finally died. Instead of getting depressed I used this to my advantage with negotiating a deal where I started with one car and then said if you throw in the second I’ll pay this much. At the end of the day it worked to our advantage as I picked up two used cars (a large SUV and a 4 door sedan) for $31K and financed at a rate of 3.5%. My plan is to drive both for at least 10 years and hopefully everything works out well. - Comments: 0

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