Tuesday, April 10, 2018

Recent buy: JNJ, MMM, APD, etc

I bought the following yesterday:

JNJ:  $1174
MMM: $2851
APD: $816
ABT: $533
CLX: $256
WEC: $313

I paid $8 total for trades for 3M, the others were free.
Right now my cash position is around $20,000. To see what my portfolio looks like now I updated my Portfolio page: http://www.youngdividend.com/p/portfolio_17.html

I plan to steadily move the cash in all at once as nowadays the market moves up and down quite heavily. It's good to catch some of the down days if possible.

Saturday, April 7, 2018

March 2018 Dividends Received

It's that time of the month again. Time to count the dividend payments I received in the last month, March 2018.

I currently have two accounts. One is my brokerage account which I call taxable as the income is taxed. The 401k is my retirement brokerage account with my employer. The 401k dividends are not taxed which is great. I tend to hold not so tax friendly securities like REITs in my 401k.

Ticker      Total    Taxable         401k
JNJ $163.32 $157.92 $5.40
HD $130.67 $101.44 $29.23
NEE $125.47 $95.31 $30.16
PEP $109.72 $82.86 $26.86
D $98.48 $54.01 $44.47
MMM $78.46 $78.46
BDX $58.38 $58.38
O $56.45 $56.45
WEC $49.25 $37.09 $12.16
V $41.60 $29.96 $11.64
ROST $41.01 $41.01
KHC $40.53 $40.53
MCD $32.90 $32.90
CHD $32.71 $18.91 $13.80
TJX $26.22 $26.22
SO $0.58 $0.58
INTEREST $0.54 $0.01 $0.53
$1,086.29 $855.59 $230.70

Saturday, March 31, 2018

February 2018 Portfolio Summary

I have been procrastinating on my monthly portfolio updates.
Here is the supposed update for the end of February, but since it's the end of March now I will just summarize what is happening with my portfolio up until now, March 31 2018.

The S&P500 has been rough lately. It is no longer as sanguine as it used to be. Trade war terrors, Trump tweet targeting specific industries or companies, information security crisis at extremely large companies, and instability with the current administration has caused unease with the markets. However, I still feel very positive about the market because of the tax reductions to corporations and the general growth the economy is experiencing right now. I am a big believer in American business and have always felt the place to invest is always in the USA.

The dollar is also weakening considerably. This is a major tailwind for a large chunk of my portfolio as I hold many companies who operate internationally. A weak dollar will boost handsomely the money held overseas when converted into US Dollars.

Crude oil has been rising. I do not hold many companies directly affected by the price of oil. Rising oil costs will increase material costs for the companies I hold but I don't see it affecting them significantly. If anything, the low oil prices in the past has caused the overall market to tank because it was thought to be seen as a sign of low demand or low economic activity. Higher oil prices, although bad for most businesses, may be seen now as a boom because economic activity is high causing higher demand for oil. Anyways, rising oil prices will definitely help those downtrodden oil businesses. I find oil to be a "dying" business with a bad reputation. Oil is not the way of the future (many decades from now) and I want to invest in businesses that will continue being pretty much the same many decades from now (i.e. toilet paper will still be toilet paper and toothpaste will still be toothpaste 100 years from now).

Friday, March 9, 2018

February 2018 Dividends Received

Dividends in February 2018 are shown below.

The quarterly moving average of dividends per month is $876. Next month is March and I'm predicting around $1050 in dividends. And for April I am looking at $1200.

Ticker      Total    Taxable         401k
T $149.46 $149.46
PG $70.71 $60.21 $10.50
O $56.20 $56.20
CLX $40.77 $40.77
SBUX $37.87 $27.83 $10.04
APD $33.47 $33.47
GIS $31.91 $31.91
CL $25.07 $25.07
MA $19.87 $8.01 $11.86
ABT $16.89 $16.89
GD $13.44 $13.44
INTEREST $0.46 $0.01 $0.45
$496.12 $375.16 $120.96

The monthly moving average is in the graph below. The growth has flattened lately as contributions have slowed down.

Sunday, February 25, 2018

January 2018 Portfolio Summary

This is a very late "January 2018" portfolio summary post. I was traveling in first half of February so it was hard for me to find a time to reflect on what happened in my portfolio. I decided to do the summary now, after the market close on February 23, 2018. It will reflect all events up to this time.

I wanted to start off and comment about the general direction of the market in the last 2 months. The plot below shows the S&P500 index in the last 12 months. The S&P500, for new investors, represents the US's largest 500 companies and the performance of those 500 companies together can be tracked in this index. The index can be purchased with index funds such as SPX with usually very low expense ratios (ER = fees per year). For investors that don't want to spend time researching and picking individual stocks I recommend purchasing a low cost index over time and holding it.
The S&P500 has experienced its first correction in many months. There was a 10% drop from the end of January until the bottom in early February. I felt the market was getting too extended in January and this pull back is a nice welcome to bring valuations back down to more reasonable levels. When stock prices start to become parabolic, there is usually a correction. One can witness the parabolic movement from November until the peak in January.

I experienced around a $40,000 paper value decline in portfolio during this time. From January to February I continued to add small amounts to my portfolio to collect additional shares in high quality companies that have withdrew 10-20% in value. I did not make any large allocation changes in my portfolio. Nearly all the positions (note SO was exchanged in my portfolio for AT&T) continue to sit in my portfolio and dividends are collected. The purpose of this portfolio is income accumulation, not timing of the market or observation of how the dollar value of the portfolio compares with the index. The dollar value of my portfolio is only secondary, as those assets are only there to produce dividend income. The growth of the income is of high priority. Usually growth of dividends is followed by growth of share prices. Any increase in my portfolio's dollar value is icing on the cake; the priority is dividend growth which I track very closely on separate graphs. The safety of the dividend is of utmost importance and I see no fundamental differences among the companies I hold between the January peak and the bottom in February. I still remain positive in the long term prospect of America.

Friday, February 23, 2018

January 2018 Dividends Received

In January 2018,  last month, I received $1175 in dividends. Not a bad amount. I used some of this amount to help fund my trip to Tokyo in February.

Although markets were very volatile in February as they usually are, the dividends were highly predictable. They just continue to come in and I do not see any payout ratio problems with these companies so far. Dividends continue to be a smooth climb upward. The plot below shows what I received so far in previous months.

Ticker      Total    Taxable         401k
MO $350.49 $301.26 $49.23
PM $340.58 $292.59 $47.99
PEP $108.97 $82.30 $26.67
MKC $61.56 $39.72 $21.84
KMB $58.54 $36.55 $21.99
XEL $58.49 $58.49
O $54.32 $54.32
ADP $44.58 $44.58
MDT $44.06 $30.82 $13.24
ITW $39.08 $39.08
SYK $13.68 $9.43 $4.25
INTEREST $0.34 $0.04 $0.30
$1,174.69 $934.86 $239.83

Thursday, February 22, 2018

Recent buy: MMM

Market is cheaper. There are some good deals around, wish I had more cash. Each dollar invested now pushes my annual dividend up much higher than before's purchases.

Bought $1200 of 3M