Tuesday, November 13, 2018

Recent buy: HD

I added 10 shares of Home Depot today ($1778) after they announced earnings. Was impressed with the beat and raise. Dividend yield is modest but I can see this dividend growing quite fast in the short term. They have a good track record of dividend payments as well.

Home Depot is cyclical on the housing business side, but for the super long term housing has done well in America and I believe it will be here to stay. It is very hard to "Amazon" this type of business and they have a duopoly across the states with Lowes (another dividend aristocrat). I do believe HD is the better managed company of the two.

Home Depot is one of my largest holdings in the whole portfolio. I hold close to $26,000 in this one company now. In the consumer discretionary space, my next big holding is Ross Stores at around $19,000. That company has been on fire recently with excellent execution. ROST has become so large in my portfolio largely by itself, I do not add too much to it because the yield is so low.

Monday, November 12, 2018

Recent buy: MO, ITW, HON, GD, CL, etc

I gave my portfolio a dividend booster today. Several purchases went in this morning. Close to $15K was bought which will prop up quite a bit on my income. I try to balance some of the low yield purchases with higher yield ones. On average my portfolio seems to be around 2.7% average yield.

Symbol/  CUSIP   
Buy BECTON DICKINSON CO  BDX  8 $241.36 $1,930.88
Buy REALTY INCOME CORP O 29 $63.15 $1,831.35
Buy COLGATE-PALMOLIVE CO CL 29 $63.06 $1,828.74
Buy AIR PRODUCTS&CHEM  APD  7 $160.37 $1,122.59
Buy GENL DYNAMICS CORP COM  GD  6 $184.08 $1,104.48
Buy PEPSICO INC  PEP  9 $118.22 $1,063.98
Buy HONEYWELL INTL INC DEL  HON  7 $149.69 $1,047.83
Buy AUTOMATIC DATA PROC  ADP  7 $146.55 $1,025.85
Buy ALTRIA GROUP INC  MO  16 $61.79 $988.64
Buy ILLINOIS TOOL WORKS INC  ITW  7 $131.38 $919.66
Buy KIMBERLY CLARK  KMB  8 $110.54 $884.32
Buy MICROSOFT CORP  MSFT  5 $108.60 $543.00
Buy PROCTER & GAMBLE CO  PG  5 $92.59 $462.95
TOTAL: $14,754.27

After this purchase my forward annual income hit $15,014 US dollars.

Saturday, November 10, 2018

October 2018 Portfolio Summary

Dear readers,

This post will summarize October's performance. Markets were rather volatile in the last several weeks. Recently the markets have been recovering from the October declines. The consumer staples and defensive type names have been performing well. I have noticed stock sectors that I hold large positions are doing better now and sectors that I hold less in (more cyclical ones) are getting cheaper. This is a change for the better for me as I am now able to diversify into other categories by buying stock at better prices. Previously, the consumer staples and defensive names have largely lagged the cyclical high growth companies like Technology and Industrials.

In October I received sizable one time distribution from my vocation. There will still be one last non-reoccurring payout happening around end of November. I still have not identified how I will invest all this cash, so these monies are sitting on the sidelines. I have zero debt so all this cash will be invested into asset classes that pay income. The portfolio value also saw a shoot up as markets recently have been recovering. These two factors caused October's sharp shoot upwards, almost hitting $600,000. If market circumstances remain flat I believe I can achieve the $600,000 target before New Years which will be a good boost towards my goal of $1MM.

At this point in time, my portfolio is getting large enough that market movements dominate day to day changes. The contribution from my re-occurring income does not help so much propel the portfolio forward. From $600,000 to $1MM I am expecting my portfolio will help perform much of the lifting while my periodic income contributions are there to help buffer against market declines. The $1MM timing target is quite ambitious, if the growth is purely relying on my periodic income contributions I think it will be impossible. That is why I have weighed a decent chunk of my portfolio in high growth companies that pay less dividends. As a result, my average portfolio dividend yield is less than other dividend investors who emphasize high yield. Given my age, I think having a large emphasis on higher growth lower yield companies will pay large dividends in the long term after these growth companies have grown much over their starting cost basis.

Sunday, November 4, 2018

October 2018 Dividends Received

Another month flew by. More payouts from my investments for me to use. All cash received was used to buy even more shares of the stocks that paid them.

I think this is the first month I have received over $1400 in dividends. Next month is lighter, I am expecting $700 in November and $1340 in December. My 2 / 5 / 8 / 11 months are lighter in dividends because I hold less companies that pay on those dates. I prefer to track the 3 month moving average which I plot below. Currently it's $1136 per month.

Ticker      Total    Taxable         401k
ADP $53.08 $53.08
KO $81.57 $81.57
KMB $91.39 $50.79 $40.60
ITW $88.94 $67.94 $21.00
MO $447.64 $386.02 $61.62
PM $395.25 $342.33 $52.92
MDT $34.06 $34.06
XEL $94.09 $94.09
MKC $62.98 $40.82 $22.16
SYK $20.85 $16.56 $4.29
INTEREST $1.70 $1.70
O $58.47 $58.47
$1,430.02 $1,167.26 $262.76

Friday, November 2, 2018

Recent buys

A lot of purchases today. Here's the breakdown. This is a lot of single trades but I receive several free trades a month from my broker so it's all fine fee-wise.

Security  Quantity  Last Price  Total
KO  14 $47.58 $666.12
MA  2 $197.31 $394.62
2 $139.05 $278.10
BDX  1 $234.90 $234.90
SYK  3 $165.24 $495.72
ADP  7 $140.41 $982.87
PG  11 $89.55 $985.05
14 $69.08 $967.12
XEL  21 $47.52 $997.92
WEC  15 $66.62 $999.30
KO  21 $47.58 $999.18
PEP  9 $110.29 $992.61
KMB  9 $105.59 $950.31
CL  16 $60.40 $966.40
GD  6 $178.66 $1,071.96
ITW  2 $131.19 $262.38
HON  6 $145.08 $870.48
APD  12 $156.56 $1,878.72
SUM:  $14,993.76

Friday, October 26, 2018

September 2018 Portfolio Summary

I wanted to spend some time this post to summarize how my portfolio has reacted in the recent market volatility. It has been a very long time since we got to see stocks get hammered as hard as they have in the last few weeks.

From what I notice, February is usually a down month. Same with September and October periods. We are seeing just that in 2018. The recent drop reminds me of what we experienced back in early 2018. The recent volatility is linked to trade war tensions with China, the rising interest rate problem of the Fed, housing slowdown, auto slowdown, and the unexciting guidance from several companies including the industrials which are quite an important gauge on the economy.

The sectors that got hit very hard recently were cyclicals and technology. We saw industrials, materials, discretionary, and technology companies drop in value. At first the consumer staples and utilities were shelter areas for the declines as they were seen as safer areas during slowdowns. However these two sectors also eventually saw declines as the overall averages continued to drop. In today's markets, stocks seem to sell together as a lot of investors today use index funds which lumps everything in one group. Good stocks and bad stocks all got thrown out the window together. This provides a good opportunity to pick the high quality ones.

September 2018 Dividends Received

I got quite a decent lot of dividend payments in the month of September. The amount received was  $1334 and came from a wide variety of industries.

Ticker      Total    Taxable         401k
JNJ $218.01 $212.14 $5.87
PEP $168.40 $136.96 $31.44
HD $132.11 $102.56 $29.55
NEE $131.70 $101.11 $30.59
MMM $116.37 $91.73 $24.64
D $100.91 $55.35 $45.56
WEC $60.06 $47.80 $12.26
BDX $59.88 $59.88
O $58.12 $58.12
V $45.10 $33.42 $11.68
KHC $43.26 $43.26
ROST $41.24 $41.24
MCD $36.35 $36.35
MSFT $34.08 $11.34 $22.74
CHD $33.44 $19.52 $13.92
TJX $33.38 $33.38
HON $20.86 $20.86
INTEREST $1.23 $0.27 $0.96
$1,334.50 $1,047.17 $287.33