Wednesday, October 21, 2020

Recent buy: PEP, KMB, PG, GD, MMM, COST

 It has been a long time since I bought anything. The cash position is getting too large for my comfort. I bought some more average dividend yielding companies.

PEP: $1119

KMB: $590

PG: $1433

GD: $1101

MMM: $1358

COST: $759

PG had a very good earnings report today, the organic growth was very large.

Saturday, October 3, 2020

September 2020 Dividends Received

Here are the results for September. Unfortunately ROST and TJX cancelled their dividends, so they paid zero this month. I have exited those positions for around a 30% gain from my original average cost basis. The fact that their prices held up quite well despite the cut means that this cut is likely temporary and things will go back to normal for TJX and ROST after the COVID situation clears. 

I had done substantial homework to prevent dividend cuts in my portfolio, but some events just happen that impact the whole economy. Some of my learnings from past failures include 2014, when oil prices tanked and SDRL (Seadrill), a deep water drilling company, cut its huge dividend and same with KMI (Kinder Morgan), an oil pipeline company. Seadrill taught me now to chase yield, and this oil incident taught me not to focus my investments in cyclical businesses or companies highly influenced by commodity prices.

Similarly, KHC (Kraft Heinz) cut its dividend in 2019 after disappointing results of combining Kraft and Heinz together, and the large debt that followed. The KHC situation made me become wary of huge debt funded acquisitions, it made me become wary of debt which is why I am looking over companies like Altria and AT&T very carefully now.  The KHC results made me focus on the balance sheet strength on my existing positions or new positions.

And in 2020 due to COVID, businesses that require visitors going outside their homes suffered which impacted my TJX and ROST. My positions in McDonald's and Starbucks were also spooked initially but they demonstrated the ability to weather through due to their more defensive nature.

Despite the cuts in TJX and ROST, the monthly dividend trend is still moving upward nicely, albeit at a slower pace due to COVID. Nobody could have known last year that a pandemic would happen in 2020, it's one of the most random incidents I have seen so far that changed the world forever. The diversified portfolio I show below is demonstrating its resilience in protecting the portfolio's dividend generating capabilities. Although I have sacrificed alpha by using diversification, I am happy to avoid large losses by having a resilient portfolio, and it is during turbulent times like these when a diversified and defensive portfolio shows its abilities.

Note Dominion (D) is cutting its dividend by around 28% starting in 2021 after it announced selling some of its assets to Berkshire. Selling large assets reduces revenue generating capabilities for D, which means dividends have to go down to balance things out. The dividend from D below is unchanged as of now, but I am considering if I should exit it for other dividend payers as there will be a sharp tick downward in that position. From the perspective of the overall portfolio, it's a small decrease, but I have a tendency to review positions when they cut their dividend. D has held up well, and my position is still sitting on small gains (not as large as TJX and ROST). Given that D has paid me large dividends in the past, I am not terribly disappointed in the position, as it is has served its job as a utility. However, it has lagged severely behind my NEE and XEL and WEC utility positions (those 3 really don't look like utility stocks anymore to be honest, after their large gains).

Ticker Total Taxable 401k
JNJ $275.37 $269.06 $6.31
PEP $248.77 $212.44 $36.33
HD $221.18 $192.48 $28.70
NEE $212.05 $161.24 $50.81
MMM $190.71 $162.83 $27.88
D $163.76 $108.28 $55.48
WEC $152.58 $134.78 $17.80
O $123.98 $123.98
V $81.27 $64.62 $16.65
BDX $80.82 $80.82
MSFT $67.45 $39.35 $28.10
MCD $66.55 $66.55
HON $61.15 $61.15
CHD $52.83 $37.17 $15.66
INTEREST $0.09 $0.08 $0.01
ROST $0.00 $0.00
TJX $0.00 $0.00
$1,998.56 $1,590.85 $407.71

Thursday, October 1, 2020

August 2020 Dividends Received

Below is a plot of what was received in August. The dividends topped $1440. This month is a lower paying month, the trend is still upward. Nothing beats getting paid even during the COVID disaster.

The September numbers are coming out soon, I will update those shortly.

Aug Ticker Total Taxable 401k
T $322.68 $322.14 $0.54
CLX $202.21 $202.21
PG $138.53 $126.19 $12.34
APD $139.14 $139.14
GIS $122.59 $83.61 $38.98
CL $89.89 $76.65 $13.24
O $123.51 $123.51
SBUX $78.88 $64.54 $14.34
GD $91.49 $91.49
ABT $77.21 $77.21
MA $37.96 $29.84 $8.12
COST $16.10 $16.10
INTEREST $0.03 $0.01 $0.02
$1,440.22 $1,229.13 $211.09

Friday, September 25, 2020

September 2020 Portfolio Update

After the recent market pullback, the portfolio has recently dropped back from its highs of around $1,010,000 USD to the present value of $962K USD. The market is around 8% from its highs, with the low point being close to 10% off the highs. The pullback offered some better prices, but most prices are still very over valued from what I was looking for. The buying time was definitely in late Q1 to early Q2 of this year. I am confident one day I will cross over the $1M mark again, as I had done so for my past "targets" like the first $100K, the quarter million, and the half million thresholds.

The graph below shows the total portfolio value over the last few weeks. The market movements now dictate how the portfolio behaves, from a total equity worth point of view. With around a million dollars invested, a 1% drop in the market is a $10,000 USD drop in the paper value. Quite a lot relative to what I can invest periodically. The contributions I make from my job or dividends are still relevant in helping the portfolio push itself upward, but its impact is not as strong as when I started.

Thursday, August 27, 2020

Assets top $1,000,000 mark

Yesterday was a big day for me, my portfolio crossed a very critical milestone, a milestone that I had set out to do when I was much younger. I am now still 30 years old, and will think about what I should do next in my life as a goal. I probably should make a very flashy post here, but I just feel the same. Nothing super exciting, nothing is remarkably different after becoming a millionaire. Everything feels the same, but there is a sense of security, and peace, and independence after hitting this milestone.

I had set out when I was 19 to earn my first million by the time I was 30. This led to a sequence of events that led me to the study of my area of expertise and then the industry where I am at now, and then my current profession, and then my financial decisions that I made in my life over the years.

It is the end of August. The end of the month pay checks came in, the dividend checks got added up, and the recent run up in the general indexes in the USA markets (especially the technology NASDAQ sector) has pushed my total net worth up to a bit over $1,000,000 USD.

To be precise, on the market close of 8/27/2020 eastern time, my portfolio in total sat at the following amount in US Dollars:


Monday, August 10, 2020

August 2020 Portfolio Update

I recently updated the Portfolio and Progress pages to reflect the current portfolio value. Currently my net worth of all assets totals around $968,000 US Dollars. The portfolio is making good progress towards the $1M goal.

I actually updated all the data including data in the past to include in the graphs and tables my miscellaneous assets that are not stocks. These include my Toyota vehicle which is fully owned and has around 38K miles, resale value is at $15.3K USD which is around 1.58% of my current portfolio value. Additionally I have assets that are not stocks, these have a fair market value around $17K USD or 1.76% of my total portfolio, this is the value after liquidation fees. I try to keep non-stock assets in the one percent range so these are okay overall, considering my Portfolio is growing to almost 7 figures. My smallest stock positions are already over $10,000 USD and normal positions are in the $25,000 USD size, so miscellaneous assets like these are a small portion of a diversified set of positions.

I own no properties so those do not show up here. And additionally, I have no debts, no student loans and no car loans and no mortgage and no credit card debt, so the assets below are all positive adders to my net worth.

Saturday, August 8, 2020

July 2020 Dividends Received

 Below shows how much dividend cash payments I received for July 2020. The month is a record high. The trend line continues to move upwards as I reinvest in more shares every month.

Ticker      Total    Taxable         401k
MO $687.39 $624.86 $62.53
PM $492.83 $433.83 $59.00
KMB $166.35 $120.72 $45.63
XEL $164.18 $164.18
ADP $155.74 $155.74
KO $153.07 $153.07
ITW $127.13 $103.89 $23.24
O $112.56 $112.56
MKC $80.29 $53.76 $26.53
SYK $55.44 $50.20 $5.24
MDT $52.71 $52.71
INTEREST $0.04 $0.04
$2,247.73 $1,913.00 $334.73

Saturday, July 18, 2020

My portfolio crossed $900,000 USD

Apologies to readers and followers, my blog has been rather dead on portfolio updates in the last few months. The blog has only been posting my dividend income and buys, I have been very pre-occupied with my vocation and my investing research that I have not had a time to sit down and write.

Now it is mid July, the year 2020 started off normal but then became a roller coaster ride after the outbreak of the Wuhan Coronavirus spread throughout the globe. My portfolio became a "V" shape, and actually I was expecting a "W" shape to happen as well, but that second drop down has yet to happen.

The portfolio from the peak in early 2020 was around $860K and it fell all the way to $630K when everyone was shouting the end of the world, this was the depths of despair. On Friday 7/17/2020, the day when the majority of assets I owned had a run up, largely consumer staples and utilities and healthcare and some fintech, my portfolio crossed the $900K threshold level and ended the week around $903K. Moving from $630K to $900K (large majority being just market movement in paper values of equities) was surely a roller coaster ride. I stayed the course and held the companies that I had owned for many years.

In addition to my portfolio's paper asset value, the income generated by the portfolio's positions per year is now over $23,000 USD a year. So both portfolio net worth and income produced are moving up steadily as planned, to our $1 million dollar net worth target.

Thursday, July 16, 2020

Recent buy: O, MMM, KO, GIS ...

Added the following today. Nothing exciting here, just adding normal dividend paying, not super high growth, not very low growth, just moderate normal dividend paying companies that are high quality.

O: $2591
MMM: $800
KO: $740
GIS: $713
KMB: $716
GD: $744
HON: $766
MDT: $668

Saturday, July 11, 2020

Recent buy: GIS, COST, MMM, MSFT, PEP ...

I bought the following on 7/9/2020 a Thursday when the market was decreasing.

I added some quantities into the following positions:

GIS $1250
COST $979
MMM $458
MSFT $640
PEP $531
CHD $244
GD $420

Wednesday, June 24, 2020

Recent buy

I bought some more stocks today after the market dipped 2.2% downward.

O: $2360
MMM: $305
PG: $351
WEC: $345
PEP: $387
KMB: $416
D: $495
MO: $316

Tuesday, June 23, 2020

May 2020 Dividends Received

This is a late post, been very busy lately and didn't have a time to summarize.
My portfolio has recovered quite well in terms of share price and nearly all my positions have held their dividend and look in stable condition. 

In recent news, TJX has cut their dividend due to COVID19 to save cash. The company is fine and they took the more conservative step. I am still holding TJX as they were paying a low dividend and I was holding TJX for capital appreciation. This is a usual exception to my rule. It looks like ROST still has not cut its dividend, but if this keeps going it may be the same for ROST. 

Overall, losing TJX's dividend did not impact my portfolio's total annual dividend output as I have been buying more shares of other companies in the last few weeks.

In May I received $1313 in dividends. The 2/5/8/11 months are light paying dividend months as I do not hold many companies that pay in these quarters.

Ticker      Total    Taxable         401k
T $315.27 $314.74 $0.53
CLX $192.10 $192.10
PG $135.22 $122.97 $12.25
APD $138.33 $138.33
GIS $113.81 $75.15 $38.66
CL $89.30 $76.15 $13.15
O $102.11 $102.11
SBUX $76.42 $62.16 $14.26
GD $63.44 $63.44
ABT $49.29 $49.29
MA $37.91 $19.02 $18.89
INTEREST $0.03 $0.03
$1,313.23 $1,113.35 $199.88

Below I plot the growth of my actual dividend cash received. All dividends have been reinvested back to the companies that paid them.