Friday, June 21, 2019

May 2019 Portfolio Summary

May 2019 summary update.

I wanted to start off my post to give some background for new readers, what this site is for and what I am trying to do here. My investing started back in 2009. Back then my investing experience was not great and that time was also a quite dark period. During that time I also worked for very little and had to pay my bills, so it got me to appreciate the value of a dollar. Lack of money was a challenge when I was a kid and young adult, back then I did not have control of finances as I was not the income earner. I promised my future self to find a way to not have this problem when I get older. Over the years, especially when I graduated and became working full time in a real job, my investing style and philosophy began to mold into a certain style. I ended up investing to generate more income and the growth of income. I own businesses not to sell them in the future, my goal is to own high quality businesses that output cash forever. I think only when one invests hard earned cash and sees certain strategies fail and others work, one will eventually develop their own "flavor" or style of investing. The investing style on this site is one I have tailored over 10 years (from a teenager to a young adult) to fit my risk tolerance, personal style, and investing beliefs.

My youth investing and lifestyle was heavily influenced by Buffett (his middle to late age style) and his partner Munger. Buffet, his logical nature, his thought process, and culture, is someone I looked up to and helped shape my early life. Munger's early struggles as a young adult and his ability to overcome them also helped encourage me to move forward. Buffett's early days were more of a buy very low and flip companies style, or buy below book value and liquidate inventory and layoff people and sell for profit. However I prefer his approach after his fund size became too large to buy and flip as it is less manual and more long term, I prefer buying in high quality and holding for life. I like to buy high quality companies that are cashflow rich and use those excess cash to invest in more high quality businesses. It is hard in today's information technology internet age to find undervalued companies below book value, and since I have a very busy full time job I cannot participate actively and micromanage my investments so I need a more passive long term approach.

I also have a goal to make a million dollars by the time I am around 30. Buffet similarly declared in the year 1941, at the age of 11, that he would be a millionaire by the age of 35. He eventually crushed this goal ahead of schedule and easily became a millionaire at age 30, although those dollars back then are valued more today than in the past, the 7 figure "double comma club" goal has always been a dream target when I was a kid. I always wanted to be a millionaire. Now, it looks that goal is getting closer and closer.

My primary purpose to invest is independence and freedom. I do not want more money to buy more things. I actually do not have much material desire in life, no desire for a nice car, fun vacations, nice houses, clothes, toys or things. I like making money to make more money, which to many probably looks like a pointless cycle, but I find the endeavor stimulating and exciting, to see one's own ideas and theories produce results is something I enjoy a lot. Having more money is like having a bigger shovel, eventually more work and output can be produced. In the beginning I have to start with a small spoon, but over time I can purchase a shovel, and then a pickup truck, and then an 18-wheeler, and then a Caterpillar 797 powertrain hauler, etc.

The one thing I value most of money is the opportunities and enablement money provides. Money allows me to be able to do what I want when I want, it allows me to manage my own schedule, it allows me to say no on something I do not believe in, it allows me to execute on what I believe in without pressure. Money allows me to care for the people I care for, it provides opportunities for people other than myself to better their lives. Without money, one often has to do things one does not want just to survive and that is not how I want to live.

Thursday, June 13, 2019

Recent buy: MKC, MSFT, ROST, V, T, WEC, etc

The following shares were purchased today to increase dividend income. My cash horde was getting large, so time to let some go.

Type  Symb. Qty Price  Amt [USD]
Buy MC CORMICK NON VTG  MKC  3 $156.46 ($469.38)
Buy MICROSOFT CORP  MSFT  5 $132.06 ($660.30)
Buy ROSS STORES INC COM  ROST  5 $100.43 ($502.15)
Buy ILLINOIS TOOL WORKS INC  ITW  4 $151.63 ($606.52)
Buy COCA COLA COM  KO  10 $50.96 ($509.60)
Buy AT&T INC  12 $32.22 ($386.64)
Buy WEC ENERGY GROUP INC SHS  WEC  10 $83.29 ($832.90)
Buy AUTOMATIC DATA PROC  ADP  6 $163.83 ($982.98)
Buy VISA INC CL A SHRS  7 $168.89 ($1,182.23)
Buy STARBUCKS CORP  SBUX  12 $83.21 ($998.52)
Buy MCDONALDS CORP COM  MCD  8 $203.99 ($1,631.92)
Buy CLOROX CO DEL COM  CLX  8 $155.56 ($1,244.48)

Total invested is around $10,000 in cash.

Thursday, June 6, 2019

Portfolio broke through $700K today

When the market ended today, my total portfolio size crossed the 7th 100K threshold. On 6/6/2019 the value is $702,523 USD. Time to celebrate!

The market of course will move up and down and it likely will dip below this range. But in the long term, my sights are now on $800K. As the years go by, I am finding each $100K crossing less spectacular than the last. The first $100K was the hardest and most difficult, and very rewarding. As the portfolio grows more and more by itself, the $100K starts to accumulate on faster. In the future when the portfolio crosses $1M, $100K is only a 10% increase.


Wednesday, June 5, 2019

May 2019 Dividends Received

Here is a tally of the dividends received in May. Amounts are in US Dollars.
May for my portfolio is a light month due to the type of stocks I picked in my portfolio. Most stocks pay once every quarter, a few like Realty Income (O) pay every month. Some companies pay twice a year, such as some foreign companies with ADR listings in the USA. I prefer quarterly paying companies with qualified dividends based in USA.

In a well diversified portfolio, one will be able to receive dividend income every month. Some companies pay on 1/4/7/10 months, some pay 2/5/8/11, and some 3/6/9/12. Some may have slips or do dividends earlier instead of following a strict +3 month cycle. For example some may do 3/6/9/1 (as December slips into January).

It is important to focus on the quarterly moving average. Or compare months inside the same quarter (i.e. 1/4/7/10 or 2/5/8/11) if one has mainly quarterly paying companies. Tracking the growth on a comparable basis is important o know if one's portfolio is growing in the right way.

In June I am expecting $1700 and July $1750 in dividends.

Ticker      Total    Taxable         401k
T $228.36 $228.36
CLX $125.66 $125.66
PG $123.62 $112.35 $11.27
APD $116.19 $116.19
GIS $82.40 $45.16 $37.24
CL $72.83 $60.28 $12.55
O $70.93 $70.93
SBUX $52.78 $40.48 $12.30
GD $41.38 $41.38
ABT $31.38 $31.38
MA $31.12 $15.61 $15.51
INTEREST $0.94 $0.42 $0.52
$977.59 $817.27 $160.32

Sunday, May 26, 2019

April 2019 Portfolio Summary

My monthly summary is coming late, I have not had a real chance to update the plots and data until today. To make a quick summary, the portfolio is maintaining steady with my high savings rate and salary contribution. The overall US market has been trending downwards, due to what appears to be escalating trade tensions between the US and China, my contributions help to offset these declines.

As of 5/24/2019, the portfolio is getting really close to the $700K mark. The portfolio is also now outputting $18K in forward annual dividends. As of now, the dividend growth rate is around 10.5% (around 13% with dividends reinvested) were I to stop any additional contributions. In the last 2 years, my portfolio has grown noticeably compared to when I began. The overall stock market prices and dividends have surged in that timeframe and my consistent income contributions also boosted the total asset size upward. 

Wednesday, May 1, 2019

April 2019 Dividends Received

Here's the April cash generation:

Ticker      Total    Taxable         401k
MO $500.12 $430.52 $69.60
PM $436.46 $382.88 $53.58
XEL $128.31 $128.31
KMB $126.66 $84.43 $42.23
KO $107.15 $107.15
ITW $106.08 $85.08 $21.00
ADP $76.53 $76.53
MKC $70.75 $46.81 $23.94
O $68.46 $68.46
MDT $36.95 $36.95
SYK $30.92 $26.24 $4.68
INTEREST $0.00
$1,688.39 $1,404.90 $283.49


Friday, April 26, 2019

March 2019 Portfolio Summary

This is a bit of a late post for March. I will summarize how my portfolio looks as of 4/20/2019. I will not put much market commentary in this summary as frankly I did not have as much time to research stocks in the last 6 weeks. I just let my portfolio run on its own and reinvested the dividends. The purchase a few days ago was done more on an equal spray across various high quality positions I always had liked. So there was no real market timing related decisions in my recent purchase. I make purchases more on a dollar cost average style, instead of timing, as timing the market has not worked well in my favor. Over time I buy when the market is high and low and the timing averages out.

Stocks are rarely sold in my portfolio. Once a position is bought, I just receive the dividend and reinvest it quickly. Cash when available in my bank account is deployed when it crosses a certain threshold (i.e. $15K) beyond what I deem a reasonable emergency fund. My condition for selling is mainly when the dividend is in jeopardy or when it's cut, examples in my past include KHC (a food company) and KMI (a pipeline company).

The overall portfolio is climbing steadily since the start of this year. My job assignment has changed in the last few weeks, and at the moment I no longer have to pay housing expenses as I am moving between multiple international sites and living in hotels or temporary locations. This helps increase my contributions quite significantly as all this after tax income is saved for dividend stocks (I used to live in California area which is expensive). Many will spend this extra money if they no longer have to pay for housing, but for me I will use this opportunity to increase my portfolio instead of buying a new car or toys.

The portfolio is going to break $700K soon. This progress comes with high percentage contribution from my salary, dividend reinvestment, saving money from no longer having to pay rent, and the market continuing to move higher. Right now my portfolio contributions are all directed to my taxable account. I no longer use my 401k account as the benefits are not so good now for me. And I want to be able to use my cash and dividend income freely whenever. Retirement age is too far away for me so I rather put all my wealth in taxable accounts.


Saturday, April 20, 2019

Recent buy: CLX, BDX, SYK, WEC, XEL, NEE etc

I bought quite a bit of stock on Thursday afternoon. Here is what I added:

There was not very much good bargains to be honest. So I sprayed my additions across various sectors and dividend growth company types. Some have faster growth and some have lower growth, some have higher yields and others have lower ones. Healthcare and Utilities had a bit of a pullback, but not much.

In total $14,765 USD was added into shares. All these companies were existing positions so I just added more. My cash position sits at around $12.5K now. After the addition, my portfolio now generates $17,758.32 in dividends per year.

Settlement Date   Description  Symbol Amount 
04/23/2019 Pending  Pending Purchase  AT&T INC CLIENT ENTERED.  $414.70
04/23/2019 Pending  Pending Purchase  CLOROX CO DEL COM CLIENT ENTERED.  CLX  $2,298.36
04/23/2019 Pending  Pending Purchase  NEXTERA ENERGY INC SHS CLIENT ENTER...  NEE  $761.80
04/23/2019 Pending  Pending Purchase  KIMBERLY CLARK CLIENT ENTERED.  KMB  $988.48
04/23/2019 Pending  Pending Purchase  ABBOTT LABS CLIENT ENTERED.  ABT  $366.33
04/23/2019 Pending  Pending Purchase  STRYKER CORP CLIENT ENTERED.  SYK  $1,403.04
04/23/2019 Pending  Pending Purchase  BECTON DICKINSON CO CLIENT ENTERED.  BDX  $1,795.84
04/23/2019 Pending  Pending Purchase  CLOROX CO DEL COM CLIENT ENTERED.  CLX  $1,073.80
04/23/2019 Pending  Pending Purchase  GENL DYNAMICS CORP COM CLIENT ENTER...  GD  $875.05
04/23/2019 Pending  Pending Purchase  ABBOTT LABS CLIENT ENTERED.  ABT  $873.60
04/23/2019 Pending  Pending Purchase  XCEL ENERGY INC CLIENT ENTERED.  XEL  $717.47
04/23/2019 Pending  Pending Purchase  COLGATE PALMOLIVE CLIENT ENTERED.  CL  $1,035.68
04/23/2019 Pending  Pending Purchase  WEC ENERGY GROUP INC SHS CLIENT ENT...  WEC  $768.40
04/23/2019 Pending  Pending Purchase  COCA COLA COM CLIENT ENTERED.  KO  $711.15
04/23/2019 Pending  Pending Purchase  REALTY INCM CRP MD PV$1. REIT CLIEN...  $681.50

Friday, April 5, 2019

March 2019 Dividends Received

Time to tally up March's dividend results. Here is how much cash I received in March 2019.
All cash was reinvested back.

Ticker      Total    Taxable         401k
JNJ $235.56 $230.16 $5.40
PEP $201.67 $170.13 $31.54
HD $192.73 $154.65 $38.08
NEE $167.83 $124.08 $43.75
MMM $134.44 $108.52 $25.92
WEC $112.83 $96.90 $15.93
BDX $71.14 $71.14
O $68.09 $68.09
V $57.66 $43.91 $13.75
ROST $50.55 $50.55
D $134.95 $84.49 $50.46
MCD $45.76 $45.76
CHD $43.99 $29.43 $14.56
MSFT $42.43 $17.59 $24.84
TJX $39.49 $39.49
HON $38.86 $38.86
KHC $0.35 $0.35
INTEREST $0.97 $0.97
$1,639.30 $1,306.98 $332.32

Friday, March 8, 2019

February 2019 Portfolio Summary

For February I will make a quick post about how I did recently. The market has been propelling higher but recently there has been some pull back. Right now prices are really bad for buying as it's expensive. I hope prices will settle back down which they seem to be doing. I will not be buying any new positions for the next month as there are some uncertainties that I may need the cash for such as tax filing and traveling. I estimate by mid April I will have a lot of cash to invest and hopefully by then the market has declined.

I will change up the way I do my reporting this month and show my results first. Here is how I am doing now:

Friday, March 1, 2019

February 2019 Dividends Received

February is over. The favorite time of the month for me is in the beginning of the month when I count up the amount of dividends I got paid for doing nothing in the previous month.

Here is how I did:

Ticker      Total    Taxable         401k
T $224.55 $224.55
PG $118.01 $107.25 $10.76
APD $109.47 $109.47
CLX $92.45 $92.45
GIS $77.50 $44.67 $32.83
CL $67.35 $55.17 $12.18
O $66.75 $66.75
SBUX $51.44 $39.20 $12.24
GD $37.53 $37.53
ABT $31.25 $31.25
MA $31.10 $15.59 $15.51
INTEREST $0.00
$907.40 $757.13 $150.27

Total income is $907. It looks like my worst paying months are crossing the $900 level. Soon all my months will be paying 4 figures. Very healthy momentum going forward. The snowball appears to be moving now slowly.

Everything is going according to plan except the dividend cut announcement from Kraft Heinz (the company was replaced in my portfolio plus additional cash with Boeing). 

The past 3mo quarterly average is moving up steadily and sits at $1346. Currently my portfolio will generate $17,261 in the next 12 months. For March I am expecting $1600 and April $1690. 


Happy investing
-YD