Recent buy: JNJ, RAI, MMM, KHC

I will be executing the following purchases tomorrow:

Symbol	Description	Total
JNJ	JOHNSON & JOHNSON	$1,900.00
KHC	KRAFT HEINZ CO COM	$2,751.00
MMM	3M CO	$2,000.00
RAI	REYNOLDS AMERICA INC	$2,000.00

Recent buy: BDX and MDT

Today I added the following two healthcare stocks:

MDT $1250
BDX $1900

I have another order placed in my 401k for more MDT but the limit order didn't execute successfully today since the price wasn't met.

My rating for my favorite healthcare stock is JNJ in first place, then MDT, then BDX, then ABT.

Both JNJ, BDX, and MDT appear to be recession-proof in terms of earnings and dividend growth. The earnings and dividend growth is extremely predictable (by analysts) and is always steadily increasing. That is my type of business. Stable and highly important in today's aging Baby Boomer population.

June 2016 Portfolio Summary

At the moment of writing this, it is the morning on 6/30/2016.

*******************************************************
Market Summary:

The June month was focused strongly around the Brexit vote. The market was rather uncertain coming up to the vote but eventually believed that Britain would vote to stay, leading to a rally right before the votes. The resulting vote was for Britain to exit the EU. This cause a lot of shock and the pound dropped instantly and many markets including the USA had their indexes plummet. We saw the S&P drop from $2113 to $1992. Eventually the S&P rebounded. I really hope this rebound is temporary as I was really hoping for a Brexit to cause tanking share prices for bargain basement deals.

Brexit or not, I will continue investing in companies that are decent value. I will be willing to pay a premium for high quality companies. I believe in dollar cost averaging my investments since I don't think that I am smart enough to time the markets.

June 2016 Dividends Received

I received a nice paycheck this June. It was much larger than the last. The total is $473.49

My 5 largest payers this month are:
Johnson and Johnson (JNJ)
Dominion Resources (D)
Southern Company (SO)
Pepsi (PEP)
Exxon (XOM)

All of the cash was reinvested back into the companies that paid them. January, March, June, and December are the months that have more of my companies paying their dividends. Looking forward, I will now have Home Depot paying in the 1/3/6/12 months, a position I started recently this month.

July Watchlist with Price Targets

Did some research this evening after the drop in the market on what my desirable price targets are for specific stocks in different sectors.

The names in Bold are higher priority companies I want to get first.

My post-Brexit watchlist

The UK has done it. They voted to leave the EU. This creates uncertainty in the market and the market hates uncertainty.

S&P futures are looking bleak at -5%
The pound has crashed by 10% relative to the dollar.

Pound to USD:

Recent buy: NKE, ABT, HRL ...

I added several companies this week. Below is a summary of my buys.

Your Plan Investments

Symbol	Description	Total
ABT	ABBOTT LABORATORIES	$3,000.00
APD	AIR PRODS & CHEMS INC	$2,500.00
HD	HOME DEPOT INC	$3,000.00
HRL	HORMEL FOODS CORP	$800.00
NKE	NIKE INC CL B	$1,800.00
PM	PHILIP MORRIS INTL INC COM	$800.00
T	AT&T INC	$800.00

Today I also swapped AbbVie (ABBV) in exchange for its parent company Abbott Labs (ABT). Note that Abbott in the past spun off AbbVie so shareholders in Abbott got both shares in AbbVie and Abbott. I prefer Abbott's stable medical device business, nutritional food items, and diagnostics products instead of the more uncertain AbbVie pharma products and AbbVie's high reliance on their one hit wonder drug Humira (and the expiring patent rights). AbbVie has the potential for more capital appreciation but comes with more risk. I don't feel that I need to take such risks to achieve my goals so I am performing this swap. I am not very fond of hoping that AbbVie management is capable of continuously pumping out one hit wonder drugs from their pipelines and prefer straight forward simple boring companies. AbbVie occupied less than 2% of my portfolio and my net return including dividends was around -$3.00 which includes trade commissions, so it was basically flat.

The above chunk of buys averages around 2.54% yield so that is about $312 more per year in dividends.

What to buy list : My fair value targets

I did some homework today on stocks that I can look to purchase in the coming week. Some of the fair values in my head are now perhaps out dated since earnings have gone up or guidance has changed due to macro factors such as the weakening dollar and lower oil prices.

I have done some research on Morningstar and S&P to get some fair value estimates. I also use the Jefferson Research to analyze the quality of the companies. On top of that I have the Valueline and S&P credit ratings and safety ratings on my Portfolio page. Some of the companies listed here may not have the VL/S&P Financial score or Safety rating since I don't have them in my portfolio, but you can be guaranteed this list will only contain very high quality companies. In today's market with high valuations and uncertainty (Brexit anyone?) I will only purchase the most financially secure blue chips. Speculation is not for me right now.

I like to categorize my picks into dividend paying dates (when I receive the check).
1/4/7/10 months
2/5/8/11 months
3/6/9/12 months

Note that Pepsi (PEP) and Coca Cola (KO) have some strange month paying schedule.

The analysis is quite simple. They will all follow the format.
STOCK_NAME    CURRENT_PRICE
Jefferson Research: Earnings / Cash flow / Operating eff / Balance sheet / Valuation
S&P:  12month Target,   Fair Value
Morningstar: Fair Value

I highlight companies I think that are good deals in Green Bold. Those in just regular Green are so-so buys I might consider. Note that I want to balance high yield buys with low yield buys since I want to average around 3% yield. So I may add high  yield picks into my Green buy list even if they are a bit overvalued.

May 2016 Portfolio Summary

I am a bit late to summarize my May portfolio performance. So I will take this post to summarize how my portfolio stands 15 days after the end of May.

May was a rather positive month. The general index has went up a little, however it has been creeping back down. Overall, the market remains expensive and is near its all time highs. In the long term view, the market has been trading sideways for more than a year. Of extreme strength recently are consumer staples and utility stocks. Those are my favorite companies and it's unfortunate they are very high since I can no longer really add to them without overpaying greatly. I have however benefited from the rise in share prices since I am heavily favored in consumer staples.

Recent buy: PEP

Purchased $1000 in PEP today.
PEP yields 2.92% as of today.

Recent buy: NKE, ADP, ABT ...

Today I added several purchases from my cash positions. I want to deploy capital gradually even though the market is quite expensive in high quality companies since I am not confident in predicting market tops or bottoms. These purchases will help improve my income in the 1/4/7/10 and 2/5/8/11 months.

PG, T, KO are the heavy dividend payers here.

ADP and ABT have moderate yields

NKE is a very low yield stock but it has strong growth and I am liking the price of this high quality company as it continues to fall.

I consider Nike the highest quality consumer discretionary company. They have a credit rating of AA- from S&P, a very low 14% debt/cap, consistent earnings and dividend growth, Value Line financial strength of A++ (highest) and a Value Line safety of 1 (highest). I consider NKE to be fair value at $50-52 but want to build the position slowly as it falls further.

As of now I have around $25,900 USD in cash positions waiting to be deployed, so roughly 12% of my portfolio. This is higher than I would like but it's hard finding value nowadays.

May 2016 Dividends Received

Another month has passed. More dividends received! These dividend payments are getting quite useful. Check out what I cashed in this month:

Ticker	Total	Taxable	Roth IRA	401k
T	$59.48	$59.48
GIS	$53.58	$41.25		$12.33
HCP	$37.94		$37.94
VZ	$37.56	$37.56
NSRGY	$34.83	$34.83
PG	$31.50	$31.50
O	$31.01		$31.01
ABBV	$18.33	$18.33
CL	$13.60	$13.60
ABT	$13.11	$13.11
AAPL	$12.82	$12.82
BUD	$11.67	$11.67
MA	$8.96			$8.96
SBUX	$7.72	$7.72
APD	$7.66	$7.66
CVS	$5.81	$5.81
	$385.58	$295.34	$68.95	$21.29

The big payers this month were AT&T, General Mills, HCP (which I no longer own), and Verizon.

In terms of dividends and my goals, I would say my growth has slowed down recently due to my increasing cash position. I have not been putting my money to work as often as I used to. Hopefully I can accelerate the growth as I try to deploy more cash (good value is hard to find nowadays). May of last year I received $238. This year I received $385 which is a near 62% growth. This growth was mainly from my continued contributions.

Recent buy and sells

I have bought $1000 in ADP this week.

I have removed BUD, NSRGY, and NVO from my portfolio because of tax complexity. My net gain is around 4 to 5% capital appreciation and I have received all year dividends from NSRGY and NVO and half a year of BUD dividend. Don't get me wrong these three are great companies but I sold them for practical reasons. NSRGY and NVO only pay once a year while BUD pays twice a year. I prefer my dividends to be quarterly. The other main issue I had is that the dividends are taxed heavily when they pay to your account, but I can reclaim some of these withheld dividends back when I file my tax return. I want all my dividends reinvested back into the same company immediately with no withholding. Since I hate taxes I decided the fuss was not worth the effort. Also the dividends are also influenced by the foreign exchange rate and since the US dollar is stronger, the US dividend amount is reduced.

Next week I plan to execute a larg purchase with my surplus cash at hand. I'm currently sitting on $32k in US dollars.

Regards
Youngdividend

Recent buy: ADP, VZ, SO

Added my second tech company in my portfolio today. I will be starting position in ADP and adding more as it goes down. ADP is a dividend aristocrat with a long established earnings and dividend history spanning decades. ADP does payroll and has quite a large moat in that area, many large companies use ADP.  ADP is one of the highest credit rated companies. They used to be AAA but are now AA.

ADP: $1000
VZ: $300
SO: $700

Recent buy: XEL

Added $1000 of XEL to my taxable account.

XEL yields 3.35% today so this is $33 added to my yearly income.

Sold HCP for VZ

Before going forward, I rarely sell. My philosophy is to buy a company and hold onto it for its cash generating abilities forever. However I am open to selling when it's appropriate. Usually I sell during spin offs or acquisitions, dividend cuts, or fundamental degradation. Today I exited my HCP from my IRA account and swapped the funds for Verizon. Verizon has dipped off its peak recently and provides a healthy yield of 4.4%, HCP has a higher yield at the moment at 6.70% due to the high risk nature of HCR Manorcare. I added VZ instead of T because T has not pulled back yet and I have more T than VZ.

I have exited HCP because of the announcements of their spinoff of their troubled unit. I personally feel this company is the lowest quality company I own and that spinning off its cancer will not be too favorable for me since I do not want to hold that spinoff with a ten foot pole.

In terms of quality rankings here is a comparison of HCP and VZ:

HCP:
S&P Financial Rating: BBB+
Value Line Financial Strength: B++
Value Line Safety: 3

VZ:
S&P Financial Rating: BBB+
Value Line Financial Strength: A++   (A++ is the highest)
Value Line Safety: 1   (1 is the best)

The majority of the companies I own have a safety of 1 and financial strength above A or BBB+ so HCP has been a yield-chase purchase from my earlier days when I was chasing yield over quality.

Recent buy: KMB

I added $3832 in KMB today, an American dividend aristocrat specializing in making personal care products like toilet paper.

KMB is one of the higher quality companies I own and I see it as an essential core holding in my portfolio. It yields around 2.9% today so I'm getting $111 a year more from this investment.

Recent buy: HRL and SO

Due to uncertainty in the company I work for I have decided to postpone the down payment of a place to live for another year to see how the restructuring plays out. This will allow me some more freedom to allocate my cash since I do not need a large emergency fund to last for more than a year. Were I to lose my current job, I would still receive a severance package and I think an emergency fund in the $10,000-$15,000 will be sufficient for my needs since I only have to worry about myself.

I do not feel that renting is any worse than buying, and postponing the property purchase another year will not be any set back. In fact I estimate that renting will put me ahead. From the calculations I have done for my area (Silicon Valley in California) the property values to rent ratio are quite high so you are not getting much ahead by buying unless you are relying on capital gains on property purchases.

So today I resumed my routine portfolio contribution:

SO : $2000 (yield 4.44%)
HRL: $3000 (yield 1.51%)

April 2016 Portfolio Summary

Compared to last month my net worth has increased a tiny bit. Almost scraping the $200k surface.

April 2016 Dividends Received

I received $341 in dividends in April. My dividends have not been growing lately because I have been saving up cash to purchase a place to live. Compared to last year's April month, this year's April is around 24% more. So not too shabby.

Ticker	Total	Taxable	Roth IRA	401k
KHB	$30.24	$30.24
KMB	$20.24	$20.24
KO	$33.87	$33.87
MKC	$17.55			$17.55
MO	$106.87	$78.66		$28.21
O	$30.91		$30.91
PM	$95.87	$66.27		$29.60
XEL	$6.23	$6.23
	$341.78	$235.51	$30.91	$75.36