Tuesday, November 6, 2012

Election Night and the Dividend Investing Portfolio


Tonight is the night of the 2012 election.  It is important push politics aside and focus on things we can control, like our portfolios.  Dividend Mantra just posted Ignore the Noise  for those who may have difficulty in doing this.

Regardless of who wins, there are 3 forces that will minimize the growth of the dividend investing portfolio until early 2013.  They are as follows:

1)Free capital will be used to develop my newest property.  I must put family first and we need a decent roof over our heads, as this will not be a rental investment.

2)My goal of paying off my student loan (only debt that is non-real-estate) by March of 2013 is going to be very difficult and I would really like to make that happen.

3)The fiscal cliff.  There may be troubling times ahead for our economy if politicians let us fall over the fiscal cliff.   If new legislation does not take place, taxpayers will see an increase of 2-5k increase in taxes next year.  The country will also face 600 billion dollar combination of tax increases and harsh spending cuts.

The future is bright for the dividend investing portfolio.  The fiscal cliff is the only reason mentioned that will have an effect on Mr. Market.  And out of it I think there will be excellent stock valuations for future purchases.  The purchases, will be more frequent and larger in size, due to the fact that I will have plenty of free capital once my home is complete and my student loan is paid off.




Disclaimer: I am not a financial planner, advisor, or accountant. The financial actions mentioned were only suited for my own risk tolerance, strategy, and ideas. Copying another's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.  


Thursday, November 1, 2012

Dividend Investing - Month 8



The dividend investing portfolio has reached $48.91 for the average monthly dividend.  This is a solid 5.67% gain over the previous month.  There are two reasons for this gain:

1 - Aflac (AFL) increased its dividend by 6.1%.  Even at $50.94/share, this stock still carries an RRR value of 11.86.  With the low payout ratio of 23%, we still  have room to for this dividend to continue growing!

2 - Resource Capital (RSO) paid out another dividend.  RSO is still the top-yielding stock of the dividend investing portfolio.  And it continues to have less of an impact on the total portfolio, since free funds are being used to purchase other high quality companies.  RSO has been in the portfolio since the beginning and it continues to better itself with each passing quarter.  As long as its earnings continue to supports its dividend, and interest rate hikes remain unlikely, I will keep RSO.  I want to avoid over-exposure to single stocks and segments of the markets.


Disclaimer: I am not a financial planner, advisor, or accountant. The financial actions mentioned were only suited for my own risk tolerance, strategy, and ideas. Copying another's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.