Friday, February 1, 2013

Dividend Investing - Month 11

The first of the month managed to sneak up on me.  Lets see, the new average monthly dividend is now 56.56!  Compared to last month's calculation, this is an increase of  13.46%.  Simply amazing!  There are a few factors which contributed to the huge dividend increase this month.

The sale of ABT freed up some capital to work with, so I opened a small position with NRP.  NRP has been stomped on since Obama's re-election night.  Democrats hate coal, and due to the mild winter we've experienced so far coal use has declined.  When following the conference call from NSC's earnings report, they have been hauling less coal as well.  The share price has been down 25% since I have been following it and I believe it was attractively valued at the time of purchase, even considering the risk.

UHT announced an 8.7% dividend increase.  Dividend increases are always good.  The only problem I have had with UHT so far is it has been a slow-growth dividend, and after purchasing this last year at 42$/share I have never found a re-entry point to cost-average down my shares.

 The last big factor for the dividend increase was the DRIP of RSO's dividend.   Although I feel RSO is my riskiest position in my portfolio, it has offered me the greatest return so far.  The company is solid, and I don't need to monitor the business model as much as I do the interest rates.  Even though this REIT has the best spread in its class, it will still take a big hit when rates rise up.  I'm projecting late 2014 to mid 2015 until this happens.

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.


  1. One of the benefits of an income strategy is you get great charts like that. Going up for the most part unless dividend cuts come but those are rare.

    Question for you about your 3 rentals. How many more years do you have on their mortgages? I've found the big problem with renting is you can see that income fly in but until that mortgage is paid off... its not true income because its cancelled out by its own mortgage.
    I have about 20 years left on mine and I'm debating picking up a second unit this summer so its on my mind for sure.

  2. I have 12 years left on 2 and 24 left on one. The mortgage with 24 years to go is my highest interest and lowest balance. I project this one to be paid in full by end of 2016. Income does fly in and its great, but it sure flies out just as fast, if not faster! This year I actually showed a positive income, but usually I break even or lose a little bit of money resulting in major tax breaks.

    With current interest rates, I would pick up a second one if I were in your position. I would contact a potential property manager and let them know your intentions. I would get them to tour potential properties and have them help you determine your potential rent from the units. If you do get a rental, make sure you will be able to pay that mortgage for a few months if its vacant.

    1. My property manager is actually who I got the tip from. I told him to keep an eye out. He'll be happy to help as it'll raise his monthly fees from me. And his company is very good and knowledgeable. Just like I say on my blog to get investing and trading contacts to work with... same thing with renting. I couldn't see being a landlord on my own.