A personal blog about my investing strategy and financial health.
Will simple investing principles take a kid who starts out with nothing and lead him to financial independence?
Follow me on my adventure and see what happens.
With a new month starting, I get the chance to see how the new average
monthly dividend is coming along. It looks like the portfolio is now
averaging $63.27 monthly! Compared to month 11, I'm noting an 11.56%
increase!
Since new purchases occur in $500 intervals, the $63.27 will really help make it easier for me to accumulate the capital needed for future purchases.
The increase in the dividend was the result of WMT increasing their dividend by 20%, and my switch from UHT to PER.
One thing I never mentioned on my post about the stock switch is the fact that an initial $500 investment grew over the last year and now results in about $100 annual dividend payment. PER may be a risky oil play for many individual investors, but when I factor in my yield on cost with the original UHT investment, I'm getting over 20% for my money now.
The average monthly dividend payment experienced a significant increase this month. A 16.77% jump was the result of making a quick sale and investing the proceeds into other companies.
I have been good so far at separating my emotions from the facts and focusing on the RRR values of my positions. As mentioned in my previous post, the RRR value of WMT just couldn't cut it anymore, and I had no problem dropping this position and picking up new ones to take its place.
I figured my emotions wouldn't get in the way of the transactions but sometimes you just never know.
Using my RRR theory about evaluating stocks, price gets pushed to the side and allows me to focus on the long term benefits of my positions. This is the average monthly dividend payments! Watching stock prices constantly rise and fall make me dizzy, while watching these payments consistently rise gives me hope for the future. But do remember, higher stock prices lead to lower RRR values ~ which will help you sell when stock prices go up.
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.
I sold half of my holdings in WMT and purchased CVX, TCAP and UHT this month. This will help my dividend income stream while providing additional diversification in the portfolio.
WMT: I set a personal price target of $68.50 for WMT and as it stands, has been overvalued for a bit. With the release of their most recent earnings, I knew stock prices would decline if it didn't beat the 'stock analysts' expectations, so I had to be proactive and sell. Seeing a yield of 2.15% didn't slow me down either...
TCAP = Triangle Capital has a great management team and if you visit Pulling ourselves up financially you can see a good fellow blogger's review of the company. Using my dividend investing strategy, TCAP had an RRR value of 10.05 at time of purchase.
CVX = In my opinion this stock is way under-valued. With a 26% payout, there is lots of room for the dividend to grow over the years. The RRR value was 11.88.
UHT = a REIT that deals with hospitals and other medical facilities, this great dividend play had a yield around 5.75% and an RRR value of 14.50
In case you didn't know, the RRR is simply pairing up the payout ratios with the dividends themselves to measure the "Risk Reward Ratio". You can learn more about the strategy at here on my blog.
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.
Aside from Wal-Mart shareholders meeting, a rather quiet month for the dividend re-investment portfolio. The average monthly dividend is now $33.58, which is about a 7% increase over the previous month. I feel this is rather low but any increase will be appreciated. Due to hardware failure of my laptop and long hours at work, there will be no fancy excel charts this month.
Disclaimer: I am not a financial planner, advisor, or accountant. The financial
actions mentioned were only suited for my own risk tolerance, strategy,
and ideas.
Copying another's financial moves can lead to large losses. Each
person needs to do their due diligence in researching and planning their
own actions in the financial markets.
April was a good month with decent dividend growth. The portfolio experienced a 13.61% increase in the average monthly dividend! Very exciting, I'm also happy that my REIR investing technique has been helpful in keeping me within reach of my goal: to be debt free (except mortgages) within a year.
To continue the balance adjustment of the portfolio I liquidated a few shares of Wal-Mart (WMT) and now had some free cash for a good purchase. About a week later the stock tumbled a bit from the accusations of the "Mexico Scandal." I got lucky in 2 ways: 1-prevented a big hit on my portfolio value and 2-since I have shares purchased regularly they are now discounted =).
I decided to give Aflac (AFL) a green light, watched it drop 1-2% daily until a purchase was made just under 41$ per share. Once earnings were reported, the stock shot up 7+% shortly after. Again, I got lucky.
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.
