Dividend Investing - Month 12

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.

UHT for PER

This morning I initiated a quick trade.  UHT was sold for 55.80 per share, the realized gain plus initial investment was then rolled into additional shares of PER.

UHT is basically a healthcare REIT that focuses on hospitals and medical facilities.  UHT has been significantly overvalued in my opinion.  I first got the shares at the beginning of 2012 for 42$ and had a yield just shy of 6%.  Now, a year later the company has not changed at all really.  Small dividend increases with little to no growth in sight.

I made this trade for a couple reasons.  The first is the fact that RSO, being the aggressive REIT that it is, already occupies a good portion of my portfolio.  I wanted to start cutting back on REITs to prepare for interest rate hikes in the years to come.

The other reason for the trade is PER has been my biggest loser of the portfolio so far, and I felt like now is a good time to cost-average down my shares (even though I just missed the ex-div date - lol).  PER is a royalty trust in the Permian Basin by parent company Sandridge Energy.  The parent company is poorly ran in my opinion, and its other 2 royalty trusts, SDR and SDT have too much natural gas production at this time to generate profits.  The trust expires in March 2031.

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.

Dividend Investing - Month 10

Another wild month with the markets!   Times have been tough with the 'fiscal cliff' dragging on without a solution.  Politicians stepped it up and temporarily struck a deal today, sending the DOW up over 300 points.  I say temporary because in 2 months a deal must be made regarding the country's debt ceiling and its spending...

Politics aside, Abbot Labs has just completed its split with Abbvie.  It will be interesting to see how this plays out.  70% of Abbvie's income is generated by its main drug Humira, whos patents run out in a couple years....  It also appears Abbvies dividend may be a much higher than that of ABT...


$49.85 is the new average monthly dividend!  I look forward to breaking 50 dollars a month to kick off 2013!  From the prior month, a 1.4% increase was experienced with the dividend.

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.

Dividend Investing - Month 9

The dividend investing account has been idle for the past month according to plan.  Going from $48.91 to $49.16 only was a .51% increase, but any increase is welcome at this point.

This month we had the 'roller-coaster' effect in the stock market with the election results.  Solid companies had tanked in price, only to recover within a week.  It is comforting to know sustainable dividends continue flowing~ even when there is turmoil in the share prices.  During the new year I will be more involved with this blog when I am done building our house.


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.

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.  

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.