Saturday, August 1, 2015

July Review: One Step Forward and Two Steps Back. Nobody gets too far like that.



Oi. It has been a rough month. Stock market going crazy and dividends being cut. So many opportunities so little capital.

July’s Dividend

BAX
$27.04
PNY
$4.62
NRZ
$1.35
KO
$13.90
GE
$11.73
LTC
$3.57
HASI
$13.52
WPC
$14.31
DIS
$1.53
KHC
$180.21
PEP
$3.30
FCISX
$23.64

Total: 298.72

KHC special dividend pushed me over the top.

Cash flow


Salary
3219.97
Dividend
292.84
Interest
8.13
Total
3522.94

Deductions


Gas Bill
38.12
Electric bill
162.34
Water Bill
227.29
QT
69.28
Discretionary
14.91
Car payment
435.45
Total
947.39

June+July water bill.

Calculation

% saved
73%


Safety Net Total

Bank
1478.55
Capital One 360
2811.51
Scottrade Tax
36912.25
Scottrade ROTH
1909.31
Loyal3
5819.55
401k
15664.48
Edward Jones Roth
6434.08
Total
71029.73


Dividend Increase/Decrease

  1. OHI increased dividends by 1 cent.
  2. KMI increased dividends by 1 cent.
  3. BXLT increased dividends by 7 cents.
  4. COP increased dividends by 1 cent.
  5. BAX decreased dividends by 40.5 cents.

Summary

  1. BAX dividend cut was painful. I was in the 1800s forward dividends and now back to the 1700s.
    1. New dividend payout ratio is 35% of EPS with estimated EPS growing at 3% per year. It will take a while to get back to the old dividend.
    2. But the company will reinvest more of its profit which will boost stock price.
    3. For the time being BAX will be a capital gains company over a dividend company. I’ll hold for now.

2. Going forward I am focusing on safer stocks. 40% of my portfolio is in cyclical stocks, 34% are in defensive, and the rest in industries. I need to cut my reit consumption and focus on defensive stocks.

3. Puerto Rico just missed their bond payment. Bring your cash. There will be blood.


Question to my readers.  

Would you rather have a stable high paying job with no chance of promotion or take a risk in this economy and take a lower paying job with better chances at promotion?

I was informed last week that there will no longer be any promotion at the DMV. Before it was front desk, senior front desk, and managers. The senior front desk position is being eliminated.

Government work is pretty sweet. It pays a decent wage, lots of overtime, and good benefits. Every 2 years or so we get a 1% pay raise which is more than most Americans. Downside: this job is probably the height of my career if I stay. For those who have worked or is working for government, you know managers are managers for the good part of their lives. 20-30 years. Promotion only occurs at retirement.

On the flip side I could go corporate. I am currently working part time at a telephone company (I’m the guy who schedules your appointments). I was offered a full time position as a phone operator. Benefits are the same and overtime is offered. It pays $5,000 less than my current job but the chance to move up the corporate ladder is phenomenal. Phone operators can become forecasters, in house paralegal, or even members of the board. But again this is corporate. One downturn and I’m fired.

Which would you rather have? The higher paying stable job with no future or the lower paying unstable job with brighter potential?

I am leaning towards the government job.

 
August Watch List
  1. EMR- high $40s-50.
  2. CAT-$75
  3. KO- below $40.5
  4. ADM-$45.5
  5. HSY-below $90
  6. KMI-$34
  7. XOM-$80
  8. O-$45
  9. UNP-$90
  10. NSC-$80

$2000 across 10 stocks. Let’s do this.


4 comments:

  1. Thanks for sharing your update. I am also reviewing my positions on BXLT & BAX. It looks like the combined dividends are equating to a cut. I need to see how to manage this.
    In any case, you had a good month with div income! Well done.
    D4s

    ReplyDelete
    Replies
    1. Hi DS, i agree with BAX but hopefully a BXLT goes into a bidding war.

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  2. That sucks about the BAX cut. I had HCLP cut their div by about 30%. I hate taking a step back.

    I would suggest moving jobs. You're still very young, and better to get on the long-term path you want to be on earlier rather than later.

    Here's to hoping you only see increases the rest of the year.

    Eric

    ReplyDelete
    Replies
    1. hi retire29, thanks for the advice. I agree about moving but I guess I have too much fear. It;s funny that I have no fear investing money and watching the roller coaster but only when it comes to life. thanks for visiting

      Delete