Friday, September 4, 2015

August Review

Market went crazy again. Time to recession proof my portfolio but first let’s review August.


August’s Dividend


CORR
$40.37
OHI
$45.10
TIS
$6.30
KMI
$10.78
T
$27.73
FCISX
24.68
SBUX
$3.27
LTC
$3.57
AAPL
$1.56
DE
$10.20


Total: $173.56


Cash flow

Salary*
$4,644.93
Dividend
$173.56
Interest & online
$13.13
Total
$4,831.62


*3x paycheck month 

Deductions

Gas Bill
$36.83
Electric bill
$221.97
Water Bill*
$0
QT
$106.55
Discretionary
$156.77
Car payment
$435.45
Total
$957.57

* Paid last month 

Calculation


% saved
80.18%

Safety Net Total


Bank
$1,479.95
Capital One 360
$2,500.00
Scottrade Tax
$34,736.89
Scottrade ROTH
$1,743.53
Loyal3
$7,123.08
401k
$16,832.00
Edward Jones Roth
$6,583.48
Total
$70,998.93


Summary


  1. I received my first ever raise! An extra $1500 a year! I have worked numerous jobs in my lifetime but this is the first time anyone has ever given me a raise!
  2. I got a part time job as a clerk for a real estate firm. I work 16 hours weekends but I get an extra $300-$400 a month (after tax). It’s a six month position.
  3. I broke my 100 shares of KO goal for this year. I am thinking of finishing off 100 shares of ADM or UL but have not decided which yet. JNJ is currently 12% of my portfolio but I would not mind adding some more.     


Watch list of this month

  1. JNJ $90
  2. UL under $40.00
  3. ADM under $43.00

9 comments:

  1. Congratulations on the dividend income and raise! We share some of the same stocks and your investing a large percentage of your income which is awesome. Continue doing a great job!

    -DD

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    Replies
    1. hey DD, thanks for visiting. I agree let's continue saving and investing. Every penny invested is one penny closer to FI

      Delete
  2. I like your buy list. UL is on mine - but it will be a few weeks of down markets until I cycle to it. I just added a small position on KMB today - so getting defensive myself.
    D4s

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    Replies
    1. Hi D4s, KMB is one that I want to own myself. I need to do more research and find my fair value. thanks for visiting

      Delete
  3. Great looking month for dividend income. I looked at CORR a while back but haven't revisited in a while. It was when I was looking at TYG and other infrastructure CEFs. How long have you owned it? Do you plan to make it along term holding in your portfolio?

    ReplyDelete
    Replies
    1. hi DH, I've owned CORR for about a year or so. The biggest problem with CORR is everybody believes that it is an MLP instead of a REIT so the market loves punishing it. Plus they issue tons of stock for acquisition instead of taking up debt which is fine because debt destroyed reits. I went to their shareholder meeting this year in Kansas City. I met with the CEO and talked to the presidents and spoke to them about their acquisitions and dividend policies. I am holding CORR for the long run but this is a very risky to moderately risky stock compared to KO or PEP.

      Here is my opinion of CORR

      Pro:
      1) good dividend payout ratio compared to AFFO (81%). FFO $0.8 and dividends are $0.6%. Very conservative dividend policies but they promise to increase dividends by 5% per year which in my opinion is moderate growth (compared to aggressive ADM and conservative T).

      2) lucrative deals in safe/relatively safe properties. One of CORR's property provides nat. gas to Missouri. Living in the midwest I can guarantee you that we need nat gas every winter. One good snowstorm or freezing rain will destroy our power lines. Meaning there is no heat up your home except natural gas. Two other CORR properties provides nat gas for wyoming and Oregon.

      3) Corr is a unique beast. As a reit, it actually LOWER their lessees rent to help them with the commodities downturn. Oil companies want CORR to buy its properties and lease it back to them. CORR receives rent and the oil company receives instant liquidity. CORR will then actually help them stay in business by adjusting rent when needed. I spoke with the CEO at the shareholder meeting and he said CORR's priority is its dividends. they will help oil companies but won't do so by destroying shareholder's equity.

      4) CORR's property can easily be taken over by another oil company if the current company goes out of business. For example, EXXI is their most recent acquisition. EXXI's pipeline is also used by Exon Mobile and various other oil companies. The same with the Missouri, Portland, and Wyoming properties.

      5) 34% debt ratio and their prefer shares are "B" rated. They are amassing JPMorgan analyses and looking for a second bank to help them look for properties.

      Delete
    2. Negative

      1) CORR has high beta. Interest rate hikes will harm CORR as a reit and low oil prices will harm CORR as a look alike MLP (even though it is not an MLP).

      2) CORR's companies are not "AAA" rated companies. They are more Cs and Ds. The companies are at risk but their property is the true value.

      3) no other competitors. CORR cannot be compared to anything. You can't compare it to Reits and you can't compare it to MLPs. As such, nobody knows how to value this thing except ordinary reit analysis.

      4) did I forget to mention that this reit is externally manged by Tortoise? Some people are against that but I don't mind. Corr's CEO is David Schultz who is one of the Tortoise boys.

      Some people like low beta blue chip dividend portfolios. Some people love high beta dangerous dividend portfolios. I like a mix of 75% safe, 25% dangerous small caps. I bought my dangerous portion too quickly and that is why you see me buying ADM, KO, JNJ, and UL recently. I should point out that I am dividend investing for my parents. My dad is about to become 65 and my mom is 5 years behind. Their retirement (social security) totals $1000 a month and their healthcare is near $1400 pre-medicaid. If I could add another $1000 then it wouldn't be so bad. That is why I invested in CORR and a lot of reits. I invest like a man 5 years away from retirement.

      For those who like to live on the dangerous side. CORR is a great stock in my opinion. For those who like safer stocks, I say wait a year. I have not invested in TYG because I don't know much about CEFs, its taxes, penalties, etc. Reits are easy for me; here's a 1099 div.

      Here's a great article on CORR if you like reading more.

      http://seekingalpha.com/article/3480446-mr-market-wake-up-corenergy-is-not-an-mlp

      BTW, I have been flipping FPI in my Roth IRA. To me FPI/farmland is going to be the next reit trend (like how healthcare is now). Living and working in the midwest I see a lot of farm properties for sale. In the old day you could get 1 acre of farmland for as little as $2,000. Now you'll be lucky to get $5,000~6,000 an acre. But this is speculation of future trends. But I would recommend taking a look at FPI. It's relatively new but I like its CEO, game plan, and future growth. I have 1 share now but next year I might make it up to 100 shares.

      Delete
  4. Great number BDI...your debt to income ratio is awesome! Hope you are able to put that capital to work and grow those dividends. BTW, a BIG congrats on your raise!!

    Cheers to more raises and dividends! Best wishes!! AFFJ

    ReplyDelete