Saturday, January 31, 2015

January Result

    Income 
  • Salary:                   4649.49 
  • 2014 bonus:           443.19
  • Dividends:              65.05
  • Capital 1 interest:   3.11 
Total:  5160.84

Expenses
  •  Car payment:   500
  •  Gas:                 66.75
  •  Bills:                381.26
  •  Misc:                166.45
  • Vacation:           1300.00
  • Energy Pills       100.00
Total:  2514.46

Saving Ratio: 49%

Dividends 

BAX: 11.44
HASI: 10.4
WIN: 22.75
PNY: 4.48
GE: 11.27
NRZ: 1.14
LTC: 3.57

This was a $65.05 increase from last year ($0).

     
      Missed my 50% saving target. This month income was a bit larger than normal. I had a total of 3 biweekly paychecks. The sequester delayed my December paycheck to January and I got a 443 bonus for 2014. Whoop. 

      I needed a break so I bought a ticket to Hawaii. My first vacation in 26 years. I'm 26 year old so that should tell you something. My trip is in June so I'll bring back some pictures. 

     In other good news my work schedule is now 6:00 am to 6:30 pm and 5 on Saturday. My OT increased from 35 to 40 hours per pay period. I'm so tired and my brain is not working good. Please ignore if my sentence structure and grammar is a bit off.  

Friday, January 30, 2015

$10 Buy

Loyal3 just gave me $10.00....for some reason....but I'm not complaining.

I bought $10 worth of Kraft.

Thanks for being a bro Loyal3. 

Monday, January 26, 2015

Recent Buy


I just added 14 shares of BAX for a grand cost of $1001.00 ($71/share+7 trading fee). This adds $29.12 to my forward annual dividend. I am still strengthening the core of my portfolio as this is my one and only health care (until JNJ comes down to earth).

Description:

Baxter International Inc. develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney diseases, trauma, and other chronic and acute medical conditions

 Fundamental and premiums.

BAX is currently trading 20x PE, 2.9% and set to spin off its company somewhere mid 2015. S&P capital gives BAX a fair value of $73.70 with a 12-month price target of $90.00. Other analyst gives BAX a 12 month price target of $74.5. Either way I'm below both.

BAX has a Beta of 0.72 and an S&P rating of A.

Dividends  

Baxter has increased its dividends for the past 8 years. It used to be a champion until several spin off froze dividends for a few years.

BAX currently yields 2.9%. It's payout ratio is 59%. It's DGR 3 year is 16.6% and DGR 5 year is 14.2%.

BAX average 5 year yield is 2.5%.

Spin Off

Dividend Engineering has an interesting history of BAX spin off here.

Worst case scenario, BAX will freeze dividends and its new company won't pay dividends. Best case scenario BAX does a 1:1 split and Baxtera will be sold to JNJ in a 1:1 stock swap. A man can dream can't he?



  FLIP

I also flip for 1 more share of GE. This increases my forward income by $0.92. This equal 50 share and the most I'm comfortable with. I'm still suspicious of GE after 2008. In the next crisis, they better cut the CEO pay before the dividends! 


Total: $30.04 increase.

My next purchases will be in my Loyal3 account. Might get some Disney. It's one of those "Set it and you forget it" stock. 

Monday, January 5, 2015

Loyal3 Bear Strategy

I just opened a new Loyal3 account and invested in the following

  Price Shares Annual Div  total 
KO 49.91 4.7154 1.22 $ 5.75
KRFT 200.07 3.1939 2.2 $ 7.03
UL 49.99 10.1834 1.45 $ 14.77
K 198.36 3.0869 1.96 $ 6.05
PEP 198.49 2.1177 2.62 $ 5.55   

My forward annual dividend increased by $39.15. (note UL will vary since the dividends are in euros and converted to US dollars).

Look at your portfolio, what do you consider as your most reliable dividend stocks? During the 2008, 2000s, or early 1990s crash, which of your stock continued their normal distribution or increase their dividends? Which one of your stocks could even survive another 2008? Looking at my portfolio, I determined only a few would maintain or increase their dividends:

1) McDonalds
2) Baxter
3) AT&T
4) Chevron/COP/KMI maybe depending on the price of oil.
5) Aflac.

Only 5-7 of my stocks are considered "Trustworthy". In another 2008, my entire life's work could disappear. I think this is the same for most people. A majority of my stocks are speculative or REITs (which will suffer from the interest increase panic). Every good portfolio is always on a lookout for the dreaded bear. Mine, however, is not.    

Thus, I proclaim 2015 as the year of building the "core" of my portfolio. What is a "core"? In my opinion, these are stocks that aren't easily replicable, they are basic necessities, will continue their normal payout or increase their dividend, and survive even during times of low stock prices and large headwind. What qualifies as a "core"? In my opinion; consumer goods/staples and healthcare.

As we saw during the last recession; people were willing to give up that Big Mac but they weren't going to let go of their Kraft slice cheeses, dove soap bar, or a can of coke/pepsi. People couldn't afford their medical bills/insurance but they still went to the doctors.

My goal this year is to put $1000 a month in my Loyal3 to build up my Core. My prime targets are Kellogg, Coke, Pepsi, Kraft, Unilever, Doctor Pepper Snapple, Hershey's, and whatever they decide to add on Loyal3 this year. (Here's hoping for General Mills, Proctor and Gamble, and Johnson and Johnson).

Are there any other stocks you would recommend? Disney seems exciting in a strange way and I'm still debating Intel.

Cheers mate. BTW: I'll update my war chest and loyal3 stock listing this weekend. Someday I will learn how to use Google docs and code my portfolio.

"Behind every good dividend investor is a closet bear." 

Long: K, UL, KO, PEP, KRFT.

Saturday, January 3, 2015

December Dividends

For December I received

  1. AFL--$6.63
  2. COP--$5.11
  3. MCD--$8.50
  4. ARCP--$12.58
  5. ORI--$6.39
  6. ESV--$6.75
  7. LTC--$3.57 
Total:  $49.53. This is an increase of $49.53 over my previous year.