Friday, November 20, 2015

Recent Buy: WMT & VFC



Market is going up again. Amazon is trading at 900x PE, Peter Schiff thinks the market is overvalued, and daily hit piece by yahoo calling for an epic crash in December. In other news ....

On November 20, 2015, I added $250 at $61.02 per share or 4.0970 shares of WMT and $250 or 3.900 at 64.09 per share of VF Corp. This is my initial position in VF Corp. I also added VF Corp to my $10 bear strategy*. Both buys were added in my Loyal3 account so no fee was added.

I have seen VF Corp numerous of time but only recently have I researched them. Since I'm too lazy here is an article from JC at Passive Income Pursuit on Seeking Alpha. 

http://seekingalpha.com/article/3617396-use-the-recent-sell-off-in-v-f-corporation-to-pick-up-some-shares

*Not sure if I mentioned this before but I have two separate accounts. Scottrade is for my riskier trades (oil, commodities, reits, etc) and Loyal3 for my safer investments. On the 15th of every month I invest $10 into APPL, KO, DIS, DPS, PEP, HSY, K, KHC, SBUX, UL, WMT, and now VFC no matter the price. This makes sure a good portion of my portfolio is invested in consumer staples, technology, and consumer discretionary. Some people call me crazy but $120 is small compared to some of you bloggers putting in 5k a month.   

My dividend fund currently stands at $2,241.20. 

Have a Happy Thanksgiving. 

Wednesday, November 18, 2015

2015 Review; 2016 New Year's Resolution


Happy New Year! I decided to do my year end review and new year's resolution now as holidays tend to become chaotic. I will still do the buys and month reviews. Black font are my original goals, red font are my updated, and blue fonts are my comments.


2015 Goals

1) Invest at least $26,000 in my taxable accounts by December 31, 2015.

I had big dreams this year. My original intent was to invest a thousand dollar per paycheck...but life got in the way. My total amount invested this year was $18,000 (included expected November and December). To put that into perspective I spent 2990+ hours or 124.58 days or 34% of my year in a cubicle to save $18,000 or at a rate of $6/hour. Yep.  


2) Receive at least $1,000 $1,750.00 in dividends.

As of October 31, 2015, I received $1,573.71. If I added in my expected November and December contributions, I am approximately about $1,875 so I guess goal achieved!


3) Build a patio. Not going to happen. Not enough space and time.

What was I thinking? I’m not a carpenter and I don’t have time for this.


4) Take a vacation or staycation. First vacation in 26 years!

Went to Hawaii. Beautiful place. I used to laugh at people who said “the atmosphere was an assault on my senses” because such statement made no sense. After seeing colorful Hawaii compared to brown Nebraska...I finally understand. If you are one of those people who uses that phrase...my apologies.

In other news I was sent to Washington DC for a week for passport/ID fraud training...that was something different.  


5) Have a net worth of $40,000, 50,000, 60,000 80,000 100,000! in my taxable accounts, 401k, Roth, and bank accounts. Go big or go home.

At my October check-in I was at $85,000 but with the stock market going crazy I’m probably back down to $50,000. Net worth isn’t as important as cash flow but having a positive growth sit in your stomach a lot easier than losing your principal.   


6) Open a sharebuilder Motif Loyal3 account and invest regularly in consumer defensive stocks.

Done. I invested $9,500 into my Loyal3 account and accumulated over $500 in capital gains. In one year my loyal3 produces $274.35 in dividends. My only regret was not having more capital to invest in WMT. But HSY is looking good right now.


7) Learn how to code. Java, C++, HTML, Javascript, software tester, w.e. Just anything to get started. Not going to happen this year.

I took two classes in Big Data/Hadoop and two classes in SQL. I need one more class in Big Data and two more classes in SQL to get those certificates. I am not sure if my employer will pay for it next year.


8) Create my flower garden/veggie garden. Done.  

Done.


9) Purchase 100 shares of KO, 60 80 shares of JNJ, and 20 shares of PEP. New Goal: 100 shares of UL or ADM.

I bought 100 shares of KO, 98 shares of T, 65 shares of JNJ, 93 shares of ADM, 47 shares of UL, and 6.9 shares of PEP.

I will flip 2 more shares of T. I will flip 7 more shares of ADM. I will eventually work on JNJ, UL, and PEP when prices are right. SO and WEC are my two big utilities for 2016.  


10) Max out my 401k. Not possible this year. Will try again next year.

Saved $10,000 in my 401k. Many of you know that I invest not for my early retirement but my parents retirement. The fact that I saved $10,000 in my 401k is nothing more than amazing. To put that into perspective I saved $3.34 per hour worked.


11) Max out my Roth IRA. Done.

Done. $3,000 was buying FCISX in my Edward Jones and $2,500 of reits in my Scottrade.


12) $2000  2100 2200  2300 forward dividend.

I’m not sure if I met this goal or not. I’m currently at $2,227.39 with half of November and December to go. I still have T and HASI dividend increase plus my buys. I may or may not have met this goal.  



2016 Goals

1) Invest $26,000.

Let’s do it again. Let’s try a thousand a paycheck. If my overtime remains stable I should theoretically be able to meet this goal.


2) Receive at least $2,800 in dividends.


At $2,200 in forward dividend I should be able to meet this goal.


3) $3,500 forward dividend.

If I reach $2,300 by December I need to somehow find $1,200 in forward dividends by the end of next year. Hopefully the dividends keep rolling in.


4) Max out my Roth IRA


5) Max out my 401k.


6) Make regular contributions to my Loyal3.


7) Rebuild my garden.


8) Make $500 from online surveys. Cash Crate/ Inbox dollars.


9) Have a net worth of $125,000.   


10) Re-balance my portfolio. 70% of my portfolio should be in consumer staples, healthcare, and utilities.

Lessons I learned from my second year of investing. Invest in risk and you will pay for your recklessness. If you seek yield, yield will seek you. Basically if you buy crap you get crap. Buy quality and get quality.


11) Go back to Hawaii.


12) Become more interesting.

Besides investing and sports...I’m not very fun to be with. I would like to become more interesting. Read more books. Learn a hobby. Travel more. Something. I would like to learn how to lockpick. Not to rob houses but I always found it interesting. I would like to write, spell, and use better grammar. My job involves looking at fragmented words and sentences to make coherent conclusions. That is why my writing is so awkward compared to other bloggers.  

12) Learn to not feel guilty when I'm spending money.



*Portfolio updated. Have a Happy Thanksgiving, Happy Holidays, Merry Christmas, and Happy New Year.  

Tuesday, November 10, 2015

Recent Buy: WMT; Watchlist for November-December



It feels good to get back into the buying game.

On November 10, 2015, I bought 8.5339 shares of WMT at $58.59 for a total of $500.00 in my Loyal3 Account.

Instead of explaining my rationale I am going to plagiarize Div4Son checklist and give you a link to his website.


Criteria Checklist


WMT 10/2015
Area
Criteria
CheckList
Comment
Quality Company
Dividend Growth
>5 years
Yes
42 Years
ROE/Op Margin
Stable
Yes
Stable
Long term Avg Growth
Stable
Yes
Stable - Note
FCF over Dividends
Yes
Yes
FCF covers Dividends
M* Moat
Wide Moat
Yes
M* Wide
M* & S&P
Credit Rating
> BBB+
Yes
AA
Cash to Debt & Interest Coverage, Debt to Equity
Cash Debt >1 or Interest Coverage > 5
Yes
Cash to Debt 0.12
Interest Coverage 11.03
Debt to Equity 60.51
M* & S&P Stars
> 3 Stars for both
Yes
M* 5 Stars
S&P CapIQ 3 Stars
Payout Ratio
<60%
Yes
41%
Dividend Growth
& Yield
Dividend Yield
>3%
Yes
3.34%
Dividend Growth
>5%
Yes - but future short term growth in 2-3% range
12.90%
Chowder
>12%
Yes
16.24%
Valuation
Yield/Avg Yield
>1.1
Yes
1.32
Dividend Yield Theory Mid Point
Below Mid Point
Yes
Mid Point 73.37
Low Point 58
P/E
Below Mid Point
Yes
Median 14.69 Current 12.26
DRRM
~10%
Yes
Assuming 5.5% growth; projected return=11.08%
M* Estimate
<M* est
Yes
M* 75
S&P Estimate
< S&P cap IQ est
Yes
S&P Cap IQ 62

http://div4son.blogspot.com/2015/10/weekly-purchase-7-wmt.html

http://div4son.blogspot.com/2015/05/wal-mart-wmt-dividend-stock-analysis.html?m=1


November-December Watchlist

Likelihood of rate hike is 60% in December. The markets are freaking out so maybe we'll have another pull back. Below is my watch list.
  1.  KO--Under $40 preferably $39 
  2. CMI-under $100 
  3. PG--Under $70 
  4. JNJ--Under $91 
  5. PM--Under $80 
  6. O--Under $45 but preferably $39 
  7. HSY--Under $88 (which it is right now) but preferably at $84
  8. WMT--$58 to $59
  9. NSC--Under $75
  10. Trow-Under $68
  11. SO--$42
  12. WEC--$44

I will add more as I continue my research. thanks for visiting!

Forward 12 month income stands at $2,221.73.

Saturday, November 7, 2015

October Review



October down. Time for a fun holiday filled November and December.

PNY
$4.62
NRZ
$1.38
KO
$24.15
DPS
$0.12
GE
$11.73
LTC
$3.78
HASi
$13.52
WPC
$14.25
FPI
$0.13
O
$0.38
FCISX
$27.19
Total
$101.25

Cash flow


Salary
$3,825.19
Dividend
$101.25
Interest & online
$7.96
Total
$3,934.40


Deductions


Gas Bill
$36.83
Electric bill
$161.23
Water Bill
$117.94
QT
$56.32
Discretionary
$313.80
Car payment
$435.45
Total
$1,121.57


Calculation

% saved
71.49%


Safety Net Total

Bank
$5,112.67
Scottrade Tax
$41,407.56
Scottrade ROTH
$1,838.83
Loyal3
$8,965.91
401k
$20,628.64
Edward Jones Roth
$7,366.23
Total
$85,319.84

Summary

  1. I broke $2,200 in forward income and $80,000 in net worth!!!!!
  2. My new goal is $2,300 in forward income and $100,000 in net worth by the end of December!
  3. Dividend increases
    1. AFL increased 5.1% from .49 to .51
    2. CORR increased 11.1% from .135 to .15
    3. SBUX increased increased 20% from .16 to .20.
  4. Back to the grind!

Forward 12 month dividend stands at $2,204.00.