Friday, January 22, 2016

Recent Buy: SO



On January 22, 2016, I bought 22 shares of the Southern Company at $46.70 per share for a total of $1034.40. As you may know originally I had plans to buy JNJ, UL, and PG all of which failed. So now I'm switching back to my old plan of hunting for yield from good old reliable utilities. This will increase my forward annual dividends by $47.74. 

Thus my dividend fund stands at  $2,238.42 + FCISX + SCHD distribution. 

One more good buy and a couple of flips and I will have 100 shares which will give me a full position. At which point I won't buy anymore unless there is a huge discount (5% yield).  


Friday, January 15, 2016

Note to self: planned buys



As I get older I tend to forget a lot of things. this is just a reminder to self. 

January 19, 2016 Unilever will release its earnings (Tuesday next week) (use cash from savings).

Fair value: $40
5% discount: $38
10% discount: $36

if earnings are bad then buy. If earnings are good, hold off for another drop. 

January 26, 2016 Proctor and Gamble will release its earnings (Tuesday 2 weeks from now) (use cash from paycheck). 

Fair value: $75 or so 
preferred price: $70
Hoard: $65

If PG has a bad quarter watch the share price and jump in. If PG has a good quarter or refuses to go to $70, discretion if you want it or not. Remember to check bills before jumping in. 

January 26, 2015 is also Johnson and Johnson's earnings. 

Fair price: $100 
Preferred price: $90-91
Hoard: If it touches the 80s. 

If both crash it's up to you to decide. Borrow from savings only if absolutely necessary.

If you spend $2000 over two weeks then don't buy anything for another 2 weeks to put back funds.

Wednesday, January 13, 2016

Recent Buy: The Southern Corp



On January 13, 2016 I bought 41 shares of the Southern Company (SO) at $46.50 per share for a total of $1913.50. I bought SO using the funds from my CVX and COP sell. This will increase my dividends by $88.97 per year. 



I also bought 10 powerball tickets for a total of $20. This will reduce my bank account by $20. 

My dividends currently stand at $2,186.60 + FCISX + SCHD distributions.

Monday, January 11, 2016

Recent Sell: CVX and COP



One of my goal for this year was to stop selling and start accumulating...well that failed.

On Monday January 11, 2015, I sold 19 shares of CVX at $82.15 and 7 shares of COP at 42.52. Total combine with my existing cash equals $1845.24.

Rationale: The water heater in our basement exploded and it's -6 outside...apparently you need to replace those things every 20 years or so. Of all my stocks CVX and COP were the two to likely cut their dividends this year (or the next). I would use the money from my bank but at the rate oil stocks are dropping I might end up with $5 a share next week. I was meaning to reduce my stake in oil and this provided a good excuse. 

This sell reduced my dividends by -$102. Ouch. But I still have $1845.24 to make a buy.

My forward income is now 2097.62+FCISX distribution + SCHD distribution.  

For those wondering what I'm going to buy wait for January 26, 2016 when JNJ and PG release their earnings report. I think both will have a bad quarter due to forex but the market will kill PG. I expect PG to drop to $70 or even the low $60s. Imagine that $60 for PG. that's a 4% yield!!!!

Wednesday, January 6, 2016

1st buy of 2016: PG




On January 6, 2016, I bought 13 shares of the Proctor and Gamble Company (PG) at $77.85 per share for a total of $1,019.05. PG is not cheap but it is at fair value based on forward FCF. I want 3 more shares to make it an even 50. 

China, North Korea, lots of fun stuff. I am using this opportunity to pick up some consumer staples. UL, CL, and SCHD are looking attractive. 

My dividend fund stands at $2,189.22 +FCISX distribution. 

Friday, January 1, 2016

December Review




ESV
$1.35
CVX
$20.33
ADM
$26.04
COP
$5.18
TROW
$6.76
JNJ
$48.75
MSEX
$0.80
SO
$11.94
KO
$34.20
AFL
$6.97
UL
$16.04
ORI
$6.48
GILD
$4.73
LTC
$3.57
K
$3.41
NSC
$6.49
HSY
$1.60
VTR
$18.98
CCP
$3.42
CMI
$9.75
O
$4.38
VFC
$1.79
FCISX
$29.79
Total
$272.75


Cash flow


Salary
$5,968.96
Dividend
$272.75
Interest & Online
$12.47
Total
$6,254.18


Deductions


Gas Bill
$65.53
Electric bill
$111.82
Water Bill
$251.20
QT
$0.00
Discretionary
$357.23
Car payment
$435.45
Property Tax
$430.52
Total
$1,651.75


Calculation

Total Saved
$4,602.43
% saved
73.59%


Safety Net Total

Bank
$3,990.76
Capital One 360 Bank
$1,578.89
Scottrade Tax
$39,822.66
Scottrade ROTH
$1,902.24
Loyal3
$12,039.18
401k
$23,074.68
Edward Jones Roth
$7,213.58
Total
$89,621.99


Summary 

  • All my accounts went down except for my 401K and bank account. My goal is to reach my first $100k by March.
  • My paycheck is a bit higher this month than previous months. I worked part time as a bell ringer for the salvation army. 22 hours a week from Mid-November all the way to the end of December. Made an extra $1,500 for one and a half months. I requested to receive the entire pay at one time instead of dealing with a bunch of small paychecks since my local salvation army does not do direct deposit...for some reason.
  • I now own 100 shares of AT&T, ADM, and KO. All three are now “full positions” but I will still make my $20 buy of KO in Loyal3.

  • I greatly increased my positions in Loyal3. I now own 16 individual stocks that is funding my loyal3 mini mutual fund. I added MDLZ, NKE, YUM, and MCD in the month of december. I will dollar average these positions and buy big on dips.  
  • In one month I went from 0 shares of WMT to 57.25 shares at a rate of $59 per share. In other words I invested $3378.20 in WMT in one month and still came away with some cap gains. This was a major push to reclaim my portfolio from sensitive income to hard defensive stocks. I literally moved 5% of my entire portfolio into the defensive sector.
  • I sold BBL, KMI, SOUHY, ESV, and NSC for tax harvesting reasons and to reduce volatility. I reinvested the money into HASI and PG. My goal is to move PG to 100 shares by the end of the year along with JNJ if possible.

  • I received a 1% raise at work which translate to +$0.86 per paycheck or $22.36 per year. Some people were angry but I’ll take it. $22 more dollars in my Loyal3.
  • Dividend increases
    • T increased its dividends by 2.1% from $0.47 to $0.48.
    • HASI increased its dividends by 15.4% from $0.26 to $0.30.
    • WPC increased its dividends by 0.6% from $0.895 to $.90.
    • O increased its dividend by 0.3% from $0.1905 to $0.191.  

Future buys. 

I am looking into EMR, PG, CL, CMI, and JNJ.
  • EMR below $45.
  • PG at $75-80.
  • CL at $63.
  • CMI at $80.
  • JNJ at $100.


My dividend funds currently stands at $2,154.60+FCISX dividends. Portfolio updated. Happy New Year everyone.