Monday, August 29, 2016

Recent Sell: Realty Income (O)

On Monday, August 29, 2016, I sold 23 shares of Realty Income (O) at $66.00 per share for a total of $1510.97 after fees. I made a profit of 44% overall. 

As stated in my previous posts I rather buy and hold a stock forever, however, I will sell if certain conditions are met. One of my parents just went through major surgery and was stuck with a $6,500 deductible which I just paid off today. I could have gone with a $500 monthly payment but I have a superstition that bills attract bills. If you don'r get rid of the first more will follow.

Total forward dividends stand at $3,313.11 a $50 decreased. I'll buy O back when I get more cash and the price drops a bit.

September will probably be a quiet month in terms of buys. I still have 10 grand in my safety net but I rather not use if I don't have to. That's for extreme emergencies like layoffs, unplanned family emergencies, irs, etc.

Disclaimer: Don't follow my advice. And of course O goes up after I sell it...

Friday, August 12, 2016

Recent buy: FLO!!!!!

On Friday, August 12, 2016, I bought 68 shares of FLO at $15.35 for a total of $1,050.80...then the stock fell back down. Just my luck lol.

Oh well. FLO is suffering from the lawsuits and DOL investigation. I wrote a little bit on my instablog if you're interested.

Dividend increased by $43.52. 

Current dividends stand at 3361.427941 + SCHD dividends. 

Disclaimer: don't follow my advice

Sunday, August 7, 2016

Why I hate selling

I have been seeing a lot of bloggers/contributors on SA selling stocks. I am not saying these sellers are wrong. It is actually a good idea to seal in the gains when the S&P is at all time high. So why am I not selling?


1) My legendary timing

I have never ever been able to time the market. Every time I buy, the day after the market/stock falls. Every time I sell, the day after the market/stock rises.

*Seriously if you are ever looking for a drop just wait for me to buy. Also willing to sell my powers!

2) Taxes

People have been selling O and for good reason. It is overvalued and stuffed to the brim by income investors. So why am I not selling it? Taxes. For the rest of this section assume 25% income tax bracket.

I own 23 shares of O with a potential long term cap gain of $503.88 (if sold right now and subtract $7 for trading fees).

Under federal law people in the 25% level who hold a stock for over one (1) year gets punished with a 15% tax charge. 503.88 x .15%= $75.58. Meaning I receive $428.30 after federal taxes. Not bad.

But not so fast. I live in Missouri which takes six percent (6%) from all cap gains. Long term or short. And not on the $428.30 but on the entire $503.88. Which means $503.88 x .06= $30.24. Meaning $503.88-75.58-30.24= $398.06.

But it doesn't end there. I live in the country but work in the city. If you are a resident of this city or work in it you get an additional one percent (1%) capital gains tax on the entire thing. 503.88 x .01= 5.04.


Cap gains (503.88) - fed long term cap gains (75.58) - state cap gains (30.24) - city cap gains (5.04)=

$393.02 minus seven dollar fee ($7) to reinvest into a new stock = $386.02. Effective tax rate of 23.4%.

3) Loss of income

That cap gain gets added into my ordinary income. If I break the 28% tax level, time for more punishment. Best part? Even with my cap gains I can't find a stock that provides the same or similar dividend based on my Yield-on-Cost. I have more cash but my cash flow went backwards?

I'm stuck in the you're too poor to get poverty benefits but not rich enough to get the tax breaks.

In other words I'm in the lower half of the middle class.

These are the reasons why I don't sell stocks even if it goes overvalued. Here are my criteria for selling a stock

  • When I really need the money. Like when I sold MCD because I needed to pay my mother's medical bill.
  • When the dividends are cut. Unless there is proof that the cut was to fund and increase future earnings; not pay down debt.
  • When the company lost its advantage and it is reasonable that future earnings be below its future debt payment. Basically future cash flow<future debt maturity date.

Disclaimer: Don't follow my advice. Long O short IRS
Pic: is from yelp. It has nothing to do with this blog but I wanted to give it a plug. If you're ever in KC come visit Leeds Diner. $7 and you'll full for the rest of the day.

Thursday, August 4, 2016

July Review

Jesus Christ it's already August? In a blink of an eye you're six. Take a nap and you're 25. something something something and you're dead



Cash Flow

Capital One 360 Bank$9,232.05
Scottrade Tax$59,569.48
Scottrade ROTH$2,178.94
Edward Jones Roth$9,808.34
Interest and Online$17.38
Gas Bill$36.84
Electric bill$248.17
Water Bill$184.04
Discretionary $415.95
Car payment$435.45
Total Saved$2,773.13
% saved66.79%

  1. Dividends decreased YoY because I sold BBL last December during tax harvesting season.
  2. I bought $1004 worth of KO this past month. I'm collecting money for the big crash...that will never come.
  3. OHI, KHC (today), and MDLZ increased their dividends. 
  4. These stats are true as of July 31, 2016. 
  5. I hate my job.
  6. And I am currently writing my manifesto on why I hate my job which may or may not result in me being investigated by the FBI (and all of you who reads it). 
  7. I started two new blogs but I haven't had any time to work on it. I'll get to this eventually... 
    1. the first focuses on my interest in studying medicinal herbs (not marijuana you bums). The Herbal Journeyman.
    2. the second is to help me with my job researching state laws and the like. The State Law Historian.
  8. I am still recession proofing my portfolio. My next buy will be FLO. I just need a good drop.
  9. I'll write a fun article on why I don't sell my overpriced stocks sometime this week.
  10. I really hate my job.
  11. I hate your job too.

Forward dividend is 3299.29386+ SCHD. I might actually get to $3,500 by the end of the year. 

See you next month.

Disclaimer: Don't trust my advice
Long: everything in my portfolio and portfolio updated.