Tuesday, August 22, 2017

Recent Buy: Altria Group

On August 22, 2018, I bought 16 shares of Altria Group at $64.00 per share for a total of $1024.00.  Forward dividend stands at $4922.11.

As for my next buy Smuckers earnings is coming out on the 24th and they were brutally downgraded this morning. I'm starting to see the perfect storm for an earnings miss. $100 anyone?

Thursday, August 17, 2017

Recent Buy: Altria Group

With the last of my Loyal3 money, on August 17, 2017, I bought 15 shares of Altria Group (MO) at $55.00 per share for a total of $975.00. And immediately MO drops and took the entire market with it. Proof that I am the stock market assassin.

Forward dividends: $4,883.07.

Tuesday, August 15, 2017

Recent Buy: Southern Corporation

On August 15, 2017, I bought 20 shares of the Southern Company (SO) at $48.50 per share for a total of $970.00. 

Forward Dividends stand at $4843.52. 

Dicks Sporting Goods just crashed and took the entire retail market with it. Target is on tap tomorrow and Walmart the next day. We might get another chance at some discounted retail reits O, STOR, and NNN are on my radar.

Monday, August 14, 2017

Recent Buy: AT&T

On August 14, 2017, I bought 30 shares of AT&T (T) at $38.42 per share for a total of $1147.20.  Teva cut their dividend and instantly crashed 50%. that hurts but hopefully T will do a lot better

Reasons why I'm overweight and have 233 shares of T

  • Teva dividend cut and was hunting for yield
  • T is still trading at fair value
  • Disney (DIS) crashed on poor network ratings and loss revenue. Now they're cutting off netflix and moving all their IP (except marvel) into Bamtech
    • why is Disney so important? It shows that channels are no longer important but the content is going to be the driving force in the future.
    • As another shot Netflix just stole a director from Disney.
  • T is continuing to merge North America. I see a big mexican-south american play with T without having to buy Mexican/South American stocks

My Loyal3 finally came over and all my partial shares were sold. in total I have an extra $1000. I am thinking of buying some more SO. Haven't decided yet. decisions decisions

But GIS is skyrocketing. Just my luck

Forward dividends $4,797.12.

Wednesday, August 2, 2017

Recent Buy: General Mills and July Review

On August 2, 2017, I forgot I had a buy limit for General Mills at $55.00 per share for 18 shares. Welp that worked out ok. 

Total cost $990.00. 

July Review

Dividends


July
AQN$1.51
CAH$15.26
CB$4.26
DIS$0.45
DPS$0.39
FCISX$0.19
FPI$0.51
GPK$7.58
HASI$33.33
ITW$4.55
KMB$6.79
KO$86.59
LTC$5.55
MDLZ$0.26
MDT$46.00
MKC$4.23
MO$7.32
NKE$0.55
O$13.56
PM$9.36
SPHD$2.15
STAG$4.33
STOR$70.23
WPC$15.00
Total$339.95

Cash Flow

July M-o-M
Cash $57,789.16$724.43
Merill Edge$87,667.88$4,440.58
Merill Edge Roth$16,026.02-$259.73
computershare$2,499.53$1,287.74
Foliofirst$39,327.03$1,727.38
401k$65,291.34$3,014.89
Total Portfolio$268,600.96$10,935.29
Full+partime job$5,385.65
Side hustle$50.23
Dividends$339.95
Total Cash Flow$5,775.83
Electricity Bill$220.36
Water Bill$126.23
Gas Bill$37.29
Car Bill$435.45
Misc. Spending $901.93
Total Liability$1,721.26
Total Cash Flow$5,775.83
Total Liability$1,721.26
Gain/Loss$4,054.57
percent saved70.20%
July Summary
  • Are you there God? I hate my job and everybody in it. Please let me win megamillions. If I win I'll give all 5 of my readers a million. Amen.
  • Forward Dividends increased to $4825.49.
  • Overtime got cut so expect slower buys or smaller buys. 
  • August Buy list
    • whatever crashes.
      • May-malls and retailers
      • June-food 
      • July-Tobacco 
      • Maybe August UTEs? 
Portfolio updated. Keep on chugging readers. Just 10-15 more years of this crap. 

Monday, July 31, 2017

Last Last July Buy: Altria Group



Ok I lied. This is my last last July Buy.

On July 31, 2017, I bought 15 shares of Altria Group (MO) at $65.50 per share for a total of $982.50.  And the stock immediately went lower.  I have more set aside, but with SO, MO, and GIS I'm tempted to bring in more reserve.  Based on my investment experience this should be a short term everybody panic moment.  Great for shorters and mutual funds to offload their capital gains.  But even if one catalyst kicks in the buying is over.  But if something bad happens more selling. In other words everybody panic. 

Like people say MO Money MO problems

Please god let me win the megamillion.

Forward dividends stand at $4,788.38.  I should have my July review by Thursday or Friday...or Sunday...

Tuesday, July 25, 2017

Last July Buy: Southern Corporation

On July 25, 2017, I bought 17 shares of the Southern Corporation at $46.96 per share for a total of $798.58.

Forward dividend stands at $4725.61.

Thursday, July 20, 2017

Recent trade: Selling: SPHD Buy: SO

Why am I paying a guy to handle my money? Why am I invested in a fund that is near it's all time high? 

Recent sell: All shares of SPHD
Recent Buy: 23 shares of the Southern Company (SO) at $47.25 per share for a total of $1086.75.

Forward dividend increased to $4686.17.

Tuesday, July 18, 2017

Recent Buy: Southern Corporation

On July 18, 2017, I bought 21 shares of the Southern Corporation (SO) at $47.00 per share for a total of $987.00 at 4.91% yield or $41.16 per year.  Total forward dividend stands at $4,661.59.

My next SO buy will probably be near 5% yield or $46.40. Also GIS appears to be leveling out. So much to buy so little time.

Friday, July 14, 2017

General Mills: A widow-and-orphan stock on sale



Investopedia defines a widow-and-orphan stock as "A stock that pays high dividends and is generally considered to carry low risk.  Widow-and-orphan stocks would likely be in non-cyclical industries that are less likely to be negatively impacted during economic downturns.

General Mills

GIS Chart
GIS data by YCharts

Why is GIS near it's 52-weeks low?


  1. Amazon bought WFM.
    1. retail should be afraid
    2. especially food producers
    3. 10 years from now there will be only amazon and no other retailer in the world
  2. The death of branded foods by generic foods.
    1. WFM will destroy all branded food companies (seriously this is a fear on why nobody should buy consumer foods on SA)
    2. Generic are cheaper who buys named brand?
    3. Soon you will get AMZN drones flying you your AMZN cereal with your AMZN milk in your AMZN bowl with your AMZN spoon. 
  3. GIS only "Sells cereal" argument
    1. Cereal sales are down and that's all GIS sells
    2. Organic earnings are expected to be negative for this year
  4. Dividends
    1. increased by 1 cent
    2. slow dividend growth or no growth 
Why I'm buying in bulk

Last time GIS yield reached this high....

GIS Dividend Yield (TTM) Chart

Comparing payout ratios


GIS Normalized Diluted EPS (Annual) Chart

Revenue is crashing

GIS Revenue (Annual) Chart

but net income is slightly imrpoving

GIS Net Income (TTM) Chart

GIS financial leverage is lower than its competitors but closer to KO meaning it can take on a lot more debt (which I suspect it will)

GIS Financial Leverage (Annual) Chart

and it's PE is close to normalization

GIS PE Ratio (TTM) Chart

Crystal Ball Prediction

  1. GIS will turn around their yogurt issue and invest heavily into their ice cream and snacks (the two growing areas)
  2. With it's lower than average leverage and low dividend increase I predict a buy coming soon. Late 2017. There is a lot of talk about HAIN being bought out. (Note: HAIN pays no dividend but contains a large portfolio of organic and natural products. I'm thinking of buying some shares as a speculation) HAIN is 4B in market cap and easy for GIS to snatch up. 
  3. As a side note I rather GIS buy Conagra and focus on their snack and frozen food division but at 1/4 of GIS market cap it's a lot harder to digest than HAIN
  4. With the yields at these levels I believe the patient investor will be greatly rewarded. This reminds me of when KO and UL was at $40. Buy now until that bull destroys the party.
  5. Why I'm not afraid of AMZN or generic brands
    1. People for some reason assume that generic brands never existed until now. Great Value has a generic everything, but people still buy the name brands. People are shallow and must show off their lifestyle. Something SA readers do a lot showing off their investments and profits, but assumes no one else does it for anything else .
    2. When whole foods was started the term "organic" was a mystery and no market had these things. Now it's hard to find a market that doesn't have organic foods. The produce dept at my Walmart contains all organic meat/veggies/fruit. Even my ALDI contains organic generic cereal and produce. 
    3. The shift I'm seeing now is towards local organic produce. Farmer markets are popping up all over the place and even walmart is promoting local organic produce. AMZN is trying to get into the game, but already down a touchdown.  AMZN is not the biggest threat to the food market, but local community gardens and retailers carrying those products.  
  6. I've done well buying against the market and I will keep at what I know best.
    1. KO, UL, PEP, JNJ, AMGN, HASI, O, LTC, etc. 

These are just my thoughts on the matter. I'm just some guy on the internet with no financial training. That's all I have. Also forward dividend stands at $4611.12.  Also I might buy 5 shares of hain for $200 on monday. I like their products, but with a negative EPS and only goal is getting bought out....

in the words of a crazy guy


Wednesday, July 12, 2017

Recent Buy: General Mills


On July 12, 2017, I bought 19 shares of General Mills at $53.85 per share for a total of $1023.15. And then GIS immediately crashed. Typical luck.

Tomorrow my Walmart Employee Stock Purchase will go through and push me above $4,600 dividends per year. But for now forward dividends stand at $4598.57.

Thursday, July 6, 2017

Recent Buy: General Mills

On July 6, 2017, I bought 18 shares of General Mills on its ex-dividend date at $53.95 per share for a total of $971.10.  This buy will increase my dividends by $35.28 per year for a total of $4560.72.

Rationale

  1. GIS is trading at its 52 weeks low
  2. GIS is trading below its peers in term of PE 
  3. GIS last dividend increase was significantly below its average hinting that a possible merger or acquisition is in the works. There is talk of nestle giving up the cereal business in europe which would open a big opportunity for GIS.
  4. I have done well in the past buying beaten down orphan stocks. Time for another roulette buy. 
  5. Last quarter cereal and yogurt declined but snack bars and ice cream increased. GIS is working towards rebalancing their revenue. Just like KO was hanging around 40 when they worked towards less soda and more other brands, GIS is doing the same. Hopefully I can grab some before the jump. UL had similar issues a while back when it was stuck in the 38s-40s.

thanks for visiting

Tuesday, July 4, 2017

June Review

On June 30, 2017, I bought


  • 5.257 shares of Walmart (WMT) at $76.5658 per share for a total of $402.50. (Employee Stock Purchase Plan)
  • 19 shares of General Mills (GIS) at $55.05 per share for a total of $1045.95. 

June Dividend


June
ADM$6.40
AFL$5.16
AMGN$5.75
CHD$3.76
FCISX$0.19
FLO$19.21
HSY$0.36
JNJ$5.88
K$0.42
LTC$5.53
MCD$0.46
MMM$4.70
NEE$6.88
O$7.81
ORI$0.57
PEP$5.10
SJM$4.98
SPHD$2.15
STAG$4.32
TEVA$34.00
TSN$4.50
VFC$55.20
VTR$89.13
WTR$5.55
Total$278.01


June Cash Flow


June
Cash $57,064.73
Merill Edge$83,227.30
Merill Edge Roth$16,285.75
computershare$1,211.79
Foliofirst$37,599.65
401k$62,276.45
Total Portfolio$257,665.67
M-o-M$35,135.87
Full+partime job$5,023.25
Side hustle$38.62
Dividends$278.01
Total Cash Flow$5,339.88
Electricity Bill$129.91
Water Bill$134.83
Gas Bill$42.06
Car Bill$435.45
Misc. Spending $202.84
3 car insurance
Total Liability$945.09
Total Cash Flow$5,278.34
Total Liability$945.00
Gain/Loss$4,333.34
percent saved81.15%

Summary


  • I received my parents' entire life savings, $23,000, and was asked to build a portfolio to help them retire. I'm going to save this money for "the crash." whenever that is
    • my real Month to Month increase was $12,096.97 thanks to a mixture of additional income, warren buffet buying my stock, and healthcare rally. 
  • Goal Update
    • $4,500.00 dividends per year met
      • New Goal - $5,000.00 dividends per year 
    • $250,000.00 portfolio met
      • New Goal - $300,000.00
  • July Potential Buys
    • SJM 
      • Dipping near 52 weeks low with no catalyst. Even the good GIS earnings news couldn't keep this stock up. 
      • Good news is it's at 2.5% with strong dividend growth. It's also down 21% Y-o-y meaning it has low expectation and makes a good contrarian play.
      • Bad news is 23x ttm P/E and still overpriced. Decisions decisions.
    • SO 
      • Currently at 4.8% and still dropping. Bad news are compounding and making it look like a potential 5% stock. 
      • Bad news: lots of uncertainty concerning the coal plant and the 2 nuclear plants. If SO can't deliver on the nuclear facilities it's basically game over for American Nuclear Projects.
    • GIS 
      • Dividend raise was only $0.01 with under 70% payout ratio. No news of further buyback meaning GIS will soon engage in M&A.
      • Good news: 3.5% stock with a PE under 20x if bought at $55.00 per share (19.90-99x)
      • Bad news: Cereal is deteriorating and yogurt is going nowhere. Natural is making money, but GIS needs something more.
    • T
      • Still dropping like a rock with 5.21% dividend.
      • Would really like to get T to 500 shares.
      • Bad news is the cell phone wars are still raging with no end in sight and possible blocking of merger and/or issues integrating.
      • Maybe sell CNN and their fake news channel for faster approval =)
    • ADM
      • A 3%er trading at fair value and discount to the market.
      • Bad news is commodities are trading near 2008 lows.
Question to my readers, is it strange that I'm not willing to spend 10 bucks on beef jerky, but willing to put a few grand into dividend stocks? People say I'm insane and I'm starting to believe them...

Also I was forced to transfer to another division because people complained about my pessimism. I don't see myself as pessimistic. I invest in the stock market at RECORD HIGH!!!!  But seriously, I don't see the appeal of waking up a 5:30 am to drive in traffic and spend the next 8-9 hours of your life to drive back home and repeat it for the next 5-6 days for the next 40 years.

Maybe I'm strange. Who knows. Also I might not be answering your comments because I don't have enough time.

Portfolio Updated. Forward Dividends currently stands at $4,525.44.