Tuesday, March 21, 2017

Added another share of TGT yesterday.

Keep this short and sweet. added another share of TGT yesterday at 54.50. Was able to scrape some more money together and I saw a chance to bring down my cost basis a little.

Tuesday, March 14, 2017

Recent Buy CMP

I was able to add a share of CMP today at 69.50. This brought my overall cost basis down from 71.07 per share to 70.55. In this market I'll take a 14.5 P/E ratio for a 4.15 percent yield. Most of what you look for in a dividend growth stock is here. It has 14 years of dividend increases and just recently increased it's dividend this quarter from .695 per share to .72 per share. That's a 3.60 percent increase. The one thing that it's missing is a good payout ratio. At 84% the payout ratio is high. But not enough to keep me away. Morningstar currently rates Compass Minerals International as a 4 Star Stock with a fair value estimate of $91. This is a company that produces minerals including  salt, fertilizer and sulfates. The salts they produce are used in road deicing and swimming pools. They've been around since 1993 and I think there will be a need for the minerals they produce going forward. One reason for the low price for Compass minerals is the mild winters have cut into profits. I don't think we've seen the end of snow.

Thursday, March 9, 2017

Recent Buy O

I had been wanting to add Realty Income Delaware to my portfolio for sometime. I really didn't have a ton of cash to open a new position. But I wanted to continue my streak of making at least one buy a month. So I had two choices I could add to something I already own or buy something I plan on adding too. In the end I was looking at TGT, CMP, and O. TGT is already my largest position by far so I decided against adding another share. So it came down to a choice between CMP and O. In the end I chose to buy a share of O. I barely have any REITs and this is a dividend machine with over a 4 percent yield. I got a single share at 57.95 yesterday.

Hopefully I'm able to scrape enough together for another tiny buy this month.

Friday, March 3, 2017

Why Ownership Matters

I love my job. I put a lot of passion and energy into it. I'm fulfilled when I'm able to make a difference in the lives of the students I have the privilege of serving. But at the end of the day I'm collecting a paycheck for the services that I provide. In some ways buying stocks or making other investments are similar. You spend time, energy, and money choosing your investments with the hopes of getting some payment or return.

However, there is a significant difference. When I buy stock I own it. No matter how much I love my job, it will never belong to me. I can always be terminated or reassigned. I don't have the ability to hand my job to my children.

The stocks I buy are mine. I have to live with the results of my choices in terms of how much value my investments gain or lose. But I can pass them to my children. If I don't like the decisions a company is making or the direction it is going in, I have the power to pull my money out and invest in something else.

For those that seek to one day live entirely off of dividends I get the appeal. There are no strings attached to that money. No one can require you to be in the office at a particular time. There are no bosses. There is no need for an alarm clock and you can travel as you please. What I love about investing is that instead of working for, the money is working for you. 

Tuesday, February 28, 2017

Recent Buy TGT just 1 share

I watched Target tank today after they announced their earnings. After a debating it in my head I decided to take a small nibble on today's dip. I had my reservations. First there is a general concern about the retail sector as online competitors cut into their market share. Target is currently my largest position and I wasn't really looking to increase it. However, if I liked the value I was getting from Target at 65.07 per share, then 58.54 is even better. The consensus was that the 12 percent drop today was an overreaction. So this was a chance to take a tiny nibble of Target and lower my cost basis some. I just bought in at a 4.09 percent yield for a dividend aristocrat with a P/E ratio of 10.46. I'll take it. Just another tiny seed for the portfolio.

Monday, February 27, 2017

February Dividends a little Early.

My last dividend from February arrives tomorrow from INN. But I couldn't help but get a head start and report on it. As of tomorrow I will have earned $5.73 for the month of February. I believe this is my 3rd highest month of all time. I'm extra excited because next month projects to be my highest dividend month ever. Below is a list of my February dividends.

 T     $4.90
KMI $0.50
INN  $0.33

Saturday, February 25, 2017

I finally decided to throw up a long range goal and it's ambitious

So like many other people, I've read some of the literature and decided to begin dividend growth investing. I started out really to try and learn how to invest and build a portfolio in my Robinhood account. As I've begun learning a little bit about how to invest, I've been investing more. I had been setting short range investing goals. But I had been reluctant to set a long range goal this was pretty much a hobby. But as I have become more committed to investing I realize that I should have a long range target for this money.

The first thing I ruled out is a desire to retire early. I have a ton of respect for those that are attempting to do this and I see the appeal. However, I love my job, it brings me a lot of fulfillment. I'm less than 14.5 years away from qualifying for a full pension and benefits. I then have to wait until I'm 59.5 to collect. Though pensions aren't what they were used to be, and I do believe my pension is going to face some cuts in the coming years, 7% of my salary goes to my pension and it will be a significant portion of my retirement income.

Of my addition income I have been splitting my money between a Betterment Roth IRA and a Robinhood account. My hope is to have an even split between my funds and stocks to supplement my pension. The magic number for each is 400k for a total of 800k in the next 22 years. The number is ambitious and despite the fact that I'm currenty putting away less than 1/4th of what I need, I believe I can get there.

In the next couple of years a huge daycare which is currently over 2k per month begins to come off the books. Thanks to an amazing gift from my mom college is basically taken care of for both of my children. So I won't have those costs on the back end. I'm on track to be an administrator in the next couple of years and fully expect my salary to jump 30k or more. I also have a good chunk of change sitting in a high fee 403B account that I plan on rolling over as soon as I change jobs or turn 59.5.

So why 800k split. I believe I could retire safely at any point after qualifying for my pension and have my pension plus 24k per year. Even with a very conservative estimate for my pension this would allow me to retire comfortable before the age of 60, if I were to choose. This now gives me a target to shoot for. It also let's me budget my spending based on the goal. I have found myself getting extremely frugal so I can invest. This isn't a bad thing. But I would like to make sure that I'm making my decisions based on a savings goal. I don't want to deny my family a vacation, or not enjoy life because I'm trying to invest as much money as possible. Having this new target should help keep me balanced.