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Tuesday, October 31, 2017

October Dividends

Happy Halloween everyone. I consider it a holiday every month when I get to count up this money I didn't have to work for. October is typically a light month for me and this month is no exception. Three companies paid me a total of $4.96. However, considering last year's that total was $1.58. This is definitely a more in the right direction. That puts my year over year growth at 213.9%. Slow and steady wins the race. Below are the stocks that paid me Dividends in October.


TIF $1.50
O    $1.06
GE $2.40

Thursday, October 26, 2017

Recent Buy T

Today I grabbed 6 shares of T for $33.70 per share. This was just a straight value play. I like AT&T long term because it is firmly entrenched in the wireless market. I also thought about Verizon today for the same reason. The cord cutting did make me a little nervous.  Time Warner deal and Direct TV purchase did add to their debt obligations. But it was also absolutely the right play.  Long term the amount of money AT&T has to invest in network quality and the content they can now offer, positions them to be in a place of dominance for years to come. So while the wired business is shrinking, their wireless business has plenty of room for growth. 

AT&T is in 52 week low territory and down 5 percent in the last week. MorningStar assigns them a 4-star rating and with a fair value of around $40. I was able to bring my cost basis down from over $39 per share to 37 per share. At 5.82% yield for a stock with 33 years of dividend stock and a 66% payout ratio. The payout ratio is a tad high. But for a PE/Ratio of 15.82 it was worth the value. And that yield is pretty sweet. 

Disclaimer

Material presented on 'Dividend Seedling' is for informational and entertainment purposes only and is the opinion of the author (a social studies teacher and not a financial advisor). None of the information should be relied on or taken as investing advice or a recommendation to invest. None of the information or opinions expressed, constitutes a solicitation of the purchase or sale of any security or investment of any kind. Please do your own research before making any investments. Do not making any purchases unless you are prepared to lose your entire investment.

Additional Disclosure I long everything.


Sunday, October 22, 2017

Money Stuck in Limbo

September 2006 was the first time I started thinking about retirement. A man in a suit sat me down with a bunch of funds made some recommendations and told me about the virtues of the  403b plan he was offering. Like 90 percent of the people in my district I signed up.

To be honest I didn't think too much about it after that. Whatever I put was just going to be a supplement to my pension. Hopefully I'd have a good chunk of change at the end. There was never any discussion of goals, where I wanted to end up nothing. This went on until I made my last payment July 2, 2015. During that time I deposited $10,175 which turned into $15,521.72 today. For nearly 9 years I didn't invest enough. For nearly 9 years I paid way too much in fees. For nearly 9 years I invested in mediocre funds combined with a 3% guaranteed interest (which why would anyone want to do in a long range fund)? What's worse is the penalties and fees that are trapping my money there at least until I'm 59.5.

In June of 2015 I opened a Betterment Account and begun looking at other options. In 2016 started buying stocks through Robinhood. Since I stopped blindly handing money to a guy in a suit, I have saved over 10k into dividend and retirement accounts. By the end of 2018 I'm confident I will surpass a fund I contributed into for over 9 years.

I'm not bitter. I do wish I knew then, what I know now. But at least that 403b fund allowed me to start putting away for retirement. I'm 15k better off today than I would be otherwise because I did start saving.

Friday, October 20, 2017

Graduating From a Compulsive Investor, to a Compulsive Funder

In my short journey into investing, one thing I've begun to realize is that self-awareness is an important component for success. What has been so surprising to me is how much of my personality comes through into how I invest. There is a part of me that is very deliberate and rationale. I know not to react to sudden changes in the market and sell when I should stay the course. But there is another side of me that needs to act and get things done. In my career these impulses have been both a strength and an Achilles Heel. If you need something finished fast, I move very quickly and efficiently. I get things done. But there have been times that I moved too quickly and made poor decisions.

The same has been true with me as an investor. When I started this DGI journey the plan was simple invest 30-50 a month through Robinhood and see what happens. Had I thought rationally and stuck to that plan I would have somewhere between $600-$1000 right now. My desire to build my portfolio led to at times weekly purchases. I would find a way to save $20 here or $30 this week just to grab an extra share of something. It's the reason why the DGI section of my porfolio is closer to $6,000 than $600. As my porfolio grows I realize that I can't treat the market like a game and I need to reign in my personality. The challenge is to do that without becoming that boring monthly $50-100 per month funder. A close friend of mine once told me no matter how much you make, that's what you're going to spend. He has a 6 figure salary and puts away very little. It's the reason I deposited $20 into my Robinhood account today for absolutely no reason. It's the reason why if a bill is a little cheaper or I'm able to cut an expense I make the deposit into my Robinhood account. Once my money goes into Robinhood it will be invested at some point, but there is no hurry.

This post has also made me realize how important this blog is to my investments as well. It forces me to reflect on my decisions and refine my approach. It has kept me focused on my long and short term goals and put in a layer of accountability. I now understand the quotation that "a goal unwritten is just a wish."

Wednesday, October 11, 2017

Recent Buy GIS

I have been following GIS for six months and finally today I pounced grabbing 5 shares at 50.76 per share. I realize that the General Mills brand isn't necessarily what it was 5 years ago. But certain numbers I just love.

3.85% Yield
13 years dividend growth
63 percent payout ratio.

All that are at a near 52 week low. All that for a 18.3 percent P/E Ratio. I realize this consumer staple may not be what it once was in terms of market share. But I don't see them going away anytime soon. Time will tell but this feels like a good buy.

Sunday, October 1, 2017

September Dividends

Its been a relatively quiet month for me in terms of investing. I doubled my Roth IRA contributions. But have been relatively silent in terms of individual buys. In fact this was the first month as a DGI that I didn't make a purchase. I did still make my normal deposits into my account. That said, September was very busy for me in terms of actual dividends.  A record $27.18. Lets put that in perspective last year I earned 6.63 in September. This year's dividends more than quadrupled that. So much motivation. What's even nicer is that by not rushing to make a September purchase, I'm in position to make a larger one if I see something I want to pounce on. Below is my dividend rundown.

WFC     0.78
UL        0.83
DFS      1.75
ADM    0.32
AMGN 1.15
TGT     6.20
EMR    2.40
JNJ       0.84
CMP    3.60
O          1.06
FLO     1.70
DUK    3.56
GM      1.14
BAC    0.24
PEP     1.61

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