Saturday, December 4, 2021

NOVEMBER 2021 DIVIDENDS

The year is almost over.  So fast.   It's only 3 weeks to Christmas.  

 I love this time of the year.  Full of turkey and fixins to the point of being sick of it.  Christmas lights and tree is up.  Weather is cooling off and being cozy d fun.

You know, I always "love this time of year"....   There is no time I hate.  So let me just move on...

I love life, so each month is great.  I love my family and home.  

To love the home even more, I decided to paint it room by room.   Here's my basement bath with a fresh coat of Sherwin-Williams' "Olympic White".   It seems light blue but is actually a light gray with some blue. And has "white" in the name for no good reason.   But is sure makes the room pop.   It's a lot closer to a Robin Egg than the picture. Very relaxing in the jetted tub to wind down at night.



What I really love is consistent dividend income.  Getting a few payments per week always results in weekly opportunities to reinvest the money into one of the companies I hold to speed up this income snowball.  

🏂

In November, I earned $1,066.79 in dividend from 32 payments.  This only a 3.2% increase from the $1,035.51 I earned in 2020.  But that was the time I did some major shuffling of the portfolio. 

Beginning next month, and especially in January, these results will really jump as I have added a quarter million dollars in new investments. Really.. Soon, I will be at averaging $2,000 per month in dividend income.  This is when the compounding really starts to take off!


Once again, my big haul is from AT&T (T) and Omega Healthcare Investors (OHI).  Moving forward, I 'll be seeing more parity as I have invested in 86 companies in November.





Thursday, December 2, 2021

NOVEMBER 2021 BUYS BUYS BUYS BUYS...REPEAT

EPIC.

November 2021 will go down at the single most epic month of stock purchases in my life.  Hands down.  

91 purchases of 86 companies...   $277,613.39  invested.  Increasing my annual dividends by $9,742.77.      A 3.51% yield out of these purchases.

That's epic.    I put the hammer down!



How do I normally pick what to buy?  In a normal month, I screen for a few parameters to ensure I find the best value.  These are listed in importance to me.

  • A TRACK RECORD OF DIVIDEND INCREASES

This is the most important requirement to be a dividend growth investor.  

  • A LOW P/E RATIO
A look into the Price to Earnings ratio is a good way to see if the stock is under or overvalued.   It's the ratio of the share price to the companies' earnings per share.  It's the price of expecting a profit in the future.  Currently the S&P 500 is at about 28.  I look for 22 and lower.

  • A LOW DIVIDEND PAYOUT RATIO

Can a company sustain their dividend and have room to raise it?   A company that is paying out a large majority or all of their profits have a hard time keeping up their dividend.  I look for under 60%

  • AN EARNINGS PER SHARE GROWTH OF 5% OR MORE
I am hesitant of a company that is stagnant and has difficulties growing.    

  • A LONG TERM TRACK RECORD OF EPS GROWTH
If a company has a long track record of growth.  Of course, the pandemic messed this  all up.  So I have been looking for strong recovery.
  • A LOW PRICE TO EARNINGS GROWTH

  • A MARKET CAPITALIZATION OF $3 BILLION OR MORE

Normally, I follow these parameters.  This is not a normal month.  This is abnormal.....    

I decided to add to most of my positions. Not all, but most.  Since all of them had pretty much passed my screener, adding to them makes perfect sense.   I did not want to sit on the funds and take forever screening so many stocks.  I also did not want to sink most of it in one or two companies.  

I decided to increase my holding for most of my stock to about a $5,000 cost basis.  I used to stop at $4,000 for most of my holdings.  Adding a thousand to that max made perfect sense and I did not want to wait for all of them to be at the ideal price.   Time in the market is better than timing the market.

Of course I had a few that I went beyond the $5K limit.  These were mainly the ones I had sold earlier this year to cover my mom's care.  I got them back to what they were at before that went down.   

My biggest buys were:

  • 91 shares of Target (TGT) adding $327.60 to my annual dividends.
  • 51 shares of Williams-Sonoma (WSM), adding $144.84 to my dividends per year
  • 33 shares of Microsoft (MSFT), adding $81.84 to the dividends.
  • 2,550 shares of Whitehorse Finance (WHF), adding a bad-ass $3,621 per year in dividends.
That WHF purchase was because I did not want to add to positions of some of my holdings at this time.  It was the last $40,000 of the cash I had to spend on this fun adventure.

Here's  link to the buys.   Enjoy.

BUYS NOVEMBER 2021

Saturday, November 13, 2021

BIG FRIDAY OF BUYS

 After spending the past five months covering the costs of my mom's care, I finally got to reimburse and also invest more to cover her ongoing care.   

In the past, I decided to balance out my portfolio by limiting my ownership to about $4,000 for each holding.  Of course there were some exceptions, but my overall goal was to have some balance.  Once I hit that $4K, I would move on to others.   

I did this because when I first started this investing thing, I had all my eggs in one basket.  Then I had 2 baskets...  then I decided that was totally idiotic, and diversified the stock to about 30 companies.  Then 40.  Then 50.  Now I'm up to about 100 different holdings.

This provides a strong buffer in case some company goes tits up.  If one of my 100 companies falls into the abyss, I only lose more or less 1%.   It does also mean that I get to experience a few big stock pops every year.  It's all in moderation and relatively safe.

Usually when I get some cash from dividends, I will look for the best value at the time and invest in that company.  Now that I received a chunk of funds, it is time to go shopping.   

This time though, I decided to increase the $4K limit to $5K.   Instead of taking my time to research 100 companies, I decided to top many of them off at $5K.  I figured if I already liked it enough to hold about $4K, I can bump it up to $5K.  Spending an eternity looking for the best deal of the day would never end and would lose out on gains.  So I just went down the list alphabetically, took a quick glance, and usually bought some shares.  I did skip some where I just missed an ex-dividend date or was really overvalued.   Eventually they will look better.  

To sum it up:  I made 17 stock purchases totalling $80,188.50 that will add $1,544.51 to my annual dividends.   That's a huge day.  That adds $0.17 1/2 cents per hour of income, whether I am working, sleeping, or just living.   Just for being alive.  Every little bit counts.

 So here is my list of purchases:  

The big purchases of Target (TGT), Bank of America (BAC), Discover (DFS), and Williams-Sonoma (WSM) were the replacement of the holdings I sold back in July.  I promised myself to make them whole once again.

I will be doing this again during this next week with the rest of my holdings.  Then the compounding will really kick in.

I will be updating the month end buys in early December and should be quite the post.


Thursday, November 4, 2021

OCTOBER 2021 DIVIDEND INCOME

I freaking LOVE  October.  I LOVE Halloween.   I love the leaves turning red and yellow.  I love the chance of dressing to warm up.  I love knowing the holidays are nearly here.  I love my kid gets to trick or treat a couple more times before she outgrows it.


I also freaking LOVE earning dividend income.  Getting paid 4 times a year by companies you own a tiny portion of is a wonderful sense of security.  Doing it 100 times over, and those teeny portions really can add up.  Especially when they keep increasing the dividend paid out.

This month was the perfect example of patience, and dedication to increasing the return.   In October, I received 30 payments for a total of $1,201.85    

That's a 74.18% increase over 2020 ($689.99).   Mind blown.  Well, not really.  I saw this coming.  And moving forward, the year to year increase will be more moderate, but steady.  

This thing really is a snowball rolling downhill.     Here's the details:


My biggest haus was yet another "special" dividend from ORI of $322.50.  These special dividends are common enough that "special" is not the proper term for it.   All I know is that it makes me feel very special.

More so than the big special chunks, I really like getting a steady flow of income to reinvest.  

I took nearly all of this $1201.85 and purchased more shares of holdings I own.    In a month or so, I will be doing a large post of my purchase activity.   Keep tuned for that.

Until then, stay safe and do what I do - take your spare cash every day and buy a share or two instead of spending it on stuff like a bag of chips...  

Monday, October 4, 2021

SEPTEMBER 2021 DIVIDEND INCOME

 I keep saying this, but this month just flew by.  I think 2021 is on hyper speed to our perceptions since 2020 was the longest, most drug out, most fucked up year of our lives.   At least we are 9 months past last year and moving forward.  Q4 here we come.

The house I grew up in went up for sale this month and sold in a week.  I've got mixed emotions on this, but had to get done for the care of my mother.    And the freshly exposed floors kind of made me wish i had done this years ago.


Quite the change.

Another month flying by means another month of passive income as the reward for investing in dividend growth stock.    The income is the whole goal of my investing strategy.  Gather enough dividend growing stock to eventually replace my income with dividends.  I'm chugging towards my goal.

In summary, I had 50 payments in September for a total of $1639.13.   That's a 13.37% increase from 2020.   Not the biggest leap, but as you may have heard in earlier posts, I had to stop adding to the fund and even sell some for my mom's transition.


The big haul of the month was (BBL) and their semi-annual payment. Would almost with they would dole it out quarterly, but I'll take the huge dividend rate.

October is lining up to be a monster year to year growth month, and wil really get cooking in November and December. 

Remember, if I can do this, anyone can.  You got to start somewhere.

cheers!