UPDATED WATCH LIST AND PORTFOLIO

 It's been a while since I've posted an active watch list and current portfolio  So I just updated what I am looking at towards purchasing and what I would like to increase a stash of!

It a comes down to a decent dividend, a record of growing that dividend, a decent payout ratio so there's room to grow and not be forced to cut the dividend, a good P/E ratio to avoid buying an overpriced company, and a record of growth overall as a company (EPS).

Recently the EPS has been looking wonky, so I choose to ignore what 2020 looks like in comparison to 2019.

To see my portfolio, please go here:  PORTFOLIO

Here's the link to the page I keep this at.  WATCH LIST.

Here's the watch list:

Any questions or comments?  Please comment below!

DECEMBER 2020 DIVIDENDS

 Welcome to 2021.  Super stoked we are no longer in 2020 and my football team is in the playoffs!  

And my kid like to startle the bejeezus out of me with stuff like this:

Best of all, December was a fun month for earning some passive income.  My March/June/September/December dividend months are always busy.   I see 44 companies pay out on these months.

I earned a total of $1542.22 in those 44 payments.

Here's the summary:

My big haul was a special dividend from Costco (COST) of $10 per share.  They tend to do this every other year or so and really makes up for the lower yield. Someday their dividend increases will be truly fat.  At least I hope.

The other winer for me was the Vanguard exchange traded fund VYM.   Gotten into it starting late this summer, and is a great go-to when I'm indecisive about buying shares.  This fund is chock full of dividend Aristocrats and contains more than half of my holdings.  It's like the greatest his of my portfolio!   I try to buy at least 4 every month.   Here's a great piece about why VYM is so awesome Why I’m Investing $500 Weekly with Vanguard ETFs.     

Now it's January and looking at another month with a special dividend that will blow the doors off from ORI.

Thoughts?  Please comment below

DECEMBER 2020 BUYS

December was one of my more exciting months in a long time when it comes to making some buys for my portfolio.  

41 transactions in total.

The final tally at the end of the month was that I added $1,304.04 to my investments and gained $360.54 in annual dividends.  Taking profits and reinvesting resulted in getting a 27.4% return on my new money.

Took some profits.  Closed out on companies I was sick of holding.  Got into a few companies I had been waiting to get into.  Reintroduced myself to one of my former major holdings.   Lets go through these one by one after the chart...

TOOK PROFITS:  Took some Apple profits (AAPL) .  I was over 125% in equity gain.  I do love them and are a solid stock to hold onto, I took the profits to get some shares that give a better dividend return.  I will start buying them again in late March.

CLOSED OUT:   Closed out on my gas companies.  Got rid of Chevron (CVX) and Phillips 66 (PSX).  I see them as mired in a world where we are heading away from gas and oil consumption.  Covid has reduced commutes and I believe is a new normal.  Yes, they had nice dividends, but were in no position to increase them in the foreseeable future.  Bye bye.  Not feeling a bit of remorse.

I also closed out on Wal Mart (WMT).  I prefer owning Target, and I did not care for the way they pay out dividends.  Announce 4 payments once a year and have them pay in an odd pattern.   So I took their profits also.

NEW BUYS:   Comcast (CMCSA).  Been waiting far too long to get a position with Comcast.  

                         AIG Insurance (AIG)  Another patiently waiting on my watch list.

                         Lockheed Martin (LMT) Yet another that sat on my watch list forever.

                         Netapp (NTAP).  A tech company that has was a good value IMO.

                         Seagate Technology (STX). Another tech company I wanted to pull a trigger on.

                         Smuckers (SJM).  I honestly do not know why I did not own this years ago.

All of these companies passed my stock screener test: STOCK SCREENER(or at least got real close).  They all have a decent P/E ratio in the low 20's and below.  They all have a good track record of incresing their dividends.  They all have a dividend payout ratio of 60% and under, so they have room to grow and also room to take a financial hit without affecting the dividend.  And they all have a good track record of earnings per share growth (at least before COVID).  The pandemic puts that metric on pause.

REINTRODUCTION:   Back in early august, I wrote about how I jettisoned one of my biggest holdings, Whitehorse Finance (WHF), a business development company that I owned from their early days.  They had always paid out about 10% annually in dividends and I took full advantage of that for a solid 6 years.  

During the Pandemic, they took a major hit.  I wrote about it here: JULY 2020 BUYS, SELLS AND MAJOR CHANGES - PART 1

Their payout ratio (normally in a safe range) spiked up to 947%.  Their P/E also leaped up to 64.5.  If they did not right the ship, both the dividend and their stock price would have taken a major hit.  I had already experienced that with some REITs in 2019 and was not about to see my largest holding collapse.

Well, they righted the ship.  currently, their P/E is at 8.67. And their payout ratio is back down to about 90%.    

The cost of my protection from possible failure of WHF was a $450 dividend payout in Q4 and about $1 per share.  A small price to pay for the security of not losing $17K had they gone tits up.

OTHER BUYS:   I also increased my holdings in Kroger (KR), Western Union (WU), AT&T (T) of course, Robert Half (RHI), and Starbucks (SBUX).

To sum this up:  This was one fun month in investing and like where I am at more than ever.

DECEMBER 2020 DIVIDEND INCREASES

 Always a shorter post, but a very important part of my investing strategy - dividend increases.

Just to lengthen this post, here's my sugar cookie art skill.  

A rabid squirrel that just gave birth and is carrying its bloody newborn....

So here's a summary:

Amgen (AMGN) passed out a 10% dividend increase!   BAM!

Realty Income (O) did their regular quarterly .2% increase and AES upped theirs  by 5%.

This added $24.41 to my annual dividends.  

In January, I'll be looking for an increase from Kimberly Clark (KMB), Intel (INTC), Archer-Daniels Midland (ADM), and Air Products and Chemicals (APD).  

And I think my portfolio is safe from any more dividend cuts!  

2020 GOAL SUMMARY & 2021 GOALS

 We made it! The longest, most frustrating year is over.  2020 can go suck some eggs.   

A sucky 2020 did not mean I could ignore the goals I had to to accomplish.   Last year, I posted them online to keep me accountable.   Well,  let's see how I did:

FINANCIAL GOALS

1. Add $5,000 to my investment account.  DONE  
2. See my dividend income increase by 10% from 2019.  NOPE.  SHUFFLING SHARES AROUND IN 2020 AFTER DIVIDEND CUTS DID NOT BODE WELL.  -6% BUT IN A MUSCH BETTER PLACE MOVING FORWARD.
3. Increase my holdings by 5 companies. Not just add to my current holdings, but have 100 companies to earn dividends from.  DONE
4. Save $16,000 for bills in 2021: Property Tax, Home Insurance, Auto Insurance, Car Tabs, Water Bill, Electric Bill, Gas Bill, Internet, Phone Bill, TV Costs.   That's $43 per day.  I want to be a year ahead. Then in 2021 and beyond, I can put more into the market once I am ahead.  SAVED $8,000.  CHANGED MY GOAL TO $8K AND PUT THE REST IN THE MARKET AND REPLACED A CAR.  GOT TO $8K
5. Fulfill my goal of buying the equivalent in shares of what I spent in 2019 at Costco, Target, Apple Store, Home Depot, Starbucks, and AT&T.  DONE OTHER THAN APPLE STORE SINCE I ALSO CHANGED THE TARGET COMPANIES.  SEE CHART BELOW

PERSONAL GOALS

1. Take a spring road trip.  Yellowstone would be ideal.  DID THE REDWOOD FOREST IN NORTHERN CALIFORNIA.  COVID REALLY MESSED UP PLANS.
2. Exercise more.   I was doing well until my right knee and left achilles acted up.  Fell out of routine.   DID SO FOR 9 MONTHS BUT FELL OFF AS WEATHER TURNED AND SHOULDER WENT ON THE FRITZ
3. Drop about 20 lbs.   LET'S JUST TALK ABOUT THIS LATER.  THE COVID 15 IS REAL.
4. Drink more green tea.  DONE
5. Sell off some of my record collection.   It was a long term goal to sell eventually.  Well, I have run out of room.  I think I would rather sell than keep some of the ones I rarely listen to.  SOLD A FEW, AND FOR SOME GOOD PRICES.  BUT ALSO ADDED ABOUT 50 LPS
6. Improve piano skills and improve guitar skills.  PIANO YES, GUITAR NOT REALLY.
7. Blog more.  I HAD A LIFE, SO I FAILED ON THIS.
8. Enjoy more oysters like these.  KIND OF DID!

Now 2021 is upon us.   Here are my goals:  

FINANCIAL GOALS

1. Add $10,000 to my investment account.   This will be easy
2. See my dividend income increase by 10% from 2020.  Now that we are through the main evil of COVID, I think this is doable
3. Save $8,000 for bills in 2021.  That's $21 per day. 
4. Fulfill my goal of buying the equivalent in shares of what I spent in 2020 at the following:

I am in fact a bit ahead of the game on some of these companies.  I will update next month.

PERSONAL GOALS

1. Go to Hawaii for 10 or more days.  I need beach
2. Exercise more.   Walk 10,000 steps per day
3. Drop about 30 lbs.  I am at 204 lb this morning of 1/1/21.  My doctor wants me to slim down.  My pants do too.  It's made my blood pressure creep up.  At 5'7", I need to be much lighter.  The walking will help.  So will goal # 4....
4. Eat very little sugar.
5. Sell off more of my record collection.   I am out of room
6. Make more music and release an album.
7. Work on front yard garden.

Let's see how this shapes up...

MOTHER OF ALL THRIFT STORE FINDS

 As many of you already know, my main hobby is collecting vinyl records.  How Gen X of me..   Through garage sales, junk stores, used bins at record shops, and collectable editions through stores, I have amassed over 3,500 records.  

Every once in a while, I come across a great find.  Like "Hey Hey what Can I Do" by Led Zeppelin for 25 cents.   Or the rare Blue Note 78s I found at a thrift store   Early Blue Note 78.   

This past weekend was the Mother of All Thrift Store Finds.  Another Blue Note discovery.   

We went to the thrift store looking for joke gifts for Christmas.  This also requires a stop by the old records for sale.  I wanted to pick up any old records in decent shape to add to my hoarde.  Especially jazz.  I'm lacking in good jazz records

Sitting there among the ruined andy Williams album and multiple Barbara Streisand records was a nice copy of Cannonball Adderley's "Somethin' Else" on blue Note records.  Vinyl looked fairly clean.  And was extra heavy and thick, so I knew it was an old copy.   Picked that up along with a Stan Getz and a Charlie Parker compilation.  

Once I got home, I looked up my Cannonball Adderley on Discogs.   The first release had these qualities:

• West 63 street address and no ® and a "micorgroove" on the labels
• Deep groove on both sides
• no "Inc." after Blue note on the address on the back cover and printed in Serif font
• "P" for Plastylite Recording plant etched on run out.
• RVG stamped on the run out

Well how about that.... This copy had ALL of these. Wha?  This was a first release of this record!   And in VG condition for the vinyl.  The cover is in G condition, a bit worn on the back and bit smudgy on the front.  but not bad for a record from 1958.

This record cost me $1.95.   This sells for around $600 in this condition.   What an absolute monumental find.  I don't think I will ever find a more collectable record.  OF course, I thought that the last time I found some Blue Notes...

I will keep it and listen to it for a while.  If I find a nice clean reissue, I will then sell.    IMO it's one of the best jazz albums ever made and right up my alley.   Sometimes you just get lucky.

Here's a track from this release.   Awesome!

NOVEMBER 2020 DIVIDENDS

December is here!  Less than 1/12 of this year is left, thankfully.  In 26 days, we can kiss this year goodbye and never look back!

And right after Thanksgiving, it was time to pull out the Christmas decorations.  The dog does not really like her Santa outfit.

Meanwhile, I  earned some dividends.  32 companies paid me a total of $1,035.51.  This is a 13.03% year to year gain from the $916 I got in 2019.  After the big shuffles I have gone through over the past 15 months, seeing a gain like that was truly satisfying and motivating to improve on that number in 2021.

The big ones are AT&T (T) and their monster 7% dividend and Omega Healthcare (OHI), a healthcare REIT (one of my few REITs now), also with a 7% dividend.

Here's the breakdown:

NOVEMBER 2020 BUYS

Welcome to the Holiday Season!   My favorite time of the year.  Hope you are all staying safe out there on Panet Poison.

Snow started falling and got to go up to the mountain pass here an play in a fresh 18" of snow that fell the night before

Picked up a few greal albums recently.  This one here is maybe the best album I had never heard until a few weeks ago.  Dadawah - "Peace and Love", a Nyabinghi rhythm LP from 1974. Very sublime and exploratory.  Only four tracks on the LP, but they improvise into this crazy bass and drum Nyabinghi rhythm form of reggae meets the blues meets psychedelia and experiencing the rapture...  They may have smoked some of their sacrament..

What really makes it stand out is the lack of a rhythm guitar and the addition of a minimal echoing piano that really ties it all together.  This is one of the most spiritual, haunting roots reggae albums that could possibly be ever made.  Just re-issued this fall.

Oh, and I traded some shares.....  

Harvested a tiny bit of profit just so I can pick up a couple of Costco (COST) shares after they announced their special $10 dividend.  This is not their first special Dividend. 

I did get out of a smal position in Delek Holdings (DK) after they ended their dividend. I'd rather have my money in something that will pay me back so I can sit on it and get paid for breathing...

I also snagged 3 more shares of Vanguard's VYM, which I plan to do on a regular basis. It's a perfect mix of all of the dividend growth companies I already invest in.

The other major purchases, not really major, but at least over $100, was some more Johnson & Johnson (JNJ) and Target (TGT).  Both are pretty much recession proof companies that are not going to go tits up any time soon.

In summary, I added $1,063 of new money and increased my annual dividend by $39.26.  That's a payout ratio of 3.69% on the investment.  And should grow.

Check out the details

NOVEMBER 2020 DIVIDEND INCREASES

'Tis the season of dividend increases! Fa la la la la....

November, December, and January have been the months I used to see the most dividend increase.  Now 2020 is one hell of a strange year.   But at least it started well this October.   

I received 5 dividend increases over the past month.  The whopper was the 17.9% increase by Aflac (AFL).  

Overall, I received an extra $35.27 in dividends per year.   That's the name of the game, Dividend growth..

In December, I'm expecting increases from AT&T (T), Pfizer (PFE) and Amgen (AMGN).  I'l keep my fingers crossed.

VELVERT TURNER, JIMI HENDRIX'S ONLY GUITAR STUDENT

A few days ago I picked up a copy of the only album by The Velvert Turner Group.  

Yes, them

You are now currently saying to yourself, "Who the hell is Velvert Turner"?!?!?!?  So did I.  This is where it gets interesting.

Velvert Turner happened to be a close friend and the only student of Jimi Hendrix.   They met in 1966 and took to each other as they both had a love for the guitar.  Jimi mentored him through instructional sessions at Jimi's apartment in Greenwich Village.

As Jimi's popularity grew, Velvert was invited to the concerts and would mention he is friends of Jimi.  Almost no one believed him.  After Jimi's death in 1970, Velvert decided to form his own band, the Velvert Turner Group.  In 1972, their only album was released.

 The guitar stylings and vocals eerily resemble Hendrix's.  He would even play guitar with his teeth and behind his head.  Here's a track from the album.  And yes, this does sound almost exactly like Jimi Hendrix, vocals and all..  

But this album did not sell well.  It was seen as "behind the times".  Fickle audiences of 1972 had moved on from Jimi's wild psychedelic 60's style.

He performed sporadically after the LP, and his former bandmates went on to play in other groups including The Motels, The Knack, The New York Dolls and Burning Sensations.  Quite the backup band....

Sadly he passed in 2000 at the age of 49.

This pink vinyl reissue was a Record Store Day release back in 2017.  2,000 copies were pressed.

And yes, it will make you wonder what it would have been like to see them play together at the same time.

Here's another track..  Unreal.

Take care folks!

I'll be working on picking up the pace posting bits and pieces of my record colection that I think are interesting.

2020 GOAL UPDATE THROUGH OCTOBER

 Posting my 2020 New Years' goals was a great idea.  It forced me to focus on meeting these goals or otherwise look like a massive chump. 

Well, at least no so chumpish..

FINANCIAL GOALS:

Not only did I keep up with my goals, but I have completed the goal of matching all but one of my goals for the year.   The overages are going into the 2021 goals.

This is a twisted way to find a positive in the Covid lockdown.  I just could not spend my money.

PERSONAL PROGRESS:

1. Take a spring road trip.  Yellowstone would be ideal.  SUMMER ROAD TRIP THROUGH OREGON COAST & CALIFORNIA.  RIGHT BEFORE THE FIRES.  PHEW.

2. Exercise more.  DROPPED OFF SINCE SEPTEMBER  

3. Drop about 20 lbs.   I AM NOT GOING HERE.  THE COVID 15 IS REAL. MY NEXT GOAL WILL BE 35 LESS.  GRRRR.

4. Drink more green tea. HITTIN' IT.  ADDING SOME JASMINE, OOLONG, WHITE, AND EARL GREY

5. Sell off some of my record collection.   It was a long term goal to sell eventually.  Well, I have run out of room.  I think I would rather sell than keep some of the ones I rarely listen to.  GOT RID OF SOME, BUT HAVE RENEWED MY INTREST IN SOME NEW ALBUMS, SO THE COLLECTION IS GROWING AGAIN.  AND I WILL BE POSTING ABOUT VINYL MORE.

6. Improve piano skills and improve guitar skills. STILL NOODLING ON A PIANO AND A BOUZOUKI NOW 

7. Blog more. I HAVE LITTLE TIME WITH A FULL LIFE TO BLOG AS MUCH AS I WOULD LIKE.  BUT I WANT TO ADD MORE VINYL POSTS.  I HAVE AN ABUNDANT AMOUNT OF MATERIAL FOR THIS.

8. Enjoy more oysters like these.  HAVE NOT HAD THE CHANCE LATELY.


UNTIL NEXT TIME FRIENDS!

OCTOBER 2020 BUYS

I've been looking forward to writing this piece for the whole month.

My purchasing activity for October 2020 has been unforgettable.  

Why?

Well, this was the month I decided to divorce myself from Best Buy (BBY).  You can read all about that here: SOLD SHARES FOR ETHICAL REASONS.   

Long story short, they ripped me off selling me a broken TV and refusing to return it.   So I cashed out.  I refuse to be a part of a company that shows this kind of blatant disregard for its customer.

The resulting activity was huge increase in my annual dividend payout.  So much so, I closed out of another company (QCOM) that was not paying a fat dividend, took the profits and purchased shares that have a higher return. QCOM had performed well, but was only growing their dividend by 6% over 5 years.  That is not keeping up with inflation.

The final tally was that I invested a total of $662.60 new dollars and will earn an additional  $448.46 in dividends per year.  That's a 73.7% return!

How?  

My equity gain was over 100% for both BBY and QCOM.  BBY was only earning me 1.89% on the investment.  QCOM was earning only 2%.  Selling them cost me $374.60 per year in dividends.

With the finds from the sales and the additional $662.00 I put in, my new purchases will earn me $863.06, a 4.37% rate.   More than doubled my dividend income.

Take a look at the details....

You may have noticed that I sold some shares of HBAN.  That was a mistake.  I was intending to buy a bunch, and hit "sell" like the dumbass I am.  (made up for that later)

The only one I started a new position in was Orrstown Financial Services (ORRF).  Learned of them from a purchase by Lanny over at the dividend Diplomats.  Dividend Stock Purchase: Lanny’s September 2020 Summary

 Loved the look of this company, and decided to dip my toes in.

The other major purchases was a good sized chunk of Citibank (C), the Vanguard Exchange Traded Fund VYM, and of Macatawa Bank (MCBC), which I was longing to get more of with their low P/E at this time and a 4% yield.

What do you think?  Was it smart of me to cash out of QCOM and go shopping for higher dividends?  I feel good about it.

OCTOBER 2020 DIVIDEND INCREASES

 Howdy folks!   I am glad to report that we are actually beginning to see the return of the increasing dividend.

A central focus on my investment strategy is to buy shares in companies that have a solid pattern of increasing their dividend.  If it happens on a regular basis, your original investment will earn a giant percentage back in dividend payments.  That's the appeal of Dividend Aristocrats, companies that have increased their dividend for 25 years or more.

For October, I saw increases to 6 companies.  The biggest gainers were ABBV, with a surprising 10.2% increase, and Onemain Holdings with a whopping 32% dividend increase.   Also saw a 10% gain from Williams Sonoma (WSM). 

 Stuff like that beats inflation.  That's the name of the game.

Overall, I saw a $59.92 annual increase in my dividends, just for hanging on to them.  Taking these increased dividend payouts and re-investing them in more dividend growth stock will result in a passive income snowball that can make a huge change in your life.   Remember, if I can do it, anyone can.  and your dog...