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Sharebuilder Purchase – 2/9/2016

Here are my sharebuilder automatic investments this week (2/9/2016).

  • DIS – 1.0991 shares@90.98 ($100)
  • V – 1.4575 shares@68.6096 ($100)
  • WFC – 2.1665 shares@46.1565 ($100)

I invested a total of $300.

I continued to add DIS and WFC from last week. DIS continues to drop for the past few weeks. WFC also has continued to decline along with the broader market and financial sector. I also added V after a long time as the stock has dropped below $70s.

I want to add to my other positions like PEP and KO, but would like for KO to drop ~40s and PEP to ~90s to start adding these again.

This week’s purchases add $5.51 to my annual dividends. This results in 1.83% yield.

These purchases increase my total annual projected dividends to $3,296.75.

Disclosure: Long on all stocks mentioned above

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Recent Purchase – SCHD

Following the sale of BAX and BXLT, I was looking for an opportunity to deploy that capital as soon as possible. I ended up buying Schwab U.S. Dividend Equity ETF (SCHD). I already hold position in SCHD and mentioned my reasoning here. I decided to add to the position since the ETF is very close to my investment goals. Though I have few ETFs in my portfolio, they form a small percentage of my overall portfolio. In fact, I haven’t purchased an ETF in a long time.

My previous purchase of SCHD was in January 2014 at a price of $35.20. Of course, this ETF being a dividend ETF doesn’t have much capital appreciation, but the dividends have been growing steadily over the last couple of years I have held this ETF.

I purchased 53 shares at $36.40 on 2/8/2016. With commission, the total cost comes to $1,936.20. With a quarterly dividend of roughly $0.2775/share, the yield comes to 3.05% and this purchase adds $58.83 to my forward annual dividends.

With recent dividend cuts from COP and KMI as well as the sale of BAX and BXLT, this projected dividend increase was nice.

This purchase increases my total annual projected dividends to $3,291.24.

The portfolio page will be updated soon to reflect this purchase.

 

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Dividend summary – January 2016

Looking at dividends received though the month and summarizing the numbers at the end of the month is such a great feeling because dividends represent real tangible income. Starting this blog and documenting my progress has been really a great factor to keep me focused on investing regularly and aggressively. So let’s take a look at the dividends received in January 2016.

After hitting an all time high of $350+ in December 2015, I knew January was going to be lower, but was keen as always to look at the numbers for the month. January 2016 turned out to be another great month with a total of $308.43. This is also the first time that I have crossed the $300 barrier in the 1st month of the quarter. Let’s dive into more details about the month’s dividends.

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Dividend Cut – COP

After KMI’s dividend cut couple of months ago, another one bites the dust. COP announced the dividend cut this week. I have been expecting dividend cuts in this sector as I mentioned earlier when I set my goals for the year. COP announced a 66.2% dividend cut (from quarterly dividend of $0.74/share to $0.25/share). I own 50 shares in COP and this reduces my projected annual dividends by $98.00. This is a bigger dent compared to dent of ~85+ with KMI. Ouch.

I hold so many stocks in this sector – CVX, BBL, BP, NOV and BBL. Need to wait and see what happens.

My new projected annual dividends stands at $$3,232.41 now.

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Sharebuilder Purchase – 2/2/2016

Here are my sharebuilder automatic investments this week (2/2/2016).

  • DIS – 1.0703 shares@93.43 ($100)
  • EMR – 2.1864 shares@45.7365 ($100)
  • WFC – 2.0347 sharese@49.1465 ($100)

I invested a total of $300.

I continued to add DIS and WMR from last week. DIS has reached mid 90s and looking forward to add more while at these levels. EMR has slightly increased compared to last week. Will continue to monitor the stock and will not continue to add if the stock continues to increase. I also added WFC after a almost a month as the stock has dropped below $50s. The financial sector has been weak lately due to the market conditions as well as uncertainty surrounding the interest rate hikes from Fed.

I want to add to my other positions like PEP, KO, V etc, and these prices have dropped a bit lately, but would like for KO to drop ~40s and PEP to ~90s to start adding these again.

This week’s purchases add $8.72 to my annual dividends. This results in 2.90% yield.

These purchases increase my total annual projected dividends to $3,330.41.

Disclosure: Long on all stocks mentioned above

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Portfolio update – January 2016

At the end of January 2016, my portfolio stood at $101,322.63 across all my accounts combined. Comparing to my portfolio balance of $104,606.24 at the end of December 2015, this represents a decrease of $3,283.61 for the month of January which represents a 3.14% decrease for the month.

New investments accounted for net negative of $173.33, due to the BAX & BXLT sale, thereby giving a net portfolio decrease of $3,456.94 or 3.30% for the month. This decline follows declines November and December.

I continued my weekly sharebuilder purchases in December. I also had my Scottrade FRIP purchases. I also sold my stake in BAX and BXLT as mentioned above.

Here is a graph showing the growth of my portfolio since 2009.

Disclosure: Long on all stocks mentioned above.

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Sharebuilder Purchase – 1/26/2016

Here are my sharebuilder automatic investments this week (1/26/2016).

  • AFL – 1.7394 shares@57.4899 ($100)
  • DIS – 1.0427 shares@95.9056 ($100)
  • EMR – 2.3098 shares@43.293 ($100)

I invested a total of $300.

I continued the same purchases from last week. All three stocks stayed around the same levels compared to last week. DIS has reached mid 90s and looking forward to add more while at these levels.

I want to add to my other positions like PEP, KO, V etc, and these prices have dropped a bit lately, but would like for KO to drop ~40s and PEP to ~90s to start adding these again.

This week’s purchases add $8.58 to my annual dividends. This results in 2.86% yield.

These purchases increase my total annual projected dividends to $3,321.68.

Disclosure: Long on all stocks mentioned above

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Recent Stock Sale – 1/22/2016

This is my first stock sale in at least couple of years – the first one since I started this blog (I had to add a new post category to file this post).

I had purchased Baxter (BAX) shares in June 2014 prior to the spin-off. The stock was paying a quarterly dividend of $0.52/share which was a yield of about 2.83%. The stock also had an 8 year history of dividend increases at that time.

But after the spin-off of Baxalta (BXLT), the total combined dividend was slashed to $0.185/share. Lot of dividend investors exited the stock right away when the dividend plan was announced. I didn’t at that time. Both stocks even dropped in price after the spin-off. But recently, Shire announced a merger with BXLT which pushed the price of BXLT to over $40s. I thought of holding the stock because of the merger announcement. But the merger terms included partial cash payout and shares of Shire. Since I just held 25 shares of BXLT, I was going to get only 3 shares of Shire and the cash payout. I didn’t want to hold the position and hold 3 shares of Shire which was just too small. So I decided to sell both Baxter (BAX) and Baxlta (BXLT) last Friday.

Purchased BAX – 25 shares@ 73.50, Total = $1,844.50 after commission.

Sold BXLT – 25 @ 41.67, Net = $1,034.74 after commission.

Sold BAX – 25 @ 36.00, Net = 892.99 after commission.

There was negligible capital gains in the 18 months I held the stock. Since I was holding the stock in an IRA, there are no tax implications. I also received little over $61 in dividends during this time.

These sales reduced my projected annual dividends by $18.50 to $3,313.10

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Sharebuilder Purchase – 1/19/2016

Here are my sharebuilder automatic investments this week (1/19/2016).

  • AFL – 1.7659 shares@56.628 ($100)
  • DIS – 1.0571 shares@94.5968 ($100)
  • EMR – 2.3121 shares@43.2499 ($100)

I invested a total of $300.

I continued the same purchases from last week. All three stocks declined along with the broader market. DIS has reached mid 90s and looking forward to add more while at these levels.

I want to add to my other positions like PEP, KO, V etc, and these prices have dropped a bit this week. Waiting for KO to drop ~40s and PEP to ~90s to start adding these again.

This week’s purchases add $8.54 to my annual dividends. This results in 2.84% yield.

These purchases increase my total annual projected dividends to $ $3,329.01.

Disclosure: Long on all stocks mentioned above

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Goals for 2016

It is that time of the year where I need to come up with the goals for this year. The goals are really a key factor to make sure that I am making consistent progress. As I mentioned in my December 2015 goals update, even though I didn’t achieve one of my several goals, I am happy that I have made considerable progress compared to where I was at the end of 2014.

Recap of Goals for 2015

  • Invest at least $35,000
    • Invested $26,969.30 in 2015
    • Failed
  • Receive at least $2,500 in dividends
    • I have received $2,822.72 in 2015
    • Achieved
  • Achieve at least $3,200 in projected annual dividends
    • Currently have projected annual dividends of $3,275.85 at end of December
    • Achieved
  • DO NOT have a portfolio of more than 45 stocks/ETFs
    • Currently hold 44 stocks/ETFs through end of December
    • Achieved

Based on the 2015 results and projecting what I can do for this year, these are my goals for 2016.

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