2015 Year In Review

Hello all,

Have been trying to get to my year in review for a couple weeks now, but life tends to get in the way from time to time.  Finally been able to sit down and comb over how I did over the past year.  It was not without some bumps (KMI), but overall I was happy with my progress.  I have been in the dividend growth game for about a year and a half now and could not be happier with my investment direction choice.

From the last quarter I have made many additions to my core holdings.  Energy stocks such as XOM and RDS.B have been big targets as prices have declined.  I have been able to lower my cost basis quite a bit and also complete some tax loss harvesting at the close of 2015.  Since the blackout period is over, I have used the cash from the sale to acquire more at a lower price.

Healthcare was a priority of mine after the close of Q3 and I have taken action in this department.  I have added OHI and AMGN into my holdings with decent positions.  Both I have been extremely happy with and will continue to add to when I am able to accumulate more funds.

Technology has always been a staple for my individual investing account and I have also added more in this sector.  AAPL, QCOM, and CSCO were the primary targets in Q4.

Lastly, I intended to grow my cash position in my investment account.  I have done this and will continue to maintain a certain minimum balance to ensure that I have sufficient capital if opportunities present.

It’s been a great year and I am happy to be a part of a great investing community.  Many dividend growth investors post incredible articles and stock reviews that add to my arsenal of information.  Wish everyone the best in 2016 and look forward to following others updates as well.  Always remember:

“Get Rich Slow”

 

Below are my updates up to 2015 updates:

Percent of Expenses DIV Covers % of Monthly Expenses Covered by Dividends
Jan-2015 0.35%
Feb-2015 0.83%
Mar-2015 0.34%
Apr-2015 0.48%
May-2015 0.97%
Jun-2015 0.43%
Jul-2015 0.32%
Aug-2015 1.01%
Sep-2015 0.85%
Oct-2015 0.43%
Nov-2015 1.59%
Dec-2015 1.49%

 

2015 dividend overview

Asset Allocation January 2016:

2015 asset allocation

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October 2015 additions: $OHI $KMI $PG

October was a pretty good month overall for the market.  Saw it almost get back up to 18 thousand but it was met with some resistance.  Although I do enjoy keeping close tabs on what the major indices do, these short term fluctuations do not impact my long term vision.

In the past month I made small additions to OHI and PG, in both cases decreasing my cost basis due to lower share prices.  I did decide to add more KMI, although it seems to be a very love it or hate it stock these days.  After quite a bit of reading I am leaning more to the love side.  A few reasons being, past dividend payment, wide moat, and lastly but maybe most importantly I think the stock is misunderstood.  By no means am I an expert on the topic, but I thought the market is having a tough time digesting the migration away from the MLP model.  Just my 2 cents.

Thanks for taking a look.

Long: OHI, KMI, PG

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Percentage of monthly expenses covered by dividends Q3 2015 $AMGN, $OHI, $PG:

Good afternoon,

The last quarter has been a very active one for me.  For those of you who have caught my updates on holding updates, you may know I took the opportunity to take advantage of the decline in oil quite a bit.  As a result my asset allocation has gone from tech heavy to energy heavy (As shown by my asset allocation update below).  This is a bit of a risk, but I did stay to larger oil plays such as RDS.B and XOM, KMI, which have a much smaller chance of a divided cut/suspension.  By accumulating these stocks at attractive prices, I have been able to lower my cost basis quite a bit.

Due to my energy buying spree in Q3, my Q4 initiative is to take all additional funds and allocated to healthcare and consumer staples.  My targets (so far) are listed below:

Healthcare:
OHI
AMGN

Consumer Staples:
PG

I also intend to grow my cash position in my investment account.  Typically I do not, but I have a feeling we are in for some more volatile times ahead and want to have the ability to strike if needed.  Thanks for taking a look!

 

Below are my updates up to Q3 2015:

Percent of Expenses DIV Covers % Monthly Dividend Coverage
Jan-2015 0.35%
Feb-2015 0.83%
Mar-2015 0.34%
Apr-2015 0.48%
May-2015 0.97%
Jun-2015 0.43%
Jul-2015 0.32%
Aug-2015 1.01%
Sep-2015 0.85%

DivVsExpensesQ32015

As of October 12th 2015:

Asset Allocation Sept 2015

 

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Additions in the month of September: $RDS.B, $XOM, $GE, $CSCO, $QCOM, $AFL, $KMI, $AMGN

September was a month full of market volatility and I took advantage by adding to my holdings.  RDS.B, XOM, KMI and GE are all core holdings for me and I took the opportunity to continue to dollar cost average with these stocks at more attractive prices.  CSCO and AFL currently do not represent a large portion of my portfolio, but with the price drops I took the opportunity to add a few more shares of both companies at a lower cost.

QCOM and AMGN are both new positions that I initiated this month.  Both offer pretty attractive yield currently, and I like the future prospects of large dividend growth with both companies.

For those of you who have visited in the past I still do have some FB shares kicking around from a few years ago (Prior to beginning my DG investing journey).  I have sold half at approximately 120% gains and will continue to sell the other half hopefully in the next 6months or so.  With the market volatility, in which I do not believe is over, I wanted to store my capital gains in some less speculative stocks that offered attractive yields and dividend growth.

Thanks for taking a look.

Long: RDS.B, XOM, GE, CSCO, QCOM, AFL, KMI, AMGN

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New positions added this past week $XOM $RDS.B $T:

Hello all.

Oil continues to drop and I continue to take advantage.  I have been adding both of these oil stocks as they have declined over the past few months.  In the months to come I do feel that there will be more headwinds that will prevent oil stock prices from having extended gains, but over the long term I believe these large cap oil companies will be a safe investment.  Oil stocks will also not have the dividend growth I would like to see due to the unfavorable price of oil, but in the short term the high yield should make up for this until XOM and RDS can start increasing their dividends at a higher rate.

T was also added as it dipped below my current cost basis.  With the completion of the DTV deal, the uncertainty is now gone and the company can press on creating synergies with its current businesses.  It will also provide more free cash flow to help with ongoing dividend safety (and hopefully more than 2% increases, although it is telecom so I do not expect too much).  Being a current AT&T customer I hope I can benefit in other ways in addition to the dividends I collect!

Bottom line: Long RDS.B, XOM, T

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Started using @LendingClub :

In an effort to diversify where my income streams are coming from, I have decided to give Lending Club a try.  For those of you who are not familiar, this website is a peer to peer lending site that has grown substantially since its launch in 2006.  In Q1 of 2009 they funded 3,891 loans in total that had a worth just north of $33 million dollars in value. In Q1 of 2015 they funded 726,472 loans since inception worth over $9.25 billion*.  The average return for investors annually seems to be between 6%-12% depending on your risk tolerance.

The website is very easy to use and seems to have a great interface for investors.  Loans are easy to browse and once funds are deposited, it is very easy to apply the money (in 25 dollar increments) to fund different loans.  Below are the different grades that LendingClub uses to classify loans:

LendingClub Rates breakdown

Initially this is going to be a very small portion of what I contribute my disposable income to.  The plan is to invest in about 2-3 loans a month with varying levels of risk.  I will reassess every quarter to see if adjustments need to be made on what “loan grade” categories I’m investing in.  Thanks for taking a look!

 

*stats from https://www.lendingclub.com/info/statistics.action

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Percentage of monthly expenses covered by dividends Q2 2015

Hello all.  Another quarter has come to a close and my dividend coverage is creeping up slowly.  I do not have a ton of capital to invest every month, but I do make it a priority to make at least one purchase a month.  All stock purchases are done commission free since I utilize Merrill Edge and Bank of America for all banking/investing.  They provide free trades if the combined balance of all accounts cross certain monetary thresholds.

All and all I’m happy with my progress thus far and continue to press on.   One primary initiative that I foresee lasting at least through the end of the year is diversification.  As it sits I am weighted much heavier in the energy and technology sector.  As opportunities arise to add to other sectors I will start to even this out.

Below are my updates up to Q2 2015:

Percent of Expenses DIV Covers % Monthly Dividend Coverage
Jan-2015 0.35%
Feb-2015 0.83%
Mar-2015 0.34%
Apr-2015 0.48%
May-2015 0.97%
Jun-2015 0.43%

DivVsExpensesQ22015

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Percentage of monthly expenses covered by dividends Q1 2015

Percentage of monthly expenses covered by dividends Q1 2015:

It has been quite some time since I have last posted an update on where I stand so figured I would start with Q1 2015.  Since my last post I have sold some riskier investments that had very high (unsustainable) yields and reallocated to much better long term prospects (will update on asset allocation soon).  This has helped me diversify what sectors I am receiving dividends from, and also increased my dividend growth potential.  Short term this has lowered my dividend payouts a bit, which was a sacrifice I was willing to make as I currently reinvest all dividends into the market.  Hope to be posting a bit more now that the personal life has settled down a bit.  Happy investing!

Below are my updates up to Q1 2015:

Percent of Expenses DIV Covers % Monthly Dividend Coverage
Jun-2014 0.10%
Jul-2014 0.10%
Aug-2014 0.51%
Sep-2014 0.17%
Oct-2014 0.44%
Nov-2014 0.93%
Dec-2014 0.34%
Jan-2015 0.35%
Feb-2015 0.83%
Mar-2015 0.34%

DivVsExpensesQ12015

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Lesson learned $ARCP:

As of the end of 2014, I am no longer an ARCP shareholder.  My last reference to ARCP was back in October 2014 when I stated that I would not be making a rash decision by liquidating my position due to a series of bad announcements regarding accounting mistakes.

This all changed the day the dividend was suspended.  Since I am about 5 months into my dividend growth journey I came to the conclusion that ARCP no longer fit my criteria to be held in my portfolio.  Going forward I felt that it was much more beneficial to sell the lot (for a relatively small loss that will be written off on my 2014 taxes) and roll the proceeds into much better dividend growth plays.  It pains me to sell shares of any stock, but as I take a step back I realized the mistake that was made.  The yield and size of the business swayed me to become a shareholder, rather than the company’s track record and fundamentals.

To close out my thought I will use this experience to learn and shape my strategy moving forward.  Luckily in my trading (not investing) with ARCP I did not lose very much money and the losses can be written off.  As a young investor it is easy to get caught in yield traps.  I always have my eye out for new ideas to increase my dividend income, but I have come to realize that there are situations that are too good to be true.

Get rich slow.  Thanks for reading.

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Percentage of monthly expenses covered by dividends Nov 2014:

I am finally getting around to posting my updates from my dividends received from November.  It was my best month to date.  All dividends were reinvested other than my very small holding in O which I took as cash.  Thanks for taking a look and happy holidays to all!

Below are my updates:

Percent of Expenses DIV Covers % Monthly Dividend Coverage
Dec-2014 TBD
Nov-2014 0.93%
Oct-2014 0.44%
Sep-2014 0.17%
Aug-2014 0.51%
Jul-2014 0.10%
Jun-2014 0.10%

DivVsExpensesNOV2014

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