Wow, what an incredible month June was. I had a lot of account activity last month and I personally felt that I made some good moves. I've been stocking up on as many stocks as I can near the 52 low week mark which is ideal for dividend growth investors. Lately I have been focusing more on REIT's due to the depressed state they have been in and the super high yield they are offering because of it.
My account has also posted some amazing numbers which I'm so excited to share about!
First things first, my account posted the highest amount of dividends received since account inception. My portfolio generated a massive haul of $362.54.
MAIN 47.94 ( Special Dividend of $28.43)
I knocked it out of the park this month and earned 61.48% more dividends then I did last year or $138.03! I couldn't be any happier with these results and the party is just getting started. Every month from here on out I'm expecting to be setting new records due to the amount of cash I'll be infusing into the market over the next couple of months.
I have even more exciting news also. I have decided to simply sell the house. One aspect I over looked when deciding to rent out was the amount of loan interest I now pay on my primary residence. I could have offset this by asking for more rental income from my cousin but I feel bad upping his rent by an extra $400 per month so we decided selling would be the best course of action to take.
I already have some plans for this money but I won't be able to hammer out the details until I have a better idea of exactly how much I will be getting. I'm expecting north of $100,000 due to the substantial housing appreciation and down payment I put into the house when I first purchased. Ideally I would like to invest $30,000 of the money and move the rest into the mortgage.
I also had an amazing month in terms of account growth. This one absolutely blew my mind but I had an increase of $6,099 or 9.26%! I haven't seen a percentage increase of this magnitude in a long time. This is also just the beginning as next month I'm shooting to break $80,000.
I'm loving this account growth graph and I can't wait for this thing to break the big $100,000 mark. Slow and steady wins the race and I know that it takes time to build a castle.
I had a month of higher expenses also. A lot of these higher expenses were due to things like vet bills, dog food, formula replacement ect, ect. Even with all these extra bills my monthly expenses only totaled up to $2,601 which was nice considering this is about in line with my typical monthly expenditures.
That's all I have for today. doing a little bit of reflection, I'm super proud of where my account is at currently and I couldn't be happier with what I have accomplished. It just makes me even more excited about the future and to see where I'll be when I turn 30. The sky is the limit at this rate.
Another month has passed and the year is flying by. Life has been absolutely insane for me with moving and having a litter of 14 great dane puppies. It feels like I've barely had enough time for myself let alone my website. It's a good thing however that my stocks are always working hard for me and are in the background earning me extra money as I'm busy with life.
I've been able to finally save a bit of extra cash in order to shovel away into my fund and boy oh boy is this thing starting to generate a good amount of momentum. With my latest round of investing my fund is quickly approaching my yearly goal that I set for myself to increase my annual expected dividend income to $4,500 by years end.
Not only are most of the additions I added to my holdings near their 52 week lows, they are mostly composed of SWAN companies that have stood the test of time.
D 15 shares = $50.10
MO 19 shares = $53.20
PG 5 shares = $14.35
PEP 4 shares = $14.84
JNJ 4 shares = $11.20
ENB 2 shares = $5.36
KMB 3 shares = $12
Grand Total of $161.05
New Annual expected dividend income of $3,627.85
It's nice to see such an amazing number after having a difficult time saving extra capital last month. Of course I can't expect this type of increase every month but it's nice to see that I'm capable of hitting it every once and awhile. The nice part is that none of these investments are riskier either. I'm going to continue to build up my positions in these companies as long as they stay near their 52 week lows as that is the best time to scoop up quality dividend producing names.
I'm also very excited about my next massive cash infusion into my Independence fund. I expect to be able to add an extra $8,000 into my account from money made after selling our puppies. I still haven't decided how I'm going to allocate all the funds but I have decided that I'm going to spread out my investments over the course of the month instead of purchasing all the stocks in a single day. I do plan on starting at least two new positions and I hope the market creates some nice opportunity for me to add to my current positions.
I wish I had more time to write some in depth articles but alas, I have much to do and very little time.
WOW, what a crazy month it has been. I was only able to get my account update posted last month and it doesn't see like I'll have to much more time to do anything else soon. I've been super busy with moving into the new home and busting out projects that needed to be done right away such as putting up a privacy fence so my Great Danes wouldn't jump over the three foot ones that were present.
On top of moving, my 2.5 year old female Great Dane just gave birth to a litter of 14 beautiful babies. This is a monster litter and my fiance and I have had to do a lot of extra work recently to make sure everyone is eating and staying healthy. It has been insane and although this was a planned pregnancy, we didn't expect her to have as many as she did.
With all that being said, the market has been up and down and my account hasn't really grown much in terms of appreciation and I wasn't able to really invest much last month due to financial restrictions and obligations.
I did bring in $224.76 in dividend income which is absolutely amazing. I was paid out by eight companies.
This payment represents and increase of 186.34%. This is a massive jump over last year and it's all thanks to ABBV announcing a massive dividend increase and the addition of monthly payers such as O, STAG, EPR and MAIN.
I also had an amazing month in terms of expense. I don't expect this to last however as this new house we are in requires a lot of TLC. I'm still going to try to keep expenses low but all the appliances need to be replaced and we have a lot of home projects planned to get this house up to par. I'm not to worried however as we are gong to be making some extra money from breeding these dogs and I'll be able to invest over half of it.
May Expenses = $2,071
The next category is account growth. I had another relatively flat month due to my inability to invest more fund into the market. I did make a nice chunk of change in terms of dividends and I also saw a nice increase in terms of capital appreciation and my account only swung to an increase of $1,200 or 1.86%. Next month is going to be a good one however as I've started to invest a good chunk of capital going into June.
Overall I can't complain about a monthly growth of 1.86% in total account value when I wasn't able to invest a dime last month. If this rate kept up I'd be retiring sooner then anticipated. The independence Fund is really starting to pick up momentum and It's encouraging to see it growing more and more every month. I'm locking in on that $100,000 mark and I've heard that after that it only gets easier.
After all is said and done. I did do a bit of purchasing at the time of writing this article and my new expected annual dividend income is now sitting at a whopping $3,593.876!!! I'm very close to breaking the $4,000 mark and at this rate I expect to be breaking that and hopefully my 2018 goal of $4.5k per year. I have my fingers crossed and it is definitely helping with all the aristocrats nearing their 52 week dividend yield high of around 4%.
What a month April was! the markets seem to be making a nice rebound and slightly recovering over the past few weeks due to investors concerns being put to ease over trade wars, world war 3 and flattening yield curves, ect, ect. Man, traders sure worry about a lot of things....
That being said, I had one of the best months since the inception of the Independence Fund in terms of dividends received! I brought In $307.88 in dividend income which is absolutely incredible to me! Not to long ago I was blogging about breaking the $100 milestone, the $200 miles stone and now, only 26 months into account creation it's bringing me in some serious cash flow. I personally like relating the income to expenses that it helps offset in my month to month expenditure. My electric bill is typically around the $140 mark and my gas bill is around $80-110. These dividends completely cover those two bills and now I'm starting to chip away at my quarterly water bill of $240.
I also had 3 companies announce that they wanted to pay me more money for being a share holder. It sure feels good investing in dividend growth stocks.
PG announced a 4% dividend increase which added $2 annually
JNJ 7.1% affected me by adding an extra $4.20 annually
XOM really brought it home with a 6.5% increase which added an extra $6.20 annually towards my dividend income!
All these increases added up to $12.40! I'm going to be making extra money just because I'm invested into quality companies that are able to reward shareholders through strong growth and earnings
I'm going to start recording the companies who paid me out in any given month and also recording the amount to track growth. I should have been doing this forever ago. Better late then never right?
Some of these names on this lost won't be here next year. I'm looking at you JPM. This is a solid company but I just felt long term I much rather build up my positions in PG, KMB and other companies currently on sale and near 52 week lows. I actually just wrote an article on purchasing near 52 week lows and the advantages to it.
I had a fairly decent month in terms of expenses last month also. I was a bit higher then last month but I've had a few extra expenses in relation to something's happening in my life like buying a second home and also breeding my great dane. This has incurred a lot of extra expenses but I'm hoping it will pay me back once we are able to find these little guys their forever homes.
April Expense = $2,387
I had a great month in terms of account growth also! I had a 4.19% increase or an amount of $2,600 last month. I'm still very far behind my goal that I set for 2018 but I'm still feeling optimistic that I'll be able to tackle this one!
That's all I have for the moment. I have been super busy moving into my new house and dealing with the chaos at work and my home life. I'm looking forward to finally being settled into the new place and bringing it up to speed. That is unfortunately going to take time and money. I'm hoping to use supplemental funds from my rental income in order to still make investments into my Independence fund.
I still have goals to grow this account as quickly as possible so I'm going to get the money rolling into this ASAP.
I'm feeling good about this whole rental thing and the nice thing is I can always go back if it isn't working for some reaosn and decide to sell the place and cash in on all the equity I currently have in the home.
I'm sure every dividend investor is aware of the current sale on consumer staples and the market in general. I personally believe that their is no better time to purchase into companies offering a solid growing dividend that has proven the test of time, a bullet proof balance sheet and a wide consumer moat offering product longevity.
buying companies near 52 week lows is like walking into your favorite store and purchasing as many on sale items as you possibly can. Making purchases at lower stock prices also offers some amazing benefits to long term dividend growth investors.
the first thing that comes to mind is increased dividend yield. The lower the stock price drops, the higher the yield goes up. This one is a no brainier in my book as it instantly makes purchasing into the position more valuable for the long haul as your locking in a higher yield on your money.
Secondly, it gives investors a hedge against risk. Typically when companies are near 52 week lows they don't drop to much lower. I understand in some situations they do. I can think of one such situation where a company extended loses beyond 52 week lows which was my holding in Dominion Energy (D). The company extended loses due to investor concern around the SCG acquisition and the market taking a turn against utility/energy companies in general. The metrics of this company did not change what so ever and I knew what I was purchasing into. After I took a -12% hit on my original position I bought more. Why not lock in an even better yield and have an even better risk protection on my assets?
The market has finally melted away from it's 52 week highs which has created a lot of buying opportunities for solid dividend aristiocrats and dividend growth stocks in general. I've been scooping up as many as I can with every dollar of capital I'm able to shovel into the market. I've made some great new purchases and without further ado....
I purchased 2 more shares of MMM. Outstanding company near 52 week low. Sporting a fantastic 5 year DGR of 16.4%, a 59% payout ratio, increasing dividends since 1959 and a 2.49% yield.
I added 4 more PG. Another dividend monster offering up a 3.83% yield, a 5 year DGR of 4.9, payout ratio at 73% and increased dividend payouts since 1957.
I added 2 more shares to my KMB position. Bread and butter company rocking a 3.74% yield, 77% payout ratio, 5 year DGR of 5.2%, and increasing dividends since 1973
last but not least I added 4 more shares to my position in MO. MO had an amazing quarter but took a beating nonetheless as cigarette sales have declined over last years numbers. Smokeless wasn't as good as investors were expecting and PM took a massive hit which had a ripple effect in the sector. yield is at 4.69%, payout ratio is at 47%, 5 year DGR is at 8.4% and it has been increasing dividends since 2009. This was the only non dividend aristocrat I added to but I'm loving this current value play.
Respectively all these purchases added $32.21 bringing my new annual Total to $3,377.68!
This blows my mind as I remember just passing $3,000 not to long ago! I'm slowly headed towards the next milestone at $4,000 and it's really helping with all these 52 week low companies I've been scooping up!
Investing is a learning process and I'm still learning so much day after day. It's very important to be aware of the investments your making and what growth rate a company is offering. After all, this is the secret to growing that passive income snowball.
As the title of this article states, I'm going to be making some considerable changes around my portfolio. I'll achieve this by refocusing my allocations to specifically target high percentage dividend growth stocks. It is easy for an investor to get caught up in the moment and chase after stocks that are sporting a nice yield but don't offer that great of a dividend growth percentage (I'm looking at you AT&T).
Don't get me wrong, T is a solid long term dividend aristocrat that has it's place in every investors portfolio but the company only has a 5 year dividend growth percentage of 2.2%. That isn't even enough to keep up with inflation. It's important that I realize this lesson early on into my dividend investing career and refocus my portfolio into companies that offer up a better growth percentage and to really focus on building up said positions.
Weeding Out The Lowest Growth
I've gone over my entire portfolio and I've identified a few companies that are severely lacking in the dividend growth percentage category. The two major ones that stick out to me that are neck and neck with the annual inflation rate are WMT and T. A few other companies barely treading above this are also ED and EMR. The difference on the last two however is that they have announced higher increases in the past as opposed to T and WMT.
After doing some deep analysis of current yields and dividend growth rates I've noticed a common trend with most dividend stock in the double digit raise category. Most of these companies are only yielding in the 2.2-2.8% range. The key here is that these companies are continuing to grow their overall share price which contributes to having a better valuation and while still bolstering their dividend yields by double digit growth percentages.
After doing a lot of researching I noticed that most of the companies with the highest yields were currently trading significantly under their 52 week highs which is forcing my hand to want to sell my lowest yielding growth stocks and re-balance into higher growth oriented companies such as ADM, MMM, FRT, AFL, CTAS and KMB. I also have a few non aristocrats that I want to bolster my positions in due to the nice growths they are offering such as O, D and WPC.
Exchanging Out My Lowest Growth Stocks
I have already begun re-balancing process and I sold half of WMT position and I sold off twenty five percent of my T holding. I'm also going to be eliminating my newest position in JPM as doing more research into holding them as a long term DGI stock made me rethink a few of my initial reasons why I wanted to purchase in to them and I realized I can achieve the same goal else where that is offering more dividend safety due to DGR history.
I don't think I'm going to be selling anymore of either positions but we will see. I've really been feeling it in myself to swap the rest of my WMT shares for MMM. This would allow me to be in a company that offers a solid double digit 5 year dividend growth rate while also being in a relatively low risk investment. The diversification side of me is telling me other wise and I think I may hold on the the remaining 23 shares I own.
Going forward, I'm going to be a little more conscious of the dividend growth rate which seems like a given to most but it was something I didn't really pay to much attention to when I first started investing. I would really like to keep my DGR at around a 5% for my portfolio so I'll be focusing more towards companies that offer such DGR's that are near 52 week lows.
Their are plenty of awesome companies at this exact spot and I plan to take advantage of them
With all that being said, I added 9 shares of MMM, 20 shares of O, 13 shares of D and 30 shares of ENB. With all this said and done, my new annual dividend income is now at $3,193.27 annually!
I also have more plans to add the rest of this week based upon how the markets perform due to the current world situation. I would like to add towards my FTR, ENB and my KMB position since both are near 52 week lows and offering awesome 5 year DGR.
I'm very happy with the current portfolio re-balance direction I'm taking and I'm looking forward to adding to my current holdings and boosting up my dividend growth power. I have a lot of great names in my portfolio and I think the time has come to really start throwing a lot of capital into the holdings that are solid dividend earners near 52 week lows. Now I just need to figure out
now the get all the extra capital to fuel my purchases!
Spring is in full bloom here in Michigan (Not, It's still 29 and snowy) and it's been a rough start to the month in terms of extra cash for investments and the stock market. I've had a lot of extra expenditures this month in relation to the purchasing a second home and also with a roommate moving out. It has definitely taken a toll on my Independence Fund and I was going through a mini rut because I wasn't able to invest any money into the market as of late.
It has been a rough time for me trying to come up with extra money to invest but I was finally able to get some extra funds together and make a rather sizable purchase before the Ex- Dividend date on a current favorite company I already hold. That company is New Residential Investment Corp or NRZ. I've slowly been building up my position in NRZ and I've been very happy with the current performance and stability even despite the current market down trend we have experienced. The company has down extremely well in previous quarters and with the rise in interest rates I expect this trend to continue and even exceed investor expectations.
The company also is sporting some impressive dividend growth metrics. The current share price is offering a 12.25% dividend yield, 4 year of consecutive raise history, EPS growth of 49%, revenue of 2.15B with a revenue growth of 81% and a payout ratio of 63%! That last statistic has to blow someones mind right? I know it did for me. The company is offering a 12% yield and only has a 63% payout ratio!? It's hard to find gems like this in the market and I definitely will be loading up on it. Oh, and did I mention the company has only been around since 2011?
I added 96 shares of NRZ on Monday at a price of $16.41 which added $192 in annual expected dividend income. With this latest addition my dividend income is at $3023.38and has broken a huge milestone of crossing the $3k Mark!! This was a rather large investment into a high yield company but I have had this investment for 5 months now and it has been super stable and has provided me with a generous dividend while I wait. I don't think I'll be adding anymore to my position anytime soon despite dividend reinvesting since I'm happy with it being 4.5% of my holding composition.
After this most recent addition I'm going to be making it an effort to really focus on strong Dividend growth funds. I have been doing a lot of portfolio analysis and I feel that a re-balance is in order and I want to make a shift towards some lower yield companies that offer 5 year double digit dividend growth rates. A company that comes to mind for me is MMM. This is an astonishing dividend king that has a 3 year DGR of 11.2%! It really makes me thing about things when I compare T's 5.2% yield but paltry 2% increase or even better, looking at WMT who has a 2% growth rate for the past 3 years.
I'm going to be doing some deep thinking about my current portfolio mix and I'll be sure to share what Moves I make once I determine the best course of action to take.
It has been another crazy month in the stock market and it's become a love hate relationship for me. The overall goal of this portfolio is to create long lasting wealth that will be able to generate retirement based dividend income in order for me to truly gain total financial Independence. This is a rather lengthy process and sometimes it's easier to focus on the present then it is to focus on the future.
I'm sure many other investors have a hard time watching their portfolios get hacked away by political tension and remain focused on the overall long term goal. It is still something I'm working on. I understand that purchasing companies at 52 week lows is more conducive for DGI investors such as myself to lock in a better entry point with less risk and more yield but I still can't help but pay attention to my overall portfolio value.
The market hasn't even experienced a serious market correction so I need to get used to seeing red now and prepare myself for future market dips. I also want to work on having more cash reserves on hand to deploy in times of market corrections in order to take advantage of the discounts.
Lets move into the statistics of last month. I had 3 companies announce dividend increases but I didn't take the time to calculate the one I received from O because it was so minesule.
MO announced a 6.1% dividend increase which added an extra $3.55 towards my dividend income
QCOM announced a 9% dividend increase which added an extra $1.60 per month.
These weren't as good as last month but every little bit adds up and it's nice to see these raises nonetheless. Overall these raises added an extra $5.15 towards my annual income
I had a fantastic month in terms of dividends received and expenses! Last month I brought in $217.19 in dividend income. This is now the 3rd month in a row that I received over $200 in dividend income and I couldn't be more excited about this! I'm slowly but surely building up my dividend income and it is definitely starting to show now. Looking back on last March 2017 I brought in $182.72 which represents and increase of $34.47 or 18.86%. Every increase brings me and closer and closer towards my goals.
Now a look at last months expenses. I really hit this one out of the park and managed to get me expenses below $2,000 for a second month in a row. I came in at $1,622 which is music to my ears. If I keep this trend up I'll be able to add all the extra I'm not spending on needless expenses into my Independence Fund.
March Expense = $1,622
I had a fantastic month in terms of portfolio growth also. I was able to grow my account by $2,841 or 4.8% last month! It feels good to be back on track with this one after recovering from last months dismal return. I'm extremely far from my monthly required average portfolio growth number in order to hit my yearly goal of $100,000. It's going to take a miracle at this point in order for me to bring this one home. I wanted to set higher stretch goals for myself since It felt like I was blowing past the goals I have been setting.
I did have a few life situations happen that caused me derail from this however. First off was my decisions to purchase house number two and the second was I'm receiving far less of a tax return then I normally do which caused my normal tax boost to the account to be marginal at best.
This doesn't mean I'm not trying, as I'm still going to be pumping every extra dollar I can Into my Independence Fund. I have really been able to impress myself with years past goals so I'm hoping I can keep my spree going strong.
Thank you for stopping by and I hope that this article can inspire some to persevere and continue to invest every dollar that they can!
As stated in the title, I'm going to be taking on some new challenges over the next few months and taking the plunge into becoming a landlord. This has been something that I have contemplated doing for quite some time, but I have never really wanted to take the risk. I've had a few major changes that will be happening in my life that made me want to take the next step.
The biggest push that has fueled my decision into purchasing a second home and renting out the first one has been my engagement to my Girlfriend! We've been together for 8 whole years and it was finally the time to make the plunge. With our new engagement came an opportunity to finally live a life alone without roommates. I've never really spoken about my home life but I currently have 3 renters in my house which can create a lot of extra stress and commotion within our day to day life. We want start our new life together on the right foot which we feel will be met once we finally live alone.
Since this is going to be a massive change to my finances I wanted to get some numbers down and blog about how everything will be changing. With this new change I realize that it may be near impossible to hit my 2018 annual fund goal of $100,000. I'm a little bummed about this but I understand also that my current renter situation wasn't going to last forever.
Positives of Renting vs Selling
With purchasing a second home, a lot of complexities come on to the scene. I want to focus on the positives of this situation first and then explain how it is going to affect me negatively after.
The first big positive is that I'm going to continue renting out my current home to my roommates and I'm going to simply be moving into the second home to live within. This is a major plus since I already have reliable and established roommates living here where I don't have to worry about not getting paid or the house being destroyed. I'm going to be renting out the home to my cousin also which will be for a total monthly income of $1,000. This is a steal because renting compatibles in the area for my home are easily within the $1,400 range.
I have really spent a lot of time thinking about this but I currently already make this amount in rental income each month so I figured it would be okay to still ask for this amount monthly from him. The other positive out of this as opposed to not selling is that every month my mortgage principal will continue to drop which equates to more value for me in the long run. I'm going to be paying nothing for the house what so ever while still building long term wealth due to home appreciation also. If the real estate market continues to have a bullish run my home value will continue to climb to new heights.
Even though I won't be making extra money in income currently I'll still be building long term wealth and equity which to me is a very important and big deal.
Worries and Risk
Here is where my worries and fears come into the equation. I tend to over think things ,which can be a good thing but it can also hurt once in awhile. I can't help it that I continue to have certain fears around this new adventure I'm under taking and it's hard for me to not take the safe and secure route of simply selling my current home and rolling the equity into my new cheaper home.
First off, I'm currently not paying a penny other then the utilities to live in my house right now. My rental income from my 3 renters completely covers all the costs associated with my mortgage, taxes and home insurance. This has provided me with a very nice boost in monthly income and has allowed me to really save up a lot of money to invest into my Independence Fund. This will all be changing however as once I move out I will start having to pay for my new home.
This is both a good thing and a bad thing in my eyes however. Firstly, The monthly expenses on this new home are going to be higher then my current one that I'm going to be renting out. So I'm essentially going from paying nothing currently into now paying a good chunk of my income towards housing again. The rental estimate on my home is $1,500 per month but I'm going to be renting it to my cousin for a deal of $1,000. I wont really be making any extra money off of this deal however.
The second thing is current real estate equity I have In my home. Currently I can go and sell my house for $210,000. I only owe $96,000 on it so I would be walking away with a nice chunk of change. I would of course roll most of this money into the new cheaper home and invest close to 20% into my Independence Fund. With all that said and done I would then only owe around $60,000 on the new home which would be amazing! Not only would I be reducing my debt amount but I would also be able to invest a good chunk of this into the market which would help me hit my annual investment goals.
I'm faced with a difficult decision but I'm currently leaning towards renting to my cousin who is stable and reliable. If I had to try to find a random family to rent out my home, I think I would be leaning towards other options such as selling the property. I still have a few months to make up my mind and I'm excited to post about which decision I decide to make. If anyone has any advice for me, I'd love to here so in the comments down below.