Friday, January 18, 2019

Investing Update 1/18/2019

Here is this week's investing update - 

1/1/20191/18/2019Change since Jan 1stAvg/Week
Robinhood Portfolio Value$4,434.08$4,682.91$248.83
Money from my pocket$4,593.98$4,643.98$50.00$19.44
Dividends$240.00$245.33$5.33$2.07
Gains/Realized & Unrealized-$399.90-$206.40$193.50

My overall portfolio increased $248.83 since January 1st. I have received $5.33 in dividends in 2019 and added $50.00 from my pocket. That means the other $193.50 increase came from the value of my stocks going up.

Here are the year-to-date numbers on my dividends -

Dividends Received in 2018$5.33
# of Dividends Received in 201812
Average Dividend Payment Amount$0.444
I've received one dividend since last week's update, and that was from Realty Income (O). I got a 22 cent dividend, and this dividend yield is at 5.15% (5.15% dividend yield for me. If you bought the stock today, the yield would be lower)

It was a pretty quiet week with dividends, but my portfolio value went back up which was nice to see. 

My monthly dividend stock and ETF dividends should star rolling in next week, hopefully!

Have a good weekend.

Signed,

Mitch

Thursday, January 17, 2019

Checking my Stocks Less

When I was testing, using, "gambling", with stock options this summer, I was on my phone a lot. There were days where my portfolio would go up $500. I was distracted at work and checking my phone at an unprofessional level. Well, all the money I made from options, I lost.

From losing money in options, I switched back to solely investing in dividend-paying stocks. These stocks are nearly as volatile as stock options, and I now I check my Robinhood app a lot less. I check it when the market opens to see what kind of day it'll be, and I usually check once in the afternoon to see how the day went.

From a minimalism/distraction standpoint, checking my phone less is good. From a technology standpoint, I'm saving battery on my phone, which is good (Although I've never had a concern that Robinhood is a battery drain). From a health standpoint, it's good, because I'm less anxious about my stocks.

I'm not done with options forever, but right now, when I still have student loans to pay off, I have better outlets for extra money.

Signed,

Mitch

Wednesday, January 16, 2019

Mid-Month Dividend Check-In

So we're already halfway through January 2019 (wow!) and I thought I'd do a check-in on where I'm at on my dividends. From the beginning of the year, I projected I would receive $8.66 in dividends in January. 

In the table below, here's a breakdown of my where my dividends are at for January.
  • Green means I've received the dividend
  • Yellow means the dividend is pending
  • White means it hasn't shown up yet, paid or pending

Stock NameTickerDividend/Share
Illinois Tool WorksITW$1.00
PepsiCoPEP$0.93
Bank of Nova ScotiaBNS$0.64
Seagate TechnologySTX$0.63
Iron Mountain Inc.IRM$0.61
Wal-MartWMT$0.52
SyscoSYY$0.39
Cisco Systems, Inc.CSCO$0.33
Realty Income DelawareO$0.22
AdvisorShares High Yield ETFHYLD$0.21
WisdomTree High Div FundDHS$0.20
iShares US Preferred ETFPFF$0.17
HP Inc.HPQ$0.16
PowerShares KBW High DivKBWD$0.15
Eaton Vance Tax Advantaged Dividend Income FundEVT$0.14
PowerShares S&P 500SPHD$0.14
Global X SuperDividendDIV$0.13
Global X SuperDividendSDIV$0.13
YieldShares High Income ETFYYY$0.13
HP EnterpriseHPE$0.11
Principal Real Estate Income FundPGZ$0.11
Arrow DJ Global Yield ETFGYLD$0.10
Multi-Asset Diversified Income ETFMDIV$0.09
PowerShares Financial Preferred PortfolioPGF$0.08
S&P 500 Low VolatilitySPLV$0.08
PowerShares Preferred PortfolioPGX$0.07
PowerShares High YieldPEY$0.06
Global X SuperIncome Preferred ETFSPFF$0.06

It makes sense that quite a few aren't paid or pending yet. I have a lot of monthly paying dividend stocks/ETFs, and those are the ones not showing up. Since they pay monthly, I believe most of them have ex-dividend dates and record dates in the same month they pay the dividend. 

Yes, I realize it's riskier having these monthly paying stocks/ETFs, but I'm trying to get my dividend snowball rolling, and I'm trying to make up for lost time :) 

The end of the month, just like December 2018, should be fun and full with dividends!

Signed,

Mitch

Tuesday, January 15, 2019

Realty Income Stock

I've owned Realty Income for over three years now, and it has paid me a lot of dividends (see attached picture and I apologize if the large size of the photo causes issues when viewing this blog post).

I bought the stock for $51.31 and my first dividend from it was 19 cents. My initial dividend yield would have been -

$0.19 * 12 (dividends paid monthly) = $2.28

$2.28 / $51.31 = 4.44% dividend yield

My latest dividend payment, today, paid me 22 cents.

$0.22 * 12 = $2.64

$2.64 / $51.31 = 5.15% dividend yield.

4.44% dividend yield 3 years ago, 5.15% dividend yield today. I didn't sell the stock, and I haven't purchased any more shares. Maybe in another 3 years it'll be a 6+% dividend yield.

In the three years I've had Realty Income, I've received the following dividends -

1 - 19 cent dividend = $0.19
12 - 20 cent dividends = $2.40
12 - 21 cent dividends = $2.52
12 - 22 cent dividends = $2.64

In total, I've received $7.75 from Realty Income, or 15.1% of the original price I purchased it for.

At this current pace of increasing dividends, I will expect the next dividend in February to be 23 cents.

I've bought and sold a lot of stocks in my Robinhood Portfolio, but Realty Income is one of the few stocks that has been consistent almost from the beginning.

Signed,

Mitch

Monday, January 14, 2019

Roth IRA - Dollar Cost Averaging

I spend a lot of time talking about my Robinhood Portfolio, but I don't spend as much time talking about my Roth IRA. A Roth IRA is an Individual Retirement Account (IRA) where you put money in that's already taxed, and the gains you make in the account won't be taxed. There's a few more details to it, but you can google search "Roth IRA" and learn more. 

I'm regularly contributing to my Roth IRA again, and it feels good. I couldn't for awhile due to my job/work situation, but I have money taken out of my account every week into my Roth IRA. I can't quite max out my Roth IRA (putting in $5,500 per year), but I know I'm doing good by putting in what I can. 

I'm buying the same mutual fund in my Roth IRA, and since I'm buying it on a reoccurring basis, I'm buying the mutual fund at different prices, and this is called "Dollar Cost Averaging". Here's an example - 

  • Week 1 - $100 into Roth --> buy mutual fund at $20.00/share = 5.00 shares purchased
  • Week 2 - $100 into Roth --> buy mutual fund at $19.85/share = 5.04 shares purchased
  • Week 3 - $100 into Roth --> buy mutual fund at $19.18/share = 5.21 shares purchased
  • Week 4 - $100 into Roth --> buy mutual fund at $20.18/share = 4.96 shares purchased

The gut reaction when we see the stock price go down is to get anxious or concerned. When the stock price goes down, and you're using the same amount of money to buy shares, you'll buy more shares. This down market since October has been good because I'm buying more shares of the mutual fund in my Roth IRA. The market will go back up eventually, and my Roth IRA portfolio will go back up. 

Thanks for reading,

Signed,

Mitch


Sunday, January 13, 2019

Caffeine/Sugar Withdrawals

I don't talk about Health topics very much on the blog anymore, because I always start strong with trying to lose weight, and it always fails. Last Sunday, I decided that I was going to stop drinking pop, including diet pop. Yes, I'm from the midwest, and we call it pop not soda :) 

I was pretty sick this past week, evening taking a 1/2 sick day just so I could sleep. Now I think there's a lot of factors that contributed to this -
  • Traveling a lot last weekend
  • Only sleeping for 5 hours last Sunday into Monday
  • Taking public transportation (germs)
  • Stopping pop
  • Stopping caffeine halfway through the week

Part of me thinks I was having sugar/caffeine withdrawals. Yes, I was drinking a lot of sugar previously, and I drink more over the holidays. I also had a lot of caffeine to help keep me awake on the long drive I had to travel the previous weekend. 

This past week, I was craving sugar. I'm not 100% sure how to describe it, but I could feel it in my mouth and stomach, that if I had a pop, I'd feel better. I stuck with not drinking pop, and started drinking tea and sleeping more. 

I'm feeling better today, through a combination of a lot of rest and drinking lots of water and tea. The past week was pretty brutal though, but a bad sign if my body was having that big of a reaction to not having sugar. Hopefully that's the most "sick" I get this flu/germy/sickness season, and hopefully I can stick to not drinking pop. Maybe my sleep patterns will get better too without the caffeine?

I hope you have a good Monday, and I hope you beat the Sunday blues. 

Signed,

Mitch



Saturday, January 12, 2019

First Three Stock Purchases in 2019

I've purchased three stocks in 2019 so far. Two of these stocks are brand new and one is a stock I already own. 

I bought one share of Hanesbrands (HBI) for $12.60. The last five dividend payments were $0.15/share, paid on a quarterly basis. So $0.15 * 4 = $0.60. $0.60 / $12.60 = 4.76% dividend yield.

I bought another share of AT&T (T), bringing my total shares to two shares. I bought this share for $30.06. I bought this share after the ex-dividend date, so I won't get this latest dividend, but that's OK. The upcoming AT&T dividends are $0.51/share, and dividends are paid quarterly. $0.51 * 4 = $2.04. $2.04 / $30.06 = 6.79% dividend yield. 

I bought one share of Gabelli Dividend & Income Trust (GDV) for $19.37. This pays dividends monthly, and the last dividends were paying $0.11/share. $0.11 * 12 = $1.32. $1.32 / $19.37 = 6.81%. 

  • I now have 65 stocks/ETFs in my Robinhood Portfolio
  • In the next 12 months, I will receive 408 dividend payments. 
    • This averages out to 1.12 dividends/day. 

I still have a few new stocks I want to buy, but at this point, I should focus on averaging down on stocks that I already have. I think I have a good amount of dividends coming in now, and if I average down on stocks I already have, it'll increase the rate at which I can grow my account through compound interest. 

Hope you're heaving a good weekend!

Signed,

Mitch