My Goals for 2015

Typically, I start thinking about goals in last couple of months of the year, Nov/Dec, where I’ve some visibility how far I’ve come in that particular year and therefore, have a better picture for the new year. I would like to set ambitious yet achievable SMART goals that will bring me closer to being financially independent in 12 yrs. I started my FI journey in later part of year 2011 and this year 2015 will be my year #4 towards FI, when I hope to be a free bird and passive income covering all my expenses.

I began my journey with a humble investment of $50 in late 2011 and now, my Portfolio has crossed a milestone mark of $50K. This DGI community has been very supportive in my journey, encouraged me to achieve it and I hope to inspire other readers out there that it is possible to achieve your dreams, however, humble beginning it is, but, start you must today!

Without further ado, here are my goals for 2015:

Financial Goals (FI):
Goal #1 – Receive Dividend Income of $3500 in my Porfolios.
Goal #2 – Earn $1500 of Passive Online Income
Goal #3 – Receive a total of $3000 in Dividend Income in IRA Accounts
Goal #4 – Invest a total of $5000 in Roth IRA Accounts
Goal #5 - Contribute $15000 towards 401K Account

Personal Goals:
Goal #6 – Make 2 family vacations and road trips in Continental US
Goal #7 – Read 2 Investment Books

Health Fitness Goals:
Goal #8 - Exercise 2 times per week @ 20-30 mins

Charity Goals:
Goal #9 – Contribute 25% of online passive income to Charities

I also perform a mid-year review of my portfolios and overall goals in June/July to see how goals are going and fine tune for the rest of the year, if needed. Mostly, I keep the goals intact but if there are wide deviations between actual realized and targeted goals, I make small adjustments, however, emphasis is still to strive to achieve challenging goals set at the beginning of the year.

What are your thoughts on my goals ? Do you have any challenging or out-of-the-world goal set for this year, would love to hear :)

Thanks for reading.

Recent Buy and Sale

I had another buy and also sale in this opening month of January, as compared to last whole year, I just posted one article on sale.  I bought Unilever Plc (UL) and sold iShares Emerging Mkt (DVYE).

I’ve been eyeing this multinational company UL since a while but finally pulled the trigger this month, with the price being in my buying range. Its a hold for long time to come.

1) Unilever Plc (UL)

Unilever plc is a multinational consumer goods company, co-headquartered in Rotterdam, The Netherlands and London, England, dual-listed there, and has Anglo-Dutch origins in Soap and Margarine. Its products are sold across 190 countries, and grouped into 4 categories: Personal Care, Deodorants and oral care products, foods, weight-management products and nutritionally enhanced staples, powders and liquids, soap bars and other cleaning products. Some of the popular brands include Becel, Flora, Bertolli, Heartbrand, Knorr, Lipton, Rama, Blue Band, Brylcream, Sunlight, Surf, Dove, Lux, Rexona, Lifebuoy, Close up, Sunsilk, Vaseline and Ponds.

UL is trading at P/E ratio of 19.50 which is lower than its close competitor, The Proctor & Gamble Company (PG) at 24.70, dividend yield of 3.36% and a Market Cap of $128.59B. It traded at $45.99 at its 52 week high and currently at $42.51, fairly valued in my opinion.

I bought UL at $41.31 on 1/21/14 and initiated 15 positions in this company. It will add $21.45 of passive income on an annual basis that I do not have to earn and work for.

UL was also a recent buy of Dividend Mantra and few other bloggers.

I wrote last month about the criteria when I sale the securities and one of them was significant reduction of dividends. That’s  what happened with DVYE, dividend was slashed mercilessly in this case from $0.76 to $0.05. I do not mind small and temporary reductions in dividends if the fundamentals of the underlying company remains good, however, in this case, it was a hammer blow on dividends.

I sold my 10 positions in DVYE on 1/20 at $41.73 and netting $407.64. These proceeds were used to purchase 15 positions in UL.

Full Disclosure: Long on UL, PG.

Do you think UL is a good buy at these prices? Are you also thinking to add them in your portfolio.

Thanks for reading.

Recent Buy

I’m looking for companies that are fairly valued, have a decent dividend yield(3% to 6%) and have a fairly long history of paying dividends consistently for 10 years or more. However, there could be some cases for exceptionally good company or a strategic buy for a very long term.

I was not expecting to pull the buy trigger so soon, however, I bought following security in this month of Jan, 2015 in my DRIP Portfolio.

1) Colgate-Palmolive Co. (CL)

Colgate-Palmolive is one of the leading consumer products company in the world, founded in 1806 and headquartered in New York. This company has two major categories of products: Oral, Personal, Home Care and Pet Nutrition like Colgate Total, Max Fresh, Optic White, Sensitive Pro-Relief, Plax mouthwash, floss, Palmolive, Irish Spring, Lady Speed Stick, Shampoos, Conditioners and other pharmaceutical products for oral heath care professionals. CL has long history of paying dividend, 119 consecutive years and raised them over 50 years and therefore, a member of elite group of Dividend Aristocrat.

I’ve been eyeing CL since several years and most of the time, it has appeared to me fully or over-valued and did not purchase it. Finally, I decided to make it my long-term hold in my DRIP portfolio, where I can average down my prices in future. CL motto is to create Bright Smiles and hope it could bring growing dividend smiles to fellow shareholders :)

CL is trading at P/E ratio of 30.1 which is frankly quite high for my taste with a dividend yield of 2.10% and Market Cap of $62.52B. It traded at $71.20 at its 52 week high and currently at $68.60, over-valued in my opinion but, as I mentioned, I’m going to make it a strategic buy.

I bought CL at $68.98 and initiated 7.1 positions in this company. It will add $10.22 of passive income on an annual basis that I do not have to earn and work for. I consider it as a good addition to my Portfolio and in it for a long haul.

Full Disclosure: Long on CL.

What do you think about this buy? Do you consider it fairly or overvalued.

Thanks for reading.

Portfolio Update – January 2015

The market in December last year was essentially flat one (ETF: SPY) but with fair amount of volatility thrown in. It looks like volatility is becoming a new game in the town. The moody market never goes straight up or down but over long period, direction of market is up and will reward patient investors like us.

The month of December remained a busy month for me, though, I was not expecting this way. I allocated extra capital in BHP Billiton plc (BBL), BP plc. (BP), and Orchids Paper Products Company (TIS) with current dividend yields of 5.8%, 6.3% and 4.83% respectively.

I initiated 20 positions in BBL, 15 positions in TIS and added 20 positions in BP, dollar cost averaging down my original price in BP.  At current yields, BBL, TIS, BP will add $49.60, $21.00 and $48.00, with gross total amount of $118.60 annually to my passive dividend income. This will push me closer to being financially independent in 12 years.

My DRIP Portfolio was also active in December and following positions were added:

Chevron Corp. (CVX): 3.55 ($400)
Royal Dutch Shell plc (RDS.B): 4.24 ($300)
Verizon Comm. Inc. (VZ): 6.18 ($300)
Exxon Mobile Corp. (XOM): 2.22 ($200)
ConocoPhillips (COP): 1.57 ($100)
Altria Group, Inc. (MO): 1.77 ($100)
GlaxoSmithline plc. (GSK): 1.04 ($50)
AbbVie Inc. (ABBV): 0.74 ($50)
McDonalds Corp. (MCD): 0.49 ($50)
The Clorox Corp. (CLX): 0.48 ($50)
The Coca-Cola Company (KO): 1.08 ($50)
The Proctor-Gamble Company (PG): 0.54 ($50)

I sold 100 positions in American Realty Capital Properties Inc. (ARCP) but kept 75 positions that I was comfortable to keep for long-term. This will result into reduction of my passive income by $100 for this year.

Currently, I’ve got 4 Portfolios: DRIP, HID1, HID2 and a recently added Roth IRA account. New capital is distributed across these 4 portfolios in both taxable and tax-free accounts so that I’ve freedom to enjoy my passive dividend income whenever they are able to cover all my expenses. I also contribute towards 401K account in order to get employer’s match and help lower taxes as well.

My total portfolio value at the end of December is $57,869.03. It was a slight increase of 2.09% over last month of  November Portfolio value of $56,219.56. This was mostly due to addition of extra capital in BBL, TIS, BP and DRIPs in CVX, RDS.B, VZ, XOM, COP, MO, GSK, ABBV, MCD, CLX, KO, and PG.

In the month of October, I crossed a very important and big milestone for me, i.e, crossing half-mark across a 6-figures portfolio size, that I’m happy to mention here.

Happy New Year 2015!

Thanks for reading.

Full Disclosure: Long on the above mentioned securities.

Dividend Income Update – December 2014

Its time for me to post dividend income earned from my portfolios: DRIP, HID1, HID2, & RothI enjoy sharing them as these passive dividend income provides me great inspiration and encouragement to keep chugging along and hopefully to the readers.

I scored a double hundred plus in total passive dividend Income: $269.39 to be precise, this was 9th time of receiving triple digit dividend income this year and first time crossing $250.00 milestone figure. This month alone, my dividend income was more than 67.99% compared to full last year’s. That’s awesome. It only shows the power of Dividend Income engine. I’m that much closer to being Financially Independent (FI) and living a life that I want to live, be independent and not have to rely on someone else. Isn’t that a powerful motivator!

Passive Dividend Income – December 2014

1. Dividend Re-Investment Plan Portfolio (DRIP) 
Chevron Corp. (CVX): $4.57
ConocoPhillips (COP): $20.86
McDonalds Corp (MCD): $16.59
The Coca-Cola Company (KO): $13.36
Exxon Mobil Corp. (XOM): $8.48

2. High Dividend Income Growth Portfolio 1 (HID1)
American Capital Agency (AGNC): $11.00
American Real Estate Cap (ARCP): $14.58
BP Plc  (BP): $12.00
ConocoPhillips (COP): $10.95
iShares Emerg Mkt (DVYE): $0.53
Realty Income Corp (O): $4.58
Prospect Capital (PSEC): $11.06
Pimco Corp & Opportunity (PTY): $13.00
Royal Dutch Shell (RBS.B): $14.10
iShares Mortgage RE (REM): $59.48

3High Dividend Income Growth Portfolio 2 (HID2)
Vanguard Hi Dividend (VYM): $9.84
Vanguard REIT Index ETF (VNQ): $17.23
Vanguard Utilities ETF (VPU): $10.23
iShares Select Dividend ETF (DVY): $9.60

4. Roth IRA
Vanguard Natural Res LLC (VNR): $7.35

Total Passive Dividend Income: $269.39

I want to own securities of Blue chip Aristocrats (companies with 25+ yrs of growing earnings) and Dividend Champions. Once the earned passive dividend income covers all my expenses, I will own my time as well and truly free from 9 to 5 tread mill.

I’d setup a goal of earning $1500.00 in total passive dividend income at the beginning of this year and received $1880.57, glad to be surpassing my target :), though, I started out with a small base. So, we will see next year how the growth turns out.

Full Disclosure: Long in all above mentioned securities.

How did your Dividend Income do this month of December. Did you hit your target for 2014?

Thanks for reading.