Monthly Portfolio Update – December 2014

The market in November rallied with Dow Jones Average (ETF: DIA) gaining almost 5%, as compared to 7% drop in October; volatility is becoming the name of the game. The moody market never goes straight up or down but over long period, direction of market is up and will rewards patient investors like us.

The month of November was a busy month for me with a long shopping list in my cart :) , though, I was not expecting to spend some of my Thanks Giving holidays time this way. But, hey, I’ll gladly take the offer from Mr. Market whenever he is in a mood to give me his goodies at fire-sale prices.

I allocated extra capital in energy securities:  Royal Dutch  Shell plc (RDS.B), ConocoPhillips (COP), BP plc. (BP) and REITs: Realty Inc. (O), and American Realty Capital Properties Inc. (ARCP) with current dividend yields of 5.9%,  4.68%, 6.62%,  4.73%, and 11.12% respectively. A lot has been written about ARCP whether it’s a buy, sell or hold and for me, it is a hold for me as I’m looking at long term, though, my opinion may change if some other issues are uncovered.

I initiated 20 positions in RDS.B, added 10 positions in BP, 5 positions in COP, 25 positions in O, 50 positions in ARCP,  dollar cost averaging down my original prices. Also, initiated positions in Verizon Comm. (VZ) in my DRIP Portfolio. At current yields, RDS.B, BP, COP, O, ARCP will add $75.20,  $12.00, $14.60, $55.00 and $50.00, with gross total amount of $206.80 annually to my passive dividend income. This will push me closer to being financially independent in 12 years.

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 November is $56,219.56 which is 11.65% increase over last month of October Portfolio value of $50,350.85. This was mostly due to addition of capital in RDS.B, COP, BP, O,  ARCP and DRIPs in VZ and XOM. In the last month of October, I crossed a very important and big milestone for me, i.e, crossing half-mark across a 6-figures portfolio.

Thanks for reading.

Full Disclosure: Long on the above mentioned securities.

Dividend Income Update – November 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 single hundred plus in total passive dividend Income: $163.97 to be precise, this was 8th time of receiving triple digit dividend income this year. This month alone, my dividend income was more than 41.38% 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 – November 2014

1. Dividend Re-Investment Plan Portfolio (DRIP) 
Abbvie Inc. (ABBV): $5.83
The Clorox Company (CLX): $7.10
The Proctor & Gamble Company (PG): $27.04

2. High Dividend Income Growth Portfolio 1 (HID1
American Capital Agency (AGNC): $11.00
American Real Estate Cap (ARCP): $10.42
General Mills Inc. (GIS): $8.20
Realty Income Corp (O): $4.58
Omega Healthcare Inc. (OHI): $26.00
Prospect Capital (PSEC): $11.06
Pimco Corp & Opportunity (PTY): $13.00

3. High Dividend Income Growth Portfolio 2 (HID2: None

4. Roth IRA
Deere & Comp. (DE): $7.20
Kinder Morgan Inc. (KMI): $13.20
HCP, Inc. (HCP): $11.99
Vanguard Natural Res LLC (VNR): $7.35

Total Passive Dividend Income: $163.97

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 already received $1606.80, smashing targeting comfortably :), 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 November. Getting close to your target for this year?

Thanks for reading.

Go Baby Go – Buy Energy Stocks!

I do not try to time market to buy securities and keep a fixed schedule to keep buying securities in my Portfolios that I’m comfortable with at regular interval, akin to dollar cost averaging, however, once in a while Mr. Market gets maniac and wants to give me bags of goodies at a discount, who won’t take it?  I’d gleefully take them with both my open arms :)

Last month of October, I’d fired my ammo on some of the great stocks that I wrote about earlier: GE, HCP, PG, XOM, CVX, PG, ABBV and ARCP being a bold move this month. So, I almost ran out of further ammo to fire this month and was going to take a little breather and load my gun for next round. However, oil prices have been dropping like hot potatoes, almost 30%, and with that energy stocks are tanking in unison and singing songs with same tune, along with drilling and exploration companies for shale oil or natural gas

While Dow Jones Average (DIA) and S&P 500 indexes (SPY) travelling towards rarefied stratosphere as if a rocket has been fired with cryogenic fuel, while the energy sector is gasping for air. Most energy stocks are down 30% to 50%, providing an excellent opportunity to buy them at a value price and providing good dividend yields, 4-6% range. It does not mean energy stocks cannot go down more and there is a fair chance that oil may still go down further, however, I feel good about nibbling now to build up positions and add even more positions later if the energy stocks were to go down further, getting Santa Claus gifts even before arrival of Christmas to patient investors  ;) and we will be rewarded for that for long time to come.

I’ll be adding positions in Royal Dutch Shell plc (RDS.B), Chevron Corp. (CVX), Exxon Mobile Corp (XOM), ConocoPhillips (COP), BP plc (BP), Suncor Energy Inc. (SU) and Total S.A. (TOT), with BP yielding more than 6%, right now. Due to the significant correction in energy stocks this November, my fingers have itched enough to fire some of remaining ammo in my emergency account, which I rarely do but, I would take the offer of Mr. Market right now.

Full Disclosure: Long BP, XOM, CVX, RDS.B and COP.

What do you think about above energy companies. Are you buying some of them now?

Thanks for reading.

Bold Move – Buying ARCP!

This is an unusual post that I’m writing. Since last couple of weeks, American Realty Capital Properties, Inc. (ARCP) has been pummeled a lot and it has rebounded also but it’s still close to its 5 years low. I’ve been thinking about it since it started falling since end of October month, a bitching month many says :) ,when news of accounting issues start pouring out.

ARCP is a real-estate investment trust (REIT) that acquires, owns and operates single-tenant and multi-tenant commercial real estate properties and is world’s largest net lease REIT. It has in total 4,429 properties across 49 states in 94 industries with portfolio occupancy of99.8%, 99.1 million sq footage and total value of $23.8B. 

I’d written about ARCP in the Stocks watch list of October and Monthly Portfolio Update for November.

Now, ARCP has dropped so much that its current dividend yield is 11.12% and currently trading at $8.99closer to its 5 years low of ~$8. I think that current price provides an excellent entry point to investors. As a REIT, it must pay out 90% of its earnings. There are many other (m)REITs that I own: O, NLY, AGNC, OHI, PSEC, and even a REIT ETF from Vanguard: VNQ in my Portfolio, however, I still consider ARCP as a good bet for long-term investors.

Note that ARCP is still not completely out of woods yet and therefore carries a considerable amount of risk, if further issues are uncovered. Also, if the earnings and hence, dividends were to drop precipitously, I would reconsider my decision and might sell.

I’m making a Buffet’esque (BRK.B) move, a bold move for me, to start rolling my snowball faster, and adding another 50 positions on coming Monday.

Full Disclosure – I am long on ARCP.

What are your thoughts about ARCP. Are you going to buy or sell in near future?

Thanks for reading.

Monthly Portfolio Update – November 2014

The market in October swoon up and down with Dow Jones Average (ETF: DIA) dropping almost 7% in short time of couple of weeks but recovered very well  and then some. The moody market never goes straight up and have bowls of indigestion :)  but that is the most opportune time to invest. These drops indeed serve as buying opportunities for patient investors like us. 

I allocated extra capital in securities that I mentioned in Watch list for October:  American Realty Capital Properties Inc. (ARCP), General Electric (GE),  HCP, Inc. (HCP)AbbVie Inc. (ABBV), and Chevron Corp (CVX) with current dividend yields of 11.38%,  3.33%,  5.05%, 3.19%, 3.6% respectively. A lot has been written about ARCP whether it is a buy, sell or hold and for me, it is a hold as I’m looking at long term.

I initiated 25 positions in GE, 22 positions in HCP, added 50 positions in ARCP and 20 positions in Omega Healthcare Inc. (OHI). Also, initiated positions in Chevron Corp. (CVX) in DRIP account and added positions in ABBV, XOM, CLX, PG in my DRIP Portfolio. At current yields, GE, HCP and ARCP will add $22.00, $47.96 and $50.00 annually to my passive dividend income.

HCP was added in Roth IRA account where you do not pay any taxes when you them take out. This will push me closer to being financially independent in 12 years. The month of October was a busy month for me with a long shopping list in my cart :)

Kimberly-Clark Corp. (KMB) spun- off Halyard Health Inc. (HYH) to realize better their shareholder value and as a result of this, I received 2 positions in HYH and $10.96 for fractional shares.

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 October is $50,350.85 which is 12.18% increase over last month of September Portfolio value of $44,881.98. This was mostly due to addition of positions in GE, HCP and ARCP and DRIPs in CVX, ABBV, XOM, CLX, PG. In this month of October, I crossed a very important and big milestone for me, i.e, crossing half-mark across a 6-figures portfolio.

Thanks for reading.

Full Disclosure: Long on the above mentioned securities.

How did your portfolio do in last month of October? Add new securities.