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.

Here are two final purchases for this month of February.

1) General Electric (GE)

General Electric is a diversified infrastructure and financial services company, founded by Thomas A. Edison and incorporated in 1892 with headquarter in Fairfield, Connecticut. GE operates in a varied range of products and services: aircraft engines, power generation, household appliances, water equipment, medical imaging devices, industrial items, business and consumer financing. GE has wide geographical footprints across over 100 countries. 

GE is trading at reasonable P/E ratio of 17.30 with a decent dividend yield of 3.54% and Market Cap of $261.0B. It traded at $27.53 at its 52 week high and currently at $25.99, is fairly valued in my opinion and a long term hold.

I bought GE at $24.98 on 02/13 and added 20 positions in taxable account, making it 45 positions. It will add $18.40 of passive income on an annual basis.

2) Digital Realty Trust, Inc. (DLR)

Digital Realty is a real estate investment trust (REIT) that acquires, owns, and manages technology-related real estate, incorporated in 2004 and is headquartered in San Francisco, CA. The company focuses on strategically located properties that house services critical to day-to-day operations of technology companies and corporate data center users.

Digital Realty’s portfolio consists of 131 properties, most of them 104 are in North America, 22 are located in Europe, 3 in Australia and 2 are in Asia. 

DLR is trading at P/E ratio of 69.10 with a healthy dividend yield of 5.12% and Market Cap of $9.0B. It traded at $75.39 at its 52 week high and currently at $66.38, it is almost 12% lower than its recent high and I think it is decently priced right now, though, further slide could not be ruled out if interest rates were to suddenly spike and new aggressive competitors were to emerge.

I bought DLR at $65.38 on 02/26 and initiated 10 positions. It will add $34.00 of passive income on an annual basis that I do not have to earn and work for.

Thanks for reading.

What do you think about these buy? Are you considering adding any one of them to your portfolio also.

Portfolio Update – February 2015

The market in month of January was down by 2.96% (ETF: SPY) with a 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.

The month of January remained a busy month for me, though, I was not expecting this way. I allocated my capital in Unilever plc (UL) and initiated 15 positions in UL and at current yield of 3.05%UL will add $19.80 annually to my passive dividend income. This will push me closer to being financially independent in 12 years.

My DRIP Portfolio was active in January, 2015 and below positions were initiated/added:

Colgate -Palmolive Inc. (CL): 7.8 ($550)
IBM (IBM): 3.19 ($500)
Phillip-Morris (PM): 2.35 ($200)
The Clorox Corp. (CLX): 1.31 ($150)
AbbVie Inc. (ABBV): 2.3 ($150)
Verizon Comm. Inc. (VZ): 3.17 ($150)
Chevron Corp. (CVX): 0.88 ($100)
Royal Dutch Shell plc (RDS.B): 1.42 ($100)
Exxon Mobile Corp. (XOM): 0.55 ($50)

I sold 10 positions in iShares Emerging Mkts. ETF (DVYE) as dividends were drastically cut. This will result in reduction of passive dividend income by about $7.50 and was my first sell of this year in first month itself, as compared to last year where I sold only one security, ARCP. Now, I’ve completely exited from ARCP.

The lesson learned is that a longer dividend history of a company is a must and good quality of that business is paramount in building a long-lasting portfolio, just like high-rise building needs to have a good basement foundation on which to stand tall.

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 January is $59,274.97. It was a slight increase of 2.42% over last month of December Portfolio value of $57,869.03. This was mostly due to addition of capital in UL and DRIPs in CL, IBM, PM, CLX, ABBV, VZ, CVX, RDS.B, and XOM.

Last year 2014, I crossed a very important and big milestone for me, i.e, crossing half-mark across a 6-figures portfolio size. 

Thanks for reading.

Full Disclosure: Long on the above mentioned securities, except for ARCP.

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.

These buy were probably brought forward from Mar, but, we will see what happens in Mar, especially if Mr Market is in good mood. That will pose a dilemma for me as I’m running low on cash but it is a first world problem as Dividend Mantra says :)

1) Johnson & Johnson (JNJ)

Johnson & Johnson is a consumer & healthcare company and much has been written about it by many over decades in fact. This company has 30 consecutive years of increasing adjusted earnings and 52 consecutive years of dividend increases.

JNJ has an amazing set of products in various segments: baby care, skin & hair care, wound care & topicals, oral heath care, OTC medicines like tylenol, motrin, benadryl, etc., nutritionals, vision care, medical devices and diagnostic products, prescription pharmaceutical products, that are used daily by millions world over.

JNJ is trading at very reasonable P/E ratio of 17.50 with a decent dividend yield of 2.81% and Market Cap of $278.85B. It traded at $109.49 at its 52 week high and currently at $99.62, is fairly valued in my opinion and a long term hold.

I bought JNJ at $101.25 on 02/02 and initiated 10 positions in taxable account. It will add $28.00 of passive income on an annual basis. I consider it as a superb addition to my Portfolio.

2) Southern Company (SO)

Southern Company and its subsidiaries are the leading US provider of clean, safe and affordable electric power across 4 states: Alabama Power, Georgia Power, Gulf Power in Florida and Mississippi Power as well as fiber optics and wireless communications: Southern Telecom and SouthernLINC Wireless.

SO serves more than 4.4 million customers, 46K megawatts of generating capacity and known for energy innovation like greener gasification technologies. It was founded in 1945 and is headquartered in Atlanta, Georgia.

SO is trading at P/E ratio of 20.90 with a healthy dividend yield of 4.58% and Market Cap of $41.28B. It traded at $53.16 at its 52 week high and currently at $45.88, it is almost 14% lower than its recent high. Note that there are still challenges out there for SO to negotiate related with new Kemper plant.

I bought SO at $48.00 on 02/09 and initiated 10 positions. It will add $21.00 of passive income on an annual basis that I do not have to earn and work for.

I also dripped some more positions in ABBV, CVX, COP, PM, IBM, VZ in my DRIP portfolio that I’ll be writing about in my upcoming Portfolio update.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy? Are you considering adding any one of them to your portfolio also.

Dividend Income Update – January 2015

Its time for me to post dividend income received in 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.

Wow, I almost came close to scoring triple hundred in passive dividend Income: $294.36 to be precise, this is the highest ever received amount in a single month. My January dividend income was more than 29.07% compared to last year’s January. 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. That’s a powerful motivation in itself!

Passive Dividend Income – January 2015

1. Dividend Re-Investment Plan Portfolio (DRIP) 
Altria Group, Inc. (MO): $28.55
Glaxo SmithKline Plc. (GSK): $23.11
Kimberly-Clark Corp. (KMB): $15.37
Phillip Morris Intl, Inc (PM): $20.87
TheWal-Mart Stores (WMT): $13.27

2. High Dividend Income Growth Portfolio 1 (HID1)
American Capital Agency (AGNC): $11.00
General Electric (GE): $5.75
Altria Group, Inc. (MO): $17.16
Annaly Capital Mgmt (NLY): $30.00
Realty Income Corp (O): $9.17
Prospect Capital (PSEC): $11.06
Pimco Corp & Opportunity (PTY): $77.98

3High Dividend Income Growth Portfolio 2 (HID2)
Altria Group, Inc. (MO): $13.63

4. Roth IRA
Reynolds American Inc. (RAI): $12.06
Vanguard Natural Res LLC (VNR): $7.35

Total Passive Dividend Income: $294.36

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 $3500.00 in total passive dividend income this year and so far have received $296.36 which is 8.46% of target for this year. My dividend income was little inflated due to once a year distribution of $64.98 by PTY and so, we will see whether next few months pan out as fantastic as this month!

Thanks for reading.

How did your Dividend Income come along this month of January? Any major milestone achieved.

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 another buy trigger this month again, however, I bought following security in the month of Jan, 2015 in my DRIP Portfolio.  This buy was probably brought forward from Feb so, my cash is running low right now however, we will see what happens in Feb, especially if Mr Market is ready to sell its goodies :)

1) International Business Machines Corp. (IBM)

 International Business Machines Corp. is top provider of computer products and services, founded in 1911 as Computing Tabulating Recording Company (CTR) through a merger of 3 companies: Tabulating Machine Company, International Time Recording Company & Computing Scale Company, renamed as International Business Machines (IBM) in 1924, and is headquartered in Armonk, New York. IBM operations are categorized primarily into 5 segments: Global Technology Services (GTS), Global Business Services (GBS), Systems & Technology, Software, and Global Financing. IBM has too many innumerable achievements to its credits, 5 Nobel Prize winners, 6 Turing Awards & 5 National Medals of Science,  12 research labs throughout world, and an enviable record for most patents created for 22 consecutive years.

If you’ve noticed carefully and following my blog, my 4 Portfolios do not have any technology or financial companies so far due to cataclysmic events that occurred in 2000 and more recently in 2008. However, there are few technology company like IBM that I’ve been eyeing since some time. Being a fan of Buffet, it was odd that all of my portfolios did not contain IBM since it is one of the largest holding of Berkshire Hathaway (BRK.B). Finally, I decided to add in my DRIP portfolio.

IBM is trading at very reasonable P/E ratio of 12.90 with a decent dividend yield of 2.87% and Market Cap of $151.72B. It traded at $199.21 at its 52 week high and currently at $153.31, is fairly valued in my opinion and I’m going to make it a long term hold.

I bought IBM at $151.85 on 1/21 and initiated 3.2 positions in this company. It will add $14.05 of passive income on an annual basis that I do not have to earn and work for. I consider it as a superb addition to my Portfolio, though, there are some challenges for IBM to negotiate reg restructuring.

Full Disclosure: Long on IBM.

What do you think about this buy? Do you consider it a good buy or planning to add to your portfolio.