My Recent Buy- September 2014

I’m always looking for securities 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’ve bought following securities in this month of Sept’ 2014:

1) Reynolds American Inc. (RAI)

Reynolds Amercian Inc. is the parent company of R.J. Reynolds Tobacco, American Snuff Comp., LLC, Sante Fe Natural Tobacco, Niconovum USA, Inc. and R.J.Reynolds Vapor. RAI was founded in 1875 and is the leading company for cigarettes and tobacco products, next only to Altria, Inc. (MO), after acquisition of Lorilland company (LO) is completed. 

RAI is trading at P/E ratio of 19.60 with a healthy dividend yield of 4.60% and Market Cap of $30.98B. It ran up to $63.39 at its 52 week high and currently trading at $58.31, almost 8% lower and provided an attractive entry point. I bought RAI at $57.62 and initiated 18 positions in this company. It will add $48.24 of passive income on an annual basis that I do not have to earn and work for :)

2) General Mills, Inc. (GIS)

General Mills, Inc. is one of the world’s largest food companies, marketing in more than 100 countries and located in Minneapolis, Minn., USA. It started its journey with 2 four mills in the 1860’s and currently, has an excellent portfolio of brands like Cheerios, Pillsbury,  Yoplait, Green Giant, Betty Crocker, Nature Valley, Old El Paso and Haagen-Daz. Annual sales are in tune of $18B, 60% coming from US and rest from global markets, making is geographically diversified.

GIS is trading at P/E ratio of 18.80 with a good dividend yield of 3.26% and market cap of $30.36B. Its 52 week was $55.64 and trading at $50.28, almost 10% lower than all time high, however, it can not be considered cheap like many other securities. But, market has moved quite high in last 2 years and all boats have been raised high, including GIS. I always wanted to own GIS but had missed boat several times and so, pulled the trigger for additional 10 positions. This will add $32.60 annually to my overall passive income.

3) ExxonMobil Corp. (XOM)

ExxonMobil started its humble beginning in 1859 when Colonel Edwin Drake and Uncle Billy Smith drill the first successful oil well in Titusville, Pennsylvania which led to the oil gold rush. Since then, ExxonMobil has evolved into the world’s largest publicly traded oil and gas company, largest refiner and marketer of petroleum products, and it’s chemical division ranks among the world’s largest.

XOM is trading at P/E ratio of 12.20 with a nice dividend yield of 2.89% and market cap of $406.98B. Its 52 week high was $104.61 and currently trading at $95.43, almost 8.9% lower than its 52 week high. ExxonMobil’s dividend payments to the shareholders have grown at an average annual rate of 6.3% over the last 31 years. However, considering long-term growth prospective of XOM in oil & gas arena, I consider it an excellent prospect and found in Warren Buffet’s holding via Berkshire Hathaway Inc. (BRK.A /BRA.B) :)

Also, small sum of money was added to positions in Abbvie Inc. (ABBV) and The Clorox Company (CLX) in my DRIP portfolio.

Thanks for reading.

Full Disclossure: Long on RAI, XOM, GIS, ABBV and CLX.

Did you initiate any new securities or add some securities to your portfolio?

Dividend Income Update – August 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 received almost hundred bucks in total passive dividend Income: $98.92 to be precise, this was 5th time of getting triple digit dividend income this year. This month alone, my dividend income was close to 25% as compared to last year’s total. Sweet! It only shows the power of Dividend Income engine. I’m that much closer to being Financially Independent (FI).

I want to own securities of Blue chip Aristocrats (companies with 25+ yrs of growing earnings) and once the earned passive dividend income covers all my expenses, I will own my time as well like a free bird :)

Passive Dividend Income – Aug 2014 

1. Dividend Re-Investment Plan Portfolio (DRIP) 
Abbvie Inc. (ABBV): $3.15
The Clorox Company (CLX): $5.13
The Proctor & Gamble Company (PG): $20.22

2. High Dividend Income Growth Portfolio 1 (HID1
American Real Estate Cap (ARCP): $6.25
Realty Income Corp (O): $4.56
Omega Healthcare Inc. (OHI): $15.30
Prospect Capital (PSEC): $11.04
Pimco Corp & Opportunity (PTY): $13.00

3. High Dividend Income Growth Portfolio 1 (HID2 None

4. Roth IRA
Kinder Morgan Inc. (KMI): $12.90
Vanguard Natural Res LLC (VNR): $7.35

Total Passive Dividend Income: $98.92

I’d setup a goal of earning $1500.00 in total passive dividend income this year and so far I’ve received $1018.97 which is 67.93% covered. With 8 months out of 12 months: 66.67% of the year having passed by, I’m pretty close, as close it gets ;) and hitting my target which is an exhilarating fuzzy feeling.

Thanks for reading.

How is your Dividend Income coming along and are you meeting your target?

Full Disclosure: Long in all above mentioned securities.

Monthly Portfolio Update – August 2014

This month of August was great with Dow Jones Average (ETF: DIA) gaining more than 3%. DIA is almost at its peak while last month of July was tumultuous. The market never goes straight up. We are building DGI Portfolios for long-term and short-term gyrations should not scare us, in fact, serve as buying opportunities for patient investors like us.

I allocated extra capital in securities that I wrote in Watch list for JulyExxonMobile Corp. (XOM) and also initiated positions in General Mills, Inc. (GIS), with current dividend yields of 2.77% and 3.07%  respectively. Small additional amounts were added in AbbVie Inc., (ABBV).

I bought 10 positions in GIS in my taxable account: HID2 Portfolio. At current yield of 3.07%, GIS will add $30.70 annually to my passive dividend income.  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.

My total portfolio value at the end of August is $43,816.34 which is an increase of 7.30% over last month July Portfolio value of $40,821.41. Part of the gain came due to market lift off and other part was due to additions of positions in XOM, GIS, ABBV and other DRIP positions.

Thanks for reading.

Full Disclosure: Long on the above mentioned securities.

Did you add any new securities this month of August?

Weekend Reading – Aug 16, 2014

A learning mind is always open to new ideas, thoughts and endeavors in life and there is no frontier that is beyond human race. Here are some of the best articles that I enjoyed this week and they can sprout seeds of new thinking or reinforce existing ones.

Get Free Gas in Retirement by Wealthy Retirement
Steve talks about the car expenses and how they can cost an entire year of income from a million-dollar retirement portfolio. Yep, frugality is a great virtue and saving in car expenses can definitely save an arm and a leg. Nothing against BMW, Mercedes or Volvo, if you can afford but consider some of these facts.

The Dirty-Little Secret Behind Corporate America’s Buyback Frenzy by Street Authority
We always think of buyback as a good sign of improving shareholder value as shares count reduces, higher amount of earnings per share could be distributed to less number of share holders. In this thought provoking and going against the conventional thinking, Christian explains how buyback by companies are not wealth enhancers. It’s interesting to read another point of view :)

Slow down by Dividend Mantra
Jason has retired from his active job and in this great read, he explains how he can enjoy his time, able to write with 100% concentration and energy and be able to observe the beautiful moments in life in a slow motion fashion and be with them.

A Millionaire is Made Ten Bucks at a Time By MMM
MrMoneyMustache talks about the importance of small amounts and how they can turn into a big amount. Could not agree more, I started my own FI journey with a very humble beginning of $50 and my portfolio is almost kissing half of 6 figures in short time. It only demonstrates the power of small amounts and how they can grow big over time. Great read!

Thanks for reading.

Dividend Income Update – July 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.

Wow, I scored a double hundred plus in total passive dividend Income: $222.72 to be precise, this was only the 2nd time and 4th time of receiving triple digit dividend income this year. This month alone, my dividend income was more than 54.36% as compared to last year’s total. 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 a powerful motivator!

I want to own securities of Blue chip Aristocrats (companies with 25+ yrs of growing earnings) and once the earned passive dividend income covers all my expenses, I will own my time as well like a free bird :) Think about it: you can travel around world exploring beautiful exotic culture or even explore blue lagoons and white beaches, play golf ;) or simply relax and have a power to make a difference in someone’s life and do charities.

Passive Dividend Income – July 2014

1. Dividend Re-Investment Plan Portfolio (DRIP) 
Glaxo SmithKline Plc. (GSK): $13.95
Kimberly-Clark Corp. (KMB): $14.07
The Coca-Cola Company (KO): $12.13
Altria Group, Inc. (MO): $23.78
Phillip Morris Intl, Inc (PM): $17.66

2. High Dividend Income Growth Portfolio 1 (HID1)
American Capital Agency (AGNC): $32.50
American Real Estate Cap (ARCP): $6.25
iShares Emerging Markets (DVYE): $8.26
Altria Group, Inc. (MO): $15.84
Annaly Capital Mgmt (NLY): $30.00
Realty Income Corp (O): $4.57
Prospect Capital (PSEC): $11.05
Pimco Corp & Opportunity (PTY): $6.50

3High Dividend Income Growth Portfolio 2 (HID2)
Altria Group, Inc. (MO): $12.31

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

Total Passive Dividend Income: $222.72

How did your Dividend Income do this month of July.

Full Disclosure: Long in all above mentioned securities.

Thanks for reading.