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.

Monthly Portfolio Update – July 2014

Wow! My watch list got featured on Dividend Mantra’s Weekend Reading – July 20, 2014, 3rd from end, thank you Jason for doing so. 

This month of July was tumultuous with Dow Jones Average (ETF: DIA) dropping almost 2% in a single day on Thurs: July 31st. DIA is only down 4% from its recent peak and not in correction territory yet, characterized by 10% drop. The market never goes straight up and have bowls of indigestion :) The bullish trend is very much intact, and these drops indeed serve as buying opportunities for patient investors like us. 

I allocated extra capital in securities that I wrote in Watch list for July: ExxonMobile Corp. (XOM) and Deere & Company (DE), with current dividend yields of 2.79% and 2.82%  respectively. I follow what I write here and eat my own pudding too :) Deere was also recent buy of Dividend Mantra, FranklyFrugalFinance, CompoundingIncome, and DividendGrowthInvestor. I need to run out to buy before it shoots to sky ;)

I bought 12 positions  in DE and initiated DRIP positions in XOM in my HID1 Portfolio. At current yield, DE will add $33.84 annually to my passive dividend income. DE 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 and travel around the world in exotic and beautiful places, hopefully :)

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 July is $40,832.41 which is 1.03% increase over last month of June Portfolio value of $39,673.40. This was mostly due to addition of positions in DE and XOM.

Thanks for reading.

Full Disclosure: Long on the above mentioned securities.

Did you add new securities this month of July ?

Weekend Reading – July 27, 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.

Buffet and Pickens Love This Bargain Energy Stock By Street Authority
This is an interesting article by Marshall where he talks about Buffet’s Berkshire Hathaway (BRK.B) focus on an energy company: Suncor Energy (SU) and how this could be a $1 trillion dollar sector opportunity, besides the familiar Buffet’s love for Coca-Cola (KO) and Wells Fargo (WFC) :)

Frugality: The New Fanciness By MMM
Ever green MrMoneyMustache explains how Frugality is new Fanciness before it was like… they are attempting to show off their wealth for the benefit of all the fine ladies around here. There could be no better reason than that, hey-hey :) , just kidding for a sec, we are frugal.It is a great read and I thoroughly enjoyed it!

Building A Snowball By Dividend Mantra
In this article, Jason has beautifully explained building a growing snowball and could not agree more as I’ve been talking about Snowball effect since long time, where a small ball of snow (a small initial dividend buys more shares) that is rolling down hills, gathers more snow (increasing dividends due to more shares) with ever-growing speed (due to growing earnings) and becomes a self-sustaining machine that can support your rich lifestyle. Its a great read as always.

I blamed my wife for our messy house, I was wrong for many reasons By The Washington Post
This was a hilarious post and thought it would be a fun and mind provoking read for loving spouses ;) Do not blame me if I was wrong either. Hey, honesty is always the best policy :)

Full Disclosure: Long on securities as mentioned above.

Thanks for reading.