Portfolio Update – May 2015

The market in month of April rallied with S&P (ETF: SPY) gaining almost 2%, as compared to more than 4% drop in March; volatility is becoming the name of the game recently. 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.

I allocated capital in energy securities that have started rallying from Jan bottom but still under-valued in my opinion: ONEOK Inc. (OKE) with current dividend yield of 5.48%. Oil related market segment is a difficult beast to predict, however, it does not matter to long term investors as long as we can enter it at a decent price point.

I initiated 10 positions in OKE on 4/13 at $49.57 and added 10 more positions on 4/20 at $49.57 in my taxable account. At current yields, it will add an amount of $48.40 annually to my passive dividend income.  I also added small amounts in other securities: ABBV, CL, COP, XOM, IBM, KMI, RDS.B, CLX, T, and VZ in my DRIP Portfolio. 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 April is $74,673.42 which is 7.6% increase over March Portfolio value of $69,385.54. I’m excited that my portfolio is getting close to a magic number of $75K :)

Full Disclosure: Long on the above mentioned securities.

Thanks for reading.

How is your portfolio doing recently? Getting excited on progress.

Dividend Income Update – April 2015

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 triple hundred plus in total passive dividend Income: $302.88 to be precise, this is the second time crossing $300.00 milestone figure this year. My dividend income was more than 2.89% as compared to last Jan and 116% more compared to last year’s April. It only shows the power of Dividend Income engine.

Passive Dividend Income – April 2015

1. Dividend Re-Investment Plan Portfolio (DRIP) 
Altria Group, Inc. (MO): $29.29
Glaxo SmithKline Plc. (GSK): $27.29
Kimberly-Clark Corp. (KMB): $16.22
Phillip Morris Intl, Inc (PM): $30.13
The Coca-Cola Company (KO): $14.91
The Wal-Mart Stores (WMT): $11.60

2. High Dividend Income Growth Portfolio 1 (HID1)
American Capital Agency (AGNC): $11.00
General Electric (GE): $10.35
Altria Group, Inc. (MO): $17.16
Annaly Capital Mgmt (NLY): $30.00
Realty Income Corp (O): $9.48
Omega Healthcare Inc. (OHI): $18.00
Phillip Morris Intl, Inc (PM): $25.00
Prospect Capital (PSEC): $8.33
Pimco Corp & Opportunity (PTY): $13.00

3High Dividend Income Growth Portfolio 2 (HID2)
Altria Group, Inc. (MO): $13.77

4. Roth IRA
Reynolds American Inc. (RAI): $12.06
Vanguard Natural Res LLC (VNR): $5.29

Total Passive Dividend Income: $302.88

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.

I’d setup a goal of earning $3500.00 in total passive dividend income this year and so far have received $1117.16. This is 31.91% of target for this year and a little behind.  We will see how next few months pan out.

Full Disclosure: Long in all above mentioned securities.

How did your Dividend Income come along this month of April? Meeting target.

Thanks for reading.

Recent Buy

I recently published my watch list for April and wrote about OKE and RDS.B along with few other securities. I did exactly what I mentioned in that post.

1) ONEOK, Inc. (OKE)

I initiated 10 positions in OKE  on 4/13 at $48.34 and added an additional 10 positions on 4/20 at $49.57 in my taxable account, totally 20 positions as of now.

OKE has a decent dividend yield of 4.92% and trading at $49.23, a good price point to enter into the position and dollar-cost average down if oil price drops. There are definitely some risks involved here in case oil prices were to tank further.

It will add $48.20 of passive income on an annual basis. I consider it as a great addition to my Portfolio.

2) Royal Dutch Shell plc (RDS.B)

RDS.B has a juicy dividend yield of 5.91% and trading at $63.67, a significant drop from $88.13. For long-term investors, it will provide a great upside potential once the price of oil starts its upward trajectory.

I added 4.6 positions in RDS.B on 4/21 at $63.00 in my DRIP account, totaling up almost 10 positions. It will add $17.30 of passive income on an annual basis that I do not have to earn and work for.

I also bought few positions in KMI and WPC in my DRIP/Roth IRA accounts.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy? 

Stocks Watch List – April 2015

I’m always looking out for good quality companies, and if they are under valued that’s great and if they yield high dividend income, even better! However, emphasis is on owning quality blue chip companies to grow passive dividend income.

I’ve been pondering about following companies since some time. As soon as more capital becomes available, I’ll be gnashing my teeth in some of these great companies ;)

1) ONEOK, Inc. (OKE)

ONEOK, Inc. is a diversified energy and a partner company of ONEOK Partners, holding 41% interest. It engages in processing, transportation and storage of natural gas liquids (NGL) in United States. The company was founded in 1906 and headquartered in Tulsa, Oklahoma. 

OKE has a nice dividend yield of 5.02% and a market cap of $10.06B. It ran up to $71.19 at its 52 week high, currently trading at $48.25 and is almost 32% lower. Current price provides an excellent entry point to investors, though, it could go lower in short term, however, this price point serves a good base to build on. OKE is in process of building a pipeline in Permian Basin to Mexico in west Texas. Its dividend guidance has been lowered and there may be downside risks, but, I like its valuation at this point.

2)  Royal Dutch Shell plc (RDS.B)

Royal Dutch Shell plc is an independent oil and gas company, incorporated in 2002, and based in United Kingdom. It operates in 3 primary segments: Upstream, Downstream and Corporate. Upstream is engaged in finding crude oil and gas, liquefaction and transportation of gas, Downstream in manufacturing, distribution and marketing activities and Corporate in related support functions like insurance and treasuries.

RDS.B sports a juicy dividend yield of 6.23% due to its recent drop. It touched a 52 week high of $88.13 and currently, trading at $60.40, almost close to its 52 low of $59.33. It has run into rough weather due to its recent plan to acquire BG Group for a cool sum of $70B. With this acquisition though, Shell will position itself better to compete against big oil companies. At current valuation, its provides a good opportunity to investors looking for long haul.

There are few other attractive companies that are under my radar: KMI, WPC, ABBV, CLX, VZ, POT and RY.

Full Disclosure: I plan to purchase above securities in near future.

Are you also considering to purchase these securities in future? 

Thanks for reading.

Dividend Income Update – March 2015

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 triple hundred plus in total passive dividend Income: $341.08 to be precise, this is the first time crossing $300.00 milestone figure. My dividend income was more than 26.61% as compared to last Dec and 299% compared to last year’s Mar. 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.

Passive Dividend Income – Mar 2015

1. Dividend Re-Investment Plan Portfolio (DRIP) 
BHP Billiton plc (BBL): $8.25
Chevron Corp. (CVX): $20.97
ConocoPhillips (COP): $22.83
Exxon Mobil Corp (XOM): $10.45
McDonalds Corp (MCD): $17.17
Royal Dutch Shell plc (RDS.B): $4.53

2. High Dividend Income Growth Portfolio 1 (HID1)
American Capital Agency (AGNC): $11.00
BHP Billiton plc (BBL): $37.20
BP plc (BP): $30.00
ConocoPhillips (COP): $14.60
Digital Realty Trust, Inc (DLR): $17.00
Johnson & Johnson (JNJ): $7.00
Realty Income Corp (O): $9.45
Prospect Capital (PSEC): $8.33
Pimco Corp & Opportunity (PTY): $13.00
Royal Dutch Shell (RBS.B): $18.80
iShares Mortgage RE (REM): $30.09
Southern Company (SO): $5.25
Orchids Paper Products Co. (TIS): $5.25
Unilever plc (UL): $4.88

3High Dividend Income Growth Portfolio 2 (HID2)
Vanguard Hi Dividend (VYM): $8.15
Vanguard REIT Index ETF (VNQ): $8.10
Vanguard Utilities ETF (VPU): $10.30
iShares Select Dividend ETF (DVY): $9.33

4. Roth IRA
Vanguard Natural Res LLC (VNR): $5.29

Total Passive Dividend Income: $341.08

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 at the beginning of this year and received $814.28 so far. This month of March is a big one for me and most of DGI bloggers as well. It covered some ground in the shortfall of last low month, that I’m glad to take. However, there is lot of more ground to cover to achieve a challenging target for this year.

Full Disclosure: Long in all above mentioned securities.

How did your Dividend Income do this month of March. Are you moving along the target?

Thanks for reading.