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.

14 thoughts on “Monthly Portfolio Update – December 2014

  1. Loading up and really pushing forward with gusto. You grabbed quite a few high-yielders this month, as oil especially is showing quite a bit of opportunity. While I am still sitting on my ARCP shares, I will only add what gets reinvested, as we see what develops over the next year or so.

    And you didn’t mention it, but I’m not surprised about the decrease in PSEC’s dividend… we’ll see how they rebound in 2015.

  2. Hi W2R,

    Yeah, I had a busy month, buying many energy stocks and few REITs. I’m going to hold ARCP and totally understand your concern.

    I did not notice reduction in PSEC, but, I’m not too concerned about it as it is already baked in my long-term calculus. Thanks for pointing out though. I expect some more volatility in REITs in 2015 if rates were to increase significantly.

    Good weekend!

  3. Well one thing is certain, with all your recent buys you definitely are earning some serious current yield no matter where stock prices go from here. As least you’ll be paid quite nicely to wait while commodity prices inevitably recover. Congrats on a solid month for your portfolio but remember those values go up and down at the whim of Mr. Market. As long as the dividend income keeps rising you will be in great shape.

    1. Hi DivHut,

      I could not agree more with you, putting capital to work to earn passive dividends is wonderful. I take the offer of Mr Market when he is ready to offer his goodies. I believe that O&G sector is a good play right now with CVX, XOM, COP, BP, RDS.B, SU, and TOT. I think that shale gas and drilling plays like RIG, SDRL, SD, TLM, CIE, OAS, etc. are too risky but some of them will be a long-term story, but, if I cannot sleep well with these in night, I do not buy them.

      I do not normally like to own commodity stocks as they can turn on the dime, however, there are few exceptions like BBL that I’m considering to add in my portfolio, and keeping an eye on OKE as well.

      Thanks for stopping by!

    1. Hi AG,

      Thanks for your kind words and liking my portfolio. I’ve been grinding now since several years 🙂 It is slow and steady building but once compounding machine starts revving up with full throttle, it will be a river of passive dividends that some day would pay my expenses. Doubling net worth next year would be really awesome, though, I doubt it. But, as long as net worth is showing upwards trend, that’s what its important.

      Appreciate stopping by!

  4. Great month mavericks. Way to take advantage of the downturn in oil by re-upping your position at a lower cost. You future self will thank you for jumping on the opportunity! Many of the positions you discussed I either own or I always have a close eye on.

    Keep up the great work and keep adding to your annual dividend income.

    Bert, One of the Dividend Diplomats

    1. Hi Bert,

      Yeah. I bought several energy stocks: CVX, COP, RDS.B, XOM and BP in month of Nov as they were fairly valued and great long-term bets. Oil market still has to play out fully and may still have further downside but its an opportune time to start nibbling them.

      Good to have you as fellow shareholders in these securities. Could not agree more that our future self will thank our present self 🙂

      You are doing great over there as well. Thanks for stopping by and commenting!

  5. Good progress PIM. I see lot of investments in some of the blue chip companies that I also own. Look forward to seeing your portfolios growth next year 2015.

    1. Thanks for the kind words Cathy. Glad to have you as fellow shareholders in same securities and I’m sure your future shelf will be grateful for that.

      Yeah. I’m looking forward to increase my portfolio value in 2015 and more importantly, my total passive income to pay off my monthly expenses. Currently, I’m into 3rd year of my 12 yr FI journey and so, each year is really important to grow my income.

      Happy Holidays!

  6. PIM,

    Congrats for almost doubling your portfolio value and would like to see whether you can double again next year 😉 I like many of the blue chips you own in your portfolios.

    I’m thinking to add T in my portfolio. Do you prefer T over VZ?

    Happy Holidays!
    Keith

    1. Hi Keith,

      Appreciate the support and nice words. Haha, that will be nice to double my portfolio value in 2015 🙂 However, I’d be really happy to double my passive dividends as portfolio value could fluctuate up and down, sometimes significantly but as long as passive income is accelerating and turning into snowball, that’s what I focus on.

      I like both T and VZ and their dividends are 4.62% and 5.54% respectively with PE ratio of ~10, have almost monopoly of telecom market with Sprint a distant third. I consider them as good utilities to have in the portfolio, T has little better dividends, and trading almost 10% lower than 52 high and so, I’ll go with T now but VZ is a good add as well due to little higher growth. Currently, I own VZ but planning to add T over next few months as well.

      Happy Holidays to you also. Thanks for stopping by!

    1. Hi DD,

      You’re welcome and appreciate kind words! RDS.B and CVX are two of super-majors that should do well, besides BP, XOM and COP. It is a good time to start nibbling energy securities and any further pullback would an excellent time to add to new positions in these companies. I hope to add some REITs next year along with financial companies as I’m under invested in this sector.

      You are doing good over there and best for 2015!

      Thanks for stopping by!

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