Wednesday, August 17, 2016

July 2016 Income & Expenses

The amounts below are cash amounts and are net of taxes, insurance, 401k contributions, HSA, etc. In other words, the amounts are what get deposited and withdrawn from my accounts.

Day job (take home pay) --- $11028.94
Dividends/Interest --- 0

Total net income --- $11028.94

Expenses --- $5298 (Taken from Mint)

Savings  $ --- Rate  $51.96%

There we go!! I finally got back over the 50% savings rate threshold. While my expenses were still fairly high, I finally broke the 2 month $7000 a month streak. That's a bad streak to be stuck on. I can live with $5,000 a month and still having a strong savings rate

I was glancing over the expenses and really didn't see much in the way of outliers.  During the previous two months I had a couple of big vacations including prepaying for a trip to Disney World. It appears that I had a lot of $75 to $150 expenses which included several dinners out throughout the month and a couple of doctors visits. Also the utilities were a bit higher as the Houston weather really heated up. Also my girlfriend's daughter has been staying with us during the summer so that probably is good for and extra $500 to $700 a month. 

Higher expenses are not freaking me out as much as they used to. Extreme expense control used to be something I really really really tried to get under control. I think that I am probably spending more money mainly because I have sacrificed so much over the past couple of decades that I am giving myself some treats. Don't get me wrong if my income starts to plummet, I can easily eliminate all cable channels, expensive meals, and other frivolous luxuries. In the mean time, I am going to continue enjoying life responsibly and not live like a hermit. 

There is a big world out there and I want to see as much of it as possible!


Monday, August 15, 2016

Recent Buy --- TIS & DIS

Today I initiated positions in Orchids Paper Products and Disney.

  • TIS:  60 shares @ $28.28  Yield  4.95%
  • DIS:  17 shares @ $97.45  Yield  1.46%

Total capital invested is $3367.33. The combined yield is 3.21% and will add $108.14 to my yearly dividends. 

After recently reaching $36 a share, TIS has finally started coming back to earth so I took the opportunity to pick up some shares around the 5% yield range. The DIS dividend yield isn't overly impressive, but the 10 year 23% annual dividend growth rate is off the charts.

I have been watching FLO recently as well and it's dividend yield is approaching 4.5% so I may initiate a position fairly soon. I don't know if it the yield will reach 5% or not, but I would definitely be a buyer there.

Forward dividends are $3500.00


Friday, August 5, 2016

First August Purchases --- MET & Shell

August is here and it's time to keep adding to the pipeline.

  • RDS-b:  35 shares @ $52.59  Yield 7.15%
  • MET:  40 shares @ $41.08  Yield  3.89%

Total capital invested is $3497.68 and the combined yield is 5.59% and will add $195.60 to my yearly dividends.

I was tempted to buy shares of BMY on a huge drop today. I already have 300 shares of PFE and a position in GILD, so I opted to add an insurer to further diversify the portfolio. I will watch BMY over the coming weeks and may still initiate a position. The yield is now around up to around 2.4% and looks pretty attractive here.

Other positions that I am eyeing closely are T, SO, PM, BA, PG, and TIS.

Forward dividends are $3400.00.


Saturday, July 30, 2016

July 2016 Recap ---- Goose egg edition

Well f$#%, like April my dividend total for July was $0. That is not the best way to start out the back half of the year. Oh well, I will keep planting seeds and the dividends will come in time.

Today was my last day to hopefully receive some sort of dividend payment, but when I opened my Sharebuilder account, I noticed the VZ (August payment) was sitting there. At least August is starting off with a bang!

Just for reference, here are the results from last July. Wow a 100% drop....I have shitload of work to do. I keep changing my 2016 dividend goals and now I am thinking $3500-$4000 by year end. I wish PM and T would break down and come back to more reasonable levels, but those rascals have been damn resilient. I'll keep adding here and there and am ready for a massive drop that I still believe will happen as we get closer to the election.

Anyway here is the summary of investments I made in July.

  • M --- $3483.70 
  • RDS-b --- $2008.92
  • NEA --- $1607.12
  • DEO --- $1584.99

Total July capital invested in my taxable account is $8684.73 and should add $420.76 to my yearly dividends.

Forward dividends are around $3200.


Friday, July 29, 2016

First Lending Club update

Last year Lending Club finally became available to Texas residents. Initially I started out with a small investment of $1000.

Over the last six months or so, I have been adding $200 a week and now have a balance of just under $5900.00.

I have been investing $25 at a time and now have 263 total notes and climbing. While there are many different strategies and investment criteria that can be sifted through, I chose to go automated and let the computers spread the capital across a variety different loan grades.

Right now, as you can see above, My current return is 6.77% after all defaults and pass due loans have been written down. This is about what where I thought the returns would fall. It is uncanny that LC advertises a projected return of 6.68% under the Platform Mix.

There have been times when this number has been over 9% and below 3%. It tends to stay around 7% most of the time. It will be interesting to see how the loans perform during an economic slowdown. Fortunately they have held up pretty well for me.

I will continue to invest $200 a week until I reached $10,000. At that point I will probably continue investing new capital, but may stick with higher credit borrowers.


Tuesday, July 26, 2016

Recent Buy --- M call exercised

Today I exercised my option to buy 100 shares of M.

  • M: 100 shares @ $32.00 --- Yield  4.72%

Total capital invested is $3200 (stock price) + $253.70 (option premium paid) + $30 (exercise charge) for a total of $3483.70. While the purchase price yield is 4.72%, the yield based on total capital invested is only 4.33%.This purchase will add $151.00 to my yearly dividends.

The stock price is trading around $37.30 range as I type this. Like many retailers, M has been hammered dropping from the $70s down to a low of around $30.

It appears as though M is in a recover stage right now, but slower foot traffic in malls will continue to problematic for companies like M. We'll see how this plays out.

Forward dividends are $3200.00.


Monday, July 25, 2016

June 2016 Income & Expenses

The amounts below are cash amounts and are net of taxes, insurance, 401k contributions, HSA, etc. In other words, the amounts are what get deposited and withdrawn from my accounts.

Day job (take home pay) --- $11754.60
Dividends/Interest --- $272.27

Total net income --- $12026.87

Expenses --- $7298.00 (Taken from Mint)

Savings  $4728.87 --- Rate  $39.31%

Expenses continue to stay elevated and I feel like I am losing the battle. I won't quit trying though!! However, summer vacations and a seemingly endless gauntlet of birthdays are overpowering me.

I feel pretty confident that I can hold the line at $5000 in expenses this month, but I have plans for an August Disney World trip which should be pretty expensive next month. The good news is that I have already paid for and included the 5-day hotel, park tickets, and food expenses in the previous month's report.

I'm sure by taking my girlfriend, her daughter, and her little sister that the budget will go to hell. Getting 3 girls to avoid shopping while on vacation is futile. LOL Anyway, the great experiences will far outweigh any annoying expenses that pop up.

On a positive note, I had the biggest income month of the year and July is looking pretty strong as well. Houston is by no means out of the woods. Things are beginning to stabilize a bit so we'll see how the back half of the year goes.

Regardless of what happens with the economy, I will continue busting my ass and investing in dividends paying stocks. Just give me a big pullback and I'll be happy!