Monday, May 1, 2017

April Review / May Preview 2017

Party Gremlin here to discuss the wonderful month that was April.  Before I get to finance I will just say I had a few nice weekends away, both in the state of Pennsylvania.  One trip was for sports, and the other was to celebrate the fact that a friend of mine is losing the ability to claim the 'single-not married' box on his taxes.  Congrats to him, but we all know that those parties really are for the other guys, especially the married ones, like me, in attendance.  No there were no clubs of the stripped down variety, but that is no impedance to fun!

Apart from the fun, Loyal 3 announced they were ceasing operations and changing their format.  I have already begun an account transfer to move the shares out into my existing brokerage.  Though many positions I had there were not yet completed, the fact remains is that they will continue to pay me and boost my output.  I intend on holding those positions, and adding to them when the valuations become justified in the future.  The 'loss' of Loyal 3 is not a loss so much as it is merely a transition that I anticipated making anyway.

April:

This past month I put $1600 dollars to work between Loyal 3 and my regular brokerage.  With the loss of Loyal 3, my regular large purchases should become much more common.

Last month I brought in a total of $70.94 in dividends ($70.94 taxable, $0 Roth, and $0 IRA).  This is a decrease from last year ($84.31 total) by 16%.  The reason for the decrease remains the change in payout structure from Kraft-Heinz (KHC), which has switched to paying on the 3rd month of each quarter.

In terms of dividend increases, I realized six this month from Bank of Nova Scotia (BNS)*, Canadian Imperial Bank of Commerce (CM)*, Dr Pepper Snapple (DPS), Coca Cola (KO), Realty Income (O), and Walmart (WMT).  Raises were between  0.2% to more than 9%.  Thus far for 2017, I have realized 21 dividend increases! (* = in local currency)

Next month I will realize three raises, from Ameriprise Financial (AMP), General Dynamics (GD), and Omega Healthcare Investors (OHI).  The increases range from around 1.5% to more than 9%.  I will also likely realize a dividend increase from Apple (AAPL), however it has not yet been announced.

May:

Our only remaining debt is extremely low interest auto loans.  So far I have stashed a significant amount of cash, with the impending doom of home shopping on the horizon...

Next month should produce around $242 in dividends, which is a 183% YOY increase, which is mainly attributable to my IRA and a few newer positions plus some growth in my other accounts.

My portfolio page is currently up to date.

Hope everyone has a great May (have fun)!
- Dividend Gremlin
- Long all stock tickers mentioned

Wednesday, April 19, 2017

Bye Loyal 3

Auf Wiedersehen Gremlin here to wish Loyal 3 Good-Bye.  Last night the brokerage sent out a mass email to all its users informing them that they will be shutting down and transferring everyone's assets to "low cost" FolioFirst.  Loyal3 is giving three options: 1 - sell everything, take the money, and run; 2 - do nothing and they will transfer your assets into FolioFirst; or 3 - transfer your shares into another brokerage.  For me this is an easy decision, I will take door #3.  With it Loyal 3 will be selling my fractional shares, depositing whole shares in my main brokerage, and depositing all remaining cash in my checking account.  In addition, they will waive the standard transfer fee.

As for the other options, option 1 is just not my game - selling it all and running for the hills is not what I would do (though it is what survivor-gremlin would do...).  Option 2 was intriguing, FolioFirst offers up to 2000 free trades on 200 companies per month.  However, starting in August they would levy a $5 monthly fee for the account.  Though it would be cheaper to maintain an account here if one was buying / selling often enough considering commissions, it still rings hollow.  I also don't do enough buys to justify this.  Going forward, I plan on reducing costs by trying to increase my buy minimum from $1000 up to $1200 or 1500.  That will reduce my fee percentage, and if necessary the size purchases can be increased.

I had hoped Loyal 3 would continue for another year or two, but in the end the result was going to be the same.  That account was going to be merged with my main brokerage account.  If anything, I am happy that they were around to allow some of my positions to be built from scratch.  In the long run, these positions, regardless of size, will become cogs in the engine that is under construction.

So long Loyal 3, we had a good run.

- Dividend Gremlin

PS if you want a better break down of changes go visit the Dividend Growth Investor.

Monday, April 10, 2017

Recent Buys, April 2017


Health Gremlin here to talk about some more recent buys.  This past weekend was one of the few away I've had in a while.  Many fun jokes were told, sports were played, drinks and merriment were attained by all (or at least most).  Before I left town I made sure I executed some purchases I had been waiting to attend to.  Some of these were in my Loyal3 account and will be included here along with my major buy that I made.  So, what did I buy and why?

First, I added a new position by purchasing shares of Amgen Inc. (AMGN) in my taxable account.  I bought 8 shares, with a total cost of $1305.54 ($162.32 / share).  The current yield is 2.80%.    The P/E ratio for AMGN sits today at approximately 16.  I really want to add more in the healthcare sector in general, and this will be a part of that.  AMGN boasts a 40% payout ratio and 7 years of dividend growth.  This purchase will add $36.80 to my 12-month forward income.  I like AMGN's products, product pipeline, payout ratio, and general moat.  AMGN has been a monster of a company over the past several years, and the products they provide will be profitable for a long time.

Second, I added another new position consisting of around two shares of Starbucks (SBUX) to my Loyal3 account.  The current yield is 1.54%.  The P/E ratio is still high at 29+, but this is a position I have wanted to have for a while.  It will be my window unto the company.  The payout ratio on the yield is a sweet 44%, which is lower than the majority of the industry leaving plenty of room for growth.  Personally, I am not a coffee drinker, but I know that most people are and a lot of them seem to like SBUX.  To be sure, some like Dunkin Donuts (DNKN) too, so I figure it is time to own both.  This purchase will add $2 to my 12-month forward income.

Third, I added around one and a half shares of American Express (AXP) to my Loyal3 account.  The current yield is 1.62%.  The P/E ratio is 13.76.  I also own Discover (DFS) in my Roth.  I like the credit market companies.  They have carved a way forward for the overall world economy.  Its hard to find a place that does not take credit, and its harder deal with those places.  There is also so much more on the financial side to both companies.  Hopefully in the future I can add their other competitors Visa (V) and Mastercard (MA).  This purchase will add $1.65 to my 12-month forward income.

Finally, I added shares two of YUM! Brands (YUM) to my Loyal3 account.  The current yield is 1.87%.  The P/E ratio is around 16.  The payout ratio is approximately 76%, which is high at the moment.  This move was to fill up the position I had started, which split its value with the creation of YUMC.  I think YUM in the long run will be a nice holding, and they are relatively cheap right now.  However, sorting out their finances might slow dividend growth in the short term with the absence of the Chinese contingent bringing it revenue.  Still, I am positive on them, and its a long road ahead. This purchase will add $2.40 to my 12-month forward income.

I will update my portfolio page at the end of the month.  Here is to a strong 2017.

Happy 100th post to me!


- Gremlin
- Long AMGN, SBUX, AXP, DFS, YUM, YUMC

Friday, March 31, 2017

March Review / April Preview 2017

Warm Weather Gremlin here to talk about this past month and the next month.  At this point in the year snow is gone, the sun is shining, and shorts are (almost) becoming the norm for weekend wear.  It also means allergies, but lets not think about that.  March was a successful month, though a busy one.  My side job continues to provide a lot of extra revenue.  Our cash reserve has hit an all time high, thanks to tax refunds, which is great as we attempt to pursue a house at some point soon.  All in all, March has been a window unto the future.  Sadly I have not visited any new breweries or done a lot of fun things, but I think I can knock that in April along with some larger buys.

March:

This past month I put $285 dollars to work on Loyal3, and as if that was not enough I added an extra share of Target for the month (for a total $335 invested).  I aim to keep this pace up for a long time.

Last month I brought in a total of $281.48 in dividends ($98.48 taxable, $61.04 Roth, and $121.96 IRA).  This is an increase from last year ($111.86 total) by 151%.  The IRA being added into the equation really blows this month out of the water

In terms of dividend increases, I realized six this month from Dunkin Donuts (DNKN), Eaton Corp. (ETN), Waste Management (WM), Prudential (PRU), Archer-Daniels Midland (ADM), and 3M (MMM).  Raises were between 2% to more than 9%.  Thus far for 2017, I have realized 15 dividend increases!

Next month I will realize six raises, from Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CM), Dr Pepper Snapple (DPS), Coca Cola (KO), Realty Income (O), and Walmart (WMT).  The increases range from around 0.2% to more than 9%.

Thus far, I have achieved $645.38 in total dividends, which is more than I had in 2011 through 2013, and almost matches my total of 2014.  Being now a little over three years into this, I am starting to see how investing over time really can be supercharged by targeting companies that grow their dividend consistently.

April:

Our only remaining debt is extremely low interest auto loans.  Looking ahead, I will be to saving a solid amount of cash.  This is related to the fact that my wife and I will look to get a house sometime in the next (few) year(s).  I want to go in with a decent down payment to make sure we get what we want.

I hope to post more than one time next month... But we will see, April is already slated to be busy.

Next month should produce around $71 in dividends, which is a 15% YOY decrease, which is attributable to KHC switching its month of payment.  Things are otherwise coming together nicely.

My portfolio page is currently up to date.

Hope everyone has a great April (stay dry)!
- Dividend Gremlin
- Long all stock tickers mentioned

Wednesday, March 22, 2017

Loyal3 Buys, March 2017

Post Saint Patrick's Gremlin here to discuss some recent buys.  Hope everyone celebrated the recent frivolities with exceptional vigor.  I did not, I had some Guinness and played some bored games, because that is how I roll.  Its kind of nice to be away from crowded bars overcharging for the same thing; though it must be admitted the draught / draft Guinness is almost always better.  That being said, I prefer Murphy's over the Guinness and Rum to whisk(e)y any day of the week...  Whatever, what did I buy?

I bought 2 shares of YUM for $125.  This will add $2.40 to my forward annual income, considering the division of YUM China (YUMC).  YUM will be a pleasant long term holding, however they will sputter short term due to the split with YUMC.  This is part of building the position back, post split, so it can become a proper sized cog in my machine.

I bought 1+ shares of Doctor Pepper Snapple (DPS) for $100.  This will add $2.32 to my forward annual income.  DPS is another position I want to fill out as soon as possible.  I am hoping to fill out several positions this year, as I push to merge it with my standard brokerage.

I bought 1+ shares of Target (TGT) for $55.  This will add $2.40 to my forward annual income.  TGT has been sorely beaten down of late, and this is me increasing my position.  TGT will acquire other JET.com style sites as Walmart (WMT) has.  Sure, in 20 years I might sell out of both for reasons other long term retailers have failed, but for the time being they are in a position of strength with their resources on hand.

With these purchases I have invested a total of $280 and increased my annual income by $7.12+.  I expect to keep rolling through months at this clip in Loyal3.  In my regular brokerage account, several larger buys are on the menu for next few months.  Looking forward to those.

Do you use Loyal3?
- Gremlin
- Long YUM, YUMC, DPS, TGT, and WMT

Tuesday, February 28, 2017

February Review / March Preview, 2017

Oscars Gremlin here to talk about this past month and the future.  I am glad the 'award' season is basically over, because it is annoying to hear about them all the time from people or the media.  This year I was a victim of circumstance and had to watch some of these shows.  I long for the day when we see an award show broadcast for engineering and science beyond the Nobel Prizes.  I would like some categories like 'best new building', 'most innovative green technology', or even 'coolest new species'.  Anyways I digress, February is where the year starts to pick up the pace (and temperature, where the hell did winter go?!).  Everything is now busy, and I'm not even an accountant.

February:

This past month in Loyal3 I added 4 shares of VF Corp. (VFC) and 1 share of Target (TGT) for a combined total of $275.  Both have been showing market weakness, and they are venerable stocks I desire in my portfolio.  TGT has in particular been beaten down in the market.  Snap Decision Investors (I call them that) have noted politics, earnings, and leadership as a reason for short term demise and a reason to stay away long term.  This line of reasoning shocks me.  Do people not think that TGT will pull a WalMart (WMT) and scoop up websites like Jet.com, and expand  their online footprint?  Also with political the stuff, times are always changing and people barely can keep up with yesterday's news... good luck with remembering what happened a year ago.  So I am happy to say I got some good prices there.

Last month I brought in a total of $225.94 in dividends ($20.51 taxable, $64.7 Roth, and $140.73 IRA).  This is an increase from last year ($67.59 total) by 234%.  The IRA being added into the equation really blows this month out of the water

In terms of dividend increases, I realized six this month from Realty Income (O), Abbott Labs (ABT), AT&T (T), CVS Health Corp (CVS), Welltower (HCN), and Omega Healthcare Investors (OHI).  Raises were between less than 1% and 4.5%.  Thus far for 2017, I have realized 9 dividend increases!  Consistency is the name of this game.

Next month I will realize six raises, from Dunkin Donuts (DNKN), Eaton Corp. (ETN), Waste Management (WM), Prudential (PRU), Archer-Daniels Midland (ADM), and 3M (MMM).  The increases range from around 2% to more than 9% .

March:

Our only remaining debt is extremely low interest auto loans.  Looking ahead, I will be to saving a solid amount of cash.  This is related to the fact that my wife and I will look to get a house sometime in the next (few) year(s).  I want to go in with a decent down payment to make sure we get what we want.

I hope to post more than one time next month... But we will see, March and April are already slated to be busy.

Next month should produce around $258 in dividends, which is a 131% YOY increase, most of which is attributable to my new IRA.  Things are coming together nicely.

My portfolio page is currently up to date.

Hope everyone has a great March!
- Dividend Gremlin
- Long all stock tickers mentioned

Tuesday, January 31, 2017

January Review / February Preview, 2017

Snowboarding Climbing Gremlin here to talk about this past month and the future.  My ankle is still not 100%, but I am getting back to doing things, including getting in a round of snowboarding this past month.  Though January is never normal, doing stuff like that gets me closer back to normal.  January in my family has a huge rash of birthdays, plus there are holidays and crazy events like inaugurations that we have to deal with in my town.  Other than those January is also a surprisingly slow month.  It is slower at work, in dividends, and everything else.  Regardless, let see how things went.

January:

I bought only 2 shares in VFC this month, spending a little more than $100 in my Loyal3 account.  I am gearing up for a strong rest of the year for saving and investing, so I am not concerned with a slow start.

Last month I brought in a total of $67.05 in dividends ($67.05 taxable, $0 Roth, and $0 IRA).  This is an decrease from last year ($75.76 total) by 11.5%.  This decrease is due to Kraft Heinz (KHC) paying out its dividend a month early, so nothing to worry about there.

In terms of dividend increases, I realized three this month from Realty Income (O), General Electric (GE), and Canadian Imperial Bank of Commerce (CM).  Raises were between less than 1% and 4.5%. 

Next month I will realize six raises, from O, Abbott Labs (ABT), AT&T (T), Omega Health Care (OHI), and Welltower, Inc. (HCN).  The increases range from less than 1.1% to just under 4% . Thus far for 2017, I have realized 3 dividend increases!  These following increases are small, but several are from companies that deliver consistent increases.

February:

Our only remaining debt is extremely low interest auto loans.  Looking ahead, I will be to saving a solid amount of cash.  This is related to the fact that my wife and I will look to get a house sometime in the next (few) year(s).  I want to go in with a decent down payment to make sure we get what we want.

I hope to post more than one time next month...

Next month should produce around $207 in dividends, which is a 207% YOY increase, most of which is attributable to my new IRA.  So far I already out earned my annual total in 2011, things are starting to click.

My portfolio page is currently up to date.

Hope everyone has a great February!
- Dividend Gremlin
- Long all stock tickers mentioned