Thursday, July 30, 2020

July 2020 Buys

California Gremlin here to talk about what investments and sales I have made over the past month.  I am currently away from my usual stomping grounds as my daughter recovers from her heart surgery.  It was a long and grueling procedure, but things are looking a lot better now than they were a week ago. Kids are amazing in how resilient they are, and indeed people in general are such.  These surgeries (she will need at least one more major one) have made me rethink things about financial independence and health care. Anyways, enough about that let's talk about what was bought.

No purchase or account fees were paid this month (* indicates a new position, which will be discussed below):

Taxable:
SALES: None.
KR - 5 shares @ $32.90 ($164.50), $3.60 income added
JNJ - 1 share @ $155.26 / share, $5.88 income added
Total Invested = $319/76
Annual Income Added (AIA) = $9.48

Roth:
AROW - 1 share @ $28.04, $1.04 income added
Total Invested = $28.04
AIA = $1.04

Standard IRA:
None.
Total Invested = $0
AIA = $0

Totals:
Invested = $347.80
AIA [net] = $10.52

Sales and Cuts:
D: This was a bit shocking, to receive a 33% dividend cut from Dominion.  I am leaning towards selling the stock for a minor profit, but I can see their new approach being prudent as well.  I will continue to ponder this unless the price moves to a point where I would be satisfied with a sale.

I will update my portfolio page at the end of the month.

What do you think of these companies?

- Gremlin
- Long most tickers mentioned.

Wednesday, July 1, 2020

June Review / July Preview 2020

Not Ready Gremlin here to discuss June and July.  So I am not ready to do this, but we will be traveling with our 8 month old across the country for some major heart surgery.  To answer the question upfront, we are traveling because this is a highly specialized procedure of which only a few places in the world have extensive experience. Thankfully one such place is in the USA, although it is not at all conveniently located for us. Considering that, we are taking a lot of precautions considering the state of the world; indeed we have been much more cautious now since she was born and at the start of this outbreak relative to most people we know. Sometimes I wish people would see the risks we are seeing from our perspective, or our 8 month old's (minus all the baby babel and literal pants pooping).

Anyways, that is the doom and gloom of our lives.  Not to be confused with the doom and gloom that the market seems to be staring right past.  The economic ripples of this whole experience may eventually rise to become a tsunami, but in the meantime I will proverbially continue to invest in the best boats out there I can find. So how did we do?

June:

This month I added shares to 9 positions and sold off three positions in my accounts. Selling should minimal for the remainder of the year, with our current stock mix having much stronger balance sheets across the board.

Last month I brought in a total of $515.86 in dividends ($232.21 taxable, $124.10 Roth, and $159.55 in my IRA).  This is an increase from last year ($438.81 total) by 17.5%.

In terms of dividend increases, I realized 2 dividend increases from Pepsico (PEP) and Johnson & Johnson (JNJ).  The increases were 7 and 6.5%, respectively. This brings my total raises to 30 for 2020.

Next month I will realize 3 dividend increases from Cardinal Health (CAH), Medtronic PLC (MDT), and Realty Income (O).  The increases range from 0.2% to 7% (for MDT).

My fund has absorbed the following cuts or suspensions this year: Disney (DIS) [sold], Dunkin Brands (DNKN) [sold], the Gap (GPS) [sold], YUM China (YUMC) [sold], Kontoor Brands (KTB) [sold], WestRock (WRK) [hold], and Welltower (WELL) [hold].

NOTE: I only count increases when realized, because until that money is delivered any statements or declarations are simply conjecture.

July:

The mortgage continues and I am putting extra cash towards the principal monthly - not a huge number, but every little bit counts. Our debts currently outstrip our assets, because I consider our house a liability and NOT an asset.

I will continue to make rolling purchases going forward.

Next month should produce around $146 in dividends, which is a 10% YOY increase.

My portfolio page is currently up to date.

Hope everyone has a sunny July.
- Dividend Gremlin
- Long all stock tickers, minus those sold

Sunday, June 28, 2020

June 2020 Buys and Sells

Old Man Gremlin here to talk about what investments and sales I have made over the past month.  In June I finally closed out a few positions that had eliminated or suspended dividends and reinvested that money to dividend growing streams.  This is an annoying, but necessary process where I add more towards quality while discarding stocks with inferior management teams / business plans.  Long term this is a positive thing, but it does feel like bloodletting.

Market wise, I am a bit flabbergasted.  My science / engineering and history background tells me that the market is currently not even close to a true reflection of the US and world economic reality.  I keep saying we will not truly be able to understand or appreciate this period of time for another five to ten years.  However, it still feels like there is a middle ground approach that this world has consistently missed. The issue is, as always, how something can be done - not that should or even could it be done (i.e. can the laboratory conditions be replicated consistently in the real world?).  Anyways, I digress - what did I buy.

No purchase or account fees were paid this month (* indicates a new position, which will be discussed below):

Taxable:
SALES: GPS, KTB, and YUMC - all shares, wash sale (total proceeds of $925.39)
AXP - 2 shares @ $99.61 ($199.22), $3.44 income added
CM - 2 shares @ $68.99 ($137.99 total), $7.10 income added [approx. $CAD]
GD - 2 shares @ $153.83 / share ($307.66 total), $8.80 income added
JNJ - 1 share @ $139.46 / share, $4.04 income added
KO - 3 shares @ 45.66 / share ($137 total), $4.92 income added
CSCO - 2 shares @ $46.80 / share ($93.59 total), $2.88 income added
RY - 5 shares @ $68.28 / share ($341.39 total), $13.10 income added [approx. $CAD]
Total Invested = $1356.31
Annual Income Added (AIA) = $44.28

Income lost due to YUMC cut = $5.72
Net: +$38.56

Roth:
CSCO - 2 shares @ $46.04 / share ($92.08 total), $2.88 income added
LEG - 1 share @ $34.07, $1.60
Total Invested = $126.15
AIA = $4.48

Standard IRA:
FLIC- 9 shares @ $14.98 / share ($134.80 total), $6.48 income added
Total Invested = $134.80
AIA = $6.48

Totals:
Invested = $1617.26
AIA [net] = $49.52

Sales and Cuts:
YUMC: I received this as a spinoff from YUM, and I was pleasantly surprised by their initial dividend growth, however they have fallen off a cliff in terms of the dividend.  I locked in a huge gain on this sale, and it washed my losses to the point where I am slightly ahead.
GPS & KTB: As I stated last month, I did plan to sell these two, and I did after a minor recovery.  Overall they are a disappointment, especially KTB.  That said sometimes the lesson is worth the weight, and the recovered cash will go be a lot more useful than these two anchors are at the moment.

I will update my portfolio page at the end of the month.

What do you think of these companies?

- Gremlin
- Long most tickers mentioned, except GPS, KTB, and YUMC.

Monday, June 1, 2020

May Review / June Preview 2020

What a World Gremlin here to discuss May and June.  Ah the law of unintended consequences and the principle of when it rains - it pours. The situation in the USA can best be described as sticky with social unrest in the middle of a once a century medical emergency. In the meantime, I am planning for a cross country trip for my daughter to get her (hopefully) last major heart surgery. So all I am looking for is some peace, quiet, and a smooth trip.

That said none of this will slow the financial freedom snowball.  After all, it is not just financial freedom for myself, but also for my family.  So, despite everything going on in the world, how did my investing do this month?

May:

This month I added shares to 10 positions and sold off two positions in my accounts.

Last month I brought in a total of $324.20 in dividends ($99.29 taxable, $109.61 Roth, and $115.3 in my IRA).  This is an increase from last year ($323.36 total) by 0.25%.

In terms of dividend increases, I realized 5 dividend increases from Apple (AAPL), Royal Bank of Canada (RY), Ameriprise Financial (AMP), Kinder Morgan (KMI), and General Dynamics (GD). The increases range from 3% to 10%. This brings my total raises to 28 for 2020.

Next month I will realize 2 dividend increases from Pepsico (PEP) and Johnson & Johnson (JNJ).  The increases are 7 and 6.5%, respectively.

My fund has absorbed the following cuts or suspensions this year: Disney (DIS) [sold], Dunkin Brands (DNKN) [sold], the Gap (GPS) [hold for now],  Kontoor Brands (KTB) [hold for now], WestRock (WRK) [hold], and Welltower (WELL) [hold].

NOTE: I only count increases when realized, because until that money is delivered any statements or declarations are simply conjecture.

June:

The mortgage continues and I am putting extra cash towards the principal monthly - not a huge number, but every little bit counts. Our debts currently outstrip our assets, because I consider our house a liability and NOT an asset.

I will continue to make rolling purchases going forward.

Next month should produce around $510 in dividends, which is a 16% YOY increase.

My portfolio page is currently up to date.

Hope everyone has a June that is better than May.
- Dividend Gremlin
- Long all stock tickers

Thursday, May 28, 2020

May 2020 Buys and Sells

Getting Old Gremlin here to talk about my buys for this past month.  I turn 35 next month, and I am going to go out on a limb and state this will be the lamest birthday this far in my life, but better now than in my 20s! Anyways, the market seems wildly out of line with reality.  I have also recorded several dividend cuts and suspensions, which resulted in my action to sell my first stocks in over a year.  I do not have a fast and hard criteria set for selling, however I do have some general guidelines.  1 - does the cut or suspension show me something new about their financial and market position?  2 - Is the cut a complete cut or suspension or a partial cut?

If #1 is answered yes, then if it is clearly negative and their market share is impacted then they will be sold (an example of this was TUP, which has lost its market dominance over the years). If #1 is no and #2 is only a partial cut and done in a way to eliminated debt or deal with some unusual circumstance, I will likely keep the stock assuming it can eventually resume growth (examples include KMI, WRK, and KHC). If it is a full cut, I will sell the position.  In addition, I operate under the same mantra as Maynard Keynes: "When my information changes, I change my mind. What do you do?" No sense in being stuck in the mud due to an idea. Also as a reminder my horizon is decades.

No purchase or account fees were paid this month (* indicates a new position, which will be discussed below):

Taxable:
SALES: DNKN and DIS - all shares, approximate profit of $190 (total proceeds of $1234.66)
MMM - 1 share @ $149.45, $5.88 income added
CM - 2 shares @ $61.7 ($123.40 total), $7.10 [approx. $CAD]
RTX* - 10 shares @ $54.50 / share ($545 total), $19 income added
BKH* - 10 share @ $56.40 / share ($564 total), $21.4 income added
MDT - 1 shares @ $92.89 / share , $2.32 income added
CSCO - 2 shares @ $44.23 / share ($88.47 total), $2.88 income added
Total Invested = $1563.21
Annual Income Added (AIA) = $58.58

Income lost due to DNKN, DIS, GPS, and KTB cuts = $65.2
Net: -$6.62

Roth:
AROW - 1 share @ $25.02 / share, $1.44 income added
GLW - 3 shares @ $20.52 ($61.57 total), $2.64
Total Invested = $86.59
AIA = $4.08

Standard IRA:
FLIC- 5 shares @ $14 / share ($70.03 total), $3.6 income added
WTRG - 1 share @ $40.27, $0.94
Total Invested = $110.30
AIA = $4.54

Totals:
Invested = $1760.10
AIA [net] = $2


*New Positions:
RTX: I only own one other defense company, GD.  I feel these companies are built for the next 20 years and will only continue to be financially rewarded and rewarding. Militarily, the USA has a technological dominance and it will always work to maintain that.  In addition, RTX has a massive portfolio of technologies it supports to the US government, other national governments, and to private industry. There are only a few major international players in these markets (NOC, LMT, etc.), most of which I also want to own.  I plan to at least double this position as long as costs stay reasonable and I have the money to do so.

BKH: I only own two other utilities, D and WTRG. Nominally, I really like utilities, especially ones that are in less contested regions or those that are not in the midst of multi decade declines. BKH meets all those and was temporarily priced in an attractive fashion. Indeed BKH has been on my watchlist now for years.  I believe that it along with D, SO, and WEC are among the best managed electric utilities.  I plan to build double this position as long as costs stay reasonable and I have the money to do so.

Sales and Cuts:
DNKN & DIS: Both of these stocks decided to suspend their dividends for the remainder of 2021.  I would buy back into both, but I found these decisions to be very disappointing considering their size and financial positions.  Of the two, the suspension from DIS left me with a bitter taste in my mouth, and it will be years before I think about deploying capital here.
GPS & KTB: Both of these companies suspended dividends for the remainder of the year.  Their share values dropped so hard that I have held them, but I will sell them as soon as they hit a number I am comfortable with.  It will be a miracle if I ever touch these two again, the quality and resiliency is just not there.

I will update my portfolio page at the end of the month.

What do you think of these companies?

- Gremlin
- Long most tickers mentioned, except TUP, DNKN, DIS, SO, and WEC.

Monday, May 4, 2020

April Review / May Preview 2020

Still Quarantined Gremlin here to discuss April and May.  Wow this sometime we are all living in, and honestly it will be 10, 20, or 100 years before someone looks back on this period of time and knows what the really hell happened.  Yes, we can all wrap our heads around information (perhaps even all of the information), but its not all available.  Anyways, not to stump on the issue, but this is beyond historical and unprecedented.  As a person who loves history - its fascinating.  As a person still at home most of the time with two kids that love to scream, at times in unison, its a bit frustrating.  Luckily the market is a hot mess / basket case.  So lets see how we did.

April:

This month I added shares to seven positions in my accounts.

Last month I brought in a total of $134.44 in dividends ($112.77 taxable, $11.08 Roth, and $10.7 in my IRA).  This is an increase from last year ($102.81 total) by 30%.

In terms of dividend increases, I realized 6 dividend increases from the Canadian Imperial Bank of Commerce (CM), Coca Cola (KO), Realty Income (O), TD Bank (TD), WalMart (WMT), and Kimberly Clark (KMB). The increases range from 0.2% to 7%. This brings my total raises to 23 for 2020.

Next month I will realize 4 dividend increases from the Apple (AAPL), Royal Bank of Canada (RY), Kinder Morgan (KMI), and General Dynamics (GD).  The increases range from about 3% to 10%.

In addition, I have received one dividend halt/pause/suspension from the Gap (GPS) and Dunkin Brands (DNKN). These are not a huge positions for me, and I will hold, but it is annoying. DNKN should especially be able to return to form once this crisis is over.  Total lost forward 12 month income stands at: $27.74 (approx. 1.58% of taxable income)

NOTE: I only count increases when realized, because until that money is delivered any statements or declarations are simply conjecture.

May:

The mortgage continues and I am putting extra cash towards the principal monthly - not a huge number, but every little bit counts. Our debts currently outstrip our assets, because I consider our house a liability and NOT an asset.

I will continue to make rolling purchases going forward.

Next month should produce around $350 in dividends, which is a 8% YOY increase.

My portfolio page is currently up to date.

Hope everyone has a May that is better than April.
- Dividend Gremlin
- Long all stock tickers

Wednesday, April 29, 2020

April 2020 Buys

Still at Home Gremlin here to talk about my buys for this past month.  Wow, almost two full months of being in lock down and for all I know we might still just be in the beginning.  It certainly is a trying thing, especially with young kids at home - sadly, I have not really picked up any new languages or cool skills.  However, I have discovered at least one new podcast that I enjoy and we are spending less money.  Silver linings...

So the question is will the market tank again or take a rocket ride directly into the sun?  No one really knows, but it is clear that the effects of both this virus and its lock down are not fully known yet.  Indeed the only consequences I would bet on are the unintended ones.  That said, I keep improving my positions because the future is now!

No purchase or account fees were paid this month (* indicates a new position, which will be discussed below):

Taxable:
BMO - 3 shares @ $49.56 / share ($148.68 total), $8.1 income added [approx. $CAD]
DNKN - 1 share @ $54.99 / share, $1.61 income added
EV - 3 shares @ $30.41 / share ($91.23 total), $4.5 income added
GD - 1 shares @ $133.23 / share , $4.40 income added
NNN - 2 shares @ $31.14 / share ($62.28 total), $4.12 income added
Total Invested = $490.37
Annual Income Added (AIA) = $22.73

Roth:
AROW - 1 share @ $27.72 / share, $1.44 income added
Total Invested = $27.72
AIA = $1.44

Standard IRA:
FLIC- 2 shares @ $14.72 / share ($29.44 total), $1.44 income added
Total Invested = $29.44
AIA = $1.44

Totals:
Invested = $547.53
AIA = $25.61

*New Positions:
None.

I will update my portfolio page at the end of the month.

What do you think of these companies?

- Gremlin
- Long all tickers mentioned