December 2017 Review / January 2018 Preview & End of Year Review

Happy End of Year Gremlin here to talk about December and the end of this year.  This December has been very busy.  I have completed another professional certification (CSP), dealt with Christmas shopping, run the holiday party gauntlet, and delivered a work presentation.  All while changing diapers and doing all that good dad stuff.  Most positive things should be challenging, so it makes sense that December has indeed been a splendid month.  I expect the hard work to pay off strongly in a monetary, professional, and social fashions.  Part of getting better opportunities are the credentials you have and putting forth a good personality along side of it.

It is also the end of the year.  2017, for all its hubbub and commotion, was good year for me.  Bought a house, had a baby, etc.  My investments and life have a lot of momentum, and the goal is to keep that going into 2018.

December:

This month I added one new position, Leggett and Platt (LEG), in my Roth IRA. 

Last month I brought in a total of $349.36 in dividends ($135.59 taxable, $80.64 Roth, and $133.13 in my IRA).  This is an increase from last year ($262.32 total) by 33.1%.  This total is my new highest ever.  My IRA is now a year old, and my percentages will not look as ridiculous, but the totals will continue to look juicy.

In terms of dividend increases, I realized five this month from McDonald's (MCD), Microsoft (MSFT), Starbucks (SBX), Union Pacific (UNP), VF Corp (VFC), and Emerson Electric (EMR).  The increases range from 1.3% to 20% - most being in the 6-10% range.  This brings my total raises to 50 on the year, with 1 cut and 1 initiation.

Next month I will realize two dividend increases from Realty Income (O) and Disney (DIS), at 0.2% and 11.5%, respectfully. Also one cut from General Electric (GE).

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

January:

The mortgage continues, so at least part of our 'rent' counts towards our house. Our debts currently outstrip our assets.  Outside of our house, we still have very low interest auto debt (1.9 and 1.5% for our cars).  Both my car and house are receiving slightly out-sized payments monthly.  We are effectively eliminating debt, while still building and assets.  Even with a new Gremlin in the lair. This is a long game, and I am nothing if not patient.

I should be making another buy in January in my taxable account.

Next month should produce around $73 in dividends, which is a 3% YOY decrease.  This decrease is thanks the the excellent leadership at GE.

My portfolio page is currently up to date.

2017:

What a year.  So let's look at how I did last year compared to the goals I laid out for myself.

(Results in RED):

• Break $2500 in total dividends.  Fail. $2481 - Ugh dammit.
• Achieve forward dividends for taxable accounts of $1000.  Fail. $926 - Dammit, again.
• Get back into shape, specifically workout 5 times a week.  Mostly a success, I am about 5lbs lighter than I was at this time last year.  Even with the baby I am able to workout 3/4 times a week, so thumbs up.
• Bike to as many local places as possible, do less driving (already half way there as I do not drive to work).  Success.  I usually bike to the train station from my new house (but my bike seat was stolen recently, sigh).  I have biked and walked to the store bunch to do shopping too.

Overall that is a 2/4 success rate.  Not the best performance overall.  2017 had a lot of challenges, a new baby, a new house, etc.  I came pretty close to what I wanted and that is a success itself.

2018: 

So the question becomes what do I attack for 2018?  My main goal is to achieve the biggest swing in net worth overall.  There are two facets to that, first targeting debt and second adding wealth.

• Invest a total of $8000 next year, $6000 in taxable accounts, at a minimum.
• Achieve forward total dividends for all accounts of $3000.
• Keep getting into shape - lifting 2x and running 2x / week and bike to the train station + other places.
• Reduce total spending (after debt payments) by at least 10%.

A huge goal for 2018 will be to invest more and spend less.  This is a bigger challenge than it seems because my wife will not be working in any capacity until August.  We have decided it best for her to stay with the baby for the 1st year of his life, before he gets to spend his days with Grandma.  We both strongly believe this is in his best interest for healthy development.

We are admittedly boring these days, and that is fine by me.  Its cheaper and honestly, I do just as much enjoyable stuff without blowing loads of money.  I believe 2017 was a turning point and 2018 will reflect that.

Hope everyone has a great January and a Happy New Year!
- Dividend Gremlin
- Long all stock tickers mentioned

My Second Double

Investor Gremlin here to talk about the second time a stock of mine doubled in value over its initial purchase cost.  Today, my shares of Westlake Chemical (WLK) broke through the 100% barrier, becoming the second stock in my portfolio to do so.  My position in WLK was initiated at the end of 2016 using rollover 401k funds in my IRA.  Of all the companies in my IRA WLK was added as the "large percentage / low yield grower."  In addition, WLK represented the first materials company in my portfolio overall, which is now augmented by my recent acquisition of Sonoco Products (SON).

Overall the ride with WLK has been pretty wild.  My 45 shares were worth $2500 at the end of last year, and now are worth more than $4500 (original investment was $2270).  I have had a few friends tell me 'time to sell.'  I disagree, I am here for the income primarily.  The capital gains are nice, but I currently do not see the upside in selling without risking future payouts.  I see WLK continuing in its prosperity, and that the price run up is due more to sound fundamentals as opposed to rampant speculation.

What do you think of WLK?

- Gremlin
- Long WLK and SON

Recent Buy, December 2017

Admiring the Furniture Gremlin here to talk about my recent buy.  It has been a very busy couple of weeks going between the holidays, which means breaking down the past one and setting back up for the next one.  On top of that I have several work related functions, including another professional test that are eating into my time.  Not to mention a baby Gremlin with his own demands and needs.  Keeping up with exercising, the market, and everything else I enjoy is harder.  It makes me want to work not only harder, but also smarter so I can get as much time back as possible.  So in working smarter one typically acquires new skills and knowledge.  So here is a new bit of knowledge I am adding to the pile, which will contribute financially:

Today, I added a new position by purchasing shares of Leggett and Platt (LEG) in my Roth account.  I bought 25 shares, with a total cost of $1,159.08 ($46.09 / share, plus commission).  The current yield is 3.12%.  The P/E ratio for LEG sits today at approximately 19.23, trailing.  This is about the same as the historical 5 year average for the stock with the average yield being 3.12% and significantly better than average P/E being 28.07.  LEG boasts a trailing payout ratio of approximately 56.7%.  LEG has 46 years of dividend growth and is a member of the Dividend Champions.  This purchase will add $36.00 to my 12-month forward income.

LEG has provided dividend increases for a long time, and generally averages around 4% dividend growth each year.  LEG is a well known company, so most people probably know what they do.  In case you don't here is a description in their words:

"Leggett & Platt Inc is a manufacturer that conceives designs and produces engineered components and products found in homes, offices, retail stores, automobiles and commercial aircraft."

LEG is my first Consumer Discretionary company housed in my Roth account.  LEG makes mainly furniture, of all shapes and sizes.  The residential and industrial components have plateaued, but their commercial and specialty groups have ballooned.  I believe they will ride those two groups to be a major continuing success.  The commercial group supplies automakers, airplanes, trains, etc. and the amount of those will only go up the more people there are in the world moving around.  In addition, their specialty line fills in a lot of niches that are hard to fill otherwise.

Humans are more concerned about better furniture - make sure it is ergonomic, comfortable, useful, stylish, and portable - and with burgeoning growth in terms of both world population and wealthy segments of that population this growth in success will continue.  Lastly, this is also not an industry I see poised to lose out to internet mania.  Perhaps one day robots will need a chair and an ottoman to rest their feet (or circuits), but now is not that time.

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

What do you think of LEG? 

- Gremlin
- Long LEG

November Review / December Preview, 2017

Turkey Trot Gremlin here to discuss November.  As we speak it is high time for the holidays; the Turkey Festival of Winter Fattening is in the rear view mirror and the Big Red Suit Display Case is on the horizon.  This means getting gifts for my nieces / nephews and seeing the family for a second time (or 1st if I missed them prior).  Hockey is now in full swing (though sadly the Olympics will be a bit short on that end), football is winding down.  It is a great time of year.  Time to be frugal and continue to workout without using a gym, make lunches for under $2 every day, and generally skimp on unneeded luxuries.  Having a kid helps out with this a lot.  This is the last month of 2017 coming up, and I view it as a strong springboard into an even better 2018.

November:

This month I made no new purchases.

Last month I brought in a total of $240.04 in dividends ($36.25 taxable, $58.34 Roth, and $145.45 IRA).  This is an increase from last year ($235.86 total) by 1.8%.  Affecting this change were several stocks moving their payment to December including Discover (DFS), and some companies such as Dunkin Brands (DNKN) not paying out early like they did last year in November.

In terms of dividend increases, I realized* three this month from from American Express (AXP), Omega Healthcare (OHI), and Verizon (VZ).  The raises range from 1.6% to 9%.  Thus far for 2017, I have realized 44 dividend increases!

Next month I will realize six raises from McDonald's (MCD), Microsoft (MSFT), Starbucks (SBX), Union Pacific (UNP), VF Corp (VFC), and Emerson Electric (EMR).  The increases range from 1.3% to 20% - most being in the 6-10% range.  This will propel me to a total of 50 increases, 1 initiation, and 1 cut I discussed earlier this month.

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

December:

The mortgage continues, so at least part of our 'rent' counts towards our house. Our debts currently outstrip our assets.  Outside of our house, we still have very low interest auto debt (1.9 and 1.5% for our cars).  Both my car and house are receiving slightly out-sized payments monthly.  We are effectively eliminating debt, while still building and assets.  Even with a new Gremlin in the lair. This is a long game, and I am nothing if not patient.

I should be making a buy in December, unless the Mr. Market goes bonkers.

Next month should produce around $348 in dividends, which is a 32% YOY increase.  I anticipate ending the year with a YOY increase of 75%, thanks mainly to my new IRA holdings.

My portfolio page is currently up to date.

Hope everyone has a great November.
- Dividend Gremlin
- Long all stock tickers mentioned

2017's Dividend Increases

Dividend Gremlin here to discuss this 2017's dividend increases that have been received.  At this point in the year no new increases are expected to hit my account, though some may still be announced before the end of the year for 2018.  At this point these increases are not the driver of investment income growth, and they can be easily forgotten about.  However, though their present impact is minimal, longer term their impact will be both easier to quantify and undeniable.  The real power of compounding is not comprehended until much later in the game, which means that those who do not foresee this in the present will miss out on it in the future.

So far this year I have received a record fifty (50) dividend increases from a total of forty (40) companies.  The increases range from 0.2% at the low end given quarterly by Realty Income (O) to 16% and over given by Discover (DFS).  Of note, four of my companies had multiple increases including Bank of Nova Scotia (BNS), CIBC (CM), O, and Omega Healthcare (OHI).  These increases reflect growth coming from a wide variety of industries, products, and businesses.  All told they have added approximately $175 to all my accounts in terms of forward projected income.  It would take an additional ~$5800 invested at a 3% yield to nominally achieve that.

In addition, I experienced spin off one company, YUM China (YUMC), establishing its first ever dividend; chronicled earlier here.  That was exciting news, but there was one sore spot with a singular dividend cut coming from problem child General Electric (GE).  GE started the year off with a dividend increase, only to cut the yield by 50%.  Even with that dividend cut, my projected income is still significantly higher than last year (my above $175 total reflects this change). 

My stock holding diversity shows, in a positive light, that when one company gets out of line and cuts its dividend the impact is minimal.  There are so many others working out there to boost my income regardless of GE's failure to even maintain its dividend.  This is the second most important part of investing, that the rest of your portfolio keeps moving even if some parts fall behind.

I have discussed these issues with friends, who usually just scoff at these increases as being mere chump change.  That is their prerogative, but it will not alter my methods or progress.  Sure it is chump change now, but get back to me in a few years, see how you feel then.  It is my sincere hope that those of you crazy enough to read anything I post see this logic, and put on your running shoes because this game is a marathon not a sprint.

- Gremlin
Long O, DFS, BNS, CM, OHI, YUMC, and GE (😒)

October Review / November Preview, 2017

Candied Out Gremlin here to talk about last month and this month.  Halloween came and went recently, Lil Gremlin got lucky to get dressed up and get smothered with all the attention.  Little dude stole the show of course.  Otherwise, this month has been crazy.  Got a new set of feet under the house, and a new series of challenges that comes with it.  My sleep cycle has certainly been altered, but its nothing I can't handle.  Everyone always warns new parents of the troubles, but so far its been exactly what I expected.  A great time, but far from perfect.  I am excited to make new memories and watch Lil Gremlin grow - which is for next month.

October:

This month I made one new purchase of Sonoco (SON) in my taxable account.

Last month I brought in a total of $68.22 in dividends ($68.22 taxable, $0 Roth, and $0 IRA).  This is an decrease from last year ($81.58 total) by 16%.  This change primarily reflects the changing payout month of Kraft-Heinz (KHC), a topic that is finally finished.

In terms of dividend increases, I realized* three this month from CIBC (CM), Scotiabank (BNS), and Realty Income (O).  The raises range from 0.3% to 4%.  Thus far for 2017, I have realized 41 dividend increases!

Next month I will realize three raises from American Express (AXP), Omega Healthcare (OHI), and Verizon (VZ).  The increases range from 1.6% to 9%.

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

November:

The mortgage continues, so at least part of our 'rent' counts towards our house. Our debts currently outstrip our assets.  Outside of our house, we still have very low interest auto debt.  Both my car and house are receiving slightly out-sized payments monthly.  We will be effective at eliminating debt, while still building and assets.  Even with a new Gremlin in the lair. This is a long game, and I am nothing if not patient.

My next buy will likely be in December.

Next month should produce around $236 in dividends, which is a 1% YOY increase.

My portfolio page is currently up to date.

Hope everyone has a great November.
- Dividend Gremlin
- Long all stock tickers mentioned

Recent Buy, October 2017

Costume Ready Gremlin here to talk about a recent buy.  Life has slowed down, of late - something that usually happens after the birth of a little one.  So far everyone continues to be happy and healthy, and we are getting ready for a small Halloween party.  Hooray for simple family costumes - time savers and generally cheaper - and simple parties with friends.  They provide for real happiness and keep costs down.  Using some of that saved income, we have made a new dividend stock purchase.  Every purchase is another building block towards that goal.  So here is a new brick:

Yesterday, I added a new position by purchasing shares of Sonoco Products (SON) in my taxable account.  I bought 23 shares, with a total cost of $1190.48 ($51.46 / share, plus commission).  The current yield is 2.98%.  The P/E ratio for SON sits today at approximately 19.75, trailing.  This is about the same as the historical 5 year average for the stock with the average yield being 3.08% and the average P/E being just under 19.29.  SON boasts a trailing payout ratio of approximately 57%.  SON has 35 years of dividend growth and is a member of the Dividend Champions.  This purchase will add $35.88 to my 12-month forward income.

As I said this is a new Purchase, and SON is not a well known company, so you are probably wondering what do they do here?  So SON, what do you do?  Well here is a description in their words:

"Over its 100-year-plus history, Sonoco Products has steadily assembled a diverse portfolio of industrial and consumer packaging product offerings such as flexible and rigid plastics, reels and spools, pallets, and composite cans. In the next few years, we believe Sonoco will continue to invest in its advantaged product lines (composite cans and tubes and cores), primarily through overseas acquisitions. Sonoco has raised its dividend annually for more than 30 years, a streak we expect to continue."

SON is my first basic materials company housed in my taxable account.  Packaging will always be thing, that is simple.  There product line covers so many different types of products, so even during a downturn they should have no problem bringing in enough money to cover their needs and my dividend.  Also they have made important recent strides in the packaging industry, something that should reward shareholders for decades.  Also that last line is awesome - a streak we expect to continue.  It is a streak that I cannot wait to join.

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

What do you think of SON? 

- Gremlin
- Long SON

Lessons in Pragmatism

Somehow Still Calm Gremlin here with a few general updates and thoughts on the future.  So, the update is that there is now a Lil Gremlin living in my house.  The Lil Gremlin even has an online profile stating that he likes milk, long walks - so long as you are holding him, car rides, things similar to car rides, and sleeping (just kidding, but if one did exist it would probably say that).  I was there when Lil Gremlin was born and it was a powerful experience.  It is something I would not have missed for the world, and it is the type of event that is beyond life altering.

This new addition has gotten me thinking, what will I teach Lil Gremlin as he grows.  To start there is the obvious stuff - how to tie your shoes, how to ride a bike, the best flavors of ice cream, how to rock at Tetris, etc.  What I mean is, what will I teach him about personal finance?

My wife and I have a good idea of what kind of education Lil Gremlin will get in school.  However, personal finance only receives limited coverage in school.  Most of what I have learned is from my own trial and error, with some extras from friends and family.  What I learned came later in life than it should have; that information would have been amazingly valuable had I learned it sooner. 

First, I plan to teach him how to save and why to save.  It is one thing to have extravagant plans for investing, but it is impossible to accomplish those goals without having the capital to do so.  I surmise this will require small lessons such as how you can save money such as by biking places.  In the syllabus will be how to save on the every day things, getting the best value on the big ticket items, and most importantly not caring about what the Jones' have.  After all, it does not take a lot of money to get the most enjoyment out of life.

Second, I plan to teach him the power of compounding and investing.  This will be done by establishing an account for him and for him to see the power of it via my accounts.  I will continue the focus on dividend growth stocks and work on establishing for him a bank of stocks and or funds that work for him and us.

Third, I plan to teach him the power earning more.  As powerful as saving can be, earning a higher income is the 2nd punch that really can propel people to financial independence.  Lots of things contribute to improving earnings - having a side hustle, professional certifications, advanced education, fields studied, and hard work of course.

Finally, I plan to teach him to lookout for bad advice.  This is one that I wish was covered more often by those in the dividend growth community.  Some of the bad advice is easy to spot and can come from anyone - friends, family, late night advertisements, etc.  That advice usually starts with the phrase 'its okay you can afford / deserve it.'  Usually this is followed by statements that make it seem normal or expected to be in debt.

However, there is much more subtle bad advice out there parading around as if it was good advice (no not the Indexing vs Dividend Growth argument, I think they are 2 sides of the same coin that is made up of FU / FI money).  What I am talking about here are some popular platforms that have large followings.  Some such as the Financial Education Channel - on YouTube* have large subscriber followings, so you would think the advice given is sound.  It often is anything but sound; examples include the presenter concentrating his portfolio in 1 to 5 stocks or overly frequent re-balancing.  Other bad advice can come from those who often give good advice.  Here is an example from Dave Ramsay covering credit cards.  Ramsay is all about paying off debt (good), but refuses to see how small amounts of interest earned from things such as credit cards can help (he would laugh at many DGIers' side hustles).  His advice is clearly aimed at people in the community who need more rudimentary advice.  This all runs counter to my beliefs, which is every dollar counts - Mr. Money Mustache said it better in this article (one of my favorite articles of all time in any form).  Ramsay states that people spend more with plastic than cash, which is not necessarily true.  Having worked at a bar I know people who pay in cash usually tip significantly more.  There is merit to the idea that card users spend more money, but once again that is a mind set that a strong willed person can easily overcome.  The fact is the world is progressing away from cash at a steady rate.  Might as well learn how to deal with it now and take advantage. 

Naturally, Lil Gremlin will need to learn a lot of things for himself.  Sure I can try to teach him everything, but that does not mean everything will stick or matter to him.  I like soccer and hockey, he might prefer ping pong.  However, I can still attempt to pass on important financial advice that I wish I had when I was younger.

* There are some good dividend growth / investment videos out there, but it seems like the majority or at least the ones that pop up in searches first are not among them.

- Daddy Gremlin
- PS I do intend to teach him that pizza and ice cream are the best dinner - dessert combo on the planet!

First Dividend Initiation

Self-Hazing Gremlin here to talk about initiation.  From the looks of it one may think I am talking about a college initiation with heavy drinking or something similar.  Rather I am talking about a dividend initiation.  I have experienced over 30 dividend increases this year already, and have had over 70 since 2014 without a doubt.  Some of those are as small as 0.2% (I appreciate the consistence Realty Income - O!), with others getting as high as 16+%.  However, I have never had a dividend initiated by a spun off company.  That all changed last week.

YUM China (YUMC), was spun off from YUM Holdings (YUM) in December of 2016.  The split at first meant a lower payout combined, with YUM decreasing its dividend accordingly and YUMC not paying one.  Some might take this as a good reason to sell one or both stocks, I did not.  My mindset was to put YUMC on a clock, and see if they cannot rectify this situation.  They did, my clock was about 1.5 years long.  This past week they declared their first ever divided, unexpectedly to many.

YUMC's announcement was very exciting.  Sure it is not a ton of cash - $0.10 per share (assumed to be quarterly), but it is a start.  The yield should come out to be approximately 1.0%.  The payout ratio will likely be very low (once past year numbers are fully tallied, we will have a better idea), hence there will be a lot of room to grow the payment.  This is what matters when it comes to compound growth - time, patience, and growth!

Have you had a dividend initiated before, or are you sharing in this YUMC experience?

- Gremlin
- Long O, YUM, and YUMC

On tap when writing: Victory Brewing (PA), Sour Monkey - 9.5% ABV.  Biting sour flavor, not too heavy body.  Been a big fan of sour beer of late.

September Review / October Preview, 2017

Cold(er) Weather Gremlin here to talk about the last month and take a peek through the looking glass into next.  The end of September has finally brought some chillier weather to my area.  Being that I bike to the train for work, I enjoy not getting on board and being a sweaty mess.  In addition, the wife will appreciate it, as being pregnant in hot weather is considered less than desirable.  Either way, the big deal is the baby around the corner.  We have done some classes, gotten the room ready, and all that other fun stuff.  The real challenges and fun are still ahead.

September:

This month I made no new purchases, but I should next month.

Last month I brought in a total of $319.66 in dividends ($106.24 taxable, $80.64 Roth, and $132.78 IRA).  This is an increase from last year ($115.43 total) by 177%.  This total is extra high as Discover (DFS) changed its payout month, and it will be the last time that the IRA really blows that percentage out of proportion.

In terms of dividend increases, I realized* seven this month from DFS, Hershey's (HSY), Kellogg's (K), Kraft-Heinz (KHC), Target (TGT), J.M. Smucker's (SJM), and Westlake Chemical (WLK).  The raises range from 3.3% to 16.8%.  Thus far for 2017, I have realized 38 dividend increases!

Next month I will realize three raises from CIBC (CM), Scotiabank (BNS), and Realty Income (O).  The increases range from 0.3% to 6%.

* I only count increases when realized, because until that money is delivered any statements or declarations simply appear to be conjecture.  

October:

The mortgage has started, so at least part of our 'rent' counts towards our house. Our debts currently outstrip our assets.  Outside of our house, we still have very low interest auto debt.  Both my car and house are receiving slightly out-sized payments monthly.  We will be effective at eliminating debt, while still building and assets. This is a long game, and I am nothing if not patient.

I have cash on hand to make another buy, but I might not depending on other needs.

Next month should produce around $68 in dividends, which is a 15% YOY decrease.

My portfolio page is currently up to date.

Hope everyone has a great September, sorry for those who are back to school, but don't want to be...
- Dividend Gremlin
- Long all stock tickers mentioned

Big Changes

Real Talk Gremlin here to talk about some major changes.  In life most changes come slowly.  We get older, wiser, taller, slower, stronger, etc. over a long window of time.  However, there are specific times where things can change rapidly.  Going off to school, buying your first house or car (just like the house we bought...), and having a child come to mind.  Well that last one will be happening soon, which makes for several major changes in the past year: a new job, new house, and new person in our house. So that there is a huge change.

Naturally everyone points to the cost of raising a new child, which in some ways is undeniable.  Clothing, food, and medical needs are all requirements and will be present in someway for a baby.  However, many of the believed requirements are not requirements - especially as kids age.  For instance, if your child wants to learn an instrument, they don't need top of the line equipment to start.  Now to be honest, our child will have opportunities to do fun / stimulating stuff, but it will not be rammed down their throat.  Part of being a kid is about trying and learning new things, if there is too much emphasis on specific things that bigger picture of the world is missed - and from their perspective its likely not fun.  So the goal is to give them a chance to explore their world while not forcing on them nor breaking the bank.

"You don't have to buy your kid a Stradivarius if they want to learn to play the violin." - me

From a family perspective, I also see a relative cost savings up front on some items.  Food - we won't be trying as many new places outside of our kitchen.  Travel - probably not happening very much, outside of our family events.  I doubt there will be any splurges of any sort, outside of stocks and the occasionally required ice cream.

Regardless of these big changes, I still intend to pursue financial independence.  Debt is being knocked out faster, and investments are still being made.  I will continue working at two jobs to achieve this faster, and obtaining professional certifications to further my main money making abilities.  Not all is lost, in fact really nothing is lost - including my time.  Children demand time, regardless of the age, however that is no way time lost.  Its just a different journey, one that is much less predictable.

Here's to new beginnings.
- Gremlin

August Review / September Preview, 2017

Bug Eyed Gremlin here to talk about the roller-coaster that has been this past month. We bought a house - cool.  My commute is different, but takes about the same amount of time, and it does not impact my budget (and no car) - also cool.  Mostly everything has been organized, except for the presents we got because sometime late September or mid October there will be a copy of me gracing this Earth. A scary thought indeed.  What is most notable is how fast it all has happened.  At this point a year ago I had just started a new job and taken a trip to Europe.  None of these other items - a house, kid(s), or a backyard to mow were in my mind.

Inserted in all of this is the fact that I have taken on new job responsibilities, which should benefit me in the long run, but do add a small layer of stress in the short term. Still, no matter how crazy life gets, the goal here is to generate passive income by building a quality portfolio of dividend paying stocks.

August:

This month I made one new purchase, Archer Daniel's Midland (ADM), in my taxable portfolio.

Last month I brought in a total of $239.61 in dividends ($37.44 taxable, $58.34 Roth, and $143.83 IRA).  This is an increase from last year ($95.21 total) by 151%.  It could have been higher had Discover (DFS) paid this month as expected, but they moved their payment back to September.

In terms of dividend increases, I realized* one from this month from Omega Healthcare Investors (OHI).  The raise was around 2%.  Thus far for 2017, I have realized 31 dividend increases!

Next month I will realize six raises from Discover Financial (DFS), Hershey's (HSY), Kellogg's (K), Kraft-Heinz (KHC), Target (TGT), J.M. Smucker's (SJM), and Westlake Chemical (WLK).  The increases range from 3.3% to 16.8%.

* I only count increases when realized, because until that money is delivered any statements or declarations simply appear to be conjecture.  

September:

My wife and I have moved into our new home, now the mortgage bills can start - bye bye rent. Our debts for the moment currently outstrip our assets.  However, I am not selling stocks to pay for it all.  Rather it is time to double down - blast debt and buy assets. 

I have cash on hand to make another buy, but I might not depending on other needs.

Next month should produce around $315 in dividends, which is a 174% YOY increase.

My portfolio page is currently up to date.

Hope everyone has a great September, sorry for those who are back to school, but don't want to be...
- Dividend Gremlin
- Long all stock tickers mentioned

Recent Buy, August 2017

Rained Out Gremlin here.  It has been a strong summer.  My wife and I moved, I was a best man in a wedding, we had a mini family reunion, and on and on.  The new house is mostly set up, but it feels like there is always something to do.  As a new homeowner, yes we bought a house, it feels like there is no time to slow down.

Perhaps that is why, now more than ever, I view each dollar I make passively as getting some of my time back.  I figure for every $25 made passively, it is as if I have worked one extra hour.  Thus, at some point those extra bucks will become the main bucks, and I will be able to sleep in with no one stopping me.  Therefore in the back of my mind, I make a tally of how many extra hours that my money has worked for me.  So to keep the train rolling, I made another dividend growth investment.

Today, I added to a position by purchasing shares of Archer Daniel's Midland (ADM) in my taxable account.  I bought 30 shares, with a total cost of $1263.95 ($41.90 / share, plus commission).  The current yield is 3.10%.  The P/E ratio for ADM sits today at approximately 17.74, trailing.  This is better than the historical 5 year average for the stock with the average yield being 2.38% and the average P/E being just under 17.84.  ADM boasts a trailing payout ratio of approximately 53%.  ADM has 42 years of dividend growth and is a member of the Dividend Champions.  This purchase will add $38.40 to my 12-month forward income.

I already have ADM in my IRA, where I hold 70 shares that I purchased for a similar valuation back in September of 2016.  It was a monstrous amount of buys that I made with my transferred 401k funds from old job.  With this purchase I finally have 100 shares of a DGI stock in my portfolio.  If I want, options are literally now on the table.

So ADM, what do you do?  Well here is a description in their words:

"Archer Daniels Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. Additionally, the firm owns an extensive network of logistical assets to store and transport crops around the globe. The company's end products include vegetable oil and meal, corn sweeteners, flour, feed ingredients, and ethanol."

I like that description.  It is simple and understandable.  The need for food products, oils, sweeteners, and similar foodstuffs will not likely go down.  It is possible the products could become cheaper, but the demand should always be present - pending any worldwide catastrophic events.  As someone who likes to cook a lot, I recognize that these items are so essential.  Even more necessary, but often misunderstood, is the food transport, distribution, and warehouse network.  I work near train tracks where daily ADM rail cars come by as part of larger trains.  This infrastructure takes a long time to build and is cost prohibitive.  This framework has an intrinsic value that is difficult to quantify, but is impossible to deny.

I will update my portfolio page at the end of the month.  Stronger 2017!

What do you think of ADM? 

- Gremlin
- Long ADM

July Review / August Preview, 2017

Let Me Dress for the Weather Gremlin here to talk about July and August.  It has not been the hottest July on record, which is very nice.  I took two trips out of the area.  One for a mini family reunion over a weekend, and another to Las Vegas to work.  I am ever the cautious investor, I did not even step foot into a casino.  Sure gambling can be fun, but its not fun to do it by yourself (as I said business trip), nor is it fun to lose money in such vast quantities as the average person does in Vegas.  Also no interest in their shows, especially since the town I live in is already part circus.

On serious note, my wife and I closed on a house.  We will be moving in shortly, and as everyone knows - moving sucks (ask all of my friends who owe me for helping them move, its their turn).  I digress, the fact is our 'rent' is now going to be headed towards equity, which is a nice change.  My wife's commute should stay the same.  I will be on a new train line, though farther out - it is more direct. Overall buying a house is smart in the long term, however it is stressful.  For some reason it is less stress inducing than buying a car, until you see that final number on your mortgage...

July:

This month I added one new position to my Roth account, J.M. Smucker's (SJM).

Last month I brought in a total of $73.19 in dividends ($72.19 taxable, $0.00 Roth, and $0.00 IRA).  This is an decrease from last year ($84.98 total) by 14%. The decrease is mainly related to KHC switching their payout month.

In terms of dividend increases, I realized one from this month from Realty Income (O).  The raise was around 0.2%.  Thus far for 2017, I have realized 30 dividend increases!

Next month I will realize two raises from Discover Financial (DFS) and Omega Healthcare Investors (OHI).  The increases are 16.8% and 1.5%, respectively.

August:

Within the last week my wife and I bought a house.  I have stated it earlier that this would happen, and sometimes things move faster than plans, so here we are.  Our debts for the first time, since practically ever, outstrip our assets.  However, I am not selling stocks to pay for it all.  Rather it is time to double down - blast debt and buy assets. 

I have cash on hand to add a new position, but I might not depending on how moving goes.

Next month should produce around $250 in dividends, which is a 160% YOY increase.

My portfolio page is currently up to date.

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

Recent Buy, July 2017

Farmer's Tan Gremlin here.  I don't know about you, but I sunburn like crazy - so save yourself the experience of awesomely itchy skin and use sunblock lotion.  Anyways, summer is very busy.  We are buying a house, getting sunburned by the pool, going tubing, going to a wedding, etc.  One of the things I have been trying to do a lot is to ride my bike where I can.  Its cheaper and more enjoyable than driving.  However, I sweat like a maniac - so if I am riding I either need a shower when I get to where I am going, or to keep about 10 feet away from everyone else who has a good sense of smell at all times.  Enough, with how much I sweat and what I am doing this summer, what did I just buy?

Yesterday, I added a new position by purchasing shares of J.M. Smucker Co. (SJM) in my Roth IRA account.  I bought 11 shares, with a total cost of $1281.85 ($115.90 / share, including commission).  The current yield is 2.62%.    The P/E ratio for SJM sits today at approximately 22.44, trailing and 14x forward earnings.  These are both better than the historical 5 year average for the stock with the average yield being 2.19% and the average P/E being just under 24 (with a high of 41!).  SJM boasts a trailing payout ratio of 57% and a forward payout ratio of approximately 35% (looking at the data from multiple sites...).  SJM has 19 years of dividend growth and is a member of the Dividend Contenders.  This purchase will add $33.00 to my 12-month forward income.

SJM is a consumer staple stock, and that sector is finally entering good buying territory (thanks to one Amazon, which one day will find itself on the wrong side of anti-trust litigation I would think).  It is nice to get a security that is approaching 5 year highs in terms of yield.  On a macro level, it has been nine years since a recession so the likelihood of having one is increasing.  When it does hit, people will continue to buy the staples.  Perhaps even buy the cheaper items.  No fancy food, but stuff they can afford to put on the table all week.  This is where companies like SJM come in; they have been buying healthier brands and securing space in that market and they still have the old guard value brands.  Not to mention to mention that many store brands are made by large companies like SJM.

This is a company and a sector I am very confident will still be around decades from now.  The fact is, people need to eat and there are now more people than ever.

I will update my portfolio page at the end of the month.  Stronger 2017!

What do you think of SJM? 

- Gremlin
- Long SJM

June Review / July Preview, 2017

Sweaty Gremlin here to talk about last month and look forward to the next.  June was a busy month, I turned 32, my wife and I found and made an offer on a house, which was accepted, I was in a wedding, and on and on.  Now we face the prospect of our rent payments becoming mortgage payments, so we can build some equity.   Now I can literally talk about the situation on the 'home front' and mean it.

On the work front I got to travel a little bit, and it is likely I will be required to do so again soon.  The projects I support like to do visits and tests in the summer months.  Traveling for work is not always ideal, but looking on the bright side, I rack up points, and all my required expenses are covered for those days - so I save some of my money.  

June:

This past month I did not make any new investments.  I have the cash on hand, but I did not see any stocks I wanted to purchase, also there is my whole housing situation.

Last month I brought in a total of $294.87 in dividends ($101.16 taxable, $61.80 Roth, and $131.91 IRA).  This is an increase from last year ($116.44 total) by 153%. The IRA money does it again, destroying a prior month.

In terms of dividend increases, I realized four this month from Pepsico (PEP), Unilever (UL), Johnson and Johnson (JNJ), and Exxon Mobile (XOM).  Raises were between 2% to more than 8%.  Thus far for 2017, I have realized 29 dividend increases!

Next month I will realize one raise, Realty Income (O).  The increase is approximately 0.2% - the 4th from O this year.

July:

At the moment we only have low interest auto loans, in terms of realized debt.  This past month I covered my net-worth, which be very much in flux in the coming months.  This month we anticipate closing on a house, which will set us back a little bit [about a metric ton], but allow for a longer term building of wealth.  Owning our house has been a long time coming, and it is the smarter long term financial move.  However, it did impact stock purchases as I have held back potential Roth IRA and taxable purchases in case the cash is needed in the short term.  I will likely make the Roth move in July, but sit on the other cash until at least August.

Next month should produce around $71 in dividends, which is a 8% YOY decrease, which is  attributable to Kraft-Heinz (KHC) switching its payout month.

My portfolio page is currently up to date.

Hope everyone has a great July, get some sun and some fireworks!
- Dividend Gremlin
- Long all stock tickers mentioned

Gremlin's Asset Review

Bookkeeping Gremlin here to discuss a topic that deserves a good solid review: my net-worth.  Technically, it is our net-worth between my wife and I, but she does not care to do the math so its just me doing this number crunching exercise.  So in this review I will cover a lot of things: my current and future debts, investments, employment / income, goals, and some miscellaneous items.  What will not be covered is my liquidity, height, weight, etc.  This is a look to see where we are and how we are, starting naturally with the ugliest of things.

Debts:

Debt sucks, period.  Most people accept debt as normal, and I have personally found arguing with them to be taxing.  Most people just accept it, but I fight it.  Still, I have debt.  I have worked to alleviate some of it, but I will likely come into more debt due to my housing situation.  So here goes:

Car #1 (my car): $10028.96 (maturity: 6/2021, $240 / mo.) interest = 1.9%
Car #2 (her car): $18,044.33 (maturity: 10/2020, $475 / mo.) interest = 1.5%
Student Debt: None. Eliminated as of 10/2016.
Mortgage*: None at present.
Revolving debt / credit cards: None at present, credit cards are paid off monthly.
Total monthly payments = $715 + revolving

At the end 2015 is when I first started actively tracking my debt.  At that time it was approximately $46000.  Today it stands at a total of $28073.29.  In less than two years we have managed to eliminate just under $18000 worth of debt, including student loans totaling $7000+ (to be fair, my wife had done a lot of work on this already before I decided to squash it).  Currently, we pay my wife's car in exact amounts, and I pay a little extra on mine.   The dates listed are estimated by the loan company, my goal is to finish them in advance.

* = We are in the process of buying a house.  It was determined this is necessary, mainly because of future space constraints we will have related to a mini-Gremlin.  This will be discussed in the future.  At present we expect to close on a house next month, and will begin the journey of home-ownership.  For now, that number is $0, but not for long sadly.

Income:

My wife and I both work, however with the advent of mini-Gremlin in the future, there will be a slight time gap concerning her paychecks.  I have steady employment, at a solid firm, doing niche work that is needed and not easily back-filled.  To date I have received a small pay increase, and likely will receive another one later this year.  In addition, I work a second job at a brewery, and have plans to take on a third line of work using the internet (not here).  At present the extra cash goes towards investments, but it may end up shifting towards debts in the future.

Assets:

This is the fun part.  Current assets that are to be considered are my taxable investments, Roth IRA, IRA, 401K, and other retirement savings.  Cash, Health Savings Accounts, and miscellaneous assets are not counted unless they fit into another category.  I work to shield liquidity this way, and separate out what is needed versus what can be invested.  Assets including cash in accounts:

Taxable Invested Assets: $31021
Roth IRA: $17993
Traditional IRA: $34211
401K: $6707
Wife's Retirement / Pension: $10915
Total = $100847

At the beginning of 2015 the total stood at $47000.  At the end of 2015 it was $54000, and at the end of 2016 it was $87000.  Since the start of 2016 both my rate of investment and the market have been on tears.  Purchasing a house will stifle this, but only briefly.  This past month is the first time our total assets broke $100000, so time to double down.  It is my goal to make this number hit $150000 by end 2018.

Total Net Worth = $72773.71


Goals:

My short term financial goals are - eliminate one car loan in the next two years (early) and increase my taxable investment account by $10000 per year (in addition to Roth and 401k additions).  My income goals are to increase my take home pay by acquiring more useful certifications and adding extra income / employment where needed.

My long term goal as always is financial independence.  There will always be bumps in the road, but those are the times to double down - not to change course.

Conclusion:

At the moment we are doing well relative to our peers.  However, though our peers represent a good metric, they are not what I want to use to measure my life's progress.  The primary drive will be to substantially increase general income and use the proceeds to bolster investment accounts.

- Gremlin

May Review / June Preview, 2017

Summer Gremlin here to discuss the wonderful month that was May.  So far this past month has been relatively uneventful, which is good.  I had one weekend away from my home, and it was only one day at that.  Things are moving at what seems to be a breakneck pace, specifically searching for housing.  It would appear that my hope that we would buy in 2 years, is more like we will buy this summer.  These things happen, and other people have ways of changing your plans faster than you can yourself (if you are married, you understand this).  That is not always a bad thing, indeed this is smarter in the long run in generating value and wealth.

As of this moment I am still waiting on ol' Loyal3 to transfer funds, as requested.  Apparently their transfer department was swamped by transfer requests.  Guess they found out you cannot dupe thousands of people into paying you money easily.  The new brokerage that has my account has told me to wait about 10 business days, and that was 7 business days ago, so time will tell if they can get it done in any normal amount of time, doubtful.  I hope it goes smoothly, much easier to be nice on the phone instead of a big jerk.

May:

This past month I put $1035.26 dollars to work in my IRA account, and started a new position in T. Rowe Price (TROW).

Last month I brought in a total of $246.08 in dividends ($36.86 taxable, $66.14 Roth, and $143.08 IRA).  This is an increase from last year ($85.54 total) by 187%. The IRA money does it again, destroying a prior month.

In terms of dividend increases, I realized four this month from Apple (AAPL), Ameriprise Financial (AMP), General Dynamics (GD), and Omega Healthcare Investors (OHI).  Raises were between  1.5% to more than 9%.  Thus far for 2017, I have realized 25 dividend increases!

Next month I will realize four raises, from Pepsico (PEP), Unilever (UL), Johnson and Johnson (JNJ), and Exxon Mobile (XOM).  The increases range from around 2% to more than 8%.

June:

This is my birthday month.  I will post a serious look at my net-worth and general progress in life in terms of FI (and still having a roof over my head / food in the fridge).

Our only remaining debt is extremely low interest auto loans, however that may change.  Stashing of cash for the impending house continues.  In addition, I expect a significant amount of cash to come my way when my Loyal3 account transfers.  This should speed another purchase in my brokerage account.  At the moment the market is all over the place, the cash might sit for a month waiting for instructions.

Next month should produce around $293 in dividends, which is a 152% 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 June, suns out - guns out!
- Dividend Gremlin
- Long all stock tickers mentioned

Recent Buy, May 2017

Clean Teeth Gremlin here to talk about some more recent buys. Today I accomplished two things.  One, I went to the dentist then starved myself for a few extra hours because my teeth felt so damn clean - minty fresh.  And two, I bought some stock.  I have been making fewer purchases since the demise of Loyal3 (which I will also discuss today), but going forward my purchases will all be bigger in terms of quantity.  Also because I cannot shotgun approach investing as I could with Loyal3, I a being a little more price conscious.  Still those are not bad things, and what did I buy?

Today, I added a new position by purchasing shares of T-Rowe Price (TROW) in my IRA  account.  I bought 15 shares, with a total cost of $1035.26 ($69.01 / share, including commission).  The current yield is 3.21%.    The P/E ratio for TROW sits today at approximately 13.34, below it historical average.  TROW boasts around a 43% payout ratio and 31 years of dividend growth.  This purchase will add $34.20 to my 12-month forward income.

TROW has been raising their dividend as long as I have been alive.  Last year was their weakest raise in a long time, below 4%, however looking at them over the last 5-10 year frame one can see their assets under management (AUM) have increased, and the dividend TROW pays has typically been increasing between 6 and 10%.  That is the kind of growth I want.  Overall, I am a supporter of asset managers, after all I already own AMP and would like to own a few others.

I agree with dividend bloggers who have stated online before that 'the market and investing are not that hard to understand.'  Still most of those people (and people less driven or intelligent than them)  who even do understand the basics jump for ETFs, Mutual Funds, and other types of index funds.  Why?  Because it is easy.  Investing as a dividend growth investor takes time and patience.  Most people don't have those things.  Picking a few low cost index funds is much easier (for the record if you're not interested in stocks, I fully support people going that route). In a sense this investment along with AMP show that I do think people will invest, but I don't think they will doing the investing.  Perhaps that is a somewhat cynical thought, but in doing my regular work, my side job at a bar, and overall daily life it is easy to think most people fall into that category.

As for Loyal3, I am still waiting on them to transfer my assets to my main account.  Apparently the tiny transfer division at Loyal3 was completely swamped with transfer requests when they announced their recent shutdown.  Who did not see that coming?  Answer - clearly just Loyal3.  I would imagine a lot of the low costs users immediately looked for the next best option, and it was not the one being offered to them at the outset.  So all those fleeing the ship did the same thing, jumped to a better ship or an island in my case.

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

What do you think of TROW? 

- Gremlin
- Long TROW and AMP

PS - I hope Nashville gets the Stanley Cup!

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

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.

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

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

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

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

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