December 2018 Review / January 2019 Preview & End of Year Review

Happy End of Year Gremlin here to discuss the difference a year makes.  At the start of 2018 I was looking at 1 income for 7 months plus all of the other issues that come with a new baby.  For those of you who have kids, I am sure you can think back to being a new parent and just how terrifying it really is.  Anyways, like everything else - you get through it and grow stronger from the challenge.  Though at times when getting stronger you will get the stomach flu, and other times you will fall asleep at 8pm because when the kiddo sleeps - so do you...

In the meantime, locally we are dealing with a government shutdown.  It has not affected me yet, but if it continues it has real potential to affect me.  I am not overly concerned, I have savings and vacation saved for this emergency - but if I could avoid using that it would be swell.  Hopefully 2019 starts better than 2018 ended!

December:

This month I added one new position, TD Bank (TD), in my taxable account.

Last month I brought in a total of $408.49 in dividends ($164.48 taxable, $99.01 Roth, and $145 in my IRA).  This is an increase from last year ($349.36 total) by 16.9%.  This total is my new highest ever, and the first time I have collectively broken $400 in a month.

In terms of dividend increases, I realized five this month from McDonald's (MCD), Microsoft (MSFT), VF Corp (VFC), YUM China (YUMC), and Emerson Electric (EMR).  The increases range from 1.5% to about 16% (all but EMR are higher than 9%).  This brings my total raises to 51* on the year, one more than last year's final total.  A few shares held their dividends in place due to acquisitions and or prudent management.

Next month I will realize two dividend increases from Realty Income (O), Disney (DIS), and Eastman Chemical (EMN).  The increases range from 0.2% to around 10%.

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

January:

The mortgage continues has started to see more cash flowing towards the principal - not a huge number, but every little bit counts. Our debts currently outstrip our assets (I choose not to count the house as an asset).  Outside of our house, we still have very low interest auto debt (1.9 and 1.5% for our cars).  My car is getting paid at doublish time, and I suspect I can finish it off within 8 months from now - which will be nice because I plan on keeping that car for 20 years.  Debt is being eliminated, and we are still building and assets.  A second income goes a long way.

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

Next month should produce around $100 in dividends, which is a 35% YOY increase.

My portfolio page is currently up to date.

2018:

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):

• Invest a total of $8000 next year, $6000 in taxable accounts, at a minimum. Success. $11708.15 total, breakout goals also met.
• Achieve forward total dividends for all accounts of $3000.  Success. $3150 (ish)
• Keep getting into shape - lifting 2x and running 2x / week and bike to the train station + other places.  Success, I average 4 days a week, plus biking.  New dad win.
• Reduce total spending (after debt payments) by at least 10%.  Fail.  We reduced spending by 7.5%, and perhaps some of that is due to the new child.  We must do better here.

Overall that is a 3/4 success rate.  Much better than 2017, the train is back on the right track.  The best part about 2018 was that these goals were met on one income for 7 out of 12 months last year.

2019: 

So what will become of 2019?  I have organized a few goals to make sure I stay on target.

• Invest a total of $13000 across all accounts.
• Receive $1500 in dividends from the taxable account.
• Maintain or reduce weight while continuing to exercise ~ 4x per week and bike wherever I can.
• Hold the line / reduce total spending (after debt payments) by around 5%.

I have a feeling, no matter what happens 2019 will be another wild ride.

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

Recent Buy, December 2018

Tinsel Time Gremlin here to discuss my most recent buy.  It might surprise some of my relatives and some of my friends, but Christmas is one of my least favorites.  My favorites are the 4th of July and New Years, for a variety of reasons. Do I really need 3 or 4 new button down shirts?  Actually probably for work, but I really should get them because nothing ever seems to fit right.  Also as an adult, there is not much that I really want, well I do want to sleep in - but lets get realistic here.

Moving on, I added to my holdings to continue my push towards FIRE.  My long term goal is probably a decade or two out, but those building blocks are best lain right here, right now.  So lets get to it.

Today, I added shares of Toronto-Dominion Bank (TD) in my taxable account.  I bought 20 shares, with a total cost of $1,036.75 ($51.49 / share, plus commission).  The current yield is 3.84%. For a detailed summary of their history, etc. please visit: TD's Seeking Alpha Profile.

I already own the other 4 major Canadian Banks - BMO, BNS, CM, and RY.  This buy of TD completes the set for me, however it is my goal to continue adding to all of these holdings.  The Canadian banking complex is just that much more structurally sound than its USA counterpart.  In addition, it is hard to find a better dividend history than these 5 stocks.  Each can date their dividends back to the 1800s, which is before any of my ancestors even made their ways to North America.  That is consistency I am happy to live with and will let me sleep well at night.

This purchase will add $34~ to my forward 12 month dividend income.

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

What do you think of TD?

- Gremlin
- Long BNS, BMO, CM, RY, and TD

PS - a relative of mine works for TD bank and talking with her has echoed so much of what I read about TD.  They are conservative in their approach and do an excellent job of making sure their investments are headed in the right direction.

November Review / December Preview, 2018

Cold Air Gremlin here to talk about last and next months.  In the DC area it has been fairly cold recently, skipping fall and heading straight into winter.  As I just got over a cold, this has made running and biking outside a lot more interesting - and disgusting according to my wife.  Still its good to stay in shape, and I enjoy leaving the parking lot at the train station on my bike, getting out of there long before those in the car lines even exit the parking deck.  Speaking of sports, having a 1 year old is a real lesson in not being able to keep up with the news and current events.  Ironically, it does not feel like I have missed anything - and it is always easy to get back into something if I choose to.  This appears to be a year for that, at least because my Eagles are trying real hard to take a year off and not make the playoffs.

In terms of investing, this has been another good month.  All of my accounts have already surpassed their dividend output of last year, so next month will be a real profit maker.  Looking even further down the line, next year will even bigger, I cannot wait to push harder for FI that I have before.

November:

This month I made one purchase, acquiring shares of Eastman Chemical (EMN) in my taxable portfolio.

Last month I brought in a total of $294.85 in dividends ($82.22 taxable, $63.75 Roth, and $148.88 IRA).  This is an increase from last year (240.04 total) by 22.8%.

In terms of dividend increases, I realized* three raises from American Express (AXP), Royal Bank Canada (RY), and Verizon (VZ).  The increases are from 2% to about 11%.  I have now realized 46 raises thus far this year.

Next month I will realize five raises from McDonald's (MCD), Microsoft (MSFT), VF Corp (VFC), YUM China (YUMC), and Emerson Electric (EMR).  The increases are from about 1.5% to about 16% (all but EMR are higher than 9%).

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

December:

The mortgage continues has started to see more cash flowing towards the principal - not a huge number, but every little bit counts. Our debts currently outstrip our assets (I choose not to count the house as an asset).  Outside of our house, we still have very low interest auto debt (1.9 and 1.5% for our cars).  My car is getting paid at doublish time, and I suspect I can finish it off within 9 months from now - which will be nice because I plan on keeping that car for 20 years.  Debt is being eliminated, and we are still building and assets.  A second income goes a long way.

My next purchase will be in December, which makes for 6 consecutive months of buys going back to July (sweet).

Next month should produce around $400 in dividends, which is a 14% YOY increase.

My portfolio page is currently up to date.

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

Recent Sale / Recent Buy, November 2018

Caffeinated Gremlin here to discuss a recent sale and buy (I never used to drink coffee, then I became a dad... so it happens sometimes).  I have mentioned the sale before, but I am going to give it a brief discussion here.  The proceeds of the sale, combined with new capital, fueled my new stock purchase.  I like to think of the new stock purchase as my Thanksgiving Day gift, to myself.  The spirit of the holiday is being appreciative for everything around you, so I am just showing some love to the portfolio that will build wealth and passive income for me.

The Sale:

I sold out of my General Electric (GE) position about two weeks ago.  GE.  GE has been on a spectacular downward slide, presenting a cautionary tale for both investors and company executives.  The first lesson is to not over expand beyond logical competencies.  The second is do not load up on debt or buy back shares at terrible valuations.  The third is that any company cannibalizing its holdings to pay off debt has major problems.  GE did all three.

Those lessons are generalizations to an extent, but think about a couple of ludicrously stupid red flags that GE presented the world.  The biggest being flying two corporate jets, you know in case one breaks down.  This company is literally known for its jet engines, so this totally inspires confidence.  GE's aviation group, along with healthcare, is one of their strongest arms; but still it is so dumb.  Then the CEO claimed he did not know about the practice; good job.

The other issue was that of GE's TV ads.  Their ads featured a young girl who has a knack for engineering and grows up to be a GE engineer OR a guy explaining all the coding he does for GE locomotives and wind turbines.  Why on earth is a company that sells jet engines, wind turbines, power systems, and large health machines advertising on regular TV?!  People who are buying those items are not influenced by watching TV.  "Ohh I like the GE turbofan, lets put that on our next plane," said Joe the Aircraft designer - approximately zero times.

If you're going to do things like that, what are the odds your company is installing continuously running toilets in the C-Suite so they can flush money down the drain faster?  So I sold out, and put the cash in a better place.

The Purchase:

Yesterday*, I added to an existing position by purchasing shares of Eastman Chemical (EMN) in my taxable account.  I bought 13 shares, with a total cost of $1,067.75 ($82.12 / share, includes commission).  The current yield is 2.7%. For a detailed summary of their history, etc. please visit: EMN's Seeking Alpha Profile.  This is my second purchase of EMN this year, and I am now at approximately 6% of my portfolio in basic materials between EMN, SON, and WLK.  At this point I am maxed out in this sector, but its one that is clearly underrated.  For all the reasons in that earlier entry, plus a better price, I added to EMN.  My total share count now stands at 25 for EMN.

This purchase will add $29.12 to my forward 12 month dividend income, the sale will decrease my forward income by $21.52.  Net is $7.6 gained.

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

What do you think of EMN?

Happy Thanksgiving!
- Gremlin
- Long EMN, SON, and WLK
* - had I waited a day, the price would have been even better.  Time in, not timing, the market.

October Review / November Preview, 2018

Busy Gremlin here to chat about October and November.  Work is ramping up for me, which is a good thing.  I am staring down a new work title, and the new assignments that come with it.  Normally this thing would receive a sigh, but in this case it should be hugely positive in terms of both my day to day and my bottom line.  On the home front the boy is moving a lot, which is great for him and my daily step count.  As a parent there is never a night off and rarely any down time.

While my step count gradually increases, the stock market has taken a recent nose dive.  I think this has been a long time coming, no growth has been historically maintained forever (even if China thinks they can do it today).  Sure enough, history shows this repeated boon / bust business cycle over and over again.  There are always numerous causes for success or failure, the only thing that seems to change is new triggers that cause the next economic downgrade.  Anyways, time to start taking advantage of these prices, especially in the coming month(s).

October:

This month I made one purchase, acquiring shares of AT&T (T) in my taxable portfolio.  I also sold all of my shares of General Electric (GE) at a loss with their announcement of a dividend cut (essentially all but elimination).  My GE move merits a longer write up, but I don't have time.  So suffice to say, GE is beyond frustrating and reminds me of a train wreck.  "Since the dawn of train man has loved train wrecks" - save for if you are invested in that wreck.

Last month I brought in a total of $95.72 in dividends ($76.22 taxable, $9.5 Roth, and $10 IRA).  This is an increase from last year (68.22 total) by 40%.

In terms of dividend increases, I realized* three raises from Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CM), and Realty Income (O).  The increases are from 4% to about 19%.  I have now realized 43 raises thus far this year.

Next month I will realize three raises from American Express (AXP), Royal Bank Canada (RY), and Verizon (VZ).  The increases are from about 2% to about 11%.

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

November:

The mortgage continues has started to see more cash flowing towards the principal - not a huge number, but every little bit counts. Our debts currently outstrip our assets (I choose not to count the house as an asset).  Outside of our house, we still have very low interest auto debt (1.9 and 1.5% for our cars).  My car is getting paid at doublish time, and I suspect I can finish it off within 10 months from now - which will be nice because I plan on keeping that car for 20 years.  Debt is being eliminated, and we are still building and assets.  A second income goes a long way.

November should be slow, and the holidays should help that.  My next purchase will be in November, I hope this market maintains its current unpredictable course, since who doesn't like bargain?

Next month should produce around $265 in dividends, which is a 10% YOY increase.

My portfolio page is currently up to date.

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

Recent Buy, October 2018

Phone A Friend Gremlin here to discuss my most recent buy.  Recently a friend of mine got to be on Who Wants to Be a Millionaire.  The main shock for me is that someone is still making new episodes of that show.  Having watched him play, I wish he could have done better, but at least he got to have a good time and win some money.  Definitely seems like something worth trying, who knows maybe I will sign up for it too!

Moving on from that earned game show cash, I recently made another stock purchase.  This means I have been able to purchase shares once each of the last four months counting October.  This is the goal, to be able to add capital and increase my bottom line in terms of future taxable income.  I am still relatively early in the process of accumulating a passive dividend income, but still each action is exciting.  Indeed it feels like a game as well, similar to a long haul strategy games such as Civilization, Caesar, or Sim City.  Each new addition provides more cash to buy more shares.  That comparison reminds me that this is a meaningful venture that can also be fun in addition to producing real value.

Last week, I added shares of AT&T (T) in my taxable account.  I bought 30 shares, with a total cost of $1,027.51 ($34 / share, includes commission).  The current yield is 5.95%. For a detailed summary of their history, etc. please visit: T's Seeking Alpha Profile.

I already own T in my Roth account and Verizon (VZ) in my IRA.  I like that T will be a fully integrated communications company.  The future of both companies, despite current debt and headwinds, is promising.  People just rely on these entities more than they realize, and that reliance will only grow over time.  I work hard on a personal level to disconnect, but even for someone who works at it - it is hard.  Most people are plugged in all the time (if you are here reading this, think about how and why), and they don't even realize how dialed in they are.

Also being plugged into the FIRE movement (online, because where else?), we know how to cut these bills - but most still don't and even then most cut rate companies pay royalties or in some cases are outright owned by the big players.  Also the issue of spectrum ownership will be a huge issue within a few decades, and that will be interesting to witness.

This purchase will add $60 to my forward 12 month dividend income.

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

What do you think of T?

- Gremlin
- Long T and VZ

September Review, October Preview, 2018

No Free Weekends Gremlin here to talk about September with an eye on October.  Just when it seems life might slow down a little bit, it speeds right back up.  When I was younger that was not a problem, and in terms of being able to handle it all, it still isn't.  However, with investing and thinking about expenditures, while maintaining your sanity can be a serious challenge considering all the other stuff that is happening.  In the meantime, the focus is on baby proofing the house - as the little guy has figured out how to move and stand.  At least he has not figured out how to talk back yet!

Getting on with the show, this month I came up just under $400, which is unfortunate.  Dividend growth is starting to kick itself into gear, and so my future totals should start to punch above their weight class.

September:

This month I made one new purchase adding a new, acquiring shares of Broadcom (AVGO) in my Roth portfolio and acquiring shares of Cardinal Health (CAH) in my taxable portfolio.

Last month I brought in a total of $397.50 in dividends ($158.09 taxable, $94.85 Roth, and $144.65 IRA).  This is an increase from last year (319.66 total) by 24.38%.  Almost got that $400 I wanted, I will definitely get it in December.

In terms of dividend increases, I realized* six raises from Hershey's (HSY), Kellogg's (K), Target (TGT), Discover (DFS), J.M. Smuckers (SJM), and Westlake Chemical (WLK).  The increases are from 4% to about 19%.  I have now realized 43 raises thus far this year.

Next month I will realize three raises from Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CM), and Realty Income (O).  The increases are from about 0.2% to about 3%.

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

October:

The mortgage continues has started to see more cash flowing towards the principal - not a huge number, but every little bit counts. Our debts currently outstrip our assets (I choose not to count the house as an asset).  Outside of our house, we still have very low interest auto debt (1.9 and 1.5% for our cars).  My car is getting paid at double time, and I suspect I can finish it off within 10 months from now - which will be nice because I plan on keeping that car for 20 years.  Debt is being eliminated, and we are still building and assets.  A second income goes a long way.

September was a busy month, and October looks like it will be more of the same.  Life should hopefully slow down in November.  My next purchase should be in October, but might be in November if things go less than as planned.

Next month should produce around $87 in dividends, which is a 28% YOY increase.

My portfolio page is currently up to date.

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

How Many Stocks, Is Too Many Stocks?

Phone-a-friend Gremlin here to discuss my portfolio size.  There have been numerous articles posted on websites as to how big a portfolio should be, along with talking heads on TV stating that X number of stocks should be the maximum.  Some people on the internet claim that a portfolio of five (5) stocks is sufficient to make one diversified.  Others state 10, 15, or 20 as their numbers.  These hosts include professionals and amateur internet enthusiasts who are all about making wise long term OR extremely speculative short term investments.  My answer is, that their advice is best for themselves, but it is dated.

Currently my portfolio contains 58 stock positions across my taxable, Roth, and IRA accounts.  They run the gambit of industries, with multiple names in most sectors.  It is as if I am building my own personal index fund, which pays me a higher yield than an index.  Portfolio management is minimal, I rarely sell a stock, and my expected holding period is for as long as possible.  Considering my view point, versus that of others, why am I happy to hold many positions?

My answer is threefold.  First, the elephant in the room that modern professional advisers try to brush off is the internet.  The fact is I could have 200 stocks in my portfolio, and as long as I keep my apps on my phone up to date, I would never miss a news piece, dividend issuance or anything else (if I chose to be that plugged in).  The press release happens and within minutes the notice hits my email.  This was not possible 20 years ago.  So to borrow a phrase from a large investment adviser, I don't need anybody to 'make sense of investing' for me.  I can do it faster than they can, reading the same things that most of them do (sure some in high finance have special access, but the information gap small and closing all the time).  So tracking my 58 positions is pretty easy.

Second, I don't chase momentum or yield.  Those kind of plays require constant attention, tracking daily changes even, or risky bets on companies that are always dancing near a cliff.  By focusing on quality stocks that will maintain or increase their dividends with or above inflation, I eliminate the need to buy and sell (aka feed the brokerage).  So having a bigger portfolio does not increase my handling of it all, unlike some more streamlined portfolios that aggressive chase returns upfront.

Third, and most important to me, is that I memorize stuff rather quickly.  So when I research a company I can quickly understand what they do.  After that I can analyze if the company would be a good investment for me at the moment.  For a long time many educators (I know a lot of people are in teaching...) told me that memorization is not as powerful of a skill as understanding and critical thinking.  I find that argument to be a fool's errand, as they are each powerful in their own right for different things.  Specifically, by memorizing facts I can create short cuts - in terms of finding and accessing the right information.  It also helps me track a company over time, as a stock is easier to track the more familiar you are with it.  Knowledge is cumulative, so the

So in the end, how big should a portfolio be?  My answer is as big as you want it to.  Sure not every stock will be a home run, but home runs aren't the only way to score points.  Consistency is the key to making my portfolio become my personal index fund, which reports to me.

- Gremlin

Recent Buy Part 2, September 2018

Back to back to back Gremlin here to discuss another buy.  Over the past three months, including September, I have managed a buy in my taxable account each month.  This is pushing up my taxable dividend income at a rate that is more rapid than ever before.  This is thanks to three things: a special dividend from DPS merger with Keurig to KDP, the fact my brokerage is moving to E*Trade so my partial shares were all sold, dividends accrued, and the fact that my wife returned to work (which means we are back to being a two income household again).  I am unsure if this rate of growth can be sustained as eliminating debt payments might supersede equity growth priorites.  Additionally, my wife is only paid 11 months of the year.  Still, the rate of growth gives me a lot of confidence that I can get our passive income to a place I want it to be sooner rather than later.

Today, I added to a new position by purchasing shares of Cardinal Health (CAH) in my taxable account.  I bought 20 shares, with a total cost of $1,069.35 ($53.12 / share, plus commission).  The current yield is 3.6%. For a detailed summary of their history, etc. please visit: CAH's Seeking Alpha Profile.

CAH is a major distributor of medical goods, especially pharmaceuticals; I will borrow the Seeking Alpha description:

"Cardinal Health, Inc. engages in the provision of pharmaceutical and medical products. It operates through the Pharmaceutical and Medical segments. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products in the United States. The Medical segment manufactures, sources and distributes Cardinal Health branded medical, surgical and laboratory products, which are sold in the United States, Canada, Europe, Asia and other markets. The company was founded by Robert D. Walter in 1971 and is headquartered in Dublin, OH. "

CAH has been battered this year.  One horrible quarter coupled with intense political / public pressure on their industry (due to opioids) and the Amazon (AMZN) scare are definitely the biggest causes, but not the only reasons.  They operate in a thin margin industry, but it is one of an long term oligopoly.  The distribution industry is something that takes time to build.  Its low margins means those thinking about joining the industry, such as AMZN, would probably look to other parts of that food chain for better margins (they did buy an online pharmacy).  For this reason, along with the long term trends of better availability and necessity of medications, it is clear that CAH and the industry will be around for a long time competing primarily among themsevles.

That is the 800 lb gorilla in the room.  CAH also sports a comfortable payout ratio and still has a steady Medical segment arm.  This gives me exposure to multiple sides of the healthcare sector, which is always appreciated.

This purchase will add around $38 to my forward 12 month dividend income.

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

What do you think of CAH?

- Gremlin
- Long CAH, KDP

Recent Buy, September 2018

Grab Your Popcorn Gremlin here to discuss my most recent buy.  Also why the popcorn?  Well tonight the NFL season starts.  Though I am not the biggest or best fan by any means, my team is still coming off their first championship win and they start the season tonight.  So go Eagles!  This should be a good season, though if past experience serves my memory right they will probably tank.  Almost no one has their division in back to back years, though I want to see myself proven wrong.

Otherwise, I added to my Roth account today.  I have been mostly neglecting my Roth account due to our former single income set up, and because my focus is now heavily on the taxable income positions that I want to build.  Still today is my Roth's day.

Today, I added to a new position by purchasing shares of Broadcom Inc (AVGO) in my Roth account.  I bought 5 shares, with a total cost of $1,091.04 ($216.82 / share, includes commission).  The current yield is 2.29%. For a detailed summary of their history, etc. please visit: AVGO's Seeking Alpha Profile.

AVGO is a major producer of semiconductors and other technological components; I will borrow the Seeking Alpha description:

"Broadcom, Inc., is a holding company, which engages in the design, development and supply of analog and digital semiconductor connectivity solutions. It serves four primary end markets: wired infrastructure, wireless communications, enterprise storage and industrial & other. Its products include data center networking, home connectivity, broadband access, telecommunications equipment, smartphones and base stations, data center servers and storage, factory automation, power generation and alternative energy systems, and displays. In April, 2018, Broadcom redomiciled from Singapore to the United States. The company was founded in 1961 and is headquartered in San Jose, CA. "

AVGO has been growing its dividend at a massive clip for the last 8 years.  In addition, the payout ratio is super low and the stock is clearly undervalued at this point.  However, what is most exciting is that they are a direct supplier to something that will definitely only become more important over time - technology.  I already own MSFT and AAPL, but this perspective is one of the physical needs that drive technology production and efforts.  Sure having a smartphone is a necessity for life, but it is clear that people find it harder and harder to separate themselves from technology.  I try to get away from it all the time, but it is nearly impossible to avoid it - even when you work hard to do that.  So in the meantime AVGO and similar companies will make the chips and materials that feed the tech beast.

This purchase will add $35 to my forward 12 month dividend income.

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

What do you think of AVGO?

- Gremlin
- Long AVGO, AAPL, MSFT

August Review / September Preview, 2018

Back to school Gremlin here to talk about this month and the next.  The end of this month coincides with the tortured 1 income timeline ending.  My wife is just now finding out that working and being a parent at the same time is just as exhausting (or more so) as being at home full time is with the baby - something she clearly never wanted to hear from me.  However, all the work and tired eyes are not in vain.  Her income will allow us to take on financial independence in a way we have not been able to for a long time.  Though honestly, she doesn't care about this stuff as much as I do...  So how did we do last month?
August:

This month I made one new purchase adding a new, acquiring shares of Eastman Chemical Co. (EMN) in my taxable portfolio.

Last month I brought in a total of $281.30 in dividends ($69.00 taxable, $64.30 Roth, and $148.00 IRA).  This is an increase from last year (239.61 total) by 17.4%.

In terms of dividend increases, I realized* three raises from Bank of Montreal (BMO), Starbucks (SBUX), and John Deere (DE).  The increases are from 3% to about 20%.  I have now realized 37 raises thus far this year.

Next month I will realize six raises from Hershey's (HSY), Kellogg's (K), Target (TGT), Discover (DFS), J.M. Smuckers (SJM), and Westlake Chemical (WLK).  The increases are from about 4% to about 19%.

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

September:

The mortgage continues, so at least part of our 'rent' counts towards our house. Our debts currently outstrip our assets (I choose not to count the house as an asset).  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 on just one income (for now) With a second income, investments and debt will be crushed!

August was family beach time, and I am now slightly tanner because of it (that tan should last 10 more minutes).  Back to school means everything picks up in the near term as the new routine starts.  Soon my accounts will begin to transition from Capital One to E-Trade, which won't change anything for investments.  My next purchase should be in September, potentially two of them.  I am looking to make a buy every month from here on out for 2018.

Next month should produce around $400 in dividends, which is a 25% YOY increase. It will be close, but if I break $400 it will be the first time ever.

My portfolio page is currently up to date.

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

Recent Buy, August 2018

Tan(ner) Gremlin here to discuss a recent buy.  I just got back from the beach, and I was hit by the general realization that everyone returning from vacation faces - that they would prefer to stay on vacation.  That is the goal here, to build this passive income stream so one day I can make every day a free day.  Part of building that income stream is purchasing quality dividend stocks.  Today I added one that has long been in my cross hairs, but is rarely mentioned in other places...

Today, I added to a new position by purchasing shares of Eastman Chemical (EMN) in my taxable account.  I bought 12 shares, with a total cost of $1,189.80 ($98.578 / share, includes commission).  The current yield is 2.29%. For a detailed summary of their history, etc. please visit: EMN's Seeking Alpha Profile (for the record my time is getting more limited by the day, thanks to having a kid, so I am cutting out this section and giving a general view, I do read multiple websites, this just seems to be one of the more accessible ones).

EMN is a major producer of chemicals; I will borrow the Seeking Alpha description:

"Eastman Chemical Co. engages in the provision of specialty chemicals. It operates through the following segments: Additives and Functional Products; Advanced Materials; Chemical Intermediates; and Fibers. The Additives and Functional Products segment includes chemicals for products in the transportation, consumables, building and construction, animal nutrition, crop protection, energy, personal and home care, and other markets. The Advanced Materials segment produces and markets its polymers, films, and plastics with differentiated performance properties for value-added end uses in transportation, consumables, building and construction, durable goods, and health and wellness markets. The Chemical Intermediates segment consists of large scale and vertical integration from the cellulose and acetyl, olefins, and alkylamines streams to support operating segments with advantaged cost positions. The Fiber segment offers cellulose acetate tow for use in filtration media, primarily cigarette filters. The company was founded by George Eastman in 1918 and is headquartered in Kingsport, TN."

EMN is the kind of company I love because of their super small payout ratio and massive earning potential.  The dividend is only 8 years old, growing at around a 10% clip, and their is tons of head space.  They provide products that are constantly in demand, and the barrier to entry is really high.  In addition, EMN has excellent geographic distribution, which means they can meet demand as it ebbs and flows in parts of the world in smooth fashion - relying less on middlemen.

I have eyed this company for a long time.  It, along with my position in Westlake (WLK), should stand to be in demand for the foreseeable future.  They make products that plenty of people use, but few want to be in the business of making.  The industry is capital intensive, but through conservative leadership they have both created strong financial positions.

This purchase will add $26.88 to my forward 12 month dividend income.  Part of the funding for this came from the sale of partial shares in my brokerage account.  Capital One's brokerage arm is being purchased by ETrade, so my stock quantities are getting cleaned up into nice round numbers.

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

What do you think of EMN? 

- Gremlin
- Long EMN and WLK

July Review / August Preview, 2018

Beach Gremlin here to talk about July and ponder about August.  Its that time of year again, beach time - to be fair I did not get any beach time in last year.  In a few days I head off to a warm sunny place to catch up on work inside, get some long runs in, cook a few huge dinners, and maybe get some sand around my feet (I can work from anywhere so I save time off when I can for use when I really need / want it).  Life will take on a huge new flavor this month as my wife returns to work.  I know she is in some ways ready, but in many ways it is hard to leave your child for any extended period of time.  At least her job will keep her close to him, and he will be with family.

In addition, we will no longer just have 1 income.  This means that debt will be slashed faster, savings will rebound, and investments will be made.  The remainder of this year will be strong.

July:

This month I made one new purchase, acquiring shares of Kraft Heinz (KHC) in my taxable portfolio.

Last month I brought in a total of $81.72 in dividends ($62.22 taxable, $9.50 Roth, and $10.00 IRA).  This is an increase from last year (73.19 total) by 11.6%.

In terms of dividend increases, I realized* two raises from Realty Income (O) and Leggett & Platt (LEG).  The increases are 0.2% to about 5%, respectively.  I have now realized 34 raises thus far this year.

Next month I will realize three raises from Bank of Montreal (BMO), Starbucks (SBUX), and John Deere (DE).  The increases are from 3% to about 20%.

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

August:

The mortgage continues, so at least part of our 'rent' counts towards our house. Our debts currently outstrip our assets (I choose not to count the house as an asset).  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 on just one income (for now).

August has family beach time.  I will be semi working while at the beach as to preserve some of my paid time off.  Likely my next buy will be in August too as my accounts will begin to transition from Capital One to E-Trade, which means my fractional shares will be sold.  That capital along with existing funds should allow me to make some more purchases.  Its fine by me, since I prefer round numbers anyway!

Next month should produce around $269 in dividends, which is a 12% 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 2018

Reunion Gremlin here to talk about a recent buy.  Over the weekend was family reunion time, which is always fun and exciting.  Sure it requires a good bit of driving, but its important to see people you care about - even more so when they are scattered about the globe.  Before we left on this journey I added to an existing stock position.  This was partly fueled by the merger of Dr Pepper Snapple (DPS - formerly) with Keurig to form Keurig Dr Pepper (KDP).  I will continue to hold my new shares of KDP, I do think there is value in the combined company.  Now to the proceeds, what did I buy with them?

Last week, I added to an existing position by purchasing shares of Kraft Heinz Corp. (KHC) in my taxable account.  I bought 17 shares, with a total cost of $1,087.81 ($63.58 / share, plus commission).  The current yield is 3.88%. 

This purchase nicely rounds out this position, and is in addition to KHC shares I hold in my Roth account.  I am not going to rehash the fundamentals of this stock as it is an existing position.  However, it is in an industry that will always be in demand - food.  Sure they are a little bit of an aged giant, but they have the ability to add newer products and acquire new brands.  I suspect that KHC, and its competitors, will continue to gobble up smaller / healthier products until each has its own respectable portfolio of these items.  Each added product might not move the needle on its own, but collectively I suspect companies will be seeing ever higher profits in the long run as trends continue.

This purchase will add $42.5 to my forward 12 month dividend income.

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

What do you think of KHC? 

- Gremlin
- Long KHC and KDP

June Review / July Preview, 2018

Beach Bod Gremlin here to talk about June and look towards July.  June in someways was, thankfully, a lazy month with a few plan-less weekends and only 1 trip (to a wedding).  It was nice to slow down a little and enjoy some quiet time.  The baby continues to grow rapidly, and he will soon be mostly mobile - a scary thought for the uninitiated.  Meanwhile the World Cup marches on, and it has been full of some awesome upsets.  Its great to watch new teams win, makes the whole thing more exciting when none of your teams remain.

July should an interesting month.  We have the 4th of July, a family reunion, and a week of dog sitting in the cards.  Sadly, it won't out perform June in dividends...

June:

This month I made no new stock purchases.

Last month I brought in a total of $384.54 in dividends ($157.37 taxable, $84.31 Roth, and $142.85 IRA).  This is an increase from last year ($298.63 total) by 28.7%. This is my biggest month ever, just edging out last March.

In terms of dividend increases, I realized* 5 raises from Pepsico (PEP), Sonoco (SON), Unilever (UL), Johnson and Johnson (JNJ), and Exxon Mobil (XOM).  The increases range from 5% to about 15% (mostly around 5-7%).  I have now realized 32 raises thus far this year.

Next month I will realize two raises from Realty Income (O) and Leggett & Platt (LEG).  The increases are 0.2% to about 5%, respectively.

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

July:

The mortgage continues, so at least part of our 'rent' counts towards our house. Our debts currently outstrip our assets (I choose not to count the house as an asset).  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 on just one income (for now).

July has a small family reunion, which should be an interesting time, otherwise I am hoping for a little bit of boredom - its nice to unwind sometimes.

My next buy will occur after the closure of the Dr Pepper Snapple (DPS ) - Keurig / Green Mountain merger - July 5th - which is nice.

Next month should produce around $82 in dividends, which is a 12% YOY increase.

My portfolio page is currently up to date.

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

Gremlin's Asset Review - 2018

Bookkeeping Gremlin here to discuss my net-worth.  I first made this type of post a year ago, because its my birth month so I might as well see how current me compares to newborn me (financially).  This is something I like to do on annual basis to help me gauge what kind of progress we are making towards financial independence.  This report honestly is the not best I have ever had, but there are glimmers all over the place and it will not take decades to correct the issues that remain on my personal balance sheet.

Debts:

Debt sucks, period.  Most people accept debt as normal and expected, but that is crap.  Still, I have debt though, and am working on crushing it.  So here goes:

Car #1* (my car): $7,198 (maturity: 6/2021, $250 / mo.) interest = 1.9% ($2831 reduction from last year)
Car #2 (her car): $12,585 (maturity: 10/2020, $475 / mo.) interest = 1.5% ($5459 reduction from last year)

Mortgage: $329,855 ($2100 / month, 30 year, 4% interest)
Family Cash: $30,000 - a family obligation 0%, no timetable (help received purchasing our house)
Revolving debt / credit cards: No balances carried or maintained, used as debit cards with credit points.
Total monthly debt payments = $2825
Total debt: $379,638

Currently, we pay my wife's car in exact amounts, and I pay a little extra on my car and our house.  I count our house exclusively as a debt.  Could it be an asset? Yes, but at the moment its a little more important than that.

* - I almost sold my car, but due to work family and obligations, doing so would be a real problem.

Income:

My wife took the end of last year off to spend time with the baby, and will head back to work at the end of this summer.  Last year our total income was approximately $110,000 before taxes.  This year our expected income is closer to $94,000.  Her return to work, coupled with a very conscious effort on my part to cut expenses should help me to eliminate debt and make purchases of stock.

Expected income (2018):
My main job: $80,000
Wife: $14,000
My side gigs: $1,000
Total: $95,000

Looking forward to the second half of this year is a very pleasant thought.  Our income will balloon, savings will grow, and we will focus extra cash on more stock.  Additionally, I will like to dispose of one of my car loans.

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 investment accounts:

Taxable Invested Assets: $39,775
Roth IRA: $20,078
Traditional IRA: $38,468
401K: $19,305
Wife's Retirement / Pension: $15,416
Total = $133,042 ($32,195 total growth)

At the beginning of 2015 the total stood at $47,000.  At the end of 2015 it was $54,000, and at the end of 2016 it was $87,000.  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 $100,000, so time to double down.  It is my goal to make this number hit $145,000 by end 2018.

Total Net Worth = (-$246,596)

Goals:

Last year I wanted to increase my income and investments, and decrease non-housing debt.  That was a success.  So I want to now lay down concrete debt related goals to reach before my next birthday.
1 - Begin retiring some of my family debt.
2 - Eliminate a car payment.
3 - Networth approaching or above $-230k.

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 is to achieve financial independence in a meaningful way - that independence would then be leveraged to pursue work and life goals that my current 9-5 does not give me time the time to chase.

- How is your net-worth coming along?  Buy a house recently?
- Gremlin

Gremlin's 2018 Soccer Call...

Sports Gremlin here, been a while since I've been around, but I have time for a quick visit.  Where has the time gone?  Seems it was just yesterday I was watching Germany win a World Cup, Portugal a Euro, and watching the US Men's team flame out in spectacular fashion - sigh.  That is just soccer, there have been tons of other sports, life, investing, and other moments which have come and gone.  Now the next World Cup is upon us all, so comes time for a quick review.

This year I will not be making any calls.  Last time, the teams seemed a bit more straight forward in terms of who was dangerous, who will play well below their means, who were the powerhouses, etc.  The field this year is much more level than years past.  The usual heavy weights - Germany and Brazil are here to play.  France, England, Spain, and Argentina are all there too, who along with Uruguay round out the past winners.  Italy did not even make the field!  Those are the 'traditional' powerhouses.  Of them, Brazil looks like it will struggle, Spain fired its coach a day before kick off, the German Machine's cogs are getting a little older, and Argentina's stars are even older than the cogs.  France has some amazing players, but they seem to also have huge egos that might beat them before the step on the field.  England looks to be in great form, however it seems this always happen right up until they blow it.  Uruguay has not been dangerous since 2010.

Then there are the dangerous teams no one wants to play - Egypt (looking at you Salah), Iceland (they create goals from nothing), Belgium, Denmark, Senegal*, Poland*, Colombia*, etc.  The presence of one of these teams can easily knockout one of the traditional powers, and most groups feature at least 3 legitimate contenders.  * - all in the same group

So enough kicking the dirt on this.  I think there are several likely outcomes:

1 - Russia makes it through the 1st round.  Russia, the host, is not highly rated, but only one host ever, South Africa, did not advance beyond the opening round.  I think that will trend will continue.
2 - Something stupid happens with a crowd.  Soccer fans are just prone to this, and I speak from first hand experience.  That being said those crowds are in Russia, so its like mixing an acid and base.  My call here is that the games should look pretty good on TV.
3 - France, Germany, England, and Brazil are the favorites.  I would guess one of them wins, but also likely is that a new team wins this year.  I would add Poland, Colombia, and Belgium to the likely final 8 teams (pending bracket shake out).
4 - Enjoy the game.  This is my favorite sporting event.  The field is wide open (dammit USA), and it should be a great spectacle.

Will you watch?  Is there someone you want to see win... or lose?

- Gremlin
- going to go Long Germany on this one...

May Review / June Preview, 2018

Tired Gremlin here to talk about May and peer forward into June.  Kids make you tired, that is a straight fact, if you're not tired you should own stock in Starbucks (SBUX) or Dunkin Donuts (DNKN).  Between work, home, hobbies, and everything else that fills the air it was nice to recently have a long weekend.  I've heard it said people cannot catch up on sleep, but that doesn't mean we won't try.

Looking past rainy and busy May, June is a big month.  My favorite sporting event starts- the World Cup.  Its my birthday - a bittersweet reminder that I am not 23 anymore.  The weather has finally gotten nice, minus the rain, so its high time to spend more moments outside.

May:

This month I made one purchase, adding shares of Kimberly-Clark Corp. (KMB) in my IRA account.

Last month I brought in a total of $267.98 in dividends ($57.07 taxable, $62.91 Roth, and $148.00 IRA).  This is an increase from last year ($246.08 total) by 8.9%.

In terms of dividend increases, I realized* 4 raises from the Gap (GPS), Ameriprise Financial (AMP), Kinder Morgan (KMI), and General Dynamics (KMI).  The increases ranged from5% to about 60%.  This includes KMI coming back to life.  I have now realized 27 raises thus far this year.

Next month I will realize five raises from the Pepsico (PEP), Sonoco (SON), Unilever (UL), Johnson and Johnson (JNJ), and Exxon Mobil (XOM).  The increases range from 5% to about 15% (mostly around 5-7%).

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

June:

The mortgage continues, so at least part of our 'rent' counts towards our house. Our debts currently outstrip our assets (I choose not to count the house as an asset).  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 on just one income (for now).

June has 1 wedding on the calendar and the start of the World Cup.  Between the World Cup and my annual net-worth review, I should have more updates than usual.

My next buy will occur after the closure of the Dr Pepper Snapple (DPS ) - Keurig / Green Mountain merger (should be this month).

Next month should produce around $372 in dividends, which is a 24% YOY increase.

My portfolio page is currently up to date.

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

Recent Buy, May 2018

Pollen Gremlin here to chat about a new buy.  Its spring and that means pollen is in the air, so allergy meds are in my system.  Its the biggest downside of nice weather, and the main reason spring ranks as my least favorite season.  In between sneezes its been a busy time here.  I also just completed another short bit of work travel and there is a laundry list of things that need to get done at home.  It will be nice in the future when baby Gremlin finally can help out with some of those - especially the sneeze inducing ones.  In particular his job list will include dusting, as it is the singular chore I despise above all others.  Anyways, what did I buy?

A few days ago, I added a new position by purchasing shares of Kimberly-Clark Corp (KMB) in my IRA account.  I bought 10 shares, with a total cost of $1,039.57 ($103.26 / share, plus commission).  The current yield is 3.83%.  The P/E ratio for KMB sits today at approximately 16.19, trailing.  The yield is slightly above the 5 year average of 3.4%, and P/E is well below its average of the past 5 years (28.35).  KMB has a trailing payout ratio of approximately 58% (it seems be reported between 55 and 65%, with some stating 77% - likely a skew from taxes at the end of 2017).  KMB is a dividend champion, having paid increasing dividends now for 46 years.  Its long term average dividend raise is around 7%, however recent increases tend to be between 4 and 6% - with the most recent being just above 3%.

What does KMB do in their own words:

Kimberly-Clark is a leading manufacturer of personal care (around half of sales) and tissue products (roughly one third of sales). Its portfolio of brands includes Huggies, Pull-Ups, Kotex, Depends, Kleenex, and Cottonelle, among others. The firm also operates K-C Professional, which partners with businesses to provide safety and sanitary products for the workplace. Kimberly-Clark generates slightly north of half its sales in North America and more than 10% in Europe, with the rest primarily concentrated in Asia and Latin America.

KMB is a $36B company, which produces a bunch of consumer staples.  Consumer staple stocks have been beat up of late, they are not new or cool.  There is no fast or flashy money to be made.  That being said, KMB is surely feeling the squeeze other old consumer stocks are - new organic / hypoallergenic (among other things) products, lower price points of generic breads, and less millennial brand recognition.  At least that is the drum that is beaten today about these types of companies - neglecting their general role in those things (lots of store brands are tied to branded items - either in manufacturing or materials) and their general ability to buy up newer / smaller competition.  Companies like KMB are starting to get hard to ignore at these levels.

This purchase will add $40 to my forward 12 month dividend income.

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

What do you think of KMB? 

- Gremlin
- Long KMB

April Review / May Preview, 2018

Busy Gremlin here to talk about how my investments performed in April, and what is expected of May.  April was a very solid month for my investments; while many of my coworkers and friends lamented the roll coaster in the stock market, I just smiled and kept collecting cash. I also smile when any jest is made about how inexpensive my lunches are (never really break $1.50 cost except for rare occasion) and that through my bike and the train my commute is free.  Small savings and side cash, are a formula for success.

April also had some work travel for me.  I am not the biggest fan of work travel, as I have done a lot of it over the years and it can be a drag, however I do try to take advantage to save extra cash and see something new.  Last month as part of my travel I wedged in a brewery visit.

April:

This month I made one purchase, buying shares in the Royal Bank of Canada (RY), while selling legacy holdings Pengrowth Energy (PGH) and Willamette Valley Vineyards (WVVI).

Last month I brought in a total of $74.85 in dividends ($65.85 taxable, $9 Roth, and $0 IRA).  This is an increase from last year ($70.94 total) by 5.5%.

In terms of dividend increases, I realized* 5 raises from the Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC), Coca-Cola (KO), Realty Income, and Walmart.  The increases ranged from 0.2% to about 5.5%.  I have now realized 23 raises thus far this year.

Next month I will realize four raises from the Gap (GPS), Ameriprise Financial (AMP), Kinder Morgan (KMI), and General Dynamics (KMI).  The increases range from 5% to about 60%. For the record KMI raised their dividend 60%, which is clawing back from the 75% cut they had in early 2016.

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

May:

The mortgage continues, so at least part of our 'rent' counts towards our house. Our debts currently outstrip our assets (I choose not to count the house as an asset).  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 on just one income

Hopefully May is a quiet month, but I would not hold my breath.  Nothing gets quiet, slows down, or goes exactly according to plan when you have a baby.  That being said, none of those concerns are a bad thing!

I should have a buy in my IRA, but I might old off until June depending on the market prices and closure of the Dr Pepper Snapple (DPS ) - Keurig / Green Mountain merger.  In addition, I will likely write a quick historical analysis relating the stock market, business cycles, and historical revolutions.  If that sounds weird to read, it felt weirder to type, but it will all wind itself together in a rational sense.

Next month should produce around $270 in dividends, which is a 9.5% YOY increase.

My portfolio page is currently up to date.

Hope everyone has a great March.
- Dividend Gremlin
- Long all stock tickers mentioned (except PGH and WVVI)

Brewery Review, April 2018

Beer Gremlin here to conduct a brief brewery review.  Recently I had to travel for work, which is not the most desirable thing in my opinion.  The trips are short, the free time is minimal, and I am away from my family.  However, while I am out I might as well make the most of the situation.  After all, it is a slight break from the norm and my expenses are essentially covered, so the little extra freedom is I use to my advantage.

For this trip I was in Kansas City.  While there I popped into the new (2-3 month old) brewery called Casual Animal, close to the heart of the town.  I tried a total of six (out of nine) different drinks before heading straight to bed.  The six were their lager, honey ale, wit style, Belgian spiced ale, the double IPA, and the brown ale, which I will discuss briefly.

Cutting to the chase with the three light beers; they were alright.  A little light on flavor for my taste, but I think they would make excellent choices in the summertime.  Of them the wit was my favorite, and the honey ale was the one I thought could use more kick.

The darker drinks I found more to my liking.  The brown was nice, but needed some extra malt to really pull the flavor through.  The two winners, hands down, were the double IPA and the Belgian spiced ale.  The IPA was not too bitter, still had a solid hop crispness to it, and packed a ton of juicy flavor.  If you like IPAs that are not just a cyclone of bitterness and you live in Kansas City - that is your move right there.  The Belgian was strongly spiced, now I know that can rub some the wrong way, but its something I like.  It reminds me of the darker Belgian styles, something to really get you ready for the fall.

Casual Animal is new on the scene; having worked in a brewery I realize there are kinks to sort out, but they are starting out with strong promise.  They had a lot of variety, and its clear they have done well on a wide variety of styles.

Have you been there, had any favorites lately?

- Gremlin
- Full disclosure, I like all styles of beer though my favorites in no particular order are pale ales, Belgian style spiced beers (dubbels, trippels), sour beers, IPAs, German style lagers, hefeweizens, and creamy stouts.  So really I do like them all, though some are much better seasonally.

Recent Sale / Buy April and Other Developments, 2018

Doing What I Have Done Gremlin here to talk about two recent sales and a buy.  Sales you say?  I rarely sell stuff, but recently I sold two of my positions, the only two that do not generate a dividend.  That was the entire reason for selling.  These two stocks, Pengrowth Energy (PGH) and Willamette Valley Vineyards (WVVI) have been in my portfolio since about 2010.  It was a tough move to sell both, however it was decided that all hands should be on deck working for me.

PGH was sold at a big loss, though proceeds + dividends received + tax harvesting makes up for some of that - but not enough.  It was a dead weight in my portfolio, and every dollar that cash can earn back is appreciated.  It is at a point where waiting and watching continual failure was just not worth it.  WVVI, on the other hand, was sold for a very handsome profit.  I liked owning them, it felt cool.  I would like to own a vineyard or a brewery in real life, and I am sure one day I will get there.  However, at this point I want that cash onboard driving this FI ship faster and faster. So enough of this sad selling news, what did the proceeds buy?

BUY:
Today, I added a new position by purchasing shares of the Royal Bank of Canada (RY) in my taxable account.  I bought 15 shares, with a total cost of $1,154.72 ($76.52 / share, plus commission).  The current yield is 3.90%.  The P/E ratio for RY sits today at approximately 12.99, trailing.  The yield is slightly below the 5 year average of about 4.01%, and P/E is slightly above the average of the past 5 years (12.18).  RY has a trailing payout ratio of approximately 51%.  RY is a member of the Canadian Dividend All-Star list, with 7 years of growth.  They, along with the other major Canadian banks froze payouts during the 2008 Financial Crisis, only to resume them with two years.  RY has been paying dividends since 1870, and has never once missed a payment.  I am comfortable with the current and historical ratios, this is a solid stock and will serve me well for a long time.

RY, along with my other Canadian bank holdings of Bank of Nova Scotia (BNS), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CM) make up four out of the five big Canadian Banks.  I intend to add the other, Toronto Dominion (TD), too.  Their collective history and the regulations that bind them make them, as a whole, the juiciest banking group in the world to me.  Indeed, just look at their general Wiki entry if you don't believe me.  That history says it all - during the Great Depression no banks closed, during the 1980s only 2 closed.  By contrast, 9000+ banks failed during the Great Depression in the USA.  The USA has a banking industry that seems to waver between stable and made out of spaghetti; so for my investments in banking I favor the stability of the Great White North.

OTHER NEWS:
In other news I am aiming to start a secondary portfolio using M1 Finance.  M1 is a fee-free brokerage of sorts in the vein of old Loyal 3.  However, it allows access to the whole market and investments are triggered in a batch style when the necessary amount of funding is reached.  For a much better review of the site please read Retire Before Dad's take.

My goal with this account is to make a team of also-rans.  What I mean by this is choosing stocks that I routinely want to buy, but when the time comes I always pass over them for a better deal at the time.  So this will be a team of number 2s.  To that end I have titled the fund, The 2nd Bananas.  This is a tribute to an old article on the website Grantland, describing the best 'side kicks' of all time.

By the time this account is getting to where I want it to be it is likely fees will be introduced.  At that point I will close the account moving all the assets back into my standard brokerage.  So it goes, so it goes.

Finally, I will be doing some work travel in the next few weeks.  Hopefully I will be able to put up a brewery review, as its been a while since I have done that.

What do you think of RY and M1 finance?

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

- Gremlin
- Long all stocks mentioned minus TD, PGH, and WVVI

March Review / April Preview, 2018

Personally Intrigued Gremlin here to discuss this past month and upcoming April.  Dividend wise March was a madhouse, more on that later.  March was also busy at home with almost every moment at home consumed by baby care or social gatherings in some way related to baby stuff.

Meanwhile, I am also working at saving cash all the time, in most every aspect of my life.  So far the results are pretty ordinary, but given enough time the result will be extraordinary.  Those results will be very rewarding and in spite of whatever political or economic action that may come - my path is directly forward with saving and investing.  Living in the DC area I hear a lot of theorizing of how things can go.  Most of that stuff is just noise, and I patiently disregard most of it, while personally mocking some of it.

March:

This month I made one purchase, acquiring shares of the Bank of Montreal in my taxable account.

Last month I brought in a total of $380.58 in dividends ($156.97 taxable, $82.86 Roth, and $140.75 IRA).  This is an increase from last year ($282.82 total) by 34.5%.

In terms of dividend increases, I realized* 11 raises from Amgen (AMGN), Archer-Daniel's Midland (ADM), Dominion Resources (D), Dunkin Donuts (DNKN), Eaton Corp (ETN), Union Pacific (UNP), Waste Management (WM), YUM! Corp (YUM), Prudential (PRU), 3M (MMM), and T-Rowe Price (TROW).  The increases ranged from 4% to about 20%.  I have now realized 18 raises thus far this year.

Next month I will realize five raises from the Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC), Coca-Cola (KO), Realty Income, and Walmart.  The increases range from 0.2% to about 5.5%.

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

April:

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 on just one income

The weather has gotten nice and I have 'recovered' some bike parts that might have gone missing thanks to someone who wanted bike parts at the end of last year.  That means I will be riding my bike almost every day (I ride to my nearby commuter train station).  Between riding my bike, having work cover my train cost, and keeping food costs very low - I am saving a ton of cash despite my wife having taken the year off to spend with our son.  Once she resumes work our income will be outstanding, and our investments will benefit handsomely.

My next buy will probably be in May, but there is an outside chance it will come in April.

Next month should produce around $75 in dividends, which is a 6% YOY increase.  The first month of each quarter remains a bit of a weak link on my dividend calendar.

My portfolio page is currently up to date.

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

Recent Buy, March 2018

Bracketed Gremlin here to discuss a recent stock buy.  Did anyone here finally call the 16 seed blowing out a 1 seed in the NCAA Tournament?  I didn't, but I did find the whole thing amusing.  In sports, if I have no horse in the race, I universally root for the underdog.  Its just more fun seeing someone win when they were not supposed to do that.  Anyways, if I cannot win Buffett's million, I might as well just buy some quality dividend paying stocks.  So that is what I did, picked up some more shares to further pump my dividend income.

Today, I added a new position by purchasing shares of the Bank of Montreal (BMO) in my taxable account.  I bought 15 shares, with a total cost of $1,135.94 ($75.27 / share, plus commission).  The current yield is 3.90%.  The P/E ratio for BMO sits today at approximately 13.77, trailing.  The yield is slightly above the 5 year average of 3.88%, and P/E is slightly above the average of the past 5 years (11.75).  BMO has a trailing payout ratio of approximately 51%.  BMO is a member of the Canadian Dividend All-Star list, with 6 years of growth.  They, along with the other major Canadian banks froze payouts during the 2008 Financial Crisis, only to resume them with two years.  BMO has been paying dividends since 1829, and has never once missed a payment.

BMO is my third Canadian Bank stock, after Canadian Imperial Bank of Commerce (CM) and Bank of Nova Scotia (BNS).  The Canadian banking sector is very solid, even with all the press surrounding the very real housing bubbles in Toronto and Vancouver.  BMO has the least exposure to those markets of all of the Canadian majors, and it has a strong presence in the USA with Harris Bank.  It may not be as conservative as Toronto-Dominion Bank, but it still has an impeccable and set of credentials.

This purchase will add approximately $36 to my forward 12 month dividend income.

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

What do you think of BMO? 

- Gremlin
- Long BMO, CM, and BNS