January Review / February Review, 2018

Relaxed Gremlin / Winter Gremlin here to discuss this past month.  I am grateful for the holidays and massive amount of birthdays to be over.  It is a good time to look forward to a new year, one where the little dude starts moving (and probably talking back), and one where our savings and financial side will be pressed to flourish.  My wife will not be making any meaningful income for at least 8 more months, which means that we need to be smarter than ever.  So far, we are off to a good start, and I predict we will only do better as the year progresses.  So far my personal spending has almost dropped off a cliff, and I will do my part to keep us marching towards financial freedom.

January:

This month I made one purchase, adding Dominion Energy (D) to my taxable account.

Last month I brought in a total of $74.41 in dividends ($65.41 taxable, $9 Roth, and $0 IRA).  This is an increase from last year ($67.05 total) by 10.9%.  My new investment in Leggett and Platt (LEG) pushed my dividend growth inspite of the General Electric (GE) dividend cut.

In terms of dividend increases, I realized* two this month from from Realty Income (O) and Disney (DIS).  The raises range from 0.2% to 11%.  These are first two increases of 2018, added to that is one cut of 50% from GE.

Next month I will realize four raises from O, Abbott Labs (ABT), AT & T (T), and Omega Healthcare (OHI).  The increases range from 1% to about 5%.

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

February:

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.

My next buy will likely be in March.

Next month should produce around $219 in dividends, which is a 0% YOY increase.  Several holdings are transitioning to paying in the 3rd month of the quarter from the second, which may impact my numbers on the surface, but not from an annual perspective.

My portfolio page is currently up to date.

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

Recent Buy, January 2018

Resting Easy Gremlin here to talk about a stock purchase I made.  The new year seems to be off to anything, but a slow start.  Markets are climbing higher, people won't stop talking about how they have all broken their resolutions already, people are returning the gifts the don't want or know how to use, work has resumed, and the cold has parked its butt right on my front lawn.  So many things to ponder, do, and forget about.  For myself the year has started off with a bang, with a mini promotion, some extra cash from work, and of course a meeting to talk about it all (insert sense of dread even if you know they like you).  So lets forget about all of those things and focus on what really matters, such as what I bought in pursuit of financial independence.

Today, I added a new position by purchasing shares of Dominion Energy (D) in my taxable account.  I bought 14 shares, with a total cost of $1,087.32 ($77.17 / share, plus commission).  The current yield is 3.97%.  The P/E ratio for D sits today at approximately 22.85, trailing.  These are above the historical 5 year average for the stock with the average yield being 3.65%, and significantly better than average P/E being 40.32.  D has a trailing payout ratio of approximately 87%.  D has 15 years of dividend growth and is a member of the Dividend Contenders.  This purchase will add $43.12 to my 12-month forward income.

D is my first utility stock.  It's metrics have become a lot sweeter of late, due to decreased belief in its value as it plans to take over Scana (SCG), a South Carolina utility.  This deal could be huge in terms of future gains, but also will come with short term headaches.  As a long term investor I am comfortable with this.  In addition, D sports a higher than usual payout ratio for me, however they are a utility and that is common within that space.  Being a mainly electric (but also gas) utility it is fairly understood what they do, however I will let them explain in detail:

"Based in Richmond, Virginia, Dominion Energy is an integrated energy company with approximately 25,000 megawatts of electric generation capacity; 15,000 miles of natural gas transmission, storage, distribution and gathering pipelines; and more than 63,000 miles of electric transmission and distribution lines. Dominion operates one of the nation's largest natural gas storage systems, is nearing completion of an LNG export facility in Maryland, and is 48% owner of the proposed Atlantic Coast Pipeline."

I am now both a shareholder and customer of D.  They have proven very good as my electric provider.  The area I live in, Northern Virginia, has been growing at an astounding rate over the past two decades.  Growth here and in the other major areas serviced by D currently has been very good and consistent.  So it is not a stretch to say that their growth will continue.  If the acquisition of SCG goes through, then it is just icing on the cake.

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

What do you think of D? 

- Gremlin
- Long D