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