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