Wednesday, October 31, 2018

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 adding by adding 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

6 comments:

  1. Hi Gremlin,

    It seems you had a good month. To bad about GE, I never bought any stocks or even looked into that company.

    Keep up the good work!

    Cheers,
    TLTI

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    1. Long Term,

      I did, thank you for the comment! No reason to look into GE at this point, but some of the parts might be harvested successfully in the future. Worth keeping an eye on the healthcare, renewable energy, and aviation - but that is ?? down the road.

      - Gremlin

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  2. Looks like you rocked it in October with a solid double digit year over year gain. Always nice to see impressive gains. I understand your shuttling of GE. What a bummer of a stock. I'm still holding on to my shares for now. Might sell if price goes up a bit from here. It's bound to happen to any of us... picking up a dividend dud among our portfolio. As long as you can continually put up year over eyar gains it doesn't matter. That's why we diversify.

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    1. Keith,

      It was a rocking month indeed! GE is a bummer stock, and mistakes happen, reminds us to focus on quality and as you said diversify.

      Thanks for the comment,
      Gremlin

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  3. Gremlin,

    Another great month with awesome results. I'm happy to hear that you are increasing your step balance as well. That is sweet. The GE news is a bummer and that dividend cut was brutal. But hey, that is part of the risk we run with dividend investing, right? Unfortunately, dividends are not guaranteed. With that being said, I think there are some good lessons we can all take from this "restructuring" or as you said it, train-wreck. Keep your head up and keep on investing. Also, enjoy the tax-loss harvesting with that sale.

    Bert

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    1. Bert,

      Thanks for the comment. Yea the step balance is a good thing, but GE was brutal. You're right, its all part of the learning curve, which is constantly changing. The tax harvesting will be a big thing in a few months for us indeed - between my wife not working most of the year, a full year of mortgage payments, and this loss - I should be looking at a whopper of a return.

      - Gremlin

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