April 2020 Buys

Still at Home Gremlin here to talk about my buys for this past month.  Wow, almost two full months of being in lock down and for all I know we might still just be in the beginning.  It certainly is a trying thing, especially with young kids at home - sadly, I have not really picked up any new languages or cool skills.  However, I have discovered at least one new podcast that I enjoy and we are spending less money.  Silver linings...

So the question is will the market tank again or take a rocket ride directly into the sun?  No one really knows, but it is clear that the effects of both this virus and its lock down are not fully known yet.  Indeed the only consequences I would bet on are the unintended ones.  That said, I keep improving my positions because the future is now!

No purchase or account fees were paid this month (* indicates a new position, which will be discussed below):

Taxable:
BMO - 3 shares @ $49.56 / share ($148.68 total), $8.1 income added [approx. $CAD]
DNKN - 1 share @ $54.99 / share, $1.61 income added
EV - 3 shares @ $30.41 / share ($91.23 total), $4.5 income added
GD - 1 shares @ $133.23 / share , $4.40 income added
NNN - 2 shares @ $31.14 / share ($62.28 total), $4.12 income added
Total Invested = $490.37
Annual Income Added (AIA) = $22.73

Roth:
AROW - 1 share @ $27.72 / share, $1.44 income added
Total Invested = $27.72
AIA = $1.44

Standard IRA:
FLIC- 2 shares @ $14.72 / share ($29.44 total), $1.44 income added
Total Invested = $29.44
AIA = $1.44

Totals:
Invested = $547.53
AIA = $25.61

*New Positions:
None.

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

What do you think of these companies?

- Gremlin
- Long all tickers mentioned

IRA to Roth Conversion Part #3

Retirement Gremlin back to talk about the long term process I am undertaking to slowly convert my IRA holdings to Roth.  This is the third 'backdoor' account conversion I have initiated.  I decided to take advantage of the economy, our down income (wife taking school year off for the 2nd child), and our general tax situation.  My first conversion and the underlying strategy can be found here.

Strategy: to avoid unnecessary taxable events, I will move around 1 to 2 "positions" a year.  At this rate I will be able to move the whole IRA to my Roth by the time I am 59. This is of course to maximize growth and minimize taxes.

Process: Since my accounts are all at the same brokerage, I can for no fee transfer single positions after a few mouse clicks.

Part 3:

For my third conversion I moved my entire position in WELL (30 shares - $1218 value). With this conversion, I am effectively moving $104.40 in forward dividends from my SEP IRA to my ROTH accounts.  The initial cost on the shares was a little over $2100 and their recent high was $3000 in value; so I feel like long term this was a good move.  The income in a Roth is always more powerful than a regular IRA.

Part 4 will happen next calendar year.

All changes will be reflected in my portfolio at the end of the month.

- Gremlin
- Long WELL

March Review / April Preview 2020

Quarantined Gremlin here for an update on March.  We have been mostly holed up for three weeks now, only venturing around for fresh air, exercise, and the occasional medical or grocery need.  Mentally, doing this with little kids is exhausting; so those of you without better take advantage and all of you better come out of this healthy and speaking like 1 new language + have some other trivial knowledge base.  I will continue to buy stocks, but I am looking for high quality positions from here on out only.  In the meantime, everyone stay sane out there.  This crisis will not last forever, eventually things will return to the new normal.

March:

This month I added shares to eight positions in my accounts, including new positions in Cisco Systems (CSCO) and Medtronic PLC (MDT).

Last month I brought in a total of $504.43 in dividends ($217.82 taxable, $122.20 Roth, and $164.41 in my IRA).  This is an increase from last year ($429.57 total) by 17%.

In terms of dividend increases, I realized 12 dividend increases from the Archer Daniel's Midland (ADM), Amgen (AGMN), Canadian National Railway (CNI), Dominion Power (D), Dunkin Brands (DNKN), Eaton Corp. (ETN), 3M (MMM), Waste Management (WM), YUM! Brands (YUM), Corning (GLW), Prudential (PRU), and T. Rowe Price (TROW). The increases range from just about 1.5% to 10+%. This brings my total raises to 17 for 2020.

Next month I will realize 6 dividend increases from the Canadian Imperial Bank of Commerce (CM), Coca Cola (KO), Realty Income (O), TD Bank (TD), WalMart (WMT), and Kimberly Clark (KMB).  The increases range from 0.2% to 7%.

In addition, I have received one dividend halt/pause/suspension from the Gap (GPS).  This is not a huge position for me, and I will hold, but it is annoying.  I think this will become a wider spread item, and I will continue to hold, but remember this going forward after the crisis abates.

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

April:

The mortgage continues and I am putting extra cash towards the principal monthly - not a huge number, but every little bit counts. Our debts currently outstrip our assets, because I consider our house a liability and NOT an asset.

I will continue to make rolling purchases going forward. I will also take advantage of the low prices and move some shares from my IRA to my Roth.

Next month should produce around $123 in dividends, which is a 20% YOY increase.

My portfolio page is currently up to date.

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