Thursday, May 10, 2018

Recent Buy, May 2018

Pollen Gremlin here to chat about a new buy.  Its spring and that means pollen is in the air, so allergy meds are in my system.  Its the biggest downside of nice weather, and the main reason spring ranks as my least favorite season.  In between sneezes its been a busy time here.  I also just completed another short bit of work travel and there is a laundry list of things that need to get done at home.  It will be nice in the future when baby Gremlin finally can help out with some of those - especially the sneeze inducing ones.  In particular his job list will include dusting, as it is the singular chore I despise above all others.  Anyways, what did I buy?

A few days ago, I added a new position by purchasing shares of Kimberly-Clark Corp (KMB) in my IRA account.  I bought 10 shares, with a total cost of $1,039.57 ($103.26 / share, plus commission).  The current yield is 3.83%.  The P/E ratio for KMB sits today at approximately 16.19, trailing.  The yield is slightly above the 5 year average of 3.4%, and P/E is well below its average of the past 5 years (28.35).  KMB has a trailing payout ratio of approximately 58% (it seems be reported between 55 and 65%, with some stating 77% - likely a skew from taxes at the end of 2017).  KMB is a dividend champion, having paid increasing dividends now for 46 years.  Its long term average dividend raise is around 7%, however recent increases tend to be between 4 and 6% - with the most recent being just above 3%.

What does KMB do in their own words:

Kimberly-Clark is a leading manufacturer of personal care (around half of sales) and tissue products (roughly one third of sales). Its portfolio of brands includes Huggies, Pull-Ups, Kotex, Depends, Kleenex, and Cottonelle, among others. The firm also operates K-C Professional, which partners with businesses to provide safety and sanitary products for the workplace. Kimberly-Clark generates slightly north of half its sales in North America and more than 10% in Europe, with the rest primarily concentrated in Asia and Latin America.

KMB is a $36B company, which produces a bunch of consumer staples.  Consumer staple stocks have been beat up of late, they are not new or cool.  There is no fast or flashy money to be made.  That being said, KMB is surely feeling the squeeze other old consumer stocks are - new organic / hypoallergenic (among other things) products, lower price points of generic breads, and less millennial brand recognition.  At least that is the drum that is beaten today about these types of companies - neglecting their general role in those things (lots of store brands are tied to branded items - either in manufacturing or materials) and their general ability to buy up newer / smaller competition.  Companies like KMB are starting to get hard to ignore at these levels.

This purchase will add $40 to my forward 12 month dividend income.

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

What do you think of KMB? 

- Gremlin
- Long KMB

Monday, April 30, 2018

April Review / May Preview, 2018

Busy Gremlin here to talk about how my investments performed in April, and what is expected of May.  April was a very solid month for my investments; while many of my coworkers and friends lamented the roll coaster in the stock market, I just smiled and kept collecting cash. I also smile when any jest is made about how inexpensive my lunches are (never really break $1.50 cost except for rare occasion) and that through my bike and the train my commute is free.  Small savings and side cash, are a formula for success.

April also had some work travel for me.  I am not the biggest fan of work travel, as I have done a lot of it over the years and it can be a drag, however I do try to take advantage to save extra cash and see something new.  Last month as part of my travel I wedged in a brewery visit.

April:

This month I made one purchase, buying shares in the Royal Bank of Canada (RY), while selling legacy holdings Pengrowth Energy (PGH) and Willamette Valley Vineyards (WVVI).

Last month I brought in a total of $74.85 in dividends ($65.85 taxable, $9 Roth, and $0 IRA).  This is an increase from last year ($70.94 total) by 5.5%.

In terms of dividend increases, I realized* 5 raises from the Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC), Coca-Cola (KO), Realty Income, and Walmart.  The increases ranged from 0.2% to about 5.5%.  I have now realized 23 raises thus far this year.

Next month I will realize four raises from the Gap (GPS), Ameriprise Financial (AMP), Kinder Morgan (KMI), and General Dynamics (KMI).  The increases range from 5% to about 60%. For the record KMI raised their dividend 60%, which is clawing back from the 75% cut they had in early 2016.

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

May:

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

Hopefully May is a quiet month, but I would not hold my breath.  Nothing gets quiet, slows down, or goes exactly according to plan when you have a baby.  That being said, none of those concerns are a bad thing!

I should have a buy in my IRA, but I might old off until June depending on the market prices and closure of the Dr Pepper Snapple (DPS ) - Keurig / Green Mountain merger.  In addition, I will likely write a quick historical analysis relating the stock market, business cycles, and historical revolutions.  If that sounds weird to read, it felt weirder to type, but it will all wind itself together in a rational sense.

Next month should produce around $270 in dividends, which is a 9.5% YOY increase.

My portfolio page is currently up to date.

Hope everyone has a great March.
- Dividend Gremlin
- Long all stock tickers mentioned (except PGH and WVVI)

Thursday, April 26, 2018

Brewery Review, April 2018

Beer Gremlin here to conduct a brief brewery review.  Recently I had to travel for work, which is not the most desirable thing in my opinion.  The trips are short, the free time is minimal, and I am away from my family.  However, while I am out I might as well make the most of the situation.  After all, it is a slight break from the norm and my expenses are essentially covered, so the little extra freedom is I use to my advantage.

For this trip I was in Kansas City.  While there I popped into the new (2-3 month old) brewery called Casual Animal, close to the heart of the town.  I tried a total of six (out of nine) different drinks before heading straight to bed.  The six were their lager, honey ale, wit style, Belgian spiced ale, the double IPA, and the brown ale, which I will discuss briefly.

Cutting to the chase with the three light beers; they were alright.  A little light on flavor for my taste, but I think they would make excellent choices in the summertime.  Of them the wit was my favorite, and the honey ale was the one I thought could use more kick.

The darker drinks I found more to my liking.  The brown was nice, but needed some extra malt to really pull the flavor through.  The two winners, hands down, were the double IPA and the Belgian spiced ale.  The IPA was not too bitter, still had a solid hop crispness to it, and packed a ton of juicy flavor.  If you like IPAs that are not just a cyclone of bitterness and you live in Kansas City - that is your move right there.  The Belgian was strongly spiced, now I know that can rub some the wrong way, but its something I like.  It reminds me of the darker Belgian styles, something to really get you ready for the fall.

Casual Animal is new on the scene; having worked in a brewery I realize there are kinks to sort out, but they are starting out with strong promise.  They had a lot of variety, and its clear they have done well on a wide variety of styles.

Have you been there, had any favorites lately?

- Gremlin
- Full disclosure, I like all styles of beer though my favorites in no particular order are pale ales, Belgian style spiced beers (dubbels, trippels), sour beers, IPAs, German style lagers, hefeweizens, and creamy stouts.  So really I do like them all, though some are much better seasonally.

Friday, April 6, 2018

Recent Sale / Buy April and Other Developments, 2018

Doing What I Have Done Gremlin here to talk about two recent sales and a buy.  Sales you say?  I rarely sell stuff, but recently I sold two of my positions, the only two that do not generate a dividend.  That was the entire reason for selling.  These two stocks, Pengrowth Energy (PGH) and Willamette Valley Vineyards (WVVI) have been in my portfolio since about 2010.  It was a tough move to sell both, however it was decided that all hands should be on deck working for me.

PGH was sold at a big loss, though proceeds + dividends received + tax harvesting makes up for some of that - but not enough.  It was a dead weight in my portfolio, and every dollar that cash can earn back is appreciated.  It is at a point where waiting and watching continual failure was just not worth it.  WVVI, on the other hand, was sold for a very handsome profit.  I liked owning them, it felt cool.  I would like to own a vineyard or a brewery in real life, and I am sure one day I will get there.  However, at this point I want that cash onboard driving this FI ship faster and faster. So enough of this sad selling news, what did the proceeds buy?

BUY:
Today, I added a new position by purchasing shares of the Royal Bank of Canada (RY) in my taxable account.  I bought 15 shares, with a total cost of $1,154.72 ($76.52 / share, plus commission).  The current yield is 3.90%.  The P/E ratio for RY sits today at approximately 12.99, trailing.  The yield is slightly below the 5 year average of about 4.01%, and P/E is slightly above the average of the past 5 years (12.18).  RY has a trailing payout ratio of approximately 51%.  RY is a member of the Canadian Dividend All-Star list, with 7 years of growth.  They, along with the other major Canadian banks froze payouts during the 2008 Financial Crisis, only to resume them with two years.  RY has been paying dividends since 1870, and has never once missed a payment.  I am comfortable with the current and historical ratios, this is a solid stock and will serve me well for a long time.

RY, along with my other Canadian bank holdings of Bank of Nova Scotia (BNS), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CM) make up four out of the five big Canadian Banks.  I intend to add the other, Toronto Dominion (TD), too.  Their collective history and the regulations that bind them make them, as a whole, the juiciest banking group in the world to me.  Indeed, just look at their general Wiki entry if you don't believe me.  That history says it all - during the Great Depression no banks closed, during the 1980s only 2 closed.  By contrast, 9000+ banks failed during the Great Depression in the USA.  The USA has a banking industry that seems to waver between stable and made out of spaghetti; so for my investments in banking I favor the stability of the Great White North.

OTHER NEWS:
In other news I am aiming to start a secondary portfolio using M1 Finance.  M1 is a fee-free brokerage of sorts in the vein of old Loyal 3.  However, it allows access to the whole market and investments are triggered in a batch style when the necessary amount of funding is reached.  For a much better review of the site please read Retire Before Dad's take.

My goal with this account is to make a team of also-rans.  What I mean by this is choosing stocks that I routinely want to buy, but when the time comes I always pass over them for a better deal at the time.  So this will be a team of number 2s.  To that end I have titled the fund, The 2nd Bananas.  This is a tribute to an old article on the website Grantland, describing the best 'side kicks' of all time.

By the time this account is getting to where I want it to be it is likely fees will be introduced.  At that point I will close the account moving all the assets back into my standard brokerage.  So it goes, so it goes.

Finally, I will be doing some work travel in the next few weeks.  Hopefully I will be able to put up a brewery review, as its been a while since I have done that.

What do you think of RY and M1 finance?

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

- Gremlin
- Long all stocks mentioned minus TD, PGH, and WVVI

Friday, March 30, 2018

March Review / April Preview, 2018

Personally Intrigued Gremlin here to discuss this past month and upcoming April.  Dividend wise March was a madhouse, more on that later.  March was also busy at home with almost every moment at home consumed by baby care or social gatherings in some way related to baby stuff.

Meanwhile, I am also working at saving cash all the time, in most every aspect of my life.  So far the results are pretty ordinary, but given enough time the result will be extraordinary.  Those results will be very rewarding and in spite of whatever political or economic action that may come - my path is directly forward with saving and investing.  Living in the DC area I hear a lot of theorizing of how things can go.  Most of that stuff is just noise, and I patiently disregard most of it, while personally mocking some of it.

March:

This month I made one purchase, acquiring shares of the Bank of Montreal in my taxable account.

Last month I brought in a total of $380.58 in dividends ($156.97 taxable, $82.86 Roth, and $140.75 IRA).  This is an increase from last year ($282.82 total) by 34.5%.

In terms of dividend increases, I realized* 11 raises from Amgen (AMGN), Archer-Daniel's Midland (ADM), Dominion Resources (D), Dunkin Donuts (DNKN), Eaton Corp (ETN), Union Pacific (UNP), Waste Management (WM), YUM! Corp (YUM), Prudential (PRU), 3M (MMM), and T-Rowe Price (TROW).  The increases ranged from 4% to about 20%.  I have now realized 18 raises thus far this year.

Next month I will realize five raises from the Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC), Coca-Cola (KO), Realty Income, and Walmart.  The increases range from 0.2% to about 5.5%.

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

April:

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 on just one income

The weather has gotten nice and I have 'recovered' some bike parts that might have gone missing thanks to someone who wanted bike parts at the end of last year.  That means I will be riding my bike almost every day (I ride to my nearby commuter train station).  Between riding my bike, having work cover my train cost, and keeping food costs very low - I am saving a ton of cash despite my wife having taken the year off to spend with our son.  Once she resumes work our income will be outstanding, and our investments will benefit handsomely.

My next buy will probably be in May, but there is an outside chance it will come in April.

Next month should produce around $75 in dividends, which is a 6% YOY increase.  The first month of each quarter remains a bit of a weak link on my dividend calendar.

My portfolio page is currently up to date.

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

Monday, March 19, 2018

Recent Buy, March 2018

Bracketed Gremlin here to discuss a recent stock buy.  Did anyone here finally call the 16 seed blowing out a 1 seed in the NCAA Tournament?  I didn't, but I did find the whole thing amusing.  In sports, if I have no horse in the race, I universally root for the underdog.  Its just more fun seeing someone win when they were not supposed to do that.  Anyways, if I cannot win Buffett's million, I might as well just buy some quality dividend paying stocks.  So that is what I did, picked up some more shares to further pump my dividend income.

Today, I added a new position by purchasing shares of the Bank of Montreal (BMO) in my taxable account.  I bought 15 shares, with a total cost of $1,135.94 ($75.27 / share, plus commission).  The current yield is 3.90%.  The P/E ratio for BMO sits today at approximately 13.77, trailing.  The yield is slightly above the 5 year average of 3.88%, and P/E is slightly above the average of the past 5 years (11.75).  BMO has a trailing payout ratio of approximately 51%.  BMO is a member of the Canadian Dividend All-Star list, with 6 years of growth.  They, along with the other major Canadian banks froze payouts during the 2008 Financial Crisis, only to resume them with two years.  BMO has been paying dividends since 1829, and has never once missed a payment.

BMO is my third Canadian Bank stock, after Canadian Imperial Bank of Commerce (CM) and Bank of Nova Scotia (BNS).  The Canadian banking sector is very solid, even with all the press surrounding the very real housing bubbles in Toronto and Vancouver.  BMO has the least exposure to those markets of all of the Canadian majors, and it has a strong presence in the USA with Harris Bank.  It may not be as conservative as Toronto-Dominion Bank, but it still has an impeccable and set of credentials.

This purchase will add approximately $36 to my forward 12 month dividend income.

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

What do you think of BMO? 

- Gremlin
- Long BMO, CM, and BNS

Thursday, March 1, 2018

February Review / March Preview, 2018

Hanging Out Gremlin here to discuss this past month.  February was a strong month.  I got to watch enough Olympics to be tired of winter sports, minus hockey, until the next go around.  Speaking of hockey, it was also one of the best gold medal games I have ever seen.  Onto the real world, there are a lot of challenges going on right now.  The little one has learned to roll and is getting more engaged every day.  Some point soon, in say the next 10 years, I am sure he will intentionally try to make me mad.

On the home financial front, I have continued trimming finances, and the wife has done a fairly good job with that as well.  I am still able to continue stockpiling fresh cash with dividends in the effort to make new purchases.  The goal for the next few months is to pad my main accounts with cash so I am able to act should a very nice opportunity arise.

February:

This month I made no new purchases in any account.

Last month I brought in a total of $233.83 in dividends ($28.49 taxable, $59.14 Roth, and $146.2 IRA).  This is an increase from last year ($225.94 total) by 3.5%.  The percentage would be higher, but Discover (DFS) has switched its payout month to March.

In terms of dividend increases, I realized* five this month from from O, Abbott Labs (ABT), AT & T (T), Omega Healthcare (OHI), and my employer (B**).  The raises range from 1% to 11%.  I have now realized 7 raises thus far this year.

Next month I will realize 11 raises from Amgen (AMGN), Archer-Daniel's Midland (ADM), Dominion Resources (D), Dunkin Donuts (DNKN), Eaton Corp (ETN), Union Pacific (UNP), Waste Management (WM), YUM! Corp (YUM), Prudential (PRU), 3M (MMM), and T-Rowe Price (TROW).  The increases range from 4% to about 20%.  Next month will be nuts.

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

March:

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 on just one income!

My next buy will likely be this month (in March).

Next month should produce around $375 in dividends, which is a 32% YOY increase.  Boom.

My portfolio page is currently up to date.

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