Wednesday, November 25, 2015

Weekly Purchase 11 - DOV

For this week's sharebuilder purchase, I added to my existing position in Dover (DOV).


DOV appeared in the November screen which looks for M*/S&P BBB+ rated companies with lower than average P/Es and higher than average yields. I bought DOV a few months ago and I am averaging down on my existing position.


Details of Purchase


On Tuesday, I bought 15.19 shares of Dover (DOV).


Action
Security
Price
Quantity
Amount
Buy
DOV
$65.53
15.19
1000


This purchase increases my forward annual dividends by $25.52.

Monday, November 23, 2015

Recent Purchase (Tax Deferred) - HSY



For my tax-deferred portfolio, I bought 20 shares of Hershey (HSY). Hershey has been on my watchlist forever since I really like it’s business model. I expect this company to be around for decades to come - which is perfect for my 401k account.


Details of transaction:


Action
Security
Price
Quantity
Amount
Buy
HSY
$85.10
20
$1702.2 +fees


The yield is close to 2.72% which increases my forward yearly dividends by $46.60.

Friday, November 20, 2015

Recent Purchase (Tax Deferred) - ADM



After transferring some of my mutual funds over to my 401k self directed account, I initiated my first trade. I bought 100 shares of ADM. Since the the account is new, the interface is not familiar, it was a learning experience as well. Fortunately, no hiccups.


Details of transaction:


Action
Security
Price
Quantity
Amount
Buy
ADM
$37.00
100
$3700 +fees


The yield is close to 3.10% which increases my forward yearly dividends by $112.00.


My plan for the 401k self directed account is just to let my investments sit there for a long time. I am leaning towards stable companies with a long history of dividend growth, stability and ability to grow earnings. ADM seems to fit this criteria quite well. I also have some REITs to load up due to the advantages of tax deferral. Like my taxable account, I plan only one trade once per 1 or 2 weeks.

Tuesday, November 17, 2015

Portfolio Addition



Currently, my blog summarizes the activities in my taxable portfolio. As some of you know, most of my capital is stashed away in my tax-deferred 401k which I started when I was young and naive. The investments in my 401k are index & mutual fund based. Back then, I didn’t really know what to do, but I knew I had to invest. So, I picked a few funds.

Overall, the fact that I invested early, and continue to invest regularly (e.g. money automatically deducted from my paycheck, maxing out the limit, employer contribution etc), I did okay. It went up and down with the market. I ended up with some gains. However, I am making my asset managers very happy with the fees. While the cost of the funds are fairly low, they average out to be approx. 0.4%~0.5% of my portfolio total. So every year, I am essentially paying $400~$500 for every $100,000 in my account. Ouch!

Friday, November 13, 2015

Weekly Purchase 10 - ADM


Today, I initiated a new buy on ADM. Normally, I would wait until Monday to look at the market and use the weekly Sharebuilder plan to buy on Tuesday. I bought early because the ex-dividend date is November 16th and I wanted to capture dividend payment in December. Moreover, ADM appeared in my screen for the last two months.


Details of transaction:


Action
Security
Price
Quantity
Amount
Buy
ADM
$38.28
26
996 +fees


The yield is close to 2.96% which increases my forward yearly dividends by $29.12.

Wednesday, November 11, 2015

Recent Purchase - CMI



For some strange reason, my sharebuilder order was not processed on Tuesday. I must have not saved my order. Anyway, I had to pay a little more on the transaction fee which is not too bad when I compare with the fees I pay for my mutual funds in my 401k.


Based on my November screen and watchlist, I have a few companies to invest.


Today, I bought 10 shares of CMI.


Action
Security
Price
Quantity
Amount
Buy
CMI
$101.00
10
1010 +fees


The yield is close to 3.81% which increases my forward yearly dividends by $39.00.

Tuesday, November 10, 2015

November Screen





Again, I've been very late with my monthly screen. Work had been crazy and I didn't have much time to focus on the blog.


For this month’s screen I followed a similar approach to my previous months. I've relaxed the criteria slightly to capture more companies for consideration.


I have used the CCC list and filtered on the companies with above average yield and below average PE.


My Screening Criteria:
  • Yield > 2.0%
  • Yield/10 Median Yield > 1.1
  • Chowder > 6
  • PE/5 Median PE < 1.0

Saturday, November 7, 2015

Conversation with Son - Part 1



One if the original reasons for the blog is for me to learn the DGI investment process and to come up with a long term strategy which I can one day pass on to my son - portfolio and all.


I also wanted to start teaching him the basics of investing. Since he is only 8, this is a little difficult.


Several weeks ago, I introduced him on the importance of saving, and then investing what you save. For example, I told him that you can buy small pieces of McDonald's, and over time, MCD will pay you back a small amount each time (as dividends). If you wait long enough, the dividends can be more than the original investments.


He understood the the savings part - he is already saving his pocket money, birthday money etc. But I wasn't so sure about the investing part. Anyway, he soon went back to his Minecraft game. (I am not sure why all the kids are playing this game!) At least it was a start.

Friday, November 6, 2015

Weekly Purchase 9 - UNP



For this week's sharebuilder purchase, I added to my existing position in UNP.

The market has pulled back and it is difficult to find good bargains. Even so, I had my eyes on a few companies based on my October screen, my portfolio and my overall watchlist.

Out of the several options, I ended choosing UNP. The railroad business is currently being hammered by the market. Knowing that it is a cyclical business, this is the time to invest.

I have an almost "full" position of UNP in my portfolio, so I probably won't add to it again for a while or if it dips significantly further.

Details of Purchase

On Tuesday, I bought 11.2381 shares of UNP.

Action
Security
Price
Quantity
Amount
Buy
UNP
$88.99
11.2381
1000

This purchase increases my forward annual dividends by $24.72.

Tuesday, November 3, 2015

October Summary




The market has mostly recovered from the lows of this year. Is it over? I believe there will be some volatility ahead - but to be honest, I don’t know. I just know that if you focus on the right things (e.g. Dividends Income, regular investing - okay, you need to start first!), then the market doesn’t really matter too much.