Sunday, September 4, 2016

Recent Purchase - FLO



When the market is trading near its all-time high, it’s difficult to find good deals. Companies that are beaten up are normally where they should be. With the string of bad earnings results and the lawsuit from their truck drivers, Flower Foods (FLO) is certainly beaten up. However, I decided to initiate a new position with FLO. I see some potential in terms of dividend growth, FCF and yield. It's relative risk grade is right at 1.7 - which is below my 2.0 threshold.


Details of my Transaction


Action
Security
Price
Quantity
Amount
Buy
FLO
$15.1
99
1495+fees


Wednesday, August 3, 2016

Recent Purchase - VFC


I recently posted my August considerations for DGI investments. Well, I didn’t wait too long. Nope, not AMGN, ABBV nor GILD. Still waiting for these to drop a little more :)

Today, I bought 26 shares of VFC. This time, I bought it in my taxable sharebuilder’s account. (It’s definitely good to be able to buy using both accounts.)

Action
Security
Price
Quantity
Amount
Buy
VFC
$59.8
26
$1562 (+fees)

The dividends per share is $1.48 which is around 2.47% yield. This purchase increases my forward yearly dividends by $38.48.

Nothing much changed about VFC since the last time I bought it in April. You can read more of my analysis of the VFC, valuation and risks here: https://div4son.blogspot.com.co/2016/04/recent-buys-tax-deferred-vfc.html

My strategy when I first bought VFC is to average down when the price dips. I think this is likely in this heated market.

My next purchase point will be when VFC hits the mid 50s.

What do you think of VFC?

D4s

Monday, August 1, 2016

August Considerations

Below are 3 companies with my criteria checklist that I am considering for August. Actually, I wanted to buy a couple of them in July, but the prices crept slightly over my buy zone. If there is a pullback, I will definitely consider adding them to my portfolio in small chunks.


Amgen is a biotechnology company that engages in developing, manufacturing and delivering human therapeutics for the treatment of illness in the areas of oncology/hematology, cardiovascular, inflammation, nephrology, and neuroscience.

Saturday, July 30, 2016

July Summary



The first month of the quarter is usually a quiet month for me in terms of dividend income. July is following the same trend. I can’t complain though. The cash is coming in with no efforts from my part.


The market continues to be hot. Again, it has been difficult to find companies trading at fair value or below. I still try to invest though.


Anyway, here’s a summary of the articles I’ve written this month.


Okay - let’s go to the good stuff….


Taxable Account


In my sharebuilder taxable account, I only managed a couple of trades this month. It’s not good, but the market is not cooperating.

Date
Security ID
Quantity
Price
Net Amount
7/21/2016
TIF
62.099
27
1683.62
7/28/2016
DIS
96.049
15
1447.69



Total
3131.31

Friday, July 29, 2016

Recent Purchase - DIS

I wanted to buy UTX and ABBV this week - but I ended adding to my DIS position - this time in my taxable account.

Here’s my transaction.

Action
Security
Price
Quantity
Amount
Buy
DIS
96
15
$1447

I wanted to wait until the low 90s to buy more DIS, but sometimes, you don’t always get what you want.

For those who are interested, you can read my original purchase here:

Nothing really changed except a slight dip in the price.

Did you buy anything this week?

D4s

Disclosure - Long DIS, UTX

Wednesday, July 27, 2016

Implementing my DGI Strategy

It’s always good to have a strategy for investing. This article gives a brief summary of how I had implemented the necessary checklists and tools to make my job of investing DGI stocks easier.


First, a bit of history...


I’ve been a passive investor for a long time via my mutual funds in my tax-deferred 401k. This required not much work from my part. All I had to do was to choose my allocation and regularly invest using a portion of my paycheck. I reallocated once a while and that’s it. All good, right? No - the fees were high. At least for me.


Of course, if your 401k plan allows for a market wide fund with very low fees, then this may be an option especially if you don’t have the time. Essentially, I was paying for someone to actively invest companies in the index.


Around 2 years ago, I started dividend stock investing for my taxable account. I did a lot of reading and researching over the summer of 2014. For sure, it isn’t a strategy for everybody - but it made sense to me. The thing about a 2-4% dividend is that over time, the dividends will provide you a layer of protection against loss. Of course, it is not 100% protection, but it give you protection against 20-40% dips in the market. How? It’s simple, 3% over 10 years means a 30% buffer. It’s slightly more the dividends are reinvested and compounded, but I like simple math.


Plus, after retirement from work, the dividends can be used as income source without touching the principle.Hopefully, extra income can be reinvested to continue the compounding machine.


Regardless of dividend stocks and mutual funds, there are investing steps that I believe everyone should follow:

Friday, July 22, 2016

Recent Buy - TIF



The market is very difficult. There are not many companies to buy. Times like this are scary!
After going through my screen, Tiffany & Co showed up. Actually, it showed up before, but I didn’t want to increase my consumer retail space. Still, I wanted to continue my investments in good quality dividend paying companies. Yesterday, I bought some shares in Tiffany and Co (TIF).

Date
Transaction
Ticker
Price
Quantity
Amount
Divs/Year
Est. For Dividend
7/212016
Buy
TIF
62.0
27
1674+fees
1.80
$48.60

Wednesday, July 20, 2016

The Millionaire Next Door

I read the The Millionaire Next Door by Thomas Stanley in 2006. I wasn’t a millionaire then. I wasn’t too interested in investing with the exception of my 401. But, I was curious. Back then, I worked in my job for around 10 years. I was wondering how to get to the next level. I wondered what it would feel like to be a millionaire.


So, I read the book back then...


Instead of just net worth to classify wealth, Stanley coined the terms Under Accumulator of Wealth (UAW), Prodigious Accumulators of Wealth (PAW) and Average Accumulator of Wealth (AAW). The calculation is very simple. You take your age and multiply it by 10% of your pretax earnings to get your AAW. If you can get 2x or more, then you are a PAW. If you get ½ or less, then you are a UAW.

Monday, July 18, 2016

Risk Grade Tools (Google Spreadsheets)



Recently, I wrote about quantifying risk using the Risk Grade metric from the Nasdaq website. After comparing the performance of my portfolio and the associated Risk Grade, I was surprised to see a correlation. However, without knowing more about the Risk Grade algorithm, it was difficult to understand why this is the case.
After searching through the internet, I found that the Risk Grade is based on the Risk Metric methodology. In fact, there’s quite a bit of academic work done on this.




With more digging, I found the revised Risk Metric scheme (1996 Scheme).



Saturday, July 16, 2016

Recent Buy (Tax Deferred) - DIS



The market has been trading at its all time high and my net worth is at its maximum. I should be happy, but I feel the need to be cautious. It’s difficult to find a good deal for the companies I want to buy. However, I also want to invest regularly since I need my investment to work for me. After searching through my screen and the list of companies on my watch list, I decided to initiate a position in DIS.

Date
Transaction
Ticker
Price
Quantity
Amount
Divs/Year
Est. For Dividend
7/15//2016
Buy
DIS
90.949
30
3011.22
1.32
$39.60

Wednesday, July 13, 2016

Metric - Risk



When I wrote about risk before, I was thinking about how to build and diversify my portfolio. However, risk is difficult to quantify. Luckily, there are free tools to help you in your analysis of risks. One such free tool is the Risk Grade (TM) tool on the Nasdaq website.




The tool is very easy to use. Just enter a list of tickers and it will print out your risk grades of the companies. The calculation is based on all the components of market risk such as equity, interest rate, currency, and commodity risk. The tool also compares your companies with the S&P and NDX indices.

Monday, July 11, 2016

Time, Money and Happiness

On the flight home from our vacation, I couldn’t sleep.  (Next time, I will travel business class.) So, I had a lot of time. I thought about the inter-relationship between time, money and happiness. After thinking more, this stuff is pretty obvious - so I will try to explain this concept to my son.




Normally, people can attain one out of the three. A lot of us will get two during our lives. Only a lucky few will attain all three.


For most of us when we are young, we have lots of time, but not much money. After years of work, saving and investing, we may have lots of money, but we have no time to spend it.  People say time is money - and I agree. When you have time, you can make lots of money. Example $10,000 invested in JNJ in 1986 (30 years ago). But money is not time. You can't buy 30 more years when you are in the 90s. There is a time premium that changes with time.  When you are young, time is cheap. When you are old, time is expensive.

Saturday, July 9, 2016

Recent Buy(Tax Deferred) - WFC & GILD


I didn’t have a chance to post my purchases last week during the “Brexit” crisis. Anyway, I managed to add to my GILD and WFC positions

Date
Security ID
Quantity
Price
Net Amount
06/27/2016
WFC
75
44.74
3368.18
06/27/2016
GILD
40
79.25
3182.67



Total
6550.85

You can check out my previous posts on these companies.


Both purchases were on my tax-deferred accounts.

For WFC, I wanted to add more once it dips below $45. My next purchase when it crosses $40.
For GILD, the threshold was below $80. Unless it dips into the low 70s, I will focus on another HealthCare company. Maybe CAH.

WFC and GILD add $189 ($114 & $75 respectively) to my annual dividends.
Now, the market has rebounded again - so it is time to do more research.

D4s