Monday, May 2, 2016

April Summary



The market has really pulled back. My net worth has peaked again. The last couple days of April has some volatility, but it is current nothing compared to the beginning of year. Based on the chart, the VIX index is well below 20, which means I need to be cautious in this overheated market.

During the 1Q, my cash situation has not been too great which explains the limited trades during the period. However, I am now fully funded for both my taxable and non-taxable accounts.

If the VIX level stays below 20, I will purchase only companies trading close to their lows.


I will probably buy one or two companies a month to keep up my ‘regular investing’ approach. If the VIX goes above the threshold, I will start unloading my cash.

Let's see how this strategy will work. I want to invest but it seems most of the companies on my watchlist are way over my desired buy point.

With the strategy aside, let’s review my accounts for April.



Taxable Account

Not much happening here this month. I did get a trade in at the last day of the month. In fact, it was during the last couple of hours of the trading day.

Date
Transaction
Ticker
Price
Quantity
Amount
Divs/Year
Est. For Dividend
4/29/2016
Buy
GILD
88.07
17.00
1497.19
1.72
$29.24




Total
$1,497.19
Total
$29.24

I had my eyes for GILD for a while. With the pullback, it was out of reach like the rest of the companies on my watchlist. However, due to bad quarterly report, the price plunged to a more acceptable level. There are still risks with the purchase and I do anticipate it going lower. I will do a writeup on the purchase soon.

With the single investment this month, I just managed three trades on my taxable account.

While I want to repeat last years number of  purchases, I need to be patient. I will continue to invest, but very selectively.

Company Diversification

Here, I am just making sure that I am not overly invested in any one company. My goal is to diversify as much as is reasonable.


Sector Diversification

I Use the following chart to make future investment decisions. I am looking to add more health care companies.


Dividend Income

This is my favorite part. The dividends this month is lower than last month, but my QoQ and YoY gains are not bad.

Date
Transaction
Ticker
Dividends
4/1/2016
ReinvDiv
KO
43.87
4/4/2016
ReinvDiv
KMB
12.97
4/4/2016
ReinvDiv
WMT
43.83
4/11/2016
ReinvDiv
PM
64.21
4/12/2016
ReinvDiv
DEO
38.83


Total
203.71

Overall, I am heading in the right direction.

Estimated Forward Dividends

My forward estimated dividends is $3474.


Taxable Account Summary

I have finally invested over $100k. With the market pullback, I am up 6.7%. This metric is not so important to me. I am more interested in the dividend income my investments is generating.

Summary Totals
Total Valuation
107,119.32

Total Cost
100,335.78

Total Gain
6.76%

Est FW Div
3474.10

Est Yield
3.46%


401k Tax Deferred Account Update

My apologies for the lack of detail. I recently started adding the DGI option in my 401k account. For now, I will just detail the transactions until I get several months of data of investments and dividends.

Purchases this Period

Only one purchase here. My plan is to buy regularly, to generate more income, and then to buy more companies. However, the market is not presenting many opportunities, though there are some if you dig harder

Date
Transaction
Ticker
Price
Quantity
Amount
4/19/2016
Buy
VFC
64.08
40
$2563.20+fees

The yield is around 2.31, so my forward annual dividends will increase by ~$92.40.

Dividends this Period

My tax deferred account does not allow reinvestments. This is okay since I plan to selectively reinvest these dividends. Another $70 added.

Date
Transaction
Ticker
Dividends
4/4/2016
Dividend
WMT
32.5
4/12/2016
Dividend
DEO
38.1


Total
70.60


401k Tax Deferred Portfolio

This account includes a couple of mutual funds - FRESX and VTSAX. The VTSAX was added in January as part of an experiment of mine to compare an index vs DGI stocks. I plan to write an article on this, but the experiment should take several years for it to be meaningful.

My dividends amounts are annual estimates. My cash position in quite large. When the market dips, I should be in a good position. For now, I am planning one or two trades a month in this account.

I will also convert my other mutual funds to cash of the market rises. Let's see if I will be more conversions.

Ticker
Number of Shares
Price
Amount
Divs/Share
Annual Dividends
ABT
50.00
$38.90
$1,945.00
1.04
52.00
ADM
100.00
$39.94
$3,994.00
1.20
120.00
DEO
30.00
$108.33
$3,249.90
3.41
102.30
EV
118.00
$34.53
$4,074.54
1.06
125.08
FRESX
570.01
$41.72
$23,780.90
2.50
1426.85
Cash
99733.54
$1.00
$99,733.54
0.00
0.00
HSY
45.00
$93.11
$4,189.95
2.33
104.85
JNJ
35.00
$112.08
$3,922.80
3.00
105.00
MMM
43.00
$167.38
$7,197.34
4.44
190.92
TROW
50.00
$75.29
$3,764.50
2.16
108.00
UL
75.00
$44.86
$3,364.50
1.37
102.75
VFC
40.00
$63.05
$2,522.00
1.48
59.20
VTSAX
1053.57
$51.36
$54,111.46
1.03
1082.23
WMT
65.00
$66.87
$4,346.55
2.00
130.00


Equities based DGI Stocks

As you can see, I have mostly consumer based companies in my 401k account. I look forward to diversifying in other sectors.


Tax Deferred Summary

Summary
Total Valuation
220,196.98

Est Annual Dividends
3,709.18

Est Yield
1.68%

My yield is very low in this account. This is due to the large pile of cash. I am not too comfortable sitting on this cash, but my plan is to be patient.

Overall

Overall, I received around $270 dividends from both accounts. Not bad for the “down” month.
Having both the taxable and nontaxable accounts are useful - but the market is not cooperating much these days.

I can't complain though. When the market is up, my net worth increases. When the market is down, my buying opportunity increases. Best of both worlds really.

How was your April?

D4s

6 comments:

  1. hey D4s. I'm with you on GILD but I'm currently more interested in ABT. It has some uncertainty but the STJ+ABT combination is certainly interesting. Don't worry about the highs. I believe the closer we get to Brexit the more opportunities will present itself. Cheers

    ReplyDelete
    Replies
    1. I got my eyes on ABT as well. I almost pulled the trigger today - but I had some things to take care of. Maybe tomorrow...
      Thanks for your comments!
      D4s

      Delete
  2. Thanks for sharing D4S. You're doing awesome bud. Keep it up.
    You have a lot of discipline in having that much cash. I just can't help myself bud but I gotta stop unloading and bank up more... It's tough though.
    Cheers!

    ReplyDelete
    Replies
    1. Div Hustler, Thanks for visiting again! It's a fine balance hoarding cash or investing. It needs patience either way - and there is no right/wrong answer. Let's see how the market behaves...
      D4s

      Delete
  3. Nice update Div4son. $270 is still a really nice amount, in-fact it's more than half of what we'd get for a whole year (we have only just started) so don't be down on yourself. You've come a long way.

    Good luck for next month :)

    Tristan

    ReplyDelete
    Replies
    1. Tristan,
      Thanks. It's good you started early. For me, I started years ago, but it was very passive. Now, I am more engaged. Hopefully, this is a good thing.
      D4s

      Delete