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


Again, I keep telling myself that I need to be patient. It’s hard since I am sitting on a bunch of cash.


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.




Overall, I think I am reasonably diversified with no major exposure in any one company. There are no companies > 6% - which means that I get some protection if any of my companies go bankrupt.


Sector Diversification


I need to add more technology companies. I have ATT & VZ which strictly speaking are pseudo-utilities and not tech companies. Otherwise, I think I have a reasonable balance in sectors.





Dividend Income

Like I said earlier, it is a low month.


Date
Security ID
Net Amount
7/1/2016
KO
44.2
7/5/2016
KMB
13.06
7/11/2016
PM
64.86

Total
122.12


Only $122 this month - all reinvested. I do need to start looking for companies that pay dividends in the 1st month in the quarter.



Estimated Forward Dividends


My forward estimated dividends is $3411 which is a reduction in the estimate due to dividend cuts from NOV and BBL. My spreadsheet finally picked up the updated numbers!


Taxable Account Summary


With the market up, my total gain is around 11.4%. My yield is around 3.2% which is a 0.2% drop from last month due to the dividend cuts.


Total Valuation
119,197.61
Total Cost
106,962.80
Total Gain
11.44%
Est FW Div
3411.51
Est Yield
3.19%


401k Tax Deferred Account Update


As you may know, I started to convert over my 401k of mutual funds to DGI stocks. I plan will make at least one purchase every month in order to ease myself back into the market. When the market is hot, there will only be one or two purchases. When we have a sale, I will buy more.
I also have a couple of mutual funds in this fund.


Purchases this Period


I only made one purchase in my 401k account.


Date
Security ID
Quantity
Price
Net Amount
07/15/2016
DIS
30
99.949
2998.47



Total
2998.47


Dividends this Period


None!!!


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.


Ticker
Number of Shares
Price
Amount
Divs/Share
Dividends
ABT
140.00
44.75
6265.00
1.04
145.60
ADM
100.00
45.08
4508.00
1.20
120.00
DEO
30.00
116.54
3496.20
3.41
102.30
DIS
30.00
95.95
2878.50
1.42
42.60
EV
118.00
37.81
4461.58
1.06
249.85
FRESX
572.32
47.35
27099.54
2.65
1517.57
GILD
70.00
79.47
5562.90
1.88
131.60
HSY
45.00
110.76
4984.20
2.33
104.85
JNJ
35.00
125.23
4383.05
3.20
112.00
TROW
50.00
70.69
3534.50
2.16
108.00
TGT
40.00
75.33
3013.20
2.24
89.60
MMM
43.00
178.36
7669.48
4.44
190.92
UL
75.00
46.81
3510.75
1.37
102.75
VFC
40.00
62.43
2497.20
1.48
49.94
VTSAX
1058.22
54.23
57387.32
1.08
1147.75
WMT
65.00
72.97
4743.05
2.00
130.00
WFC
75.00
47.97
3597.75
1.52
114.00










Total Dividends
4313.73

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 Totals
Total Valuation
149,592.23

Annual Dividends
4,313.73

Yield
2.88%


I’ve removed my cash position to accurate reflect my yield. I am currently hoarding the cash to deploy when the market dips.


Conclusion


In June, I had over $1000 from dividends. This month - $122. Sure, the income is low this month; my forward dividends are around $7500. I know when I start buying more position, I can easily improve my income situation. In particular, I need to add companies that pay dividends in the 1st month of the quarter!


Let’s see how the market will behave.

D4s

8 comments:

  1. Keep it up D4S.
    With some time and consistency, your dividends will only get more stronger and stronger. Thanks for sharing.
    Keep logging your journey and before you know it, you'll crush all your goals. I'm sure of it.
    Cheers buddy.

    ReplyDelete
    Replies
    1. Thanks for your encouragement Mr Hustler. I need to start trading like you to get additional income since the market is way too high. D4s

      Delete
  2. Dividend income goes up and down due to companies paying at different times. At $7500 forward dividend that's already pretty solid. Keep up the great work.

    ReplyDelete
    Replies
    1. Tawcan,
      Thanks for your support. I know I can't stop now - but it's difficult to buy when the market this hot like this. Need to be patient.
      D4s

      Delete
  3. Nice month D4S, your annual total is powering along :)

    You've posted a lot this month, I'm going to go back and read a few.

    Tristan

    ReplyDelete
    Replies
    1. Tristan, thanks for your comments. It is good that the annual total is still increasing even though I have cuts in BBL and NOV. I guess that's the power of dividend investing.
      D4s

      Delete
  4. May not have been the month you wanted but overall you are having a great year. Certain months are better than others but remember to buy a quality stock rather than their pay date. Looking forward to more

    ReplyDelete
    Replies
    1. Millennial Budget, many thanks for your advice. I haven't been focusing on pay dates at all. Just good quality companies. However, I am also thinking about time diversity. There are some good companies paying in the first month. Unfortunately, these are not cheap for now.
      Cheers d4s

      Delete