Monday, July 4, 2016

May and June Summary



Due to our family vacation, I didn’t have time to provide a summary last month. Therefore, we have a "Two Months Summary Special" :).

In case you missed it, here are my links to my articles during May and June.

May
June

Okay - let’s go to the good stuff….


Taxable Account


With the very hot market in May, it was difficult to make fair-value trades. I was hoping the Brexit will shake up the market at bit, but so far, I only managed one trade a month in my taxable account. I did bag DEO in the 100s - which was a pretty good deal. I had my trigger ready if it dips in the 90s.


Date
Security ID
Quantity
Price
Net Amount
5/17/2016
WFC
33
47.66
1579.73
6/14/2016
DEO
19
100.48
1915.98



Total
3495.71


My investments have been tapering off.




I keep telling myself that I need to be patient. It’s hard since I am sitting on a bunch of cash. The market is hot - so 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.




Overall, I think I am reasonably diversified with no major exposure in any one company.

Sector Diversification


I Use the following chart to make future investment decisions. I am looking to add more health care companies. However, I am open to new opportunities especially in the non-consumer related sectors.




Dividend Income


The best part!  The dividends with May and June combined are over $650! (>$400 in June alone!).


Date
Security ID
Net Amount
2016-05
DE
12.43
2016-05
GIS
16.86
2016-05
VZ
31.01
2016-05
T
35.13
2016-05
YUM
6.24
2016-05
ABT
6.84
2016-05
PG
54.49
2016-05
CAT
43.6
2016-05
FAST
20.23
2016-05
HCP
27.21
2016-06
AFL
22.93
2016-06
CMI
9.94
2016-06
IVZ
19.92
2016-06
UL
24.12
2016-06
WMT
44.15
2016-06
JNJ
35.8
2016-06
ADM
21.53
2016-06
UTX
17.47
2016-06
EMR
53.56
2016-06
XOM
44.48
2016-06
MMM
22.66
2016-06
DOV
27.18
2016-06
MCD
17.62
2016-06
NOV
1.82
2016-06
TROW
34.56
2016-06
GILD
7.99

Total
659.77


All dividends are reinvested to grow my snowball.


For this account, I need to invest more often in the 2H of the year! I need to improve the Q over Q numbers.

Estimated Forward Dividends


My forward estimated dividends is $3573. That’s over $100 more since my last summary in April.


Taxable Account Summary


With the market up, my total gain is around 10%. I don't really care about beating the market. I know that with my strategy, I will have some hits and I will have some misses. The key is income, and my my yield is around 3.4% - which brings me to ~$3570 a year.


Summary Totals
Total Valuation
114,347.65

Total Cost
103,831.49

Total Gain
10.13%

Est FW Div
3573.20

Est Yield
3.44%



401k Tax Deferred Account Update


As you know, I started to convert over my 401k of mutual funds to DGI stocks. While on vacation, I cashed out a few of the funds. The conversion is not over. I still have a couple of large chunks to go, and more cash to convert.


I plan to make large purchases every month in order to ease myself back into the market. Ultimately, my goal is to have a mixture of market-wide indexes and dividend generating stocks.


Purchases this Period


I made a few trades in May and a couple in June. My GILD purchases are an illustration on how I am easing my way into a position.


Date
Security ID
Quantity
Price
Net Amount
05/06/2016
ABT
90
37.91
3424.64
05/12/2016
GILD
30
82.62
2491.23
05/18/2016
TGT
40
67.48
2711.91
06/27/2016
WFC
75
44.74
3368.18
06/27/2016
GILD
40
79.25
3182.67



Total
15178.63

Dividends this Period


My tax deferred account does not allow reinvestments for individual stocks. So, all the income results in fresh capital to selectively deploy. My FRESX and VTSAX are reinvested.

Date
Security ID
Net Amount
05/13/2016
EV
31.27
05/16/2016
ABT
13
06/03/2016
UL
-0.38
06/03/2016
UL
27.36
06/06/2016
WMT
32.5
06/06/2016
FRESX
99.18
06/07/2016
JNJ
28
06/08/2016
ADM
30
06/13/2016
MMM
47.73
06/14/2016
VTSAX
240.21
06/15/2016
HSY
26.24
06/20/2016
VFC
14.8
06/29/2016
TROW
27
06/29/2016
GILD
14.1

Total
631.01

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 is getting larger (>200,000). 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
Dividends
ABT
140.00
39.54
5535.60
1.04
145.60
ADM
100.00
42.61
4261.00
1.20
120.00
DEO
30.00
113.71
3411.30
3.41
102.30
EV
118.00
35.58
4198.44
1.06
125.08
FRESX
572.32
45.47
26023.57
2.55
1457.32
GILD
70.00
84.86
5940.20
1.88
131.60
HSY
45.00
111.95
5037.75
2.33
104.85
JNJ
35.00
121.29
4245.15
3.20
112.00
TROW
50.00
72.34
3617.00
2.16
108.00
TGT
40.00
70.05
2802.00
2.24
89.60
MMM
43.00
175.54
7548.22
4.44
190.92
UL
75.00
48.03
3602.25
1.37
102.75
VFC
40.00
62.30
2492.00
1.48
59.20
VTSAX
1058.22
52.30
55344.96
1.05
1106.90
WMT
65.00
72.81
4732.65
2.00
130.00
WFC
75.00
47.03
3527.25
1.52
114.00
Cash
215308.12
1.00
215308.12
0.00
0.00




Forward Est Dividends
4200.12

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
357,627.46

Annual Dividends
4,200.12

Yield
1.17%

I need to be patient and methodical. I am thinking -- at the end of the conversion, I should be sitting at close to 3-4% yield. I should easily get >12,000 just from dividends from this account. But now, slow and steady.


Conclusion


I feel very lucky. I spent the whole month away on vacation and I still received over $1000 ($400 in taxable, $600 in tax deferred) in dividends in June! Obviously, the dividends are the results of years of education, learning, working, saving and investing. It’s like a concert pianist - you hear the exquisite music, but you don’t see the years of effort learning and practicing. I am starting to hear the music on my accounts after years of hard work.


Food for Thought


The more I think about it, my estimated yearly passive income (dividends, interest, others) covered my family vacation. The air tickets were low because we bought the tickets 10 months ahead of the trip! We spent a little over the top on the hotels (5 stars mostly). Food was minimal since we adopted a brunch buffet policy - but we didn't skimp out there either. Of course, you can go cheaper on Hotel and Food…


Cost of Vacation
Air Tickets
2463

Hotel
3940

Food and Expenses
3201

Total
$9,604
Passive Income
Divs Taxable
3570

Divs Tax Deferred
4200

Income from Interest and Old M.Funds
5641

Total
$13,411


If I converted all my cash and funds over to income generated stocks and funds, I think I am very close to crossover point... how aggressive should I be?

D4s

2 comments:

  1. Hi D4S,

    Glad to see you are back from Vietnam and enjoyed the trip.

    I appreciate all of the information you share in your posts and the various graphs and tables. I admit, I am using them in my own Google Sheet tracker to give myself these same visuals.

    I jumped in a little heavy this past month as I was anxious to get in so probably bought a bit more than I should have, but I did overlap with you on WFC and TGT. Two great companies and what appears to be low-mid entry points. TGT is my best performing stock through all of the Brexit volatility.

    I've started up my blog now, https://papasdivs.wordpress.com/ and just want to say our site was the first one I stumbled across and was my inspiration for deciding to post up my own journey. If nothing else, it is a great way to track the what and why of your own investments, even if no one else reads it!

    Take care.

    ReplyDelete
  2. Papas Div, thanks for your comments. I was hoping the market will go down a little so that I can deploy some of my cash. Oh well.
    Anyway, I will add a link to your blog on my blog roll ( so at least I will be a regular reader. )
    D4s

    ReplyDelete