Dividend Income - February 2016

For the month of february 2016, these wonderful companies send me a small check that will continue growing every year.

SHAREBUILDER ACCT

stocks        div amount    shares     DRIP div    div add
VZ              7.02               0.14        0.565         0.0791
T                 4.14               0.11        0.48           0.0528
OKE           1.81               0.09        0.3             0.027
STAG         0.35               0.02        0.115         0.0023
PBA            0.3                0.01        0.1525       0.001525
HCP           3.97               0.13        0.575         0.07475
                
Total $17.59                                                     $0.237475

Since I am at accumulation phase still the biggest takeaway from this post is the fact I am DRIP all dividend to add to forward yearly dividend income.

Last month DRIP added $.23 cents to my yearly dividend which now stands at $356.34.

Also adding recent raises on VLO, DLR, T, VZ and MCD my current yearly dividend income now stands at $357.17. Nice raise without lifting a finger, just the desired to control my future by investing in these wonderful companies.

Not bad since starting all over again in dividend strategy in late November 2015.

How did you do last month with your dividend income?

Thanks for reading

Disclaimer: Long on stocks listed.

Disclaimer: I’m not a licensed investment advisor and not an investment professional. This site is only meant for educational or entertainment purposes only. I’m not liable for any losses suffered as a result. Please consult with an investment or tax professional before investing any of your money.

Recent Buy V

I have been looking to start a position in this recent purchase company for a while since I sold towards the beginning of November 2015. At the time I always said it was going to be one of my stalwarts going forward. Any dividend income investor should take a look at this conglomerate giant. They did suffer some setbacks during the great financial crises of 2008, but are rebounding nicely and recently have been divesting some of those assets that brought it down to its knees during the crisis. This will bode well going forward to dividend investor.

As I continue to build my retirement fund, which one day will cover all expenses. It has become obvious to me to find solid company which will not only support dividend but grow the dividend year after year. I have seen many of the DGI community express their feelings toward both BBL, and KMI which cut their dividend within the past three months.

With every possible dollar earmark towards buy dividend growth stocks. It will continue to build my retirement fund my way towards early retirement.

So here is what I purchase on February 24, 2016 7 shares of General Electric Company (GE)

Action: Buy 
Symbol: GE 
Description: GENERAL ELECTRIC CO 
Quantity*: 6 shares 
Execution time: 02-24-2016 15:10 ET 
Price: $28.97 
Total Commissions & Charges: $6.95 
Total Transaction Amount: $180.77 
Trade Settlement Date: 02-29-2016

This will add $5.52 to my yearly dividend to $356.11 yearly. Not bad for first year of dividend buy strategy.

A little about GE strategies for 2016:
We are a $130B high-tech industrial leader, with strong global franchises that use our enterprise strength in technology, brand, globalization and services to collectively generate consistent growth, high margins and high returns.

Sounds like a company I want to be invested in. I believe fair value long term is at $35 dollars.

Here is what morningstar had to say about GE:

With oil prices hitting new lows and renewed fears of a slowdown in China, 2016 is already shaping up to be a tough year for diversified industrials. However, resilient 2015 results support our belief that wide-moat General Electric has enough ammunition to withstand near-term
critical year of industrial segment execution as GE Expansion of GE’s established product categories, such as manages the Alstom integration, completes the turbines aircraft engines, locomotives, and medical appliances sale, and reinvests divestiture gains to drive imaging, is likely to continue to follow the overall pace of greater efficiency in a newly streamlined industrial economic growth. As such, increasing the attachment rate portfolio.

We expect all of these initiatives to support the service contracts is an important factor in sustaining average organic revenue growth in the mid-single-digit range. With services generating attractive 30%-plus margins on average, upselling customers with long-term maintenance agreements is another key driver of future profitability growth and enhanced returns on invested capital over time. Growth of higher-quality earnings in the long run. As such, our long-term thesis for General Electric is intact, and we reiterate our fair value estimate of $30 per share.

Far off my value but as a long term investor I am ok with that.

What are your thoughts on recent purchases?  What are you buying?

Thanks for reading

Disclaimer: Long on GE

Disclaimer: I’m not a licensed investment advisor and not an investment professional. This site is only meant for educational or entertainment purposes only. I’m not liable for any losses suffered as a result. Please consult with an investment or tax professional before investing any of your money.

Recent Buy IV

Although the market has rebound a bit for the week and unlike previous weeks where there seem to be alot of blood bath on the street with the market in a nose dive trajectory. But Like the saying goes another week another dollar going towards building passive income.

When there is panic in the street there are always opportunity to add to shares at lower discounted prices. I don't know about you but I rather pay $.60 for a dollar. That is pretty much were we are at this level. Since we cannot project the future where the market is headed, consistently adding shares will cause anice snow ball effect on the dividend income the best of passive income.

Timing the market will only cause anxiety and I enjoy my sleep too much to be anxious about anything. Since we can't really predict future market outcome. Consistently adding shares of quality stocks and a discounted prices will either lower cost basis, or get you great long term stock to hold forever and of course collect passive income.

Passive income is the best income there is. Getting paid to basically manage you time and do as you please. There is no value to owning you time.


I can think of a million things I can do with my time. One of which is do volunteer work, travel and pretty much do what I please when I want to. For this week so far I did not add any new stocks to my retirement fund.

Here is an update to recent purchases from this week both on loyal3 and Sharebuilder account.

On February 22, 2016

MCD $10 .0860 shares @116.26
LB  $10   .1217 shares  @82.14
K $10    .1350 shares @74.07

February 23, 2016 on Sharebuilder

CMI $100  .98 shares @97.22
UTX $150  1.59 shares @91.56
RDS.A $150  3.25 shares @44.84

This small purchases added $22.65 to my 12 month trailing dividend. The yearly dividend income is now $350.60 with this purchase . Big step for first year of dividend investing. As I look forward to continue dividend growth I can see this continue to grow into a passive income to sustain my family lifestyle.

What are your thoughts on recent purchases?  What are you buying?

Thanks for reading

Disclaimer: Long on all stocks listed.

Disclaimer: I’m not a licensed investment advisor and not an investment professional. This site is only meant for educational or entertainment purposes only. I’m not liable for any losses suffered as a result. Please consult with an investment or tax professional before investing any of your money.

Recent Buy Sharebuilder III

Recent Buy Sharebuilder III

With oil still down and who knows if we have reach the bottom of barrel of oil as of last week? But as long term investor I am not really worried about market volatility, rather I am concentrated in building a long term portfolio of funds that will cover my living expenses one day. With each passing day I will be adding to my funds to build sustainable long term dividend to cover each month expenses to a point were it wil cover my expenses.

With that been said it was time to add to oil mop any again. I believe I have a decent start with both Chevron and Exxon Mobil. But after selling Conocophillips in late December, it was time to add another giant to contribute to my funds of stocks. After review BP, RDS.A, COP,XOM, CVX, and TOT; it was an easy choice due to its history of maintains and raising dividends despite past market volatility.

Without further ado here is what I purchase on February 16, 2016:

Action: Buy
Symbol: RDS A
Description: ROYAL DUTCH SHELL PLC ADR A
Quantity*: 6 shares
Execution time: 02-16-2016 15:38 ET
Price: $45.33
Total Commissions & Charges: $6.95
Total Transaction Amount: $278.93
Trade Settlement Date: 02-19-2016

This will add $22.56 to my 12 month forward dividend income to $327.95

Here is a description from the shell website:
Shell is a global group of energy and petrochemical companies.

Our operations are divided into five businesses: Upstream, Integrated Gas, Unconventional Resources, Downstream, and Projects & Technology.

In Upstream focus on exploration for new liquids and natural gas reserves and on developing major new projects where our technology and know-how add value for resource holders.

In Integrated Gas, focus on liquefying natural gas (LNG) and converting gas to liquids (GTL) so that it can be safely stored and shipped to markets around the world.

The Unconventional Resources organisation is responsible for activities in heavy oil and oil and gas shales in North America.

In Downstream, focus on turning crude oil into a range of refined products, which are moved and marketed around the world for domestic, industrial and transport use. In addition, we produce and sell petrochemicals for industrial use worldwide.

Projects & Technology business is responsible for delivering new development projects and the research and development that leads to innovative and low-cost investments for the future.

From morning start evaluation: Once finalized, the BG deal will see Shell's proved reserves and current production increase 25% and 20%, respectively. Of BG's assets, the crown jewels are its
Brazilian oil interests in the Santos Basin, which are estimated to hold more than 3 billion barrels of recoverable oil resources. These oil fields have the potential to be producing 500 thousand barrels per day by the end of the decade. Critically, BG was an early entrant to the region for refining, and Shell into Brazilian pre-salt and was given fiscal terms that are
far more generous than are currently on offer for new projects (such as Shell's stake in Libra), given the changes Adding it up, we don't believe Shell possesses an to Brazil's petroleum laws. We estimate BG's Brazilian economic moat assets can break even at roughly $30-$35 per barrel, making this some of the lowest-cost oil in the world.

I believe fair value to be around $42 a share so may see it go down 10% which means I will keep add shares to this oil Moat. I think it will be difficult to predict bottom for oil at this point as Mr. Market has been fluctuating between swings of 5% up or down on any given day. But I do believe it's time to buy it now when oil prices are still in distress, I see oil rebounding in 18 months to average prices of $60 to $70 a barrel long term with both US and Iran produce more oil the $100 a barrel prices may be a thing of the past.

What are you buying? Any thoughts on recent buys?

Thanks for reading

Disclaimer: Long on RDS.A, CVX and XOM

Disclaimer: I’m not a licensed investment advisor and not an investment professional. This site is only meant for educational or entertainment purposes only. I’m not liable for any losses suffered as a result. Please consult with an investment or tax professional before investing any of your money.

Recent Buy II -Sharebuilder

Recent Buy II - Sharebuilder

With so much volatility in the market, there are so much bargains for long term investors out there. A lot of dividend growth stocks are at either bargain prices or down 10% to 40% off. I have not met anyone who does not like discounted bargain prices yet in my short Time on earth.

With that said it was a great opportunity to start my next position. I choose a company all the Dividend Community have been raving about. The fundamentals are still there, but for one reason or not the stocks is down almost 37% from its 52-week high.

So here is that company I start my new position: Archer Daniels Midland Co (ADM)

February 10, 2016  ADM 7 Share @33.7099 Commission 6.95 Total Trans. Cost 242.92
ADM will add $8.40 dividend to my forward dividend total to $305.40

ADM current stock prince is $32.45 it's already down from what I bought at, which just means I can start buy more to average down and add more shares which will contribute to my forward dividend and bring me closer to early retirement one day for sure.

ADM is the leading food ingredients provider, serving over 140 countries.
ADM just raised its dividend to shareholders of record at the close on February 16 payable March 8, 2016 to $.30.
The PE (Price-to-earnings are at low 11.4X compare to industry average. One bright spot on 4Q15 is its EPS (earnings per share) which rose from previous year from $1.08 to $1.19.

I will continue to buy this stock to build dividend for my early retirement Fund.

Let me also take this opportunity to upgrade my January Dividend income. This was short of expectations due to all the stocks I had sold. Of course all of the stocks in my early retirement fund are DRIP till further notice, r when it starts to be a snow ball effect. Here is what I received for January 2016. I will update my Dividend page to reflect This.

WMT 0.08 1/4/2016
DIS 0.31 1/11/2016
KHC 0.28 1/15/2016
STAG 0.12 1/15/2016
MDT 1.52 1/15/2016
CINF 1.48 1/15/2016
DLR 1.08 1/15/2016
PBA 0.29 1/20/2016
Total:   5.16

What are you buying? Any thoughts on recent buys?
Thanks for reading

Disclaimer: Long on stocks listed above.

Disclaimer: I’m not a licensed investment advisor and not an investment professional. This site is only meant for educational or entertainment purposes only. I’m not liable for any losses suffered as a result. Please consult with an investment or tax professional before investing any of your money.

Recent Buy I - Sharebuilder

Recent Buy - Loyal3

Recent buy - Loyal3
February 2, 2016

It has been close to two weeks since I added to Loyal3 shares. So today I was due to add shares to my small portfolio of funds that will one day pay for all my expenses via dividend. I really like using Loyal3 to both add shares slowly and the ideal of buy stocks without any fees.

That been said here is what was posted on my Loyal3 for this week. I add one more stocks which I do believe is below valuation. So I added Intel (INTC) to my fund this week. Intel is the leader in the integrated design of manufacturing of microprocessors mostly in the personal computers side. But they are also moving to mobile devices and other venture which should add to core business. They also spend more on R&D than any of their peers which should bold well to changing dynamics in the interconnected world we live on.

They hold four fifths share of the market which makes it a wide moat in my view in the industry. Fourth-Quarter sales came in at astounding 14.9 billion, it's a modest 1% year over year; but consider market condition I think I will take that any day. My fair market price is $33.00 a share. I do think however it has room to grow. My purchase came in just above $30 which is fair. Morning star quantitative fair value is $35.80.

Without further ado here is the purchase which posted:

INTC $50  1.6656 shares @30.02
DIS $10  .1065 shares   @93.86
WMT $10  .1496 shares @66.83
VFC $10  .1583 shares  @63.17
KHC $10  .1310 shares  @76.32

I do not intend to make a lot of big purchase here on loyal3, but I do want to use
This account to show its possible to build shares even if you don't have a lot of additional capital to invest. It also possible to achieve financial freedom slowly if you continually invest regularly and let the power of compounding take over with time on you side.

This small purchases added $2.58 to my 12 month trailing dividend. The yearly dividend income is now $269.61 with this purchase. Also this does include recent raises from Valero, (VLO) and DRIP on dividend from last month. I am currently DRIP all stocks on Sharebuilder account, until I get to a point it's decent enough to add to and buy share on its own. I see that time fast approaching very soon on the near future, when such time arrive I will change my strategy

As I look forward to continue dividend growth I can see this continue to grow into a passive income to sustain my family lifestyle.

What are your thoughts on recent purchases?  What are you buying?

Thanks for reading

Disclaimer: Long on all stocks listed.

Disclaimer: I’m not a licensed investment advisor and not an investment professional. This site is only meant for educational or entertainment purposes only. I’m not liable for any losses suffered as a result. Please consult with an investment or tax professional before investing any of your money.