Monday, November 13, 2017

Latest Buy - AT&T

I added a few more shares of T to my existing position of over 100 shares. This should not come as a surprise, because most dividend growth investors have been thinking about AT&T for the last couple of weeks. A lot of factors, including the recent merger issues between T-Mobile and Sprint, and the very interesting DOJ investigation in the AT&T-TWC merger have pulled this stock down.

T has fallen almost 20% since the start of this year, while the broader S&P 500 index is up about 16%. Does it make sense, i don't know. Is AT&T suddenly less valuable than it was at the start of the year, i am sure it is not.

The share price was about $40 a piece as recently as April of this year. There are a lot of articles both for and against the case of T, some even say the dividend payout is not sustainable. 'Experts' are weighing in on how the merger with TWC is a great thing and if it doesn't happen it is all doom and gloom, while other experts argue the case that not going through with the merger is going to be A-ok.

I am trying to ignore the noise on this one, and last week went ahead and added more shares to my existing position in AT&T. I purchased 15 shares at $33.31 each. At $1.96 a year, the yield on cost is about 5.88% and adds $29.40 to the yearly dividend income total. If they keep the existing plan of raising dividend by 0.04 a year, this purchase should yield a juicy 6% in 2018. Not too shabby. This also brings down my average cost basis.

That said - i am a bit weary. After this purchase, AT&T is the second largest position in dollar terms in my portfolio. It also is the largest dividend producer. Any change in the dividend policy affects my passive income, and big moves downward in the stock price will affect the portfolio value overall.

What have you been buying while the market continues to be at all time highs ?

Friday, November 10, 2017

Latest Sell - Kinder Morgan

I sold out of my small position shares in Kinder Morgan (KMI). I purchased this in 2 batches, once back in September 2013 for $35.9 per share, and then again in September 2015 where i averaged down by paying $23.45 per share.

Sold out at $18.02 per share this week. A loss of about 44% on the entire batch. I did receive dividends all this while, which was about 11.6% of the invested amount, for an actual loss of about 33%. Ouch. It also reduces my yearly dividend income by about $26.

This does allow me to tax loss harvest and at least reduce the loss a bit more.

Monday, May 15, 2017

1 share of amazon would be worth $11,500 today

20 years ago, on this day, a small etailer went public. A little known book store with a few million in revenue, was listed at $18 a pop.
If you had $18 lying around and purchased a stock on that day (ignore commission for a minute), it would be worth a whooping $11,500 today.
The stock split three separate times, so one share became two, became 6 and eventually 12.

If you were crazy enough to make a $2,000 bet on amazon 20 years ago, and never sold a single share - you would be an amazon millionaire. That $2,000 would be worth  $1,277,300 today. The interesting part is that the stock still has some more room to grow.

Sunday, May 14, 2017

Free $10 amazon credit

This might be targeted, so check your amazon account if you are a amazon prime member and your default card is anything other than a discover card.

Just by setting your default card to discover, amazon will apply a $10 credit to your account which can be used right away. You obviously don't have to use the discover card to pay for your orders, you can always chose another card at check out.

It is a free $10 for a couple of clicks in my opinion. You can go back tomorrow and change your default credit card back to whatever you were using.

Thursday, May 11, 2017

Passive Income Update - April 2017

The first month of the quarter tends to be on the lower side for the overall portfolio in terms of dividends received. The markets continue to be frothy, so i haven't been investing the dividends back into stocks just yet.

Here is my passive income update for the month of April 2017 -

Taxable Account -

WMT     $6.12
KO         $11.10
MO        $15.86
PM         $20.80
GSK        $6.79
WPC $15.92
BNS $7.15

Total        $83.74

Roth IRA - $15.83

Other* -      $77.00

Total Passive Income for the month - $ 176.57

* The Other category includes items like interest income from Savings Accounts/CD's.

How was your month of April ?

Tuesday, May 2, 2017

Apple increases dividend by 10.5 %

Apple just released their quarterly numbers, and like clockwork increased their dividend. I was expecting a 20 cent per share raise, but they increased it by 24 cents. The yearly dividend is now $2.52 per share.
An over 10 % dividend raise is great considering that this is not a value stock and the stock value it self has risen over 25% just this year.

I am excited about the upcoming super cycle where they will be releasing the 10th anniversary iPhone.

Apple remains one of my best performing stock picks. Oh and did i mention they have over quarter of a trillion dollars in the bank? Their $250 billion + cash hoard is a fortune 100 company on its own. Mind boggling.

Friday, April 21, 2017

Latest Buy - Roth IRA edition

Like i have mentioned earlier, the markets seem frothy and i still remain on the side lines. But there are deadlines to invest money in IRA accounts.
For the year 2016, the deadline to invest in a Roth IRA account was april 18th. I try to keep my roth holdings simple, equities are held in a target date blended fund, and money i want to keep on the sidelines is held in a money market fund.

I purchased $5,500 worth of VMMXX (Vanguard Prime Money Market Fund). The idea is to lock it into the Roth account and later re balance based on how the markets are doing.

VMMXX currently yields 0.93%, with the yield going up along with the overall interest rate environment. This adds about $52 to my yearly passive income, and best of all - it is tax-free.