Sunday, September 13, 2020
Tuesday, September 1, 2020
Another month is in the books, which means that it's time to tally up the dividends. The mid-quarters are my bigger month, which means that there's a lot to cover. As such, let's get right to it.
Publix: $9.18 Same as last quarter
Sprague Resources (SRLP): $8.92 Up $0.41 from last quarter and up $5.21 from last year.
AGNC: $0.14 Up a penny from last quarter, down $0.02 from year, the same as last month
Omega Healthcare (OHI): $2.28 Up $0.05 from last quarter and up $0.21 from last year.
Realty Income (O): $0.99 Up $0.02 from last quarter, Up $0.29 from last year, and up a penny from last month.
Hormel (HRL): $0.72 Up a penny from last quarter, Up $0.29 from last year.
Kinder Morgan (KMI): $1.10 Up a penny from last quarter and up $0.35 from last year.
Proctor & Gamble (PG): $0.79
Diversified Healthcare Trust (DHC): $0.01. Same as last quarter and down $0.14 from last year
Westrock (WRK): $0.83 Up a penny from last quarter, but down $0.08 from last year due to the recent cut.
Paychex (PAYX): $1.31 Up a penny from last quarter and up $0.04 from last year
That brings the total to $27.94, which is down $0.16 from last quarter, but up $12.25 from last year. The prior stat isn't unsurprising given that Tanger is sitting this one out. Actually, the damage wasn't that bad. It looks like DRIP soaked up most of the loss.
Of course, there's also the 401K to consider. Publix shares in that account brought in $2.46 (up $0.27 QoQ), while another fund brought in $0.77 (down $0.05 QoQ.) That sub-total comes to $3.23.
That brings the grand total to $31.17. Beat last quarter's record by $0.04, score. Considering no Tanger and the fact that this quarter hasn't been that active, I'm legitimately surprised by that, but I'll still take the win. 2020 needs all the wins it can get.
Interest came in at $4.76, which is up $0.40 from last month.
I took a different approach with investing this month. I put the fractional share buying ability of RobinHood to good use by investing tips from the second job. This was money that used to go towards the vending machine (which, to be fair, is a Pepsi machine, so it still fueled dividend growth) or just food in general. This time around it went to parts of shares of Johnson & Johnson (JNJ), Emerson (EMR), Target (TGT), Pepsi (PEP), AT&T (T), ConEd (ED), McDonald's (MCD), and Proctor & Gamble (PG). Some of these are new positions, while some of these are companies that I already owned in my first brokerage account. How big of a fraction of a share did I get from each of these? Well, you'll have to check out the newly updated portfolio for that. Those decimals are kind of a pain.
All in all, this was a solid month. I'm hoping Tanger can get back into it, but at least for now,the line is holding. We're coming up on the final stretch of 2020. Time to start getting momentum going so that 2021 can start off on the right foot.
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Tuesday, August 25, 2020
You don't want to work, you want to bang on the drum all day. Or maybe you want to write that novel or comic. Maybe you want to make movies, or music, or host a podcast. Alas, life costs money, which means you probably need some sort of day job, which takes time and energy away from the aforementioned projects that you'd likely rather focus on.
This is where dividend income can really come in handy. Money that comes in regardless of hours worked facilitates artistic projects. You can use it to cover life expenses so that you can do your thing full time or keep the job and use the money to cover the more direct costs of whatever passion it is you want to pursue and use it more as "start up capital".
In a way you're giving yourself corporate sponsorship. You know how shows always have that bit where a voice says over a promotional image for the show, "this program is brought to you in part by" and then an ad for some product plays? The same would apply to some extent to whatever it is you're doing. Think of these companies like patrons for your particular art.
This is another reason why it's so important to start young. If you're in high school and working your first job, get those IRA's (both Roth and traditional) up and running, of course,but also start building that portfolio of strong dividend payers. Even if you pause during the college years to cover those costs, reinvesting those dividends will keep building that floor for you. By graduation, you'll be moderately well on your way to the financially independent lifestyle. That'll make it easier for you to get started on that project that has been on the back burner.
UBI has been making the news, and it is uncanny how similar the rhetoric is between those who advocate for the policy and the FI(RE) community; but who knows when, or even if, that comes to pass. The government's numbers aren't exactly strong at the moment and pointing advocates to alternate means of accomplishing the goal hasn't worked as well as one would hope. Even if it was implemented, I wouldn't suggest relying on that alone. Use it to get you to where you want to be faster, sure, but don't just bank on that.
Crowdfunding is also an option, but there's no guarantee there. There are successful Indiegogo and Patreon campaigns, of course, but the odds aren't in your favor. I've made more progress building an income floor in two years investing than I did after 8 years of having a page set up on the latter site. Even poking prominent "I have too much money and I want to give it to you, but Republicans won't let me" figures doesn't seem to work. Contrary to what you may have heard, Bernie won't give it to ya, the Patriotic Millionaires won't give it to ya, even X won't give it to ya (shame on you if you didn't see that coming.)
So, for the aspiring writer, actor, painter etc. this is definitely something you'll want to look into. It's a more indirect way of making a living doing what you want, but it is still very much viable. It isn't like flipping a light switch, but you can definitely start building that momentum and getting the ball rolling.
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Sunday, August 23, 2020
Saturday, August 1, 2020
Pepsi (PEP): $1.04 Up $0.07 from last quarter due to DRIP and a dividend increase
Iron Mountain (IRM): $3.25 Up $1.28 due to new share buys and DRIP and up $1.42 from last year.
AGNC: $0.14 Down $0.04 from last quarter and down $0.02 from last year. Same as last month
Realty Income (O): $0.98 Up a penny from last quarter and the same as last month
Leggett & Platt (LEG): $0.40
Best Buy (BBY): $3.88 Up $0.03 from last quarter and up $0.38 from last year
Armanino Foods (AMNF): $0.19 down $0.11 due to a dividend cut
Franklin Resources (BEN): $1.96 Up $0.03 from last quarter and up $1.44 from last year
This brings the total to $11.84, which is up $0.97 from last quarter and up $4.85 from last year. That's actually not too shabby percentage wise.
The 401K threw in another $0.73, a little less than it did last quarter (3 cents less to be exact), but up $0.29 from last year.
Grand total comes to $12.57, which is up $0.94 QoQ and up $5.16 YoY.
Interest clocked in at $4.36, which is up $0.63 from last month.
Technically, there weren't any real buys this month. I did open an account on RobinHood, though. Because I used a referral link I (as well as the person who's link I used, assuming they didn't hit their limit) got a free share of stock. Now, the site boasts that it could be some big name company like Facebook or Microsoft, but odds are that it'll be some dinky $3-7 no name stock. The one I got didn't even pay a dividend, so I sold that and took the whopping $4 and put it into 3M (MMM).
This is another perk of RobinHood, fractional share buys. Even though the stock price of the company is a lot higher than $4, I was still able to initiate a position. Suffice it to say, I plan on putting this to good use in the months and years to come. A couple of other brokerage firms also offer it, but RobinHood is one of the more well known options when it comes to this perk. It's the other reason I decided to go ahead and set up the account.
All in all, July was pretty uneventful. Yeah, the Armanino cut was unfortunate, but reinvested dividends were able to cover that loss. The slow and steady growth continues, which given the chaos is a welcome development.
I'm hoping that August will have a bit more momentum. On the one hand, it is a mid-quarter month and those are usually my strongest months, but with 2020 being 2020, who knows what's going to happen? Still, as the saying goes, always forward.
"stock dividend" by CreditDebitPro is licensed under CC BY 2.0
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Monday, July 27, 2020
However, if you start to do some digging, you'll start to see that not every company stock has such a lofty price tag. There are plenty of companies out there with share prices that are much more friendly to the working class. Now, a low price tag can be a warning sign that the company is in dire straits; this is true, but smaller companies can have a lower price tag and still deliver strong returns. I thought it would be a good idea to throw some names out there to get people started.
Now, I should note that these aren't "picks" in the traditional sense. I'm still a relative rookie and there are plenty of other bloggers who are much more well versed in the mechanics. These are, however, stocks that I own and have worked out in my favor so far. Could things change? Of course, especially in this environment, but they've held up pretty well so far despite the headwinds. In any event, let's get to them.
1. Flowers Foods (FLO)
At $22 bucks a share as of this writing, this company is a very easy buy. They make and deliver a variety of breads. I see their crates in my store all the time. Not only is the stock higher than where I bought it, but I've seen a couple of dividend increases since I first bought in. Even in the age of Corona, the payments have held steady, which is always a welcome sign.
2. Franklin Resources (BEN)
Another company who's stock is currently sitting in the low $20 area. They offer financial services and are a dividend aristocrat. While the pandemic is unlike other bouts of economic turbulence, the record gives investors a degree of confidence that they are built to withstand such things.
3. Wendy's (WEN)
For such a big name, this stock is in the same range as the two companies listed above. It's surprising to some extent, but if jimmy wants to crack corn, I don't care. They did recently cut their dividend due to Corona based challenges, but they were one of the stronger raisers before the madness started. In any event, the stock price is higher than when I bought it, so it still seems like a strong buy in my neophyte opinion.
4. Kroger (KR)
At $35 a share at the time of this writing, this company is a little bit more expensive, but still very much attainable. Not only has Kroger held up, but it seems to have thrived in the new age we live in. Grocery stores are critical, so it makes sense. Not only have they kept their dividend increase streak alive, but the stock is higher than it was when I bought it. Growth is always good.
This one has been very popular among the DGI community as of late. This dividend aristocrat sits at around $30 a share. They not only have a long record of increases, but also a pretty strong yield to go with it.
So, there you go. 5 companies may not seem like much, but it's enough to get the ball rolling on a new portfolio for the rookie investor on a budget. Not only that, but reinvested dividends have that much more power as they get you more fractional shares to get that snowball rolling.