Friday, August 26, 2016

August 2016 Dividend Watchlist


I am back from the family vacation to North Myrtle Beach.  It was a great time and the weather was perfect the whole week.  Back home I heard it stormed almost every day.  My brown grass had turned green and it was about a foot high.  Some of it had even gone to seed.  Life goes on even when you're not there.  The same applies towards dividends.  The companies keep earning money and passing it on to you. 

Not having much time this month I haven't really looked at any stocks lately.  I did setup my screen in the beginning of the month but never got to posting what I found.  Now it has some data behind it and I would like to share it with you all.

There are many repeats and so far this month the set of them were trailing the S&P 500.  But in the past few days they have jumped and they have a nice gain for the month of 2.1%.  Most of the gains are attributed to Best Buy's beating expectations.  They are up 25% in one month.  Crazy how a little news causes everyone to jump in and buy them.  They have been on my radar and I should have picked them up 3 months ago.

Old Republic International (ORI) has also gained in the past month.  Up 32.2% in August.  Mostly driven by sticking to what has worked over the past 75 years of dividends and increasing them the past 35 years.  The TTM PE for both of these companies are still under 20 and would be nice additions to my portfolio.

There are other repeat stocks that passed the DFG Stockscreen but I have to go and get my kids ready for their second day of school.

* Update 9/2/2016.  Motif closed my account since it is not funded.  I guess I will need to find some other charting tool for my screen.



Wednesday, August 10, 2016

July 2016 FrugalMaster Results

The FrugalMaster exercises took a break in July as the DFG family went to Niagara Falls for a family vacation.  There was also a payment due on our vacation in August for the condo rental.  Both were realized expenses this month so let's take a look and see if I was able to save for July

Income was slightly above normal

2 ordinary paychecks, some dividends in my taxable account and finally some hustle money.  We  had an old washer and dryer sitting in the garage for over 6 months.  It was on Craig's list and we finally got a buyer.   The sweet smell of cold hard cash finally was mine.  They didn't even haggle and gave me what I was asking.

I am also now getting cash rewards plus a bonus using my Bank of America Cash Rewards Credit card.  We pay it off in full every month so as to not incur any interest.  Instead the bank pays us and we get 30 days to pay it off.  Not a bad deal.  Vacations and other charges got us a $140 cash deposit.

Needs were within budget

eSurance credited us $54 since we combined our Auto and Home Insurance.  The rates were already low and this combining of policies dropped it lower.  Best move regarding savings I have made this year.

That helped offset some new outdoor lights we bought for the front of the house.  Some of them were not working and the rest were pretty rusted.  I put up the new lights with LED bulbs and painted up the trim.  The house looks great (and maybe I will convince the Mrs. to sell soon and move to something more affordable).

Food was under budget by a mere $26 dollars.  That was even after the 4 day vacation.  My average so far this year is $758.  It is very hard to control my families junk food & juice habits.  Cutting that out would save me $20 a week.  Junk food is easy to explain why you don't need it.  Juice on the other hand appears to most people to be healthy.  However it is pure sugar, destroys your tooth enamel and the vitamins from it you can get in a pill or by eating real fruit and vegetables.  I used to have the same habit but realized it was just more empty calories and dropped it.  Now my morning no longer includes it and I think I am better for it.

Unfortunately to keep costs under control I have decided to pause the organic and nitrate/antibiotic free food buying.  Back to old fashioned milk and meats.  With seven mouths to feed my goal is to keep it at $100 per person a month for the year.  Time to tighten the belt to get that average down.

Overall my needs as a percentage of my income still remains low at 61%.  Even with a job loss there is still plenty of fat that could be trimmed from that to get it even lower.  The trend is downward for the past three years so I am happy.

Guilt Free Spending Money (Wants) was slightly over budget

But only by $13!  This was actually a good month for my family.  It may sound allot to Frugal Masters out there but for me I will take it.  Thirty percent of it went to candy and another 24% to dining out.  This was mostly from a trip we took to Amish Country. 

Looking back the area we stayed at is just a big strip of American consumerism at its best.  Things weren't made by the Amish.  Everything we looked at was made in China.  The only USA stuff was in the antique shops.  Regardless of my views the family had a good time and that is what matters the most.

Outside of the budget but still an GFSM expense was vacation.  To save on costs my family of 7 packed into one King suite with a pull out bed.  We were going to stay in two rooms but decided to save $400 and squeeze into one.  That was our number one expense followed closely by 4 days of dining out. 

The baby we brought her baby food but the rest of us, we sure can eat.  In retrospect the two young ones never finished their meals (they were just to big).  So on our next vacation I will definitely split a lunch between them and maybe even dinner.  The same applies to me as well.  I am trying to lose weight and super-sized lunches and dinners while on vacation don't help.  My plan is to split my dinner in half and eat the leftover for lunch the next day. 

Even with vacation my savings rate still remained positive at 6%

My income was enough to cover the vacation expenses on top of my normal expenses.  However I still have the cash in savings for vacations as part of my monthly savings goals (which I met this month as well.)  If I end up being able to cover my vacation in August with income, the savings will just roll into my investment accounts.

I hope your July was in the $green$ as well.


Dividend Family Guy

Sunday, August 7, 2016

July 2016 Dividends

Summer flies by way to quick.  It is August and we are already starting back to school shopping.  My wife won't even say the S word around the kids.  We didn't hear the D word much last month either.  Still waiting for the first dividends from my new IRA dividend portfolio to roll in.

My taxable account where I did transfer stock in kind to my new accounts had 3 companies make a deposit.  I had set the dividend reinvestment to automatically reinvest without thinking.  Now that it is August my rewards program kicks in and I get 30 trades a month for free.  Now I can take the case from these companies and invest in the best company at the time based on my stock screen.  Before I did DRIP only because it saved on investment fees.

Well there it is a whopping $2.07.   I will take it because my forward dividend income from my new portfolio was boosted by $57.  I hope you easily trumped me in July regarding dividends.

Happy investing,

Dividend Family Guy

Tuesday, August 2, 2016

Dividend Portfolio for Beginners (or in my case starting over)

Cool sunsets in June
In June I started my account consolidation project to take advantage of a Rewards Program offered by Bank Of America & Merrill Lynch.  I have one account, my mortgage, to change in my bill pay system and then I can shut the door on my old brick & mortar bank.    In the process I took advantage of the great market we have had for the past 5+ years and sold all stocks in my IRA.    The goal being to create additional capital to invest and start that dividend machine over again with the best bargains meeting the Dividend Family Guy stock criteria.

I sat on the cash for what seemed like forever waiting for a good day to buy.  As luck would have it Brexit happened and I was actually paying attention to the news.  I figured I would watch the markets the day the vote happened and wish for the best (big drops across the board).  For most people days like that are not good as they watch their money vanish.  For those wishing to pursue dividend growth investing, it is like winning the lottery.

I bent my screen a little and accepted some stocks that weren't quit yielding 3% at the time but still are great stocks to own.  I didn't plan on it but oddly enough it is a balanced portfolio according to my Quicken Portfolio X-Ray data (from Morningstar.)  It compares my portfolio with the S&P 500 as a benchmark.

In my list below at the bottom are some sums and averages for the various data points I chose to show you all.  I do believe in dividend growth (and looked at the chowder rule when buying these).  However, I believe initial dividend yield is a key factor to starting the compounding snowball.  It is easier to pick a long paying dividend growth stock at 3%+ then guess at which 1% yielder will continue to grow and get to the level these guys are at (and with staying power.)

The new portfolio has boosted my monthly dividend income by $57.  Previously I was averaging $139 from my IRA and now my forward dividend income will be $196 per month.  This is after paying any fees for selling stocks and transferring them to my new IRA.  Also not that it matters too much for DGI'ers but this portfolio is already up 3.76% in a little over a month.  Not to bad for those slow growing mammoths.

I know there are some slow growers in there but what do you all think of my picks?  Good starters?  Would you recommend them to beginners?

Happy saving and investing,
Dividend Family Guy