Saturday, January 28, 2017

2016 Year End & December FrugalMaster Results


December seems to go by the fastest of all months for me.  There is so much to do preparing for the holidays and then traveling and spending time with families.  My wife and I always debate if we are doing too much with decorations around the house.  Putting it all up (which the kids enjoy) takes a few weekends.  Taking it down also takes up a few weekends in January (mostly me putting it all away).  The debate is always is it all worth it or would our time be better spent doing other activities.  My wife always has a good point that it is spending time with the kids.  They enjoy it and will hopefully have fond memories of the holidays.  My only point is that it gets a wee bit stressful for us parents trying to get it done and take care of several young children.


There are always several things you can do to make the holidays less stressful.  This year I had a fixed budget and did 100% of my shopping online.  No hunting the aisles for gifts or dealing with traffic.  I did it in the evenings after the kids were in bed or during lunch at work.  Saved time and gas money.


The second and probably biggest stress reducer was for the first time I had set a budget and saved for it throughout 2016.  We stuck to it and although the kids got less this year it was still a good time for all Christmas morning.  Unlike last January this January I will not get a big credit card bill that I have no savings to pay for.  Last January was my only negative net income month for the entire year.  This year my goal is to have only positive months (Goal #1.)


On top of only having positive months my next goal is to increase my savings rate.  Last year my average savings was 22% of my income.  There were a few swings from 59% down to negative.  At my new job I am back to twice a month paychecks so that removes the 2, 3-paycheck months.  That will help smooth out my rate.  With my budget complete and savings goals set, I am setting a lofty goal of 30% of income saved (Goal #2.)

Yep my savings goals are back.  Last year I had 3 and achieved all of them.  They were Christmas, Vacation and Emergency Fund.  My first 2 goals are the same for 2017.  Holiday expenses and vacation.  Although this year I cut the vacation budget in half and plan on only 1 major family vacation this year.  The rest of my vacation time will be staycations doing fun and free stuff around my city with the family or catching up on home maintenance.

Notice anything missing?  Hard to call myself the Dividend Family Guy if I am not investing.  While I did contribute to my 401k and reinvest my dividends I didn’t even come close to maximizing my tax-free accounts.  So now that I have my emergency fund, this year will be the first ever year to max out my 401k, IRA's and HSA accounts to the tune of $35,500 (Goal #3.)  If I can save more than 30%, anything left over will go into my taxable account for investing in dividend growth stocks.

As always if you don't have your health what does all of this saving buy you?  I gained seventeen pounds since my daughter was born.  I need to get back down to an ideal weight of 180 lbs. (Goal #4.)  I have already started but it will be a long journey at about a pound a week.  My work has a gym and trainer who comes in on Wednesdays.  Taking advantage of that and eating right I should be in shape for vacation this summer.  The weight reduction will also remove pressure from my lower back where I have developed some arthritis. 

I achieved all of my goals last year except for the weight loss.  That seems to be tougher than saving money (at least for me.)  Wish me luck in 2017 and I hope you have some goals set and are working towards them as well.

Peace,
Dividend Family Guy

Sunday, January 22, 2017

December 2016 Dividends and Year End Totals

December went out with a bang being my best month of the year.  Focusing on family and time spent with them and friends is all I want for Christmas.  No gifts this year except for all of these great companies rewarding me with growing dividends and a $363.16 deposit into my brokerage accounts. 

December is also a great month because many companies also reward their owners with dividend increases.  For me it was a total of 7 dividend increases ranging from .48% (MCY) up to VFC at 11.9%.  VFC continues to be on my watchlist and I look forward to purchase more of them in the future.

Company
Symbol
Held In
 Dividend
Amount Received
December Notes
 ARCHER DANIELS MIDLD
ADM
IRA
0.3
$30.00

 ARCHER DANIELS MIDLD
ADM
Taxable
0.3
$3.90

 CHEVRON CORP
CVX
Taxable
1.08
$2.16
.93% Dividend Increase (kept streak going)
 COCA COLA
KO
Taxable
0.35
$0.70

 COCA COLA
KO
IRA
0.35
$8.75

 EMERSON ELEC CO
EMR
IRA
0.48
$24.00
1.04% Dividend Increase
 EXXON MOBIL CORP
XOM
Taxable
0.75
$1.50

 EXXON MOBIL CORP
XOM
IRA
0.75
$75.00

 FLOWERS FOODS INC
FLO
IRA
0.16
$5.12

 INTL BUSINESS MACHINES CORP
IBM
IRA
1.4
$5.60

 INTL BUSINESS MACHINES CORP
IBM
IRA
1.4
$5.60

 INTL BUSINESS MACHINES CORP
IBM
Taxable
1.4
$7.00

 JOHNSON AND JOHNSON
JNJ
IRA
0.8
$40.00

 MCDONALDS CORP
MCD
Taxable
0.94
$0.94
5.61% Dividend Increase
 MCDONALDS CORP
MCD
IRA
0.94
$23.50

 MERCURY GENL CORP
MCY
IRA
0.623
$31.13
.48% Dividend Increase
 MICROSOFT CORP
MSFT
IRA
0.39
$9.75
8.33% Dividend Increase
 NU SKIN ENTERPRS
NUS
Taxable
0.355
$0.36

 OLD REPUB INTL CORP
ORI
Taxable
0.188
$0.75

 OLD REPUB INTL CORP
ORI
IRA
0.188
$38.06

 PRICE T ROWE GROUP INC
TROW
Taxable
0.54
$0.54

 TARGET CORP
TGT
IRA
0.6
$30.00

 UNVSL HELTH RLTY
UHT
IRA
0.655
$16.38
.79% Dividend Increase
 V F CORPORATION
VFC
IRA
0.42
$0.42
11.9% Dividend Increase

While not my best year it was still a great year for dividends.  Totaling 2035.25 between my accounts covers 1/2 of a month of living expenses.  I have a way to go to cover the rest of my living expenses but it is a great place to be after 7 years of tracking my dividends.  Keep in mind I had 3 months of little dividends from my account shift and portfolio rebalance.  It will set me up for future dividend growth and whatever goal I set out for.  That will come in a later post as I mull over my goals from 2016 and what I can strive for in 2017

Happy investing,
Dividend Family Guy

Saturday, January 14, 2017

January 2017 Dividend Growth Watchlist


Company Name
Symbol
Industry
No. Years
Dividend Yield
Sector
EPS% Payout
Span-America Medical Systems
SPAN
Medical Equipment
18
3.51
Health Care
41.56
Williams-Sonoma Inc.
WSM
Retail-Home Products
11
3.06
Consumer Discretionary
44.18
Old Republic International
ORI
Insurance
35
3.95
Financials
51.37
Donegal Group Inc. A
DGICA
Insurance
14
3.15
Financials
53.92
Qualcomm Inc.
QCOM
Telecomm Equipment
14
3.25
Information Tech
55.64
VF Corp.
VFC
Apparel
44
3.15
Consumer Discretionary
58.33
Target Corp.
TGT
Retail-Discount
49
3.32
Consumer Discretionary
44.04
Reynolds American Inc.
RAI
Tobacco
12
3.28
Consumer Staples
47.79
Gap Inc.
GPS
Retail-Clothing
12
4.10
Consumer Discretionary
55.09
Tanger Factory Outlet Centers
SKT
REIT-Outlet Stores
23
3.63
REITs
44.98
People's United Financial
PBCT
Banking
24
3.51
Financials
74.73








My latest screen although the data is a bit old since it was from the U.S.DividendChampions spreadsheet from end of December. Dave makes is easy to screen some of the best companies in the world that are dividend growers.

New to the list are WSM, RAI and SKT/PBCT.  Since Tanger is a REIT I included People's United Financial just in case I want to exclude the REIT from purchases.

Williams-Sonoma makes some great kitchen products.  I have this cast iron wok from our wedding over 12 years ago that still looks like new (and I use it!).  High quality stuff but expensive.  I can see why it might be having some difficulties as most people go for less expensive stuff.  If that is the case then why does Target always show on my list.  Sure it is not as cheap as Walmart but it's woks are half the price of WSM's.

I don't own any RAI but this might be the time to buy into that market.  A pack of the cancer sticks goes for $8 in my area.  Based on the smoke breaks I see people take at work that is a pack every other day.  But then again I read sedentary (like sitting at a desk all day like me) is the new smoking.  I am still working on my boss to get me a standing desk.


 

Well that is it for today.  Until my next post.

Later,

Dividend Family Guy