Friday, December 21, 2012

Hiatus

Dividends For The Long Run will continue to be on hiatus as I spend the next few months going through a major career change.

Sunday, October 14, 2012

Accumulating Cash, Staying Patient

The lack of posting activity here has been mirroring my lack of investing activity over the last month or so.  I'm continuing to run screens and analyze new stocks however at this point in time attractive bargains are few and far between.  Aside from opening a small position in Caterpillar and taking some profits by selling a third of my Medtronic shares I have just been sitting on the sidelines and accumulating cash.

Right now that cash position sits at 11% of the portfolio.  Given that we are now in earnings season and that the market as a whole has been very choppy for the past few weeks the correct strategic move from my perspective is to lay low and wait for opportunities to develop.  That might well mean waiting until November to make significant purchasing moves.

That said, I remain committed to the dividend strategy (with a wary eye directed toward Congress) and continue to be a net buyer.  Despite the gloom and doom in the financial media keep in mind we are less than 5% off the S&P 500's high for the year.  Frankly I would welcome a 10% correction in the market right now as it would create beaucoup buying opportunities.  Such a correction would suck for older investors as well as day traders but hey, that's not my problem.

My inactivity aside, the dividends keep rolling in.  Coca-Cola, Kimberly Clark, Altria, Illinois Tool Works, and Phillip Morris have already delivered this quarter's dividend payments.

Looking for more financial advice but getting tired of me going on and on about dividend stocks all the time? Head on over to 6400personalfinance.com and follow me on Twitter @6400PF for a broader approach to building your net worth.

Sunday, September 30, 2012

Quarter 3, 2012: Net Worth Analysis

It's that time of year again, time to go through the numbers and see how the PIG and my overall net worth improved over the last quarter.

First up, the roll call of new buys, increased positions, and sells.

New Buys:
Cliff Natural Resources
Staples
Seagate
General Dynamics

Increased Positions:
Phillips 66
Altria

Sold:
Hawkins
Cliff Natural Resources (fixing a bad decision)

I also have an order in to add to my Intel position however that will technically fall under Quarter 4 once it is executed.

Below is the PIG's income report for the third quarter of 2012.  It maintained it's very young streak of quarterly increases in dividend income and has broken the $1,000 level for dividend payments.  The goal of $1,500 by year's end looks attainable at this point.  Right now the PIG has a market value of $61,470.24.

2012 Dividend Tracker (Goal is $1500)
2011 Dividend Income
$307.90

Quarter 1, 2012 Income
$211.23
Quarter 2, 2012 Income
$331.70
Quarter 3 (July 1 – September 30)
Company
Dividend Payout
Coca-Cola (July 1st)
$33.22
Kimberly Clark (July 3rd)
$11.95
Illinois Tool Works (July 10th)
$7.98
Altria (July 10th)
$29.34
Phillip Morris Intl (July 12th)
$12.44
Leggett & Platt (July 13th)
$52.52
Medtronic (July 27th)
$22.51
AT&T (August 1st)
$28.83
Air Products & Chemicals (August 13th)
$8.32
Abbott Labs (August 15th)
$9.69
Procter & Gamble (August 15th)
$8.99
Cliff Natural Resources (August 31st)
$15.63
Intel (September 1st)
$19.45
Aflac (September 4th)
$24.49
ConocoPhillips (September 4th)
$35.74
Phillips 66 (September 4th)
$1.40
WalMart (September 4th)
$8.00
Chevron (September 10th)
$9.00
Emerson Electric (September 10th)
$9.20
Johnson & Johnson (September 11th)
$29.45
Wal-Green (September 12th)
$18.70
Microsoft (September 13th)
$8.06
McDonald’s (September 18th)
$16.86
Waste Management (September 21st)
$22.96
Guess (September 21st)
$8.00
Pepsi (September 28th)
$8.67
QUARTER TOTAL
$461.40

Year To Date Total
$1,004.33
67% of Goal


Net worth wise this was a very good quarter for my net worth.  It dipped a bit when the market stalled at the end of the month but nonetheless no complaints.  I missed my goal of a 10% increase by all of 0.3%, an acceptable miss given that we spent a weekend in Maui during the quarter.  For the fourth quarter I'll stick with the 10% increase goal even though trips to the Big Island as well as home for Christmas will make that a challenge.

ASSETS
Cash
(-17.0%)
Taxable Investments
(+14.6%)
Roth IRAs
(+6.9%)
Total Assets
(+11.7%)
PERSONAL NET WORTH
(+9.7%)


Finally, using the same model budget first put together a year ago, here is a representation of how my current dividend income translates into covering my expenses.  The income total listed below the month/year is an annualized figure.

Expense
Yearly Expense
PIG Portion
Expense covered?
SEP 2012
MAY 2012
OCT 2011
$2,056
$1,540
$962
Rent
$15,600
$445,714
NO
NO
NO
Groceries
$3,000
$85,714
NO
NO
NO
Dining Out
$1,800
$51,429
NO
NO
NO
Car Insurance
$1,260
$36,000
NO
NO
NO
Gas
$960
$27,429
NO
NO
NO
Cable/Internet
$900
$25,714
95%
33%
NO
Power
$600
$17,143
YES
YES
50%
Phone
$600
$17,143
YES
YES
YES
TOTAL
$24,720
$706,286
8.3%
6.2%
3.9%


Well, that was fun.  Remember, dividends are boring, but cash is still cash.

Related Post: Quarter 2, 2012: Net Worth Analysis
Related Post: Quarter 1, 2012: Net Worth Analysis
Related Post: Quarter 4, 2011: Net Worth Analysis
Related Post: Quarter 3, 2011: Net Worth Analysis

Looking for more financial advice but getting tired of me going on and on about dividend stocks all the time? Head on over to 6400personalfinance.com and follow me on Twitter @6400PF for a broader approach to building your net worth.