Tuesday, July 28, 2015

Weekly Purchases

Here are my automatic investments for this week.

  • CVX:  2.73 shares @ $91.37 --- Yield  4.68%
  • UNP:  2.61 shares @ $95.43 --- Yield  2.31%

Total capital invested is $500 ($250 in each company) and the combined yield is 3.29%. My yearly dividend income will increase by $16.45.

Due to unforeseen expenses popping up, I had to cut back on this week's purchases. I may buy a larger position tomorrow. TD has been in the $38 range, NOV could go below $40 any time and everything else energy related continued to get hammered.

Here are some other companies that I am watching closely....DD, VZ, KMI, JNJ, CAT, BBL, and ESV.


Thursday, July 23, 2015

Stock Purchase: CAT

Today I added some more shares to my CAT position.

  • CAT:  20 shares @ $77.96 --- Yield  3.95%

Total capital invested is $1566.16 and will add $61.60 to my yearly dividends. It's hard to believe the yield for CAT has reached 4%. Hopefully it stays in the $70s or lower for a while longer so I can keep building my position.


Tuesday, July 21, 2015

Weekly Purchases

Here are my automatic investments for this week.

  • KMI:  6.97 shares @ $35.88 --- Yield  5.46%
  • CVX:  2.66 shares @ $93.99 --- Yield  4.55%
  • XOM:  3.05 shares @ $82.08 --- Yield  3.56%
  • IBM:  1.53 shares @ $163.80 --- Yield  3.17%

Total capital invested is $1000 ($250 in each company).  The combined yield on these purchases is 4.19% and will add $41.85 to my yearly dividends.

Just like clockwork, IBM falls off a cliff the day after earnings. I love the yield and the low payout ratio. Now if they can get their act together and start growing revenues everything will be great. If not, I just added shares of Alcoa with a better yield. :-)

It has been well over a year since I have added to my Kinder position and this price is still quite a bit higher than my basis. Even so, this is the highest yield that I can remember thanks to constant dividend increases.

I finally closed out my BP covered call yesterday and made a $46.60 profit.

I also added $500 to my Lending Club account that should be available to invest tomorrow.

Stocks on my radar......big oil, and others near their 52 week lows.


Wednesday, July 15, 2015

KMI raises dividend 2.08% --- New yield is 5.23%

Today KMI announced yet another dividend increase. The quarterly dividend will increase from $.48 to $.49. The new yield is 5.23%.

Even though the share price has mostly increased over the last year or so, I think this is the highest yield I have seen. I believe even when the price was in the low 30s last year the dividend was around $.42 so the yield was around 5%. I may have to start adding to my position again.

The ex-dividend date is July 29th and the pay date is August 14th.

Since I currently own 235.84 shares, my yearly dividends will increase by $9.43.


The Game of Chicken continues: NOV Purchased

Today I added to one of my Ugly Ducklings.

  • NOV:  35 shares @ $43.86 --- Yield  4.20%

Total capital invested is $1542.05 and this will should add $64.40 to my yearly dividends.

I almost picked up some shares of ESV as well. The shares were trading in the $19.80s early today. If the shares drop back down to that level or lower, I will look to add around 75 shares. I'm also keeping my eye on TD. Under $40 is where I will pull the trigger.

Hopefully the excitement continues.....

I also invested $500 in my Lending Club account today.


Tuesday, July 14, 2015

Weekly Purchases

Here are my automatic investments for this week.

  • RDS-b:  4.31 shares @ $57.98 --- Yield  6.48%
  • CVX:  2.61 shares @ $95.64 --- Yield  4.48%
  • XOM:  3.02 shares @ $82.75 --- Yield  3.53%
  • UNP:  2.56 shares @ $97.49 --- Yield  2.26%

Total capital invested is $1000 ($250 in each company). The combined yield is 4.19% and will add $41.88 to my yearly dividends.

Well it looks like the latest turmoil in Greece has come and gone at least until the next panic in Greece arises. :-) Stocks are rallying, oil is falling, so in other words....business as usual.

I will try to keep averaging down on my energy companies, but I may make a larger purchase soon. Canadian banks continue to badly lag behind American banks so I may look at a Canadian bank. I already own shares of TD so I will most likely add to that position. Also Aflac has been drifting down recently.


Saturday, July 11, 2015

Lending Club finally arrives in Texas

One of my goals for 2015 was to open a Lending Club account and try to build up a loan portfolio of $10,000. I opened an account back in late December, transferred a few hundreds dollars over to LC to get started and to my disappointment I was informed that Texas residents could not invest in loans.

I have to admit that I was pretty bummed, but I had a feeling that eventually LC would become available to Texans. A couple of nights ago I checked my email and was pleasantly surprised to find a notice from LC informing me that Texas resident could now invest in loans. Again I made a transfer a few days ago and it should hit my LC account in the next day or so.

Fantastic!!!! After literally making hundreds of stock purchases over the last few years, it feels pretty good to add another form of passive income to my dividend machine. There certainly is nothing wrong with a stock only portfolio, but the thought of creating a new form of income that is unrelated to the stock market is awesome. Starting on a new journey can definitely rekindle the fire inside of me and who knows how this will play out.

I suppose this will be similar to investing in REITs. Higher income streams and obviously higher taxes as well at least while I still have my day job. I am ok with that. In a few years it will be nice to not only receive interest income to live off of, but I will also receive principal each month which could help with future cash flow needs if I choose not to reinvest the payments. For now, like my with my stock portfolio, I plan to reinvest everything that I receive to grow the snowball.

I started browsing through the endless number of loans and started thinking this is going to suck trying to come up with my own underwriting guidelines, check the loans throughout the day, and then attempt to accumulate many loans at $25 a piece. On top of that you then have to wait to see if the loans get fully funded which can take up to a couple of weeks to complete. Quite honestly, I am not a very patient person.

It only took me about fifteen seconds to realize that there is no fucking way that I am going to be dedicated enough to constantly check on new loans throughout each day, filter, and patiently hope to finalize a bunch of $25 loans.

For now, I have decided to take the automated approach and just let LC do the work. The Platform Mix looks pretty good to me and according to LC should return somewhere between 6-9%.  The mixture includes mostly B and C type loans which is right up my alley as it is not too risky, but still has the potential to bring in solid returns.

I have to admit I am very stoked to add a new and unique component to my dividend pipeline. My first thought is that I may not be able to add $10,000 by the end of the year, but then again knowing me I can see myself getting there by the end of August. :-)