Friday, December 30, 2016

December 2016 Recap





Here are the dividends I received during December.

  • XOM --- $92.95
  • PFE --- $91.56
  • BP --- $68.40
  • RDS-B --- $65.80
  • WFC --- $64.98
  • GM --- $62.01
  • KO --- $56.23
  • SO --- $50.70
  • TROW --- $40.60
  • MSFT --- $32.18
  • GILD --- $24.51
  • TGT --- $24.21
  • NEA --- $23.83
  • FLOW --- $19.20
  • MET --- $16.00
  • EMR --- $14.40
  • GS --- $7.83
  • ESV --- $0.70

Total dividends received in my taxable account are $757.09.

Total net capital invested is $25,708.30 which raised my yearly dividends by around $1000.00.

Overall December was a really solid month! It's nice to finally get the dividend income back up to a respectable level. NEA actually made an interest payment on the 1st and 30th so I may not get a payment in January.

I'm really excited about the upcoming year and will continue working diligently to reconstruct my portfolio. I have 37 income producers starting out for next year and will likely add 5 to 10 more throughout the year. My primary focus will be to build existing positions whenever possible.

On a final note, I would like to say that I am missing Dividend Hustler! That guy has some serious game and provides a shitload of motivation! I hope he reappears sometime soon. The dividend community is better off with his presence whether he has a portfolio filled with dividend stocks or just stone cold cash!

Hustler, I hope you reappear during the 2017!!

In the mean time everyone, in all areas of their lives, should continue to.......see below in bright red!!

DEFY MEDIOCRITY

Thursday, December 29, 2016

Final 2016 Buy --- CSCO


Today I initiated a position in CSCO.






  • CSCO:  115 shares @ $30.38 --- Yield  3.42

Total capital is $3500.25 and will add $119.60 to my yearly dividends. I haven't done the exact math, but this purchase gets me to $6,000 in forward dividends. I have owned CSCO in the past and am glad to add shares once again, even though at a much higher buy price. The yield and dividend growth have been strong in recent years and makes a great complement to my MSFT position!

Hopefully the next couple of months provide better opportunities to add to existing positions. If we could duplicate Jan/Feb of 2016 that would be wonderful. It's really kills me that BA was trading around a $100 earlier this year and now has a $5.68 annual dividend. I bought and sold shares earlier this year and I could have had a 5.5% YOC. Crazy. Same story with CMI and many other industrials.

Forward dividends are around $6000.


DEFY MEDIOCRITY

Wednesday, December 28, 2016

Recent Buy --- NKE


Today I initiated a position in NKE.






  • NKE: 40 shares @ $50.99 --- Yield  1.41%

Total capital invested is $2046.55 and will add $28.80 to my yearly dividends. I believe NKE was the  best performing DJIA stock in 2015 and is currently the worst performer in 2016. The payout ratio is low as is the yield, but I think the dividends will continue to grow quickly and will give a YOC of 3% within a few years.

Forward dividends are just under $5900.00. I will absolutely reach $6000 within the next couple of days.


DEFY MEDIOCRITY

Tuesday, December 27, 2016

Recent Buy --- PFE


Today I added some more share to my PFE position






  • PFE:  75 shares @ $32.56 --- Yield  3.93%

Total capital invested is $2448.94 and will increase my yearly dividends by $96. Buying Pfizer around 4% usually has worked out pretty well for me over the past few years. Right now I have approximately 383 shares, but 300 of them have a $32 covered call attached to them which expires next month.

Those share are earning a $1.28 premium so I will probably close out the option early and keep a $100 or so profit from the trade rather than risk losing the shares.

Anyway, I am now about $150 away from my year end goal of $6000 in forward dividends.

Forward dividends are around $5850..


DEFY MEDIOCRITY

Monday, December 26, 2016

Final 2016 Lending Club Update






My LC portfolio value finally reached $10,000 a couple of weeks ago which prompted me to discontinue future contributions for now. I plan on letting things ride for a while and may continue building up my loan balances in a few months.

In the mean time, I do plan on reinvesting all the interest payments I receive.

I have been investing $25 at a time and now have 492 notes up from 421 notes last report. I am continuing to use the automated note selecting mechanism which lets the computer spread the capital across a variety different loan grades.

Right now as you can see above, my current return is 5.50% after all defaults and past due loans have been written down.This is a significant drop from previous months. Obviously this happens when defaults start to rise and hopefully this is a temporary phenomenon. I would like to hope that the Christmas holidays are partially to blame as families can become pretty strapped this time of the year. 

Also, my monthly payments have increased to approximately $384.


2016 Net Annualized Returns

July --- 6.77%
August  --- 6.33%
September --- 6.65%
October --- 6.76%
December --- 5.50%

DEFY MEDIOCRITY

Friday, December 23, 2016

Recent Buy --- OHI


Today I initiated a small position in OHI.





  • OHI:  80 shares @ $30.24 --- Yield  8.07%

Total capital invested is $2425.99 and will add $195.20 to my yearly dividends.

I have done a good job of avoiding high yielders this year, but I just glanced at my sector allocations and noticed the following.


  • Consumer Defensive --- 21.47%
  • Healthcare --- 17.28%
  • Consumer Cyclical --- 14.94%
  • Energy --- 11.14%

As you can see, this year's portfolio is definitely less volatile than in past years. I'll continue add value regardless of sector and quite honestly energy companies came through for me this year so I am glad that I kept them within my much smaller portfolio. I'm probably finished adding REITs for a while, but would love to double this position around $25.

Forward dividend are around $5750.

Next week will have some more big moves as well. 


DEFY MEDIOCRITY


Thursday, December 22, 2016

Recent Buy --- HCP


Today I added to my HCP position




  • HCP:  100 shares @ $28.95 --- Yield  5.11%

Total capital invested is $2901.45 and will add $148.to my yearly dividends. This brings my share count to just over 309 shares.

I am also watching O and OHI on the REIT front. Other stocks I continue to watch include NKE, CSCO, PG, GIS, GE, and JNJ.

Forward dividends are around $5550.


DEFY MEDIOCRITY


Wednesday, December 21, 2016

Recent Buy --- VFC


Well, the buying streak continues...





  • VFC:  80 shares @ $54.33 --- Yield  3.09%

Total capital invested is $4353.35 and will increase my dividends by $134.40.  

Forward dividends are around $5400.00.  Technically my dividends combined with my Lending Club net interest, puts me at $6k already, but I would like to see the dividends get to $6k as well!!

DEFY MEDIOCRITY

Tuesday, December 20, 2016

Recent Buy --- MDT


I initiated a position in MDT today.




  • MDT:  60 shares @ $72.38 --- Yield  2.38%

Total capital invested is $4349.63 and will increase my dividends by $103.20. 

The yield isn't overly impressive, but with only a 37% payout ratio there is plenty of room for future growth. Also there is over 35 years of dividend growth history. Pretty impressive!!

The DJIA is now just 25 points away from 20,000. What an amazing year!!

Forward dividends are around $5250.

DEFY MEDIOCRITY


Monday, December 19, 2016

Recent Buys --- TUP & KMB


Today I added shares to some existing positions.





  • TUP:  30 shares @ $52.98 --- Yield  5.13%
  • KMB:  20 shares @ $114.86 --- Yield  3.20%

Total capital invested is $3900.50. The purchases have a combined yield of 3.98% and will add $155.20 to my yearly dividends.

Forward dividends are around $5150.00. 

I'm still shooting for 6k by the end of the year. It will be difficult to reach especially with the DOW sniffing 20k. I would like to add a REIT,  but O and OHI have spiked recently. Most likely I'll have to stay with other out of favor names which include NKE, MDT, DEO, ABT, NEA, KO, and the two listed above. I'm sure a surprise stock or two will surface as well.

DEFY MEDIOCRITY


Saturday, December 17, 2016

November 2016 Income & Expenses






The amounts below are cash amounts and are net of taxes, insurance, 401k contributions, HSA, etc. In other words, the amounts are what get deposited and withdrawn from my accounts.

Day job (take home pay) --- $11020.03
Dividends/Interest ---  $174.60

Total net income --- $11194

Expenses --- $8415 (Taken from Mint)

Savings  $2779.63 --- Rate  24.83%

November was a fairly uneventful month from a business view. The election was certainly exciting and I think business spiked a bit on the promise of a brighter future. The stock market definitely spiked as did my net worth.

This post is a cash flow document and as you can see I spent too much money and am glad the bulk of the Christmas expenses are behind me!

December has been unusually slow so far, which is highly unusual. Hopefully the next two weeks pick up and we can end the year on a high note. Also, I have had quite a few doctor's bills hit this month as well and the expenses will once again be elevated.

Even though the year is not quite over, I am already trying to come up with new strategies for expense control/reduction. I know, I know, I know.....a pair of scissors to the credit card is a pretty effective plan. Hell that may be my single best strategy!


DEFY MEDIOCRITY

Thursday, December 15, 2016

Recent Sell --- FLO


I just had a $20 limit order executed and I sold my entire position of FLO today.





  • FLO:  120 shares @ $20.01 --- Yield  3.2%

Total proceeds from this transaction are $2393.65 and my yearly dividends will be reduced by $76.80.



I originally purchased the shares back in September for $14.62 and I planned on adding to the position, but as many stocks have done over the past couple of months the shares got away from me. When the yield was in 4.5% range, FLO seemed like a steal, but now it's just another 3% yielder and quite frankly I am happy to take the 37% gain and redeploy into another better quality 3% yielder.

Forward dividends are back around 5k. I have some work to do in the next few weeks.

DEFY MEDIOCRITY

Wednesday, December 7, 2016

GS exchanged for JNJ --- DJIA 19500 (WOW)


Today I sold my GS position and initiated a position in JNJ.




  • GS:  12.05 shares @ $235.04 --- Yield  1.11%
  • JNJ:  27 shares @ $110.62 --- Yield  2.89%

Total new capital invested is only $168.84, but will raise my net yearly dividends will increase by $55.07 since the difference in yields is so large between the two companies.

Rational:

I bought GS a few months back at $141 and a 2% yield and it is now almost $100 a share higher with a 1.1% yield. It has been a while since I have sold a position and really didn't want to. I must admit seeing a 63% in a just a few months combined with a 1% yield made the decision much easier.

Also I have been trying to create a more traditional DGI portfolio and JNJ fits within with that strategy much better than GS. I am closely watching massive gains in M, MET, and GM as well. These companies are some of my biggest gainers in recent months and I may slowly drop them as well and look for other DG companies. I will most likely keep GM because of its high yield and strong earnings growth.

JNJ is not cheap, but is cheaper. It may get even cheaper which is fine with me. 3% and 7-10% yearly dividend growth is awesome! 

Forward dividends are $5100.

DEFY MEDIOCRITY


Saturday, December 3, 2016

November 2016 Recap







Here is the summary of the dividends I received in my taxable account.


  • HCP --- $76.41
  • VZ --- $29.71
  • ABT --- $26.15
  • TIS --- $21.00
  • AAPL --- $14.33
  • NEA --- $7.54

Total dividend income received for November is $175.14

I'm really pleased with November's results and other than HCP, most of the income is fairly evenly distributed. 

I was down just a bit when compared to August's result, however most of that can be attributed to the HCP cut. These things happen and the only thing to do is move on and keep adding to the portfolio and replacing the lost income..

I was also able to contribute $18537.17 to the portfolio.  These new contributions will add an additional $700.36 to my forward dividends.

During the month of December I will be looking to add to current positions as well as adding a few small dogs of the dow companies (PG, CSCO, GE, KO, and VZ are amazing companies).

Forward dividends are around $5000.

DEFY MEDIOCRITY

Thursday, December 1, 2016

Getting Defensive --- KO


I had a limit order filled today and added another 50 shares of KO.



  • KO:  50 shares @ $39.99 --- Yield  3.50%

Total capital invested is $2006.45 and will add an additional $70 to my yearly dividends. 

This purchase pushes me just over 210 shares. Adding KO add a 3.5% yield is never a bad idea!

In other news, I am SERIOUSLY considering selling my GS shares that I bought several months ago at $140 and I see the shares are currently over $220. Other non traditional dividend companies I own that I might dump are M, MET, and GM. They are all way up off their lows and I am up 30-60% in the last few months. 

I don't normally look at precious metals, but they have been totally destroyed during the last few months and might be a nice speculative play. 

Just a few things on my mind.... :-)

Forward dividends are $5050.

DEFY MEDIOCRITY


Wednesday, November 30, 2016

Final November Buy --- PM


Today I added PM to my dividend portfolio.




  • PM --- 50 shares @ $88.59 --- Yield  4.70%

Total capital invested is $4436.33 and will add $208 to my yearly dividends.

Last year I owned over 200 shares of PM and sold out I believe around this price at the end of the year. This is an interesting company that feels like it should trade around $100, but just as easily could fall down to $75. I have a hard time understanding it's perpetual "little brother" status compared to MO. I'm glad that I own shares of both companies once again and look forward to the January dividends.

Forward dividends are now around $5000. 6K by year end?? Well of course that is going to happen. I do hate buying into new all time highs seemingly every month. 

DEFY MEDIOCRITY


Friday, November 25, 2016

October 2016 Income & Expenses






The amounts below are cash amounts and are net of taxes, insurance, 401k contributions, HSA, etc. In other words, the amounts are what get deposited and withdrawn from my accounts.

Day job (take home pay) --- $13692.23
Dividends/Interest ---  $162.59

Total net income --- $13854.82

Expenses --- $7143 (Taken from Mint)

Savings  $6711.82 --- Rate  48.44%

October was a challenging business month. The start was very slow, but eventually things picked up and it turned out to my best income month of the year. That was somewhat surprising considering all the national election buzz. My savings amount total was within in $1 of last month which is a strange coincidence. The net result is that my savings rate checked in again just below the 50% mark.

Even though my expenses were up a bit, some of that can be attributed to early knee surgery bills. There are thousands more on the horizon as the amounts from the various professionals and rehab facilities are tallied. Strangely enough none have been billed to me yet. They are coming though, no doubt about it!!

November is humming along both on the job front and the expense front. Christmas is going to break the bank, but at least we have most of the presents purchased.....I hope.

DEFY MEDIOCRITY

Monday, November 21, 2016

Recent Buy --- GILD All time market highs!!


Today I added to my GILD position.




  • GILD:  27 shares @ $74.97 --- Yield  2.51%

Total capital invested is $2031.09 and will add $50.76 to my yearly dividends. 

It's amazing how the market continues to hit all time high after all time high. The DJIA, S&P 500, and NASDAQ are all hitting new highs today.

I remember thinking the S&P 500 was way too high when it was trading around 1400 a few years back in 2013. Now we are inches away from 2200.

It just goes to show how powerful and unpredictable market forces are and that waiting for that ever elusive 20% pullback can result in a missed 80% surge! 

The good news is there are still sectors that are deep in correction territory and GILD happens fall smack dab in the middle of one!

Forward dividends are $4750.

DEFY MEDIOCRITY

Tuesday, November 15, 2016

Recent Buy --- NEA





Today I added more tax free munis fund to my portfolio.


  • NEA:  150 shares @ $13.19 --- Yield  6.22% (Tax exempt)

Total capital invested is 1985.90 and will add $123 to my yearly dividends.

High yielding stocks aren't the only thing under pressure recently, munis are experiencing some major pain as well. NEA reached a peak of about $15.25 a few months back and has fallen over 15% since bringings it's tax free yield up over 6%. For me that is the equivalent of a 9% REIT or a 7.5% qualified dividend stock. I'm in at this level and will gladly add more shares if it continues its decent.

There is certainly more than one way to skin a cat and munis are a great complement to my dividend and lending club portfolios.

PM, T, VZ, SO, CLX, CL, GILD and NKE are in my sights as well.

Forward dividends are around $4700.

DEFY MEDIOCRITY

Saturday, November 12, 2016

October 2016 Lending Club Update







Once again, I am a little late posting this update. These numbers reflect yesterday's balances and interest payments received. Pretty boring and consistent which I like.

I have been investing $25 at a time and now have 421 notes up from 375 notes last report. I am continuing to use the automated note selecting mechanism which lets the computer spread the capital across a variety different loan grades.

Right now as you can see above, my current return is 6.76% after all defaults and past due loans have been written down.This return continues to closely mirror the predicted 6.68% return under the Platform Mix. Also, my monthly payments have increased to approximately $328.

As my loan portfolio continues to increase both in value and number of notes outstanding, my returns are becoming less volatile and a bit more predictable. It looks like I will be in the 6-7%.

In the early months, I have seen the returns as high as 9% and as low as 3%. I'll be more than satified at the 7% level. That is what could be expected from a typical REIT and slightly higher than most utilities.

I will continue to invest $200 a week until I reached $10,000. At that point I will probably continue investing new capital, but may stick with higher credit borrowers.


2016 Net Annualized Returns

July --- 6.77%
August  --- 6.33%
September --- 6.65%
October --- 6.76%

DEFY MEDIOCRITY

Thursday, November 10, 2016

Recent Buy --- UL DJIA All time high!!


Today I initiated a position in UL.





  • UL:  100 shares @ $39.87 --- Yield  3.51%

Total capital invested is $3993.60 and will increase my yearly dividends by $140.00.

Even though the markets and my portfolio continues to surge to new all time highs, there are still pockets of value out there. 

UL has fallen about $10 a share in the last month or so and so I took advantage of what I think is a pretty good yield and entry point. Other companies I am watching closely include PM, MO, VZ, T, OHI, HCP, NKE, and DEO. Most of these names are being left for dead. The best part is I have little or no position in most of them.

On the other side of the spectrum WFC, M, GS, MET, TROW, EMR, PFE, and GILD look really stretched. GS might be my first sell in a very long time as I am up about $60 a share in this position and the yield has really plummeted.

Forward dividends are around $4540.


DEFY MEDIOCRITY

Friday, November 4, 2016

Recent Buy --- TIS & KMB


Today I add to my TIS position and initiated a position in KMB.






  • TIS:  75 shares @ $24.30 --- Yield  5.76%
  • KMB:  20 shares @ $112.37 --- Yield  3.27%

Total capital invested is $4083.80 and the combined yield is 4.37%. These purchases will add an additional $178.60.

It's nice to see some defensive names finally coming back to more reasonable levels. In addition to above companies, I am closely watching SBUX, NKE, DEO, ABBV, VZ, T, CLX, MCD, OHI, and HCP even after the dividend cut.

Speaking of the HCP dividend cut, my forward dividends are now $4350.

DEFY MEDIOCRITY

Thursday, November 3, 2016

October 2016 Recap






Here is the summary of the dividends I received in my taxable account.


  • DEO --- $53.54
  • M --- $37.75
  • KO --- $28.00
  • TUP --- $20.40
  • VIAB --- $16.00
  • NEA --- $6.90

Total dividends received for October are $162.59.

Well after laying goose eggs in April and July, I finally kicked down the door (LIKE THE WORLD CHAMPION CHICAGO CUBS!!!!), and earned some money to start the fourth quarter.  As always, I reinvested all the dividends back into the companies paying them.

As you can see I also added $5893.98 in fresh new capital which increased my forward dividends by $225.00. 

I would love to have added more, but I had to under ACL surgery last month and obviously was preoccupied with that whole situation....and will be for months to come no doubt!!

Anyway I love the results from last month and hope to tickle $5000 in forward dividends by year end. We'll see how it goes.

Forward dividends are around $4300.

DEFY MEDIOCRITY

Thursday, October 20, 2016

September 2016 Income & Expenses


The amounts below are cash amounts and are net of taxes, insurance, 401k contributions, HSA, etc. In other words, the amounts are what get deposited and withdrawn from my accounts.

Day job (take home pay) --- $12907.95
Dividends/Interest ---  $535.72

Total net income --- $13443.67

Expenses --- $6733 (Taken from Mint)

Savings  $6710.67 --- Rate  49.94%

After hitting a record low savings rating in August, I bounced backed nicely saving 50% of my income for the month. Expenses were still on the high side, but my income was my highest amount so far for 2016.

Considering I prepaid a 4 day cruise last month, I feel really good about last month and will continue to work on my daily living expenses, I have noticed a trend this year that "one-time" anomalies are becoming monthly occurrences so I better tighten things up.

My day job income was outstanding last month which was surprising considering the election is so close. October will not be as kind as we are tracking for our worst month of the year. Make hay while the sun shines I guess.

It also feels good seeing some real progress from the passive income front. I probably should start reporting my interest income from Lending Club as well. I might hit the $100 mark in October.

DEFY MEDIOCRITY

Saturday, October 15, 2016

September 2016 Lending Club Update






I'm a couple of weeks late uploading my Lending Club Summary. These numbers reflect yesterday's balances and interest payments received. Pretty boring and consistent which I like.

I have been investing $25 at a time and now have 375 notes up from 310 notes last report.  I am continuing to use the automated note selecting mechanism which lets the computer spread the capital across a variety different loan grades.

Right now as you can see above, my current return is 6.65% after all defaults and past due loans have been written down.This return closely mirrors the predicted 6.68% return under the Platform Mix. Also, my monthly payments have increased to approximately $294.

The returns continue to bounce around like a pinball as notes are written down when they become past due. If and when the notes are made current, the return adjusts upward as expected.

As mentioned last update, I have seen the returns as high as 9% and as low as 3%. It tends to stay around 7% most of the time.

I will continue to invest $200 a week until I reached $10,000. At that point I will probably continue investing new capital, but may stick with higher credit borrowers.


2016 Net Annualized Returns

July --- 6.77%
August  --- 6.33%
September --- 6.65%

Monday, October 10, 2016

Recent Buy --- BMY


Today I decided to initiate a position in BMY.




  • BMY:  35 shares @ $49.96 --- Yield  3.04%

Total capital invested is $1755.48 and this purchase will increase my yearly dividends by $53.20.

While the markets keep marching up towards the sky, BMY is actually down about 35% from $77 in June to the high 40s during the last 3 months. I told myself if the price hit $50 I would jump into a small position.

This company may require some patience as it has fallen hard through all kinds of resistance levels. I am planning on being a long term investor and will gladly add more if the price falls further. I actually feel really good about several of my recent investments. It's not often that your portfolio value surges up while companies you are underweight in drop in value. That is an awesome combination!!

I was close to adding T or NEA (muni bond fund) also. I will continue to watch these two along with other utilities/telcos as well as tobacco stocks like PM and MO.

Forward dividends are $4300.00

DEFY MEDIOCRITY

Wednesday, October 5, 2016

Recent Buys --- SO & MO


Today I added so high yielders to my portfolio.







  • SO:  40 shares @ $49.53 --- Yield  4.52%
  • MO:  35 shares @ $61.24 --- Yield  3.98%

Total capital invested is $4138.50 and the combined yield is 4.15%. These purchases will increase my yearly dividends by $171.80.

I already own 50 shares of SO and I thought the recent pullback would be a nice time to add a few more shares.

While I didn't have MO in my portfolio this year, I have owned shares in the past. It's hard to say if the shares are cheap, but I do know that this company rarely gives excellent buying opportunities. In fact, both the price and dividends appear to go straight up over time. If the yield gets close to 5%, I could see myself adding 200 shares immediately.

I was also closely watching T, VZ, and GIS. I would love to add shares all of these companies to my portfolio. On the lower yielding side of the pond, NKE and GILD are looking interesting.

Forward dividends are around $4250.

DEFY MEDIOCRITY

Saturday, October 1, 2016

September 2016 Recap


The dividends photo is a tight squeeze so I'll manually type the summary below as well.






Here is the summary of the dividends I received in my taxable account.


  • PFE --- $90.78
  • XOM --- $77.30
  • BP --- $67.18
  • RDS-b --- $65.80
  • GM --- $61.29
  • WFC --- $51.30
  • MSFT --- $29.52
  • SO --- $28.00
  • TGT --- $24.00
  • TROW --- $12.42
  • GILD --- $11.75
  • GS --- $7.80
  • NEA --- $6.88
  • ESV --- $1.70

Total dividends received for September are $535.72.



September was a fantastic month for dividends and the investments from earlier months are starting to pay off....literally.  As always, I reinvested all the dividends back into the companies paying them.

As you can see I also added $18,419.83 in fresh new capital which increased my forward dividends by$584.88

The fourth quarter of this year should be really solid and I can't wait to continue adding more shares of great companies.

Forward dividends are around $4050.

DEFY MEDIOCRITY

Wednesday, September 28, 2016

XOM covered call closed






Yesterday afternoon I decided to close out my covered XOM call. The details can be seen above.

Originally I sold a $90 XOM call and received a $237.30 premium. Since Exxon was trading around $82 yesterday and I had essentially earned 72% of the premium after subtracting all fees, I decided to buy back the call for $67.70.

This left me with a net profit of $169.60.  Not too bad especially when combined with the $336 ESV call profit also shown in the picture above.

XOM has traded as high as $96 this year which put me "upside down" on this trade most of the year. For a while I was concerned that I might have to sell the shares at $90.00, but the shares came back down and I decided to take the option profit and remove the possibility of losing the shares.

I was extremely fortunate with my timing as XOM is trading up about $3.50 today at a price of about $86.50. Most likely all of the option profit would have vanished with today's price action.

I am tempted to resell another call and start the process all over again.

DEFY MEDIOCRITY

Monday, September 26, 2016

Recent Buy ---- More KO


Today I added shares to my KO position.




  • KO:  40 shares @ $42.02 --- Yield  3.33%

Total capital invested is $1687.75 and this purchase will add $56.00 to my yearly dividends.

My KO share count is now 160 spinning off $224 of dividends for me. I will probably add to other companies going forward since this is becoming one of my larger positions.

TGT is also looking pretty attractive here around $67 and I'm still thinking about initiating a position in MO as well. JNJ, MCD, and PG are also noticeably absent from my portfolio. They will start showing up eventually.

Forward dividends are now around $4050.00.

DEFY MEDIOCRITY

9 Day ESV Call Option Trade






I decided to buy 15 $7.00 ESV Oct 21 2016 Calls a couple of weeks ago and closed the position last week.

Basically I bought 5 $7.00 Calls at $.55 and then an additional 10 Calls at $.50 for a total of 15 Calls at a total investment of $800.15. I held the calls for a little over a week and then dumped them at $.75 for a net proceed of $1136.80.

For this 9 days worth of work I picked up a net $336.65 in profit. This is my first option transaction since I excercised a $32 call option to purchase 100 shares of M back in July.

DEFY MEDIOCRITY


Saturday, September 24, 2016

One of my LONG @SS posts coming at you!!


Once or twice a year I tend to put something down on the the blog that is more that just a dividend update or a photo of some stocks I recently bought. This will be one of those posts.


WARNING ---- Longer Post Than Usual Ahead!!


Also, if you are looking for smooth, organized thoughts with logical transitions please stop reading right now. Fair warning. I'm going to write straight through with no editing.


For most of the past year, my investing activities have been in relative hibernation after dealing with a divorce late last year. In fact, the few times I tried to get back into the investing groove I got out of the market very quickly. It was NOT because I was jittery about the market or was jittery in general. I just was thinking as clearly as I should have been and didn't want to invest while in a fog.

Another reason I was not investing was I let my Sharebuilder $12 month automatic Tuesday investment program lapse. I'm definitely a creature of habit and really enjoyed picking up 3 or 4 companies at a time each week. Whether I make 3 $500 purchase or 1 $1500 really should matter in the longer run. I'm getting it's some kind of fucked up OCD thing. I think I am finally cured of that that problem! By the way, I do know that a Costco membership does afford me the opportunity to make those weekly purchases at a discounted rate. I just don't feel like dealing with another membership.

So here is the summary of some of the things that have been going on this year.....


Houston Oil Slump     How good are you at musical chairs, MDP??

During 2008-2013 those of us fortunate to live in Texas had the great fortune to experience life under the protective umbrella of $100 oil prices. While many down in Houston were busy stacking up $100 bills and patting each other's backs during the great oil boom, many across the country were dealing with very challenging economic situations while spending a ton of fucking money at the gas pumps.

As oil prices started falling in late 2014, Houston was still rocking throughout most of 2015. Most people viewed the slump as temporary. By January of 2016, the realization of $30 oil was a punch to the gut for many people. As dividend investors, it simply meant seeing energy holdings lose 50-75% of their value along with dividend freezes and elimination. 

As a resident of Houston, like when the tide recedes, it was time to see who was wearing their underwear. More importly than wearing underwear during a low tide event, what happens when a big ass tidal wave comes at you?? 

Well since I had sold off all of my holdings late last year and was in 90% cash, I was wearing a fucking badass scuba suit with multiple oxygen tanks. So quite honestly I was kind of enjoying the show. I probably shouldn't have written that last sentence down. It makes me sound like a psycho. So be it...

Now don't get me wrong, the enjoyment didn't last too long as I realized I still had to make up the lost money in the divorce and rebuild my dividend castle. On top of that the business I work at started to lose money! Time to start releasing the hatchets...

So how good am I at musical chairs?? Not to brag, but I am fucking great at it! 

As someone who has taken literally one sick day in 16 years and has worked 6 days a week during most of that time, I'm a wolf among sheep. When you are in a sales industry, it's dog eat dog every day, every month, every year in good times and bad. 

With that said, things that were relatively easy, became HARD!!  While I still had a ton of money in the bank, as was 90% cash, most around me were 90% broke or worse overloaded in debt. 

There is a common belief that when you are in sales in order to become a sales beast you must buy a ton of shit and bury yourself in debt. I've learned over the years that anytime you bury yourself you usually end up in a cemetary ---- financial or otherwise.

So the first five months were a real challenge, but in June things finally started easing up a bit.....or did they???


I FUCKING HATE VOLLEYBALL!!!!!!!!!!!!!!

In June for my girlfriend's birthday, we decided to spend a few days down in Galveston at a beach house. Sounds like fun right? It was for the first 24 hours.

If you have never spent the weekend at a beach house with 15-20 friends, I highly recommend it. You get to experience bonfires, 4 wheelers, fishing, endless amounts of beer, and unfortunately a not so harmless game of volley ball.

My nature is highly competitive, but I wish I would have just kept drinking Coronas in the lounge chair. 

During one game, the guy in front of me totally ignored a ball hit right at him so I decided to make a move towards the ball like I have hundreds of times before. I heard a snap and felt a ton of pain in the outside of my right calf. 

Initially, I though I just pulled a muscle or maybe sprained something. I was fully intending on resting for a few plays and then getting back into the game.

After 30 minutes of sitting I knew that I was done for the day. A few hours later I climbed slowly back up the steps to the beach house and was limping around the rest of the day with progressively worse pain in my leg. 

Luckily the next morning was Sunday and it was time to leave. By this time my knee was really swollen and in order to climb down the stairs I had to "inchworm" my way down while on my butt.

I still managed to drive us back home. Actually the leg felt ok as long as it was outstretched and there was no weight on it. Unfortunately legs are weight bearing limbs. Ugggghhhh


Soooooo MDP what about that 1 sick day in 16 years???


If you would like the answer to this question, simply refer back to the musical chairs reference or the wolf among sheep statement.

When I got back home, my wolf picked up a brace at of all places Walmart and I was back in business. I'm not going to lie, the pain was excruciating. In order to take a shower that night, I could only put one leg in the tub as my bad leg could bear no weight. I showered with brace on and quickly went back to bed.

Later that day my step dad came over with a cane he had used after a hip replacement surgery.

When I walked through the front door at work the next day, it took me about 5 minutes to walk 50 yards to my office. Somehow I made it and it was time to go to work.

I did go visit the my doctor that afternoon and he prescribed some steroids along with pain killers and also suggested an MRI. Of course I also advised to use the RICE (Rest Ice Compression and Elevation) regimen. I modified the RICE to ICE and completely ignored the Rest.

The first week was a total bitch and the pain pills made me groggy and sleepy so I stopped two days. I did see progress after week 1 and felt comfortable skipping the MRI.

By the third week, I was walking without the cane and even started to get walk a few laps around the track.

By the end of July (6 weeks after the injury) I was walking three miles a day and felt comfortable without the brace on my knee.


August 8th Disney World Trip.....What could go wrong??


On August 3 I decided to unraveling my water hose from the back of the house so I could spray some bug killer on my back yard. Underneath the hose reel, unbeknownst to me, a yellow jacket nest had formed. The next thing I know there are about 4 or 5 yellow jackets on my hand stinging the shit out of me.

Anytime you are getting stung by anything, the initial reaction is to haul ass out of there. I did and ended up paying the price for it.  It wasn't the stings on my fingers that bothered my, it was the softball growing out of the top of my knee that had me freaking out!!

I immediately scheduled an appointment with my doctor to have it checked out and to see if I could still make it to visit Mickey. 

He drained the knee and a lot of blood came out. He was concerned and told me to monitor it. I walked into the Dr's office without a brace feeling good and walked out without a brace feeling even better. 

Within 4 days I felt good, but took my heavy (Walmart) brace and proceed to drive to Orlando and had the time of my life!!!

We literally walked 50 miles that week and rode every thrill ride we could. My knee felt great and in fact I was more concerned with blisters than with my knee injury.

When we got back to Houston after a detour around Baton Rouge (Heavy flooding), I immediately went to the track and started my walking rehab program. This was in the middle of August.


MDP, maybe you should have gotten that MRI....

There are no maybes about it. By the beginning of September my knee started getting worse and the swelling was coming back. I continued doing things, but nothing out of the ordinary. Well shooting a 60 pound bow was probably not the best idea. Still there was no event like the previous two times that should trigger any further problems.

I did go back to the doctor again and wanted my knee drained. This time nothing came out and I thought that it must be good news because there was no blood in my knee just swollen tissues. He AGAIN told me to get an MRI and I decided to wait a week and see if the swelling would go down.

During the first few weeks of the injury I discovered that when I used a lot of iced packs the swelling would diminish and the joints would work better. No swelling, no pain, and more flexibility.

I just couldn't get the swelling to go down. I succumbed and got the MRI last week.


The following events are completely true!!

Three months have now passed since the initial injury and I am finally getting an MRI. Again, I felt good after the first 6 weeks and only when I reinjured it after the yellow jackets stung me did I have trouble. I literally was able to walk 50 miles at DW, so I continued to think the injury was not THAT severe. 

This post is dragging on so here is what happened.

When the results were sent to my doctor I couldn't believe what I was reading. Torn ACL, MCL, and Lateral colateral ligaments.....fortunately only Grade 1 but STILL 3 torn ligaments including the ACL.

Next 2 Grade 2 torn meniscus tendons.

Finally I have what is called a nondisplaced Fibula fracture.

HOLY SHIT!!!!!

He looked at me and said "How are you even walking right now?" I shrugged and said I don't know.

One day when I reveal my true identity you can follow my Facebook timeline and you will see pictures of me in July at work with a 5 pound ice pack on my knee. You will see me at an Astros game, a soccer game, and target practicing. You will also see me at four different theme parks at Disney World with my leg brace. You will also see the post about the yellow jackets and the syringe full of blood days before the DW trip.

Finally you will also see the complete MRI I posted this week with the above injuries. 

One last thing, as I was in Walmart last week, I saw the brace that my girlfriend got me 3 months earlier.....it cost a whopping $20. LMAO!!!

It's been a fucking crazy year so far and I am truly loving every minute of the highs and lows that I have experienced. 

DEFY MEDIOCRITY