Tuesday, February 25, 2014

Weekly Sharebuilder Purchases

Here are my purchases for this week:

  • PEP:   4.40 shares @ $79.55 --- Yield 3.29%
  • PM:   4.38 shares @ $79.92 --- Yield 4.70%
  • T:   10.86 shares @ $32.24 --- Yield 5.71%

Total capital invested is $1050 split evenly among each company ($350 each).  The combined yield is 4.56%.  These purchases will add $47.88 to my annual dividend income.

AT&T continues to drift towards 6%.  I will add more shares on further pullbacks.

Saturday, February 22, 2014

END OF AN ERA: Final Mutual Fund Purchase

On Friday I made my final American Funds purchase.  After two years of dollar cost averaging into my taxable account I am finished.

Here is the breakdown:

  • AHITX (high yield bonds) --- $2000
  • CAIBX (dividend income) --- $2500
  • ABALX (balanced fund) ---$2000

From now on I will only buy individual companys that pay dividends.  I still buy American funds through my 401k at work.  They actually are a pretty good fund family, but the fees they charge (especially the front end load) are just too high for me to stomach.

In March of 2012 after a few years of receiving no interest on my savings account, my investment advisor told me I needed to be in the market.   At the time, the market had just about doubled from the lows of 2009.  The 2008-2009 and 2000-2002 market crashes were still on my mind.  Even though I had bought HD at 57, GE at 50 and Intel at 70 in August 2000 (OUCH!), I still felt that my broker might be right.  In any event, there was no way I was jumping into individual stocks after what I believed was yet another bubble. 

Eventually I decided to average in monthly with well diversified funds. I liked the idea of income producing funds because of the perceived stability they provide.  American funds held up exceptionally well during the 2000-2002 bear market. 

AHITX provides great income but it doesn't grow.  CAIBX has great dividend holdings but the high front end load and yearly fees negate most of the dividend growth. 

I am in no hurry to sell these funds because they do provide diversification while I build my dividend pipeline.  Eventually when I have enough companies  and enough sectors, I will slowly sell off my funds and use the proceeds to continue accumulating income producing assets.

Starting next week my only purchases will be made through Sharebuilder.  I have learned so much through the many excellent blogs that I have been following over the past six months.

Let the new era begin!

Thursday, February 20, 2014

KO Dividend Increase

Coca Cola raised its quarterly dividend today from $.28 a share to $.305 a share.  After some shaky earnings news last week I was expecting a smaller raise.  Since I currently own 120 shares of KO my yearly dividends will rise by $12.00 from $134.40 to $146.40.

Coke is the third company that I own to announce a dividend raise this month.  The other two are DLR and CSCO.

Tuesday, February 18, 2014

Weekly Sharebuilder Purchases

Here are my sharebuilder purchases.

  • PEP:  8.33 shares @ $78.01 --- Yield  3.36%
  • T:  12.20 shares @ $32.79 --- Yield  5.61%

Total capital invested is $1050 ($650 PEP and $400 T) and the combined yield is 4.26%.  These purchases will raise my annual dividends by $44.73

AT&T is my largest holding at 307.2 shares.  I was hoping to get closer to a 6% yield.  I still may get the opportunity.  All the telecoms are getting beaten up this year. 

Pepsi is the newest addition to my portfolio.  Between the recent dividend increase and Friday's drop, I couldn't resist initiating a position.

Wednesday, February 12, 2014

Cisco and Digital Realty Trust Dividend Increase

Cisco just increased its dividend by 11.7%.  The new quarterly dividend will be $.19 up from $.17.  I own 240 shares so my yearly dividends will increase by $19.20.  Dividend increases are so cool!

I was a bit hesitant to buy Cisco back in December.  It was one of a few "dogs of the dow" that I was watching.  Other "dogs" that I have purchased recently include PFE, T, and GE. The reason I was hesitant was because I thought that I might have another Intel on my hands.  Old guard high tech companies have had a rough couple of years.

This is a welcome dividend increase.  Hopefully DLR, PG, and KO will follow with dividend increases in the near future.


I just noticed that DLR also increased its dividend by 6.4% The new quarterly dividend will be $.83 up from $.78.  I own 100 shares which means my dividend will increase by $20.00 a year.

Between CSCO and DLR my yearly dividends will increase by $39.20!!  To put this increase in perspective, the $900 in new capital invested yesterday only increased my yearly dividend by $38.52.  It is dividend raises like these that reinforce my enthusiasm of DGI.

Tuesday, February 11, 2014

Weekly Sharebuilder Purchases

Here are my weekly purchases that I made earlier today.

  • GE:  11.88 shares @ $25.26 --- Yield   3.48%
  • RDS-B:   4.02 shares @ $74.62 --- Yield 4.61%
  • PM:   3.80 shares @ $78.94 --- Yield 4.76%

The total amount of these purchase is $900 and the combined yield is 4.28%.  My taxable forward 12 month dividends will increase by $38.52.

GE and PM continue to look like good bargains.  I may add a food company in the coming weeks.  Conagra (CAG) is getting close to 3.5%. K and GIS are also on my radar screen.

Thursday, February 6, 2014

January 2014 Passive Income Summary

Here are the stocks, bonds and mutual funds I received income from in January.

Taxable Accounts: $510.54                                             

AHITX --- $263.34
PM --- $56.40
MO --- $72.00
DLR --- $78.00
CSCO --- $40.80

401K: $180.28

AHITX --- $138.96
ABNDX --- $41.32

January Totals:  $690.82

Stocks on my watchlist for February are UL, T, MO, CVX, TRV, K, BP, PM, ESV, GE, WMT, MMM, CLX and GM.  GM declared its first dividend since emerging from bankruptcy.  I know there are risks with auto companies, but GM was once considered a "widows and orphans" company.  It may very well regain that status in the coming years.

Tuesday, February 4, 2014

Weekly Sharebuilder Purchases

Here are my weekly sharebuilder purchases that went through today:

  • GE:  10.16 shares at $24.60 --- Yield  3.57%
  • CVX:  2.24 shares at $111.66 --- Yield  3.58%
  • PM:  3.26 shares at $76.68 --- Yield  4.90%
  • RDS.B:  3.48 shares at $71.87 --- Yield  5.00%
The total of these four purchases is $1,000.  RDS is a new position.  I will continue to add PM and RDS at yields of 4.5% or higher. 

These purchases will add $42.63 to my dividends.  My new twelve month forward dividends will increase from $9236.12 to $9278.75.