Tuesday, December 8, 2015

Massive sell and KMI unwind

Yesterday I dumped my KMI stock and closed my one week week Kinder call. Overall I lost about $50 on the one day trade. Not too bad. In other news I dumped a ton of shares yesterday. Maybe I should buy some today? :-)

I am now down to about 10% stocks and 90% cash. It feels strange and good at the same time. I have no idea what the market is doing today and really don't care. I plan to enjoy the holidays and will probably wait until the beginning of next year to eliminate the rest of my positions.


Friday, December 4, 2015

Recent Buy --- KMI

Well I decided to reverse the flow a bit today and add to my KMI position.

  • KMI:  300 shares @ $17.21 --- Yield  11.94%  (hmmm...we shall see)

Total capital invested is $5168.90 and hopefully will add $612.00 to my yearly dividends. I don't think KMI is the next ESV, but if so the $2.04 dividend could become $.50 and that would really suck.


Wrecking ball...meet my portfolio.

Sharebuilder too..... :-(

The carnage is NOT over yet. As you can see, the selling has been indiscriminate. I plan on selling a lot more by year end.

I think this covers all the sales so far. The total is up to around $200k. My monthly dividends are definitely dropping and will really take a hit by January.

By early February I will be close to 100% cash, so I will be back at the bottom of the mountain looking up again. I will start putting new money to work and simplify the portfolio then. Most likely I will stay at 25 positions or less with no mutual funds.

Stay tuned.


Friday, November 6, 2015

Recent Buy --- HCP

Today I added to my position in HCP.

  • 200 shares @ $34.05 --- Yield  6.64%

Total capital invested is $6816.95 and will add $452.00 to my yearly dividends.

I have been making a lot of changes to my portfolio recently....mostly liquidating positions. Fortunately I have been making most of my sales in the last couple of weeks near the highs.

I did sell of 200 shares of HCP a on October 28th around $39, but this big drop today compelled me to jump back in.

Current forward dividends are around $12,000 as I have reduced my stock positions by around $115,000. Some of the major sells have been my mutual fund holdings along with MSFT, some CVX, DLR, MO, and a big chunk of PM,

I hope to update the blog in the next month or so.


Thursday, September 24, 2015

Recent Buy --- CAT

Today I added more shares to my CAT position.

  • CAT:  45 shares @ $65.61 --- Yield  4.69%

Total capital invested is $2959.40 and this will increase my yearly dividends by $138.60. CAT, similar to a lot of energy names, continues to hit multi year lows. With the announcement of lowered revenue guidance and massive layoffs the blood continues to flow. I almost initiated a position in EMR, but it looks like it is taking a fast train to the $30s. I may look at it again next week.


Tuesday, September 22, 2015

Recent Buy --- RDS-b

Today, on further weakness, I added to my Shell position.

  • RDS-b:  35 shares @ $48.26 --- Yield  7.79%

Total capital invested is $1696.05 and will add $131.60 to my yearly dividends. BP and BBL are also very tempting at their current levels. I may be wrong, but I really believe these are great times to be creating and adding to energy positions. I haven't updated my portfolio sheet in a few months, but this purchase puts me right at 200 shares of Shell.


Tuesday, September 8, 2015

Catch up post --- July and August Dividend Recaps

Here is my passive income summary from July and August.

July Passive Income

  • KHC --- $1278.75
  • AHITX --- $264.18
  • PM --- $213.27
  • GE --- $99.96
  • MO --- $78.00
  • WPC --- $72.82
  • KO --- $70.52
  • CSCO --- $50.40
  • TD --- $43.02
  • BAX --- $34.26
  • NEA --- $22.58
Total taxable July passive income is $2227.76.

August Passive Income

  • HCP --- $242.95
  • AHITX --- $176.78
  • T --- $175.19
  • KMI --- $118.98
  • PG --- $88.63
  • VZ --- $77.43
  • APU --- $72.18
  • CAT --- $55.38
  • CLX --- $41.89
  • PAYX --- $39.33
  • TIS --- $35.56
  • NEA --- $22.69
Total taxable August income is $1146.99.


Friday, September 4, 2015

New Purchase --- PX

After another volatile day in the markets I added shares of PX to my portfolio.

  • PX:  25 shares @ $101.70 --- Yield  2.81%  (initial position)

Total capital invested is $2549.45 and will raise my yearly dividends by $71.50.


Tuesday, September 1, 2015

New Purchase --- UL

Today I purchased shares of UL.

  • UL: 100 shares @ $39.21 --- Yield  3.32%  (initial position)

Total capital invested is $3927.95 and will add $130.41 to my yearly dividends.


Tuesday, August 25, 2015

Weekly Purchases

I went with the shotgun approach today as I haven't made any weekly purchases this month. I think I picked up some good companies! Here they are.

  • KMI:  8.09 shares @ $30.90 --- Yield  6.34%
  • GM:  8.77 shares @ $28.50 --- Yield  5.05%
  • PAYX:  5.64 shares @ $44.36 --- Yield  3.79%
  • PG:  3.53 shares @ $70.90 --- Yield  3.74%
  • KO:  6.41 shares @ $39.00 --- Yield  3.38%
  • JNJ:  2.65 shares @ $94.36 --- Yield  3.18%
  • WMT:  3.82 shares @ $65.38 --- Yield  3.00%
  • UNP:  3.01 shares @ $83.10 --- Yield  2.65% 

Total capital invested is $2000 ($250 in each company). The combined yield is 3.89% and will increase my yearly dividends by $77.80.


Monday, August 24, 2015

New Purchase --- IBM

Today I added to my IBM position.

  • IBM: 13 shares @ $143.44 --- Yield  3.63%

Total capital invested is $1871.67 which will increase my yearly dividends by $67.60.

I haven't made any weekly purchases this month yet, but intend to make several tomorrow. I hate letting the $12 go to waste! :-)

Exciting times are upon us. Be careful PUT sellers


Friday, August 21, 2015

New Purhase --- CVX

Well I decided to add more shares of Chevron today.

  • CVX:  30 shares @ $76.89 --- Yield  5.57%

Total capital invested is $2313.65 which will increase my yearly dividends by $128.40.

At this rate CVX will be yielding over 6% very soon! Shell is already over 7% and XOM is over 4%. Great times to keep adding energy names. Blood is all over this sector.


Wednesday, August 19, 2015

New Purchase --- BBL

Today I added to my BBL position.

  • BBL: 100 shares @ $33.89 --- Yield  7.32%

Total capital invested is $3395.95. My yearly dividends should increase by $248.00 assuming BBL maintains its current dividend.

This is my only purchase so far this month. I will continue to take it easy, but will buy when something compelling comes along. WMT and CVX are at insane levels right now.


Monday, August 3, 2015

Taking a break for a while...

Some major life events have taken place recently, so I will not be making any posts for a while. I will still be here following everyone and will come back some time hopefully towards the end of this year. Until then, keep fighting hard for FI!!!


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. :-)


Friday, July 10, 2015

GM option trades

I made a couple of GM options trades recently.

First, a couple of days ago, I closed my Jan 2015 $40 covered call which gave me a net profit of $64.60.

Next I wrote a $37 Jan 20 2017 covered call this morning that is shown below. If I hold on to the option until maturity I will earn $273.55. So far I have not held any options to maturity. I also still have open covered calls in BP, BBL, and now GM again. These can be found on my Options tab above.

To lose the shares, GM would most likely have to trade above $38.50. I have no problem losing the shares in that price range. Also if I don't lose the shares, the 200 shares will pay $432.00 in dividends over the next 6 quarters. Including the option premium, I could potentially receive $705.55 in total income from GM over the next six quarters.. That sounds pretty good to me!!!

If the share price drops considerably from the current $31 level, I will close the option early and realize whatever percentage of the option that I have earned.

Hopefully I have explained everything accurately.

Action: Sell to open
Description: GM JAN 20 2017 37.00 CALL
Quantity*: -2 contracts
Execution time: 07-10-2015 10:04 ET
Price: $1.41
Total Commissions & Charges: $8.45
Total Transaction Amount: $273.55
Trade Settlement Date: 07-13-2015         

So far in 2015 I have earned $385.90 on the four completed options trades.


Thursday, July 9, 2015

Paychex raises dividend 10.53% --- New yield is 3.52%

Today PAYX announced that it is raising its quarterly dividend from $.38 to $.42. This represents a 10.53% increase and the new yield will be 3.53%

The ex-dividend date is July 30 and the pay date is August 20th.

I currently own 93.64 shares so my yearly dividends will increase by $14.98.

This is another solid raise for PAYX and follows an 8.57% raise last year. My only regret is that I don't own more shares. :-)


Wednesday, July 8, 2015

Stock Purchase --- GM

Today I added shares to my GM position.

  • 100 shares @ $31.33 --- Yield  4.60%

Total capital invested is $3139.95 which will increase my yearly dividends by $144.00.

Well here I go again chasing another ugly duckling. I know this company is probably not on anyone's radar, therefore it is smack dab in the middle of mine. :-)

GM's original IPO price was $35 way back in 2010. It has gone from paying no dividend to a $.30 quarterly dividend. Earlier this year GM raised its dividend 20% making its new quarterly dividend $.36.

Last year it had a seemingly endless list of recalls that resulted in many deaths and impacted around 20 million vehicles.


Tuesday, July 7, 2015

Weekly Purchases


Here are my automatic investments for this week.

  • RDS-b:  4.57 shares @ $54.68 --- Yield  6.88%
  • BBL:  6.80 shares @ $36.76 --- Yield 6.75%
  • BP:  6.43 shares @ $38.89 --- Yield  6.17%
  • CVX:  2.67 shares @ $93.57 --- Yield  4.57%

Total capital invested is $1000 ($250 in each company). The combined yield of these purchases is 6.09% and will add $60.09 to my yearly dividends.

I knew it would be ugly in the oil space after watching the futures while getting ready for work. I thought that when I checked on my portfolio it would be really bad, but was surprised to find that utilities and REITs are actually performing well today.

I don't know that I have seen Shell, CVX, or BBL with yields this high ever. Iran and Greece are definitely sending shockwaves through the markets. XOM is about to be trading in the 70s and NOV looks like it is in a "death spiral" and may be trading in the 30s pretty quickly.  I LOVE IT!!!

Companies on my radar for next week include anything related to the energy and Canadian banking sectors as well as KO, WMT, GM, INTC, and DD.


Sunday, July 5, 2015

June 2015 Income and 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) --- $15027.40
Dividends/interest --- $1855.27
Closed options income --- $140.26

Total net income --- $17022.93

Expenses --- $3239.46

Savings --- $13783.47  Rate --- 80.97%

So what happened during the month of June? Well first of all, it was by far my highest income total of the year and was also the most money I have ever earned in any month at my job. To be fair, $1935 was actually a bonus that I had earned back in April, but I received the payment in June. Like I mentioned in the opening paragraph, I just add up the monthly debits and credits in my checking account regardless of when the money was technically earned. Even without the $1935, this was still my best income month for 2015.

On the passive income front, I was just a tad shy of $2,000 including my earned option premiums. Nonetheless, I am ecstatic over the results and will continue to invest heavily (unless I change my mind yet again). I keep saying that I would like to work on building up cash so we'll see how things play out.

Expenses were subdued this month much like the "quiet before the storm" and I was able to reach the very difficult 80% saving level for the second time this year. During July and August, I will have a couple of annual and semi-annual expenses to deal with...namely my yearly home owner's insurance premium, my semi-annual auto insurance premium, and finally a lot of vet bills that were incurred here recently. Sadly at sixteen years old, my dachschund passed away. He will be missed terribly by my wife and I. We would gladly take 0% savings rates for months on end if the little rascal could still be with us for a while longer. This is a sobering reminder that in the end, money is just dirty paper and numbers on an account statement. Relationships are the most important things in our lives.

In any event, I hope each of you continues fighting hard for financial independence knowing there are no silver bullets or lotto tickets involved in the journey. Fierce determination combined with relentless effort is what it takes.

Here are my savings rates for 2015.

January --- 46.72%
February --- 67.78%
March --- 80.00%
April --- 35.97%
May --- 71.72%
June --- 80.97%


Wednesday, July 1, 2015

June 2015 Recap

Here is the passive income I received during June.

  • CAIBX --- $414.16
  • AHITX --- $246.88
  • BP --- $163.96
  • RDS-b --- $123.15
  • DLR --- $85.00
  • CVX --- $78.82
  • TGT --- $75.40
  • DVY --- $64.64
  • MAT --- $62.70
  • JNJ --- $56.97
  • PFE --- $52.64
  • GM --- $52.61
  • MCD --- $51.55
  • IBM --- $48.53
  • XOM --- $47.77
  • MSFT --- $46.50
  • ESV --- $39.72
  • SO --- $38.89
  • AFL --- $26.13
  • NOV --- $22.36
  • CAG --- $15.86
  • PEP --- $15.81
  • WMT --- $15.37
  • WM --- $9.85

Total combined dividends and interest is $1,855.27

Earned option premiums

  • VZ --- $86.60
  • ESV --- $53.60

Total income unrelated to me wearing a tie around my neck is $1995.47.

New capital invested

  • HCP --- $3752.95
  • UNP --- $1920.55
  • WPC --- $1742.20
  • RDS-b --- $1495.20
  • CVX --- $1023.55
  • VZ --- $1017.05
  • JNJ --- $700
  • KO --- $500
  • SO --- $450
  • XOM --- $250
  • WPC --- $200
  • BBL --- $200
  • WMT --- $200
  • BP --- $200
  • PG --- $200
  • CAG --- ($2756.57)
Total new capital invested is $11,094.93.

I'm pretty excited about the results from last month. While it would have been nice to hit $2,000 like in March and December, over $1800 is still fantastic. As much as I have tried to convince myself that I will slow down on the new investments, the fact remains that I have not. Oh well, what can I say I am addicted to dividend investing. I guess there are worse addictions in the world.

I have no idea what exciting opportunities will arrive in July, however I am eagerly waiting to put more capital to work. Also the Baxter spinoff and hopefully the Kraft special dividend will be paid this month.

Every time I think oil has bottomed, I seem to fall through another trap door. Shell, CVX, XOM, and BBL are at stupid levels right now. I will probably continue nimbling on these names some more. I feel like a deep sea scuba diver that is about 300 feet under water and I continue to see shiny objects at the 400 and 500 foot levels. I need to check the oxygen in my tanks before I dive down too much deeper. :-)

I hope everyone out there continues investing in their futures. Remember the first 40 hours worked each week are for survival. What we do in our spare time is how we create long term success!


Tuesday, June 30, 2015

Weekly Purchases

Here are my automatic purchases for this week.

  • KO:  6.35 shares @ $39.37 --- Yield  3.35%
  • JNJ:  2.54 shares @ $97.93 --- Yield  3.06%

Total capital invested is $500 ($250 in each company). The combined yield is $3.21% which will increase my yearly dividends by $16.03.

My original intent was to add KMI, CVX, PM, and JNJ. I guess that I forgot to hit the save button. Oh well, I will gladly add to these two positions regularly.

Stocks on my radar for next week include the six mentioned above along with UNP, SO, WMT, and WPC.


Monday, June 29, 2015

Falling knife, meet hand....UNP purchase

Today I decided to pick up some shares of UNP.

  • UNP:  20 shares @ $95.68 --- Yield  2.30%  (initial position)

Total capital invested is $1920.55 and my yearly dividends will increase by $44.00.

The markets are really going crazy today. It continues to amaze me how a country like Greece has so much impact on not only the Euro markets, but the world markets as well. I guess it's the domino theory in action. If the first domino falls the 20 behind it will fall as well.

I am actually pround of myself with this purchase. My mouse kept gravitating towards Shell, CVX, XOM, BBL, PM, and GM. They all really look like good buys to me. Of course they always look like good buys to me. In spite of that, I changed directions and decided to go the route a lot of bloggers have gone recently. Hopefully UNP can get things back on track. :-)


Thursday, June 25, 2015

VZ option closed

Yesterday I decided to close my VZ covered call.

As you can see from the photo above (actually not the greatest quality) I was able to pick up $86.60 from the transaction.

Just for comparison purposes I will receive about a $75 quarterly dividend in August from Verizon. This option remained opened for about 2 months.

Total option premiums earned (closed transactions) so far in 2015 are $321.30. I am certainly pleased with the results so far especially since my first options trade was in April. Another $300 in premiums this year will offset the $600 dividend income loss from ESV. That would be a big win!!!

I also should note that I still have 3 open call options in BP, GM, and BBL. If I hold those to maturity I have the potential to earn an additional $250.00.

I guess I probably should work on an Options Page pretty soon.


Tuesday, June 23, 2015

Weekly Purchases --- The long march continues

Here are my automatic investments for this week.

  • SO:  5.93 shares @ $42.17 --- Yield  5.15%
  • KO:  6.19 shares @ $40.37 --- Yield  3.27%

Total capital invested is $500 ($250 in each company). The combined yield is 4.21% and my yearly dividends will increase by $21.05.

I would like to thank everyone for the encouraging comments on last week's purchases. I have been going over things in my mind during the last few days and have decided to continue ascending the mountain. The relentless climb can be lonely, tiring, precarious, and in many instances overlooked or discounted by others (especially family and friends), but it can also be equally exhilarating and rewarding as hell. There is no rest for the weary and fortune without a doubt favors the bold.

Stocks on my radar for next week include SO, KO, JNJ, KMI, PG, WM, and WMT.


Monday, June 22, 2015

Stock purchase: WPC

Well the CAG proceeds didn't last very long. Today I added to my WPC position.

  • WPC:  25 shares @ $61.41 --- Yield 6.21%

Total capital invested is $1542.20. This puchase will add $95.40 to my yearly dividends. This will probably conclude my REIT buying spree that I have been on during the last month or so.


Friday, June 19, 2015

Stock sale: CAG

After a pretty big spike in price today, I decided to sell all of my CAG shares. As you can see in the photo above, it was a relatively small position. I was able to make three weekly purchases, two under $30, one just over $30 last summer.

The dividend hasn't been raised for a couple of years, but ironically the stock performance has been very strong. In fact between KRFT and CAG, the food companies have been two of my better performing companies in the last year.

Including the four dividends I received I will clear $2756.57 on an investment of $1850.

I haven't decided what to do with the proceeds yet. I may add to my KO or PEP positions and keep the money invested in some type of food company.

Also CAG was paying a $.25 quarterly dividend, so my yearly dividends will decrease by $63.84.

What do you guys think of my decision to dump CAG?

ESV Option closed --- With Pictures

Eleven days ago I sold 1 ESV covered call and received a $112.30 premium after fees.  Today I went ahead and closed the position which cost me $58.70 after fees. Essentially I have earned 50% of the premium in under two weeks. Not too bad!!

So I ended making a net of $53.60 for less than two weeks of work.

I also received my quarterly dividend from ESV today in the amount of $39.72.


  • ESV Covered Call (11 days) --- $53.60
  • ESV Dividend (90 days) --- $39.72
  • Total ESV Income --- $93.32

I'm also excited about posting my first ever photos from my phone.

Tuesday, June 16, 2015

Weekly Purchases: Elevation $17,000 Getting Tired

Here are my purchases for this week.

  • WPC:  3.24 shares @ $61.64 --- Yield  6.18%
  • BBL:  4.87 shares @ $41.07 --- Yield  6.04%
  • BP:  4.94 shares @ $40.46 --- Yield  5.93%
  • SO:  4.73 shares @ $42.31 --- Yield  5.13%

Total capital invested is $800 ($200 in each company). The combined yield is 5.82%% and will add $46.56 to my yearly dividends.

$17,000 Forward Dividends/Interest

It's not really an even milestone like 10k, 20k, or 25k, but it still feels pretty good. I was just looking at my portfolio and noticed that the balance is now a shade over $410,000 in my taxable account. I have never climbed a mountain, but I'm sure the first few thousand feet probably are no big deal. You are energized, well fed, warm, and eagar for the journey. Confidence, drive, and desire are at peak levels!

No doubt as the climber reaches new heights, certain fears start to creep into his mind. Can I make it? Will fatigue take its toll and cause me to lose focus or worse make a critical mistake? Is the end game worth all the effort, risk, and time? Will a random weather event cause me to turn around or perhaps perish?

Right now I have roughly 14 years worth of living expenses ($30k/year) invested in the market (stocks and bonds). On top of that I currently have a job that allows me to save rought $100k per year. So in theory, I could have 20 years worth of expenses covered (assuming no increase in expenses) within another two years. I am currently 44 years old which means at age 46 I would have the next 20 years covered. That is assuming a 0% return. Realistically over the next 20 years a 2-3% interest rate isn't unreasonable and that would actually add tens of thousands to my withdrawals over that time period. $600k could actually result in $800k in expense coverage.

In addition I have approximately $250k in my 401k (65/35 Index 500/bond mix). Finally I would receive some unknown amount from Social Security at age 62 or later. I may have actually oversaved and just haven't realized it yet.

Right now $17,000 would cover just over half of one years expenses. In time this amount would increase along with the capital base, but it could also get cut int half (1973-1975, 2000-2002, 2007-2009). $410,000 (bird in the hand) or $30,000 a year from dividends ten years from now (2 in the bush).

Right now I am enjoying the view from my current location, but these are things that I have been thinking about recently. I might just relax for a bit here and catch my breath.

Keep climbing or accept that I may have already reached my destination?

This is NOT meant to be a downer post

Sometimes when you are in the heat of the battle, you lose track of the bigger war. I have been in full battle mode for many, many years and I don't think I realize how much progress that I have made. At the same time, if I stray too far from the castle, I could potential lose a lot of the progress that I have fought like a Mother Fucker to gain. The only difference is fighting at age 30-45 is much easier than fighting the same battle from age 45-60.

I am just documenting some of my recent thoughts.


Friday, June 12, 2015

CAT raises dividend 10% and TGT raises dividend 7.7%

It's been a few days since I checked my personal email and I just noticed that I have not been receiving Seeking Alpha updates. So when I logged into SA, I was pleasantly surprised to see a couple of recent dividend increase announcements.

CAT announced that it will be raising its quarterly dividend from $.70 to $.77. This represents a 10% increase over the last raise and the new yield 3.51%

The ex-dividend date is July 16th and the pay date is August 20th.

Since, I currently own 71.93 shares my yearly dividend will increase by $20.14.

Also TGT announced that is will be raising its quarterly dividend from $.52 to $.56. This represents a 7.7% increase and the new yield is 2.80%

The ex-dividend date is August 17th and the pay date is Sept 10th.

Since I currently own 145 shares, my yearly dividends will increase by $23.20.

In other words, I will receive an extra $43.36 each year for doing absolutely nothing. I'll take it! It would take approximately $1500 invested at 3% to generate that kind of incom.. The good news is I didn't have to do anything to receive the extra money.


Tuesday, June 9, 2015

Time Machine Flashback --- MDP at 30

Warning: Longer than usual post.

As all of you know I normally just write condensed posts that typically highlight a buy/sell or a dividend update of some sort. The reason for the concise posts is that I can easily bounce around from topic to topic without warning or organization. I also find that I tend to add a few profanities, non PC statements, and other potentially offensive content. Quite honestly, I really don't care and I will most likely ramble on. Consider this your warning.

I also am going to do my best to write these posts from the point of view I had at the time. We all change and evolve as we get older and I know that I certainly have. At the ripe old age of thirty I am sure that my attitude was more confident (cocky), somewhat more reckless, bold, and in many instances less tactful. As the years have passed by a lot of the rough edges have become smoother as the need to "prove myself" has diminished. Don't get me wrong, I still have a fierce competitive desire and at times a win at all costs/excuses are for losers attitude.

One of several Flashback posts....Marty (I mean MDP) fire up the Delorean

For some strange reason, I feel the need to reveal my life at several different points in time. While many years of my life seem like a blur, a few stand out from the rest. Since this blog mainly covers financial information and strategies, I will do my best to keep the car between the lines so to speak. As mentioned above there will be several detours and unexpected course changes along the way. The years that I will be focused on most likely will include 1987, 1991, 1994, 1997, 2000, 2001, 2002, 2004, 2005, 2007, 2009, and 2011. The posts will not be chronological and could take years to cover each year mentioned.

Why do this? Mostly it is for my own benefit, but I would also like to fill in some of the void from before 2014 when I started the blog. Seeing the result of my life's efforts without seeing the process that I went through mentally, financially, and emotionally really doesn't paint the whole picture. It's like turning on a light switch and seeing the bright lights without seeing the effort and time that it takes to create and distribute electricity. Watching me document purchases and dividend payments without seeing my early life jouney minimizes both the difficulties and triumphs that I have experienced along the way.

Sometimes as life is happening, we don't even understand the significance of the events we witness or are a part of until many weeks, months, or perhaps years after the fact. Often times I am amazed as I watch athletes give interviews immediately after accomplishing a great feat like a world title.Inevitably some reporter will ask the question "How do you feel right now after accomplishing (insert spectacular achievement)?" On many occassions the individuals are unable to describe their emotions very well in a two or three sentence sound bite and justifiably so. Just a few day ago Lebron James was asked a similar question after the Cavaliers win at Golden State and his answer was simply "It means everything."

How can you effectively summarize 10,000 hours in the weight room, practice field drills, team meetings, countless competitions, wins & losses? How to do you describe doing the same things over and over again often times with no visible results in sight? How to you describe working at 5:00 am and 11:00 pm while others are sleeping?

How can you describe wanting to quit many times, yet picking yourself up off the ground knowing soon enough you will knocked back to the ground yet again? How do you continue to attack hurdles while those around you are tapping out and going back to an easy life? How do you ignore your family when they say "Just do what we did for 45 years? or better yet take the safe secure route?"

What do successful people do that average people don't. They FORGE AHEAD regardless of their short term discomfort knowing a better life awaits them and they alone have the power to make it so.

The say FUCK SAFETY!!!

MDP, what about don't bite off more than you can chew???? Make the decision to CHOKE on GREATNESS rather than NIBBLE on MEDIOCRITY!!!

Despite all of these sacrifices you know the likelihood of reaching lofty goals is very small....that may be true, but regrets later in life suck far worse than failure.

How do you save $450 (10%) of a $4500 monthly paycheck when you have car loans exceeding $40,000, a mortgage exceeding $75,000, and credit cards exceeding $32,000?

How do you spend your life working for bill money??? Even worse, how do you spend your life year after year building other people's dreams while looking at your wife/kids/parents and knowing you are seemingly helpless to change your course?

Sometimes you just have to rediscover your backbone. It's there for a reason.

Self pity is for losers.

Those are a lot of question to ponder. When life feels unbearable and totally overwhelming, it can become easy to shrivel up in a ball and crawl into a hole. Many have done this including myself at various stages in my life. It feels good in the short term, but DOES NOT solve any problems and unfortunately very weak people tend to follow this pattern over and over throughout their lives.

This is a very brash and in-your-face statement. I know. There are obviously many reasons physically, emotionally, and pychologically that can cause people to feel self pity. When I feel self pity I don't believe that I am suffering from anything other than  a TEMPORARY weakness in mindset. This is something that I and I alone have the power to correct.

While I am certainly not an avid reader of poetry, I am very familiar with this D H Lawrence poem. When I see my salespeople with their heads hanging low, seemingly dejected, I remind them of the words below. I remind myself as well.

 I never saw a wild thing sorry for itself.
 A small bird will drop frozen dead from a bough without ever having felt sorry for itself.

It is only two sentences, but it is very powerful. Self pity is destructive and must be avoided at all costs. We have all been through difficult circumstances, life struggles, losses, and catastrophic failures. Many times particularly difficult events force us to make a choice between two crossroads. You can tap out or continue fighting!

Wandering aimlessly in the wilderness

The year 2002 was a very interesting. We were in the early aftermath of 9/11, the war on terror was commencing, and the painful reminders of the Dot Com bubble were still fresh. In fact the S&P 500 was still working on a 50% correction from the 2000 highs. There was also a small company with 20,000 employees that was sending shockwaves all across Houston. Can anyone say Enron??

Why was this year (2002) important for me? For many different reasons. Hopefully I get to all of them.  I was thirty years old and I was drowning in debt, working long hours at a job I supposedly hated. On top of that I felt that I was falling behind many of my peers both at work and from college. I know I know I know...Don't compare yourself to others. Focus on reaching my potential....blah blah blah. Again, I am writing about how I felt back in 2002. When you first graduate from high school or college you still feel equal in many ways to friends and classmates. As time goes by however, separation starts to take place between people. Sometimes we grow, sometimes we stagnate, and sometimes we fall behind the pack.

Around 6-8 years is more enough time for two people to have very different looking lives on a number of fronts including careers, health, finances, debts, spiritual changes, and even general attitudes about life and what is important. If you don't believe that, just look at the difference between someone who started dividend investing yesterday versus someone who started six years ago in 2009. Night and Day!

I started my career making about $50,000 a year in 1994. I was miles ahead of most of my friends and classmates. As time ticked by we drifted, interaction and communication diminished and eventually all my friends now were my coworkers. This tends to happen more often that we would like. Unfortunately my new friends prided themselves on making a lot of money, spending more money, and doing whatever it takes to advance regardless of collateral damage.

It was a new and exciting world to me, but I often regret some my earlier friendships that slowly faded as time went by. My world was much different that when I graduated college and I was getting a bit lost in my way. Was I having a mid-life crises at 30? Maybe.

Are you building a brick house MDP? It seems rather straw-like.......Where is the wolf anyway???

In the spring of 2002, I honestly believed having a house (albeit modest), two large V8 vehicles, numerous credit cards totaling the aforementioned $32,000 was the definition of success. Don't get me wrong, I did not like the way it felt and the pressure that accompanies debt, but all my coworkers and their families were in the same boat. My income unfortunately had grown only slightly because I became complacent with my career. There were a few high achievers around me, however I started associating with the average achievers.

I also started noticing how I was becoming older than a few of the managers around me and several of the newer associates were 7 or 8 years younger than me. Just two years earlier I was considered one of the "Young Guns" and now I was becoming the 30 year old guy that hasn't lived up to his potential. Ouch, that hurts! Don't become THAT GUY!

Talk about a panic attack!!! I felt that I had totally lost control.

So my friends and co-workers were (in my eyes) progressing and I was drifting with no rudder and no sail. Helplessness was starting to permeate within my psyche. I really hate when shit like this happens and I felt that I had no help or guidance to fall back on.

What on earth was I doing? I felt as if I made a wrong turn on the road of life and I couldn't turn things around. Frustration was another emotion that had a stranglehold on me. I kept asking myself "How the fuck did I get here and more importantly....How the fuck do I change course?" Hell I didn't even know where I wanted to go.

What I did know was that I was hemorrhaging cash and had nothing to show for it. Also I was tired of getting passed over for promotions even though I knew that I wasn't upping my game enough to warrant consideration for more responsibility.

It was time for a complete lifestyle change.

Here is a general summary of my early 2002 finances.

  • House ---- $90000    Loan ---- $78000
  • Auto 1 ---- $22000   Loan ---- $28000
  • Auto 2 ---- $10000   Loan ---- $12000
  • Cash ---- $0
  • 401K ---- $30000
  • Credit cards ---- $32000
  • Student loans ---- $4000
  • Wife braces ---- $3500

Total net worth ---- ($5500)

That it painful just typing it out. Wow! 30 years old and living on the edge. Thankfully I at least had the 401k as a safety net.

The most obvious problem was the credit card debt. In my opinion I was about to reach a critical mass of the negative variety. If this balance had reached $40k, I would probably have "unhitched the wagon" (just stopped paying....this did not happen and over time I paid every last fucking cent off) Luckily I had held the line from 2001 through 2002. My credit card balance wasn't dropping but at least it was stabilized around the $32k area.

To steal a line from The Water Boy, credit cards are the DEVIL!! I was essentially paying $1000 each month, but due to interest charges I was only knocking $500 a month off the balance. If I charged $300 the next month (out of necessity usually) then I was only $200 to the good. Basic math told me that I was going to spend decades just to pay off the credit cards.

To make matter worse, my wife wasn't totally on board with the extreme measures necessary to get our financial house in order. I'm sure many people are in the same boat. You know the boat I am talking about. The one where I am not necessarily asking my wife to put her oar in the water and help row....but at least stop dropping the anchor off the back of the boat while I'm rowing. :-)

It was time to take extreme measures in another area of my life.

A brutal July run and a trash bag full of khakis

The 90s were a badass decade. One of the biggest changes I noticed around the work place was the introduction of business casual attire. People traded their suits and ties for Dockers and company polo shirts. This was great. It was strange in that sometimes customers, vendors, employees, and even the top bosses at times were indistinguishable. I didn't have to use the dry cleaners although I still had my pants pressed. In Texas casual attire is a big hit during the summer months. It seems like many companies in many different industries were all jumping on board with this change in acceptable business attire.

If you ever want to visit Houston, don't come in July, August, or September. The only thing worse than the heat is the humidity It was a typical July day in Houston when I decided to leave work at 2:00 to go for a long run.  I went home put on my running shorts and shoes and headed for the high school track. The last time I ran further than a few hundred feet was in 1996 on Thanksgiving and it was unseasonably cool (around 40 degrees). That July day I went to the track was seasonably hot around 100 degrees (the heat index was around 105-110).  No matter. I felt the need to run and clear my mind.

After one lap I was dying. The great thing about running is your mind really clears out the noise and you can really think and focus on important things. That day I was trying to figure out how to seriously change my life's course. Working just to give the money to banks each month was not an acceptable option for me.

I needed to form a plan of some sort even if it was rudimentary, I needed to take action immediately.
Here are some of the ideas that I came up with during the next 30 minutes.

  • Go to work everyday and take no days off (except Sundays) until you make $6000 for the month. If you can make it by the the 15th of the month great. If is the 31st and it's 8:00 pm and you have only made $5900, then keep hustling. This is scorched earth old school motivation than has rewards and punishment built into it.
  • Never borrow money for a car again once I can get out of the two I am "upside down" in.
  • Advance your career!!!
  • Throw away every pair of Dockers you own. From now on it's black dress pants, starched white shirts, and solid color neckties for as long as you are in the work force.

After 30 minutes and 3 miles I was dehydrated, exhausted, extremely focused, recommitted, and had a fierce attitude that would make a hyena proud.

I went back home put all my khakis in a trash bag and proceeded to dump them at the clothing donation bin. To this day I still wear a shirt and tie with black pants each and every day I go to work. If you are going to be in the business world, don't look and dress like you should work in the produce department at a grocery store. That tie (noose) around my neck was going to be my "scarlet letter" a constant reminder that I am going to get myself out of this hole I have put myself in.

I must have stuck out like a turd in a punch bowl when I came back to work that afternoon. Hardly anyone wore dress shirts and ties and certainly not in July. No matter. I had a mission and was determined to succeed. There were several months when I worked over 80 hours a week over and over again. Hell there still are. As the year continued the results soon followed.

To this day I still marvel at the rain as it hits my office window at night. There is nothing like working when it is pouring down rain and you know the easiest (most comfortable) thing to do is go home and start over tomorrow. That is what most of our competitors do.....There is no tomorrow only today! This is the mantra of a hustler!

By the end of 2002, I reached a career high income and made over $9,000 in the month of December alone.

By no means was I out of the woods, but I was accelerating hard and closing the gap on my perceived life and my coworkers/friends/rivals.

Two years later in 2004 I still had a mountain of credit card debt, but my cars were free and clear, I was advancing into management, and forming the foundation for a 2004-2014 run that would see my net worth grow from $0 to $700,000.

Sorry about the rambling, but I hope at least one person can benefit from this post. Several choices I made in this episode were bad, some good, and in some cases in order to turn my life around I had to make very painful choices.


Weekly Sharebuilder Purchases

Here are my automatic investments for this week.

  • PG:  2.56 shares @ $78.25 --- Yield  3.39% 
  • JNJ:  2.03 shares @ $98.34 --- Yield  3.05%
  • WMT:  2.76 shares @ $72.58 --- Yield  2.70%

Total capital invested is $600 ($200 in each company). The combined yield is 3.05% and will increase my yearly dividends by $18.28.

Back to a slow and steady pace adding powerful mega cap companies. It's good to see Walmart yielding 2.7%, I will continue adding to all three at these prices and lower.


Monday, June 8, 2015

ESV Covered Call

Today I sold an ESV covered call and collected a $112.30 premium for the right to sell 100 shares at $30 a share. This is below my basis, but I would not mind selling off part of my position and replacing it with a more stable company. If I lose the 100 shares I will still hold around 160 shares.

ESV Covered Call

Action: Sell to open
Description:  ESV JAN 15 2015 $30.00 CALL
Quantity: -1 contracts
Execution time: 06-08-2015 (today)
Price: $1.20
Total Proceeds $112.30 ($7.70 in commissions)

This increases my open premium total to around $415.00 plus I already closed a GE option trade that added an addional $181 dollars for a total of around $600.

Below are some other covered calls that are still open. I have actually earned quite a bit of the premiums as the strike price is quite a bit higher than the market prices right now. I may close out a couple or all of the positions soon. The reality is I don't want to sell any of the shares listed below. I guess I should have thought things through before selling the options to begin with. While I am earning premium money, which is cool, I don't like worrying about whether I am going to lose the shares. I keep bouncing back and forth with whether or not I want to continue doing these.

I guess I am greedy and want to collect the premiums and keep the shares. :-)

BBL Covered Call

Action: Sell to open
Description: BBL SEP 18 2015 55.00 CALL
Quantity*: -1 contracts
Execution time: 05-11-2015 10:19 ET
Price: $0.98
Total Commissions & Charges: $7.70
Total Transaction Amount: $90.30
Trade Settlement Date: 05-12-2015 

GM Covered Call

Action: Sell to open
Description: GM JAN 15 2016 40.00 CALL 
Quantity*: -1 contracts
Execution time: 04-27-2015 15:07 ET
Price: $0.98
Total Commissions & Charges: $7.70
Total Transaction Amount: $90.30
Trade Settlement Date: 04-28-2015

BP Covered Call

Action: Sell to open
Description: BP JAN 15 2016 47.00 CALL 
-1 contracts
Execution time: 04-09-2015 11:35 ET
Price: $0.76
Total Commissions & Charges: $7.70
Total Transaction Amount: $68.30
Trade Settlement Date: 04-10-2015

VZ Covered Call

Action: Sell to open
Description: VZ JAN 15 2016 50.00 CALL 
-1 contracts
Execution time: 04-09-2015 12:24 ET
Price: $1.75
Total Commissions & Charges: $7.70
Total Transaction Amount: $167.30
Trade Settlement Date: 04-10-2015


Saturday, June 6, 2015

May 2015 Income and 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) --- $12,889.45
Dividends/interest --- $1,110.96
AdSense (deposit) --- $114.25

Total net income --- $14,114.66

Expenses --- $3,991.24

Savings --- $10,123.42  Rate --- 71.72%

Sometimes you just have to expect the unexpected. As many know, Houston as well as much of Texas was inundated with rain last month. I can't honestly remember a month where I saw so much rain day after day. Here it is June 4th and I have yet to water my yard this year. For those who live in the south, you know that never happens. Usually the sprinklers fire up in late April and stay on through November.

In spite of the rain, I actually had my second best paycheck total this year and I only trailed March's total by around $20. I feel very fortunate to live in a state like Texas and more specifically a city like Houston. We may not have the great tourist attractions that many cities can boast about, but we are designed to do business and those who have dreams of making their fortunes and building empires should put Houston at the top of their list.

Anyway enough of the Houston Chamber of Commerce informercial. Despite spending a bit extra on a road trip/vacation, I am happy to report that I was able to keep the expense total under $4,000. The only real outlier expense was the $400 I spent on my tax preparation. Any of you accountants working for a large company, do yourself a favor and start your own practice ASAP!!!!  I can't believe what a gold mine tax preparation is.

I would like to keep my expenses a bit lower than they are so I can reach FI sooner, however how low can they reasonably go? Since I spent $4,000, if I had zero bills (impossible with taxes, utililites and food) the most I could drop is $4.000. On the other hand, income, in theory, has no upper limit. So between the two choices, I must focus on making more money right now. It's like a football team with an offense (income production) and a defense (expense reduction). It's nice to have a great defense and most likely the defense will keep you in the game, but ultimately it's the offense that determines the team's success. Trying to keep a team scoreless each time out is very difficult. I don't know where that analogy came from, however you get the point....hopefully.

So there you have it. A pretty solid month overall and with a few tweaks here and there, I think I can continue to improve my savings rate going forward.

Here are my savings rates for 2015.

January --- 46.72%
February --- 67.78%
March --- 80.00%
April --- 35.97%
May --- 71.72%


Friday, June 5, 2015

Here we go again....HCP Purchase

Today I added to my HCP and it is now my largest individual stock position.

  • HCP:  100 shares @ 37.46 --- Yield  6.03%

Total capital invested is $3752.95 and my yearly dividends will increase by $226.00.

I'm now just under $1000 a year in forward HCP dividends.

Wow!!! Talk about falling knives all over the place. Holy shit between REITs and Oil I am going to have to keep a bottle of Crown here at the office. Well we (we meaning me) all wanted volatility, well here it is.

Oil, REITs, utilities, and tobacco are in my crosshairs....or maybe I'm in theirs???


Thursday, June 4, 2015

Stock Purchase Take 2: VZ

After picking up shares of CVX earlier, I decided to add to my VZ position.

  • VZ:  21 shares @ $48.10 --- Yield  4.57%

Total capital invested is $1017.05 and will add $46.20 to my yearly dividends.

For some reason T and VZ have decoupled recently so I went with VZ. Currently my T position is about 2 1/2 times my VZ position.

Adding heavy hitters like Shell, Chevron, and VZ this week should help me inch closer to $17,000 in forward dividends/interest.....or perhaps back to $15,000. :-)

No risk no reward and I hate fucking safety nets.


Stock Purchase: CVX

Today I added to my position in Chevron.

  • CVX:  10 shares @ $101.66 --- Yield  4.21%

Total capital invested is $1023.55 and will add $42.88 to my yearly dividends.

It was difficult deciding between WPC and CVX this morning. In the end I went with the more powerful company and will continue to monitor WPC as well as HCP.

Tuesday, June 2, 2015

Weekly Sharebuilder Purchases

When it's time to draft players (stocks) for my team (portfolio) it never hurts to add these guys...

  • XOM:  2.94 shares @ $85.04 --- Yield  3.43%
  • JNJ:  2.51 shares @ $99.61 --- Yield  3.01%

Total capital added is $500 ($250 in each company). The combined yield of these purchases is 3.22% and will add $16.10 to my yearly dividends.

I decided to take it easy today as I made a larger investment in Shell yesterday, not to mention a Trans Am last week. It looks like energy companies are front and center again along with REITS and Canadian banks. The railroad companies are commanding some attention as well.

I looked over my portfolio and aside from the over-exposure in energy, I noticed that my company count is getting a little high for my liking. I am going to focus on the businesses I already own and either maintain or reduce the company count. If I see a new business I like, I will add it to the portfolio with the plan of reducing a position somewhere else. It's getting a bit cumbersome at these levels.

Not that it should matter too much, but I have companies like PM, BP, T, RDS-b, and HCP that pay $600-$850 a year in dividends and companies like NOV, WM, CAG, PEP, WMT, BAX, and AFL that each pay under $150 a year. I guess over time it equalize, but I don't like the balance right now.

Companies on my radar for next week include JNJ, PEP, XOM, NSC, KMI, WPC, and SO.


Monday, June 1, 2015

Stock Puchase: Shell

Today I added to my Shell position.

  • RDS-b:  25 shares @ 59.53 --- Yield  6.32%

Total capital invested is $1495.20. This will increase my yearly dividends by $94.00.

Every time I think I am done with energy purchases, like a giant magnet the sector pulls me back. Maybe I should say like a giant whirlpool. Yikes!!!

Oh well...the music plays on so I will keep dancing!


Saturday, May 30, 2015

May 2015 Recap

Well another month is in the books and it has certainly been action-packed to say the least. Multiple birthdays, Mother's Days, graduations, massive flooding, six state road trips, and as always long work weeks kept me busy throughout the month. A lot of months tend to blur together and it is nice to have unique events/experiences to break the dull monotony that sometimes takes hold in my life. I also bought my wife a 2002 Pontiac Trans Am WS-6 that is totally BADASS! This is not an investment although she thinks it's a great investment. Actually I dig it as well even though the only time I will get to drive it is when it need gas. :-)

On the investment front things were relatively uneventful. I still managed to add a little to my passive income this month. After adding a record amount of cash in April, I tapered things back in May and contributed under $1000 not counting dividend reinvestments. I also received my first Adsense payment which is a nice complement to my dividend and interest income. Finally, I sold a BBL 55 call option that seems unlikely to be exercised before it expires in September.

I am really looking forward to what lies ahead in June. It should be a great dividend month and I am looking forward to continue volatility in the markets. I hope everyone has a great summer and I hope each of you stays relentless in your pursuit of FI. I know I will regardless of market conditions.

My current forward passive income is hovering around $16,500 and would love to go ahead and just blow past $17,000.

Anyway, here is the summary of my passive income for May.


  • AHITX --- $257.17
  • HCP --- $186.45
  • T --- $174.99
  • KMI -- $112.68
  • PG --- $82.43
  • APU -- $70.83
  • VZ --- $65.88
  • CAT --- $50.23
  • CLX --- $39.98
  • PAYX --- $35.32
  • TIS --- $35.00

Total taxable investment income is $1110.96.

Other non employment income is $114.25 from AdSense.

Total passive income is $1225.21.

New capital invested

  • NEA --- $4754.69
  • WPC --- $1763.75
  • XOM --- $1050
  • SO --- $750
  • JNJ --- $500
  • BP --- $500
  • PG --- $300
  • KO --- $300
  • WMT -- $250
  • CAIBX --- ($9231.00)
Total capital invested is $937.44.


Tuesday, May 26, 2015

Weekly Sharebuilder Purchases

Houston is a mess today! At least the multi-year drought should be over. :-)

Here are my automatic investments for this week.

  • SO:  5.83 shares @ $42.88 --- Yield  5.06%
  • XOM:  2.92 shares @ $85.69 --- Yield  3.41%
  • WMT:  3.32 shares @ $75.34 --- Yield  2.60%

Total capital invested is $750 ($250 in each company). The combined yield of these purchases is 3.69% and will add $27.67 to my yearly dividends.

Also, here is the purchase from last week (5/19).

  • JNJ:  1.96 shares @ $103.76 --- Yield  2.89%   ($5.78 added to my yearly dividends.)

Well I really enjoyed getting out of the hamster wheel for a week and spending time with my extended family. I don't take much time off from work, so when I do I really appreciate decompressing and just living. Right now I am back at work, full throttle ready to make and invest money to continue building my own dreams!

It looks like I got a break today with the markets retreating a bit. Energy, utilities, REITs, and bonds are looking very interesting to me right now.

I just noticed Shell is close to $60 a share. I may make a larger purchase today.

Companies on my radar for next week include RDS-b, BBL, XOM, BP, CVX, SO, WMT, GM and PM.


Friday, May 22, 2015

Blog Stats & My First Google Payment

Today I received my first ever payment from Google. Obviously this is NOT a dividend payment since GOOG doesn't pay dividends. Instead it is my first Adsense payment and it is a whopping $114.25.

I first decided to include ads on the blog around Christmas 2014, so it took about four months to qualify for the first $100 payment. Realistically I could have probably collected aluminum cans and made more money. However, that would require actual work so I probably would have bailed on the idea pretty quickly.

Also here is the latest info on my blog courtesy of Blogger. I started using Google Analytics about a month ago, but I haven't figured out a way to cut and paste a nice clean graph yet.

According to Blogger, April's page views came in at 27,856. As I have mentioned in the past, the Blogger pageview count seems much higher than the actual count. This turns out to be the case as you can see below in the May MTD pageview count comparison.

May 01 through May 21

Blogger pageviews --- 18,378
Google Analytics pageviews --- 13,697

So as you can see, the difference is almost 4700 and that is for only three weeks.

Again, the graph below is from Blogger, but it is the only graph that I can cut and paste....and Yes I am sure there is probably some way that I could export an Excel spreadsheet or Google Docs spreadsheet. Actually I'm not sure that I could do this, but I'm sure many of you probably could. Actually who cares if I can or can't export a graph. Cutting and pasting the Blogger graph works for me and will continue to work for me.

Anyway, I haven't posted much this month, so I will not be reaching new highs. My MTD Adsense total right now is only about $12. Like I mentioned above, it takes a hell of a lot of page views to earn any real money. If I ever reach $50 in a month, it will be a miracle.

Graph of Blogger page views

I hope everyone has a safe and happy Memorial Day weekend.


Monday, May 18, 2015

Gone Fishing

On vacation this week. I will be buying $200 worth of JNJ tomorrow. Will be back next week.


Wednesday, May 13, 2015

Bond Purchase: NEA

It has been over a year since I have added any bonds to my portfolio. Over $130k in stock investments with no bond action. While I love dividends, I also love interest and tax free interest at my current income level (ie 33% top tax rate) is even better.

The yield is somewhere in the 6% range and will add around $287.70 to my yearly interest income.

Action: Buy
Symbol: NEA
Quantity*: 350 shares
Execution time: 05-13-2015 10:47 ET
Price: $13.5649714286
Total Commissions & Charges: $6.95 
Total Transaction Amount: $4754.69
Trade Settlement Date: 05-18-2015 


Tuesday, May 12, 2015

Weekly Sharebuilder Purchases

Here are my automatic investments for this week.

  • WPC:  7.88 shares @ $63.46 --- Yield  6.00%
  • BP:  11.69 shares @ $42.78 --- Yield  5.61%
  • SO:  11.52 shares @ $43.37 --- Yield  5.00%
  • XOM:  5.73 shares @ $87.26 --- Yield  3.35%

Total capital invested today is $2000 ($500 in each company). The combined yield on these purchases is 4.99% and will add $99.80 to my yearly dividends.

Gotta love how the market plummets at the open and then my buys go through near the days high. :-(

Mutual Fund Sale

  • CAIBX --- 150 shares @ $61.54 --- Yield  approx. 3.9%

This transaction took place on Friday and I received $9231 this morning. This sale will reduce my yearly dividends by approximately $360.93.

With a variety of expenses coming at me during the next couple of weeks, I will not reinvest everything right away. With that said, the way the market is bouncing around today, I might still pick up a position or two before the end of business today. We'll see.

Sectors that look interesting right now include interest rate sensitive names within REITs, utilities, and telecoms. Some energy sector and consumer names also look appealing. In particular I am watching HCP, WPC, SO, T, WMT, PG, XOM, GM, and JNJ. On the more speculative side, I am also watching TIS and NOV.

REITs are really taking it on the chin right now similar to the way oil companies did six months ago. It's really exciting to watch things play out. Stay alert!


Monday, May 11, 2015

CLX raises dividend 4.05% --- New yield is 2.88%

Today Clorox announced that it is raising its quarterly dividend from $.74 to $.77 a share. This is a 4.05% increase and the new yield is 2.88%.

The record date is July 22nd and the pay date is August 7th.

Since I currently own 54.45 shares, my yearly dividends will increase by $6.53.

While I was hoping for a larger increase, 4% is not surprising especially after the 3% increase from Procter last month.


BBL Covered Call

Today I sold a covered BBL call. The summary of the trade is copied and pasted below.

BBL Covered Call

Action: Sell to open
Description: BBL SEP 18 2015 55.00 CALL
Quantity*: -1 contracts
Execution time: 05-11-2015 10:19 ET
Price: $0.98
Total Commissions & Charges: $7.70
Total Transaction Amount: $90.30
Trade Settlement Date: 05-12-2015 

I should receive a September BBL dividend for about $205 (assuming I still own all of my shares). With the share price hovering around $48, I think this is a pretty solid short term options trade. If I retain the shares, this is a nice way to add 44% to my BBL dividend income in September.

Here are some other covered calls that are still open.

GM Covered Call

Action: Sell to open
Description: GM JAN 15 2016 40.00 CALL
Quantity*: -1 contracts
Execution time: 04-27-2015 15:07 ET
Price: $0.98
Total Commissions & Charges: $7.70
Total Transaction Amount: $90.30
Trade Settlement Date: 04-28-2015 

BP Covered Call

Action: Sell to open
Description: BP JAN 15 2016 47.00 CALL
Quantity*: -1 contracts
Execution time: 04-09-2015 11:35 ET
Price: $0.76
Total Commissions & Charges: $7.70
Total Transaction Amount: $68.30
Trade Settlement Date: 04-10-2015 

VZ Covered Call

Action: Sell to open
Description: VZ JAN 15 2016 50.00 CALL
Quantity*: -1 contracts
Execution time: 04-09-2015 12:24 ET
Price: $1.75
Total Commissions & Charges: $7.70
Total Transaction Amount: $167.30
Trade Settlement Date: 04-10-2015