Well after totally dismantling my portfolio over the last quarter of 2015, the result have finally showed themselves in a very big way this month. :-( I had one lone company (WMT) and my municipal bond fund (NEA) pay me this month. Total dividend income was a whopping $42.98.
On the flip side I was extremely active with purchases this month. I added $32496.23 in new capital which increases my yearly dividends by $1377.51.
It definitely feels a bit strange going from $18,500 in forward dividends to receiving less than $50.00 this month. On the other hand, it feels pretty damn good sitting on a ton of cash right now.
I have no idea what lies ahead in February. I could invest another $30,000 into the market, invest $0, or just sell everything again. It's a bit crazy. While I loved buying a lot of great companies this month, the economy in Houston is a bit shaky right now. Focusing on both business and trying to pay attention to the market is a bit taxing. When I took a break from buying I actually stopped paying attention to the markets for the most part. It was kind of relaxing actually. January provided great opportunities to buy companies, but it was a bit exhausting. Maybe I should just buy shares of XOM, JNJ, PG, and KO every month. I don't know. We'll see how it goes.
Dividends and purchases are shown below...
That's a lot of purchases! Better time to buy now when the market is 10% lower than earlier last year.
ReplyDeleteYD,
DeletePure dumb luck, but i'll take it. :-) Hopefully there will be a prolonged (not too violent) drift down in the markets so I can take a few years to build up my portfolio. It was great picking up some cheap stocks last month!
MDP
I think one of the advantages of buying dividend stocks is that you don't have to actually pay attention to the markets day in and day out as long as you're buying "safe" stocks. I definitely dont spend more than 5 minutes a day taking a look at the overall markets.
ReplyDeleteDD,
DeleteYou still have to move when the market is making 500 swings. They typically don't happen too often and rebound quickly. The day when CMI was at $80, ADM was at $31, and JNJ was in the mid $90s was awesome. Hopefully it happens again soon.
MDP
Having a lot of cash in January proved to be quite good as you were able to take advantage of many great values and yield as the market swooned. You were certainly quite busy with all those buys. Though dividend income was light this month you no doubt set yourself up for some nice forward income with all these buys. Thanks for sharing.
ReplyDeleteDivHut,
DeleteAbsolutely. I am very pleased with the purchases for January. If only I could get PM below $80 and VZ back to the low $40s. :-) Thanks for stopping by!
MDP
MDP, you have been a busy man over the past month! Look forward to watching you rebuild the pipeline.
ReplyDeletecheers, AA
AA,
DeleteThanks, bud! It felt great getting back into the game in a big way last month. I'm ready to keep shoveling a ton a coal into the furnace. The dividends are pretty frigid right now.
MDP
I'm happy to see you've started buying again. I have to say you've timed the market perfectly from the sells to the buy at the absolute frenzy, some of the stocks are even at the lower point than the August sell off.
ReplyDeletevivianne,
DeleteAny market timing I do is completely accidental. :-) It's nice to see lower stocks that's for sure, especially non oil related names including industrials, REITS, and Canadian banks. Even Apple is trading near 52 week lows.
MDP
MPD
ReplyDeleteI have problem - I don't have cash to generate cash flow. what you did it is great.
Keep the snowball rolling.
Sharon - Divorcedff
FF,
DeleteThanks for the encouragement. I don't know what your employment situation is, but I recommend a career in sales. It will without a doubt fast track your financial freedom!
MDP
I am glad to see you still have the stamina to keep fighting.
ReplyDeleteI am curious, what percentage of your investable assets is still in cash/fixed income?
And of course, do you have an emergency fund etc all figured out ( plus no debt)?
DGI
DGI,
DeleteThanks for stopping by! In my taxable account I currently am sitting at about 80% cash. My 401k stays at a constant 65/35 S&P 500/Vanguard bond mix. As far as debt, I have none and my house is paid off.
MDP
MDP,
ReplyDeleteYour personal life and work clearly have built up some stress, and I agree watching the market too closely can also add anxiety. You might not have what you did last year, but now you can target everything on your timeline the way you want.
Even if you take a break, the market and stocks will always been around waiting for you to get back into the game. Remember, your investments give you more passive income than I currently have in total. Keep it up!
- Gremlin
DG,
DeleteVery good points! At the beginning of January I was hoping to finish 2016 with $3000 in forward dividends. With the purchases last month I am close to that goal already. The reality is the markets may have bottomed and I might not need to add much throughout the remainder of the year.
On the other hand, if there is another major drop I'll gladly add to positions here and there.
MDP
COP slashed the dividend.
ReplyDeleteAnonymous,
DeleteThanks for the info. How is that comment relevant to this post? I received no dividends from them, I didn't purchase and COP shares, and I have never owned any shares ever.
MDP