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.


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.


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.


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???


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.


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 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. 


Friday, September 23, 2016

Recent Buy --- More TROW

Today I had my $65.99 limit order filled.

  • TROW:  28 shares @ $65.99 --- Yield  3.27%

Total capital invested is $1854.67 and will add $60.48 to my yearly dividends. This increases my share count to 73. One more purchase should bring me up to 100 shares.

I am also watching MO very closely and would love to add shares. I last purchased MO in 2013 for about $30 and it is now more than double that amount. Thanks to some outstanding dividend raises, the yield is still close to 4%. What a machine!

Forward dividends still holding around $4k after the VIAB dividend cut.


Tuesday, September 20, 2016

Dividend Beasts --- XOM & KO

Today I added to two monster businesses in my portfolio.

  • XOM:  20 shares @ $83.89 --- Yield  3.58%
  • KO:  40 shares @ $42.42 --- Yield  3.30%

Total capital invested is $3388.44 and the combined yield is 3.42% and will add $116 to my yearly dividends.

Two bread and butter companies that are dividend creating machines. These will be cornerstones in my portfolio for decades to come. 


$4000 forward dividends. Nowhere near my all time high of $18k reached last year, but I am on the hunt and will be aggressively adding to my forward dividend total.


Monday, September 19, 2016

August 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) --- $11890
Dividends/Interest ---  $185

Total net income --- $12075

Expenses --- $10806 (Taken from Mint)

Savings  $1269 --- Rate  10.51%  (DOUBLE OUCH!!)

What in the hell happened?? What didn't is the better question!

First the good news! I had my best income month of the year and even better I hit the payroll tax limit in July so I got to keep an extra 6% or so which helped increase my take home pay. Business is also booming in September, so hopefully most of Houston's woes are behind us.

Now for the expenses....The biggest expense can be seen in the picture above. While it is true that I prepaid all the hotel and theme park related expenses a few months ago, that as many know was just the beginning.

Since we took a road trip, additional hotel, gas, and food expenses were incurred. On the way back to Houston, we hit the Baton Rouge floods and had to take shelter which added another few hundred to the expense totals.

Those were the small expenses. If you think you are going to take a trip to Disney World with two kids and get out cheap, you really need to pull your head out of your ass!! Mickey and his crew are very well trained at extracting every penny they can out of your pockets. LOL  I have been to theme parks before, but nothing compares to DW. Literally every major ride ends inside a gift shop! I spent so much money on photo packages, Mickey ears, t-shirts, backpacks, and a ton of other cool shit.

On top of the onslaught of merchandise, the payment method was always a quick easy scan of my DW bracelet which might as well be a portal which connects my bank account to their cash registers.

All in all, it was a fantastic month and the memories will last a lifetime! The whole experience is another reason I recently started to accumulate Disney stock. They have one of the best run companies I have ever seen and create an insane experience for everyone who visits!!

Other notable expenses included a new refrigerator ($1800), yearly homeowners insurance, 6 month auto insurance, and back to school expenses. The month was a perfect storm of expenses, unfortunately I've hit several of these storms already this year. Oh well, life is about the living and I have had some of the best adventures this year.

I can't wait to go back in a few years...

There is a big world out there and I want to see as much of it as possible!


Friday, September 16, 2016

Recent Buy --- WFC

Today I added to my Wells Fargo position.

  • WFC:  35 shares @ $45.31 --- Yield  3.35%

Total capital invested is $1592.77 and will add $53.20 to my yearly dividends. I was really happy to see the share price fall again today since I didn't add any shares a couple of days ago. In the long run this bank will be fine and I am happy to get in at such a great yield. My WFC share count is now 171.01.

Adding shares of great companies the past few weeks has felt really good and I love seeing the forward dividends climbing!! $4k is within striking distance. I'm feeling pretty pumped up right now!!!

Forward dividends are $3900.


Wednesday, September 14, 2016

Recent Buy --- TROW

Today I added to my TROW position.

  • TROW:  24 shares @ $66.93 --- Yield  3.23%

Total capital invested is $1613.23 and will add $51.84 to my yearly dividends.  This purchase increases my TROW share count to 45.

I was bouncing around between XOM and WFC this afternoon and then decided against adding to one of these two simply because they are two largest positions. 

WFC is still really enticing, so I may still add a few shares before the end of the week.

Forward dividends are $3850.


Friday, September 9, 2016

One more purchase --- Easing into EMR

I just couldn't help myself. I had to initiate a small position in EMR.

  • EMR:  30 shares @ $50.87 --- Yield  3.74%

Total capital invested is $1533.05 and this purchase will add $57.00 to my yearly dividends.

Well if I had waited a few hours I could have save $50 on my VIAB purchase. That's ok!!! I used the additional market drop (close to 400 Dow points) to pick up some shares of EMR. I was so close to choosing T, but EMR won on a coin flip. Hopefully next week continues to bring good buying opportunities. I still have a shitload of dry powder!!

What a great way to start the weekend!!

Forward dividends are $3800.00


More grinding......VIAB purchase

Today I doubled my Viacom position.

  • VIAB:  40 shares @ $38.50   Yield  4.16%

Total capital invested is $1546.75 and this purchase will add $64.00 to my yearly dividends. I now have 80 shares.

High yielding REITs, utilities, and telecoms are starting to look interesting. Maybe another interest rate hike will take a few dollars off T, SO, VZ, and WPC. It will be fun too watch!

Forward dividends are $3750.


Thursday, September 8, 2016

Pipeline construction continues --- DIS purchase

Today I added more DIS shares to my portfolio.

  • DIS:  18 shares @ $93.60 --- Yield  1.52%

Total capital invested is $1691.73 and will add $25.56 to my yearly dividends.  The yield is obviously low, but so is the payout ratio at 25%. In five years this company could easily have a 3% YOC. 

My share count is now 35 and I will continue adding until I reach 100 shares.

I keep watching Dividend Hustler kicking ass over there and he's really getting me highly motivated!! I'm not jumping into the deep end of the pool yet, but I feel $5k in forward dividends by year end and maybe $10k by 2017 year end.

Stay tuned!!


Wednesday, September 7, 2016

Brick by boring brick --- KO purchase

Today I doubled my position in Coke.

  • KO:  40 shares @ $43.59 --- Yield  3.21%

Total capital invested is $1750.51 and will add $56 to my yearly dividends.  My Coke share count is now 80 and will be churning out over $100 a year going forward. How cool is that?!

There is really no news coming from Coke recently. The stock is probably overvalued a bit, but the dividends are stable and increasing. I really like this type of company and will be adding shares year in and year out for decades to come. 

I almost added shares of VIAB, but the shares spiked up on me. I may still add some shares hopefully closer to the $38 range. The pipeline is starting to come back nicely!!

Forward dividends are $3650.


Monday, September 5, 2016

August 2016 Recap

While July was rough ($0 dividends), August was much better as I received $185.54.  As always, I reinvested all the dividends back into the companies paying them.

At first glance, HCP was the monster payer this month and was responsible for over half of my total income.  The good news is the dividends are beginning to smooth out as I received payments from four companies in August as opposed to only HCP in May. Ideally I would like to have at least 10 different companies paying in the "off" months with no one company contributing to more than 10% of the total. Time and patience will take take of this.

As you can see I also added $6865.01 in fresh new capital which increased my forward dividends by $303.74. I know that I am probably only about 20% of the level I was at this point last year. That's ok! I still have a ton of dry powder to work with and will continue to ramp up the portfolio. In fact I am much further along than I anticipated I would be. I was originally hoping to reach $3000 in forward dividends and now may surpass $4000 by year end. Of course then comes 5,7.5, 10, 15 etc.

The hamster wheel continues to spin. :-)

Forward dividends are $3600.


Thursday, September 1, 2016

First September Buy --- FLO

Today I initiated a small position in FLO.

  • FLO:  120 shares @ $14.62   Yield  4.38%

Total capital invested is $1760.93 and will add $76.80 to my yearly dividends.

If FLO drops below $14, I will most likely double down on the position. 

I have been watching HRB closely as well and it is drifting near its 52 week lows. The yield has now reached 4%. People will always pay taxes and the tax code will always be confusing to most, so I think HRB will weather their temporary operational storm.

Forward dividends are around $3600.