February 2020 Passive Income

Here is the passive income I received from both taxable and retirement accounts.


Taxable Account

• Amegy CD --- $385.88
• OHI --- $64.99
• T --- $52.00
• GIS --- $49.00
• CL --- $29.24
• BND --- $6.22

Retirement Account

• 65/35 S&P 500/Bonds --- $214.60

Total February 2020 passive income is $797.90

Another month in the books. Not the most impressive income report, but this reflects the lower interest payments on my CDs as well as last year's portfolio sell off as I closed all positions in my E-trade account.

The good news is I have been replacing the sold stocks by investing in my JPM account and I feel as though the income streams should be back to normal in the next couple of months.

My goal is to still have the same passive income this year (maybe more) as last year even though interest income my fall by $2,000 or so this year. 

DEFY MEDIOCRITY

Recent Purchases

Today I added to IBM and initiated three new positions

• IBM:  3 shares @ $94.49 --- Yield  6.86%
• EMR:  6 shares @ $37.93 --- Yield  5.27%
• KO:  7 shares @ $36.88 --- Yield  4.44%
• VFC:  6 shares @ $46.30 --- Yield  4.15% 

Total capital invested is $1047.02 and the combined yield is 5.20% and will add $54.44 to my yearly dividends.

Hopefully these four are capable of at least maintaining their dividends during this pandemic. EMR, KO, and VFC have impressive businesses with stellar dividend growth. 

Also I will not include photos of my proof of purchases from here on out. Too much hassle :)

Recent Purchases --- MO & T

Today I added to a couple of existing positions.

• MO:  30 shares @ $35.14 --- Yield  9.56%
• T:   35 shares @ $28.65 --- Yield  7.26%

Total capital invested is $2057.05 and the combined yield is 8.44%. These purchases will add $173.60 to my yearly dividends.

I almost added KO to the portfolio. It's trading in the $38 range. I'll probably add some shares next week but would like to see $35.

Have a great weekend everyone!

Recent Purchase --- T

Today I added to my T position.

• T:  30 shares @ $30.70 --- Yield  6.78%

Total capital invested is $921.00 and will increase my yearly dividends by $62.40.

Markets continue to be volatile with the Dow down 13% so far this week. It's very difficult to keep buying with energy companies yielding 15%, REITs yielding 20-30% and the hospitality/travel industries down 70,80, and 90% in some cases.

Remember when you think the market is too high and want a pullback, this is what it looks like when you get buying opportunities. Embrace the suck and keep buying.

DEFY MEDIOCRITY

New Position --- BP

Today I decided to initiate a position in BP.

• BP:  200 shares @ $15.75 --- Yield 16.00% (Realistically 4% if reduced by 75%)

Total capital invested invested is $3150 and will increase my yearly dividend by $504.00.

I've owned shares of BP in past and am glad to re-enter the position at a fairly reasonable price. These are treacherous times in the energy sector and I realize this dividend is beyond fragile.

I'll be watching the REITs closely as they have all been left for dead. I probably won't add any more OHI, but O, SPG, and WFC are certainly worth looking at closer. It is not uncommon to see 20-30% yields across the REIT sector.

I wouldn't mind building up my BP position to 500 shares and will likely add more at these price levels. I do feel better knowing that virtually every sector has bargains so I’m not limited to beat down oil and banks.

Be safe everyone.

February 2020 Net Worth

All figures except my Jeep value are generated from Mint.com.

Well February was a crazy month with the S&P 500 dropping by 12% Unless you are 100% cash and/or shorting the market you felt the effects in your portfolio.

My net worth fortunately dropped by only 4.2% which is pretty much as expected. I have been keeping my net worth at a .3 - .4 beta since I retired two years ago. I continue to feel fortunate that I have a huge CD position and a 65/35 stock bond 401k which rebalances quarterly.

I have been stepping in a bit more aggressively as of late and have taken a pretty good beating especially on my energy positions.

As I write this update, the DJIA is trading around 20k, down roughly 30% from last months all time high. If the market continues to break through the circuit breakers and hits a 40% bear market, I may be reporting a networth with a 7-handle in a few weeks.

I'll keep adding, but am being somewhat cautious. Seeing LYB at 37, IBM at 95, OHI at 21, and BP at 18 is crazy.

Be safe out there everyone and keeping feeding the fire!

Assets

Checking --- $53,784
Savings/Investments --- $411,796
Lending Club --- $165
HSA --- $2,015
IRA --- $10,470
401K --- $394,181
2014 Jeep Wrangler --- $17,800

Liabilities

$2287

Net Worth

$887,924

YTD Totals

2020

***Jan 1, 2020 --- $926,699***

Jan 31, 2020 --- $923,180

Feb 29, 2020 --- $887,924

Mar 31, 2020 ---

Apr 30, 2020 ---

May 31, 2020 ---

June 30, 2020 ---

July 31, 2020 ---

Aug 31, 2020 ---

Sep 30, 2020 ---

Oct 31, 2020 ---

Nov 30, 2020 ---

Dec 31, 2020 ---

2019      

 ***Jan 1,2019 --- $864,816***

Jan 31, 2019 --- $887,560

Feb 28. 2019 --- $895,998

Mar 31, 2019 --- $899,902

Apr 30, 2019 --- $904,190

May 31, 2019 --- $880,455

June 30, 2019 --- $894,816

July 31, 2019 --- 898,515

Aug 31, 2019 --- $894,960

Sept 30, 2019 --- $900,639

Oct 31, 2019 --- $904,935

Nov 30 2019 --- $915,534

Dec 31, 2019 --- $926,699

2018

Jan 2018 --- $917,116

Feb 2018 --- $910,667

Mar 2018 --- $909,746

Apr 2018 --- $903,416

May 2018 --- $889,032

Jun 2018 --- $893,278

Jul 2018 --- $892,002

Aug 2018 --- $896,619

Sep 2018 --- $899,763

Oct 2018 --- $876,927

Nov 2018 --- $891,402

Dec 2018 --- $864,613


2017

May 2017 --- $835,009
July 2017 --- $851,904 

Aug 2017 --- $860,072

Sept 2017 --- $869,374

Oct 2017 --- $887,033

Nov 2017 --- $897,145

Dec 2017 --- $914,266

There is no down time when building a path that doesn't lead back to ZERO

Recent Buys --- OHI & XOM

I added a few shares to some existing positions today.

• OHI:  100 shares @ $23.83 --- Yield  11.25%
• XOM:  30 shares @ $37.03 --- Yield  9.40%

Total capital invested is $3493.99 and the combined yield is 10.66%. These purchases will add $372.40 to my yearly dividends.

The market pullback is so quick and extreme that it's difficult to decide what to pull the trigger on. When I saw OHI down 25% after the market circuit breaker this morning I decided to swoop in. XOM is at ridiculous levels and may get more ridiculous.

IBM got close to $100 and I almost added shares at 6.5% yield. Also MO is within inches of a 10% yield. Airlines, banks, hotels, and cruise lines are being left for dead. I think BA is down $300 a share from its all time high!! That's crazy! 

Wells, JPM, GS, etc are very tempting, but I actually may pick up TD or BNS as they will be yielding in the 8% range very soon.

Great time to get off the sidelines and get back into the game. I've been out for too long :)

DEFY MEDIOCRITY

Recent Buy --- Shell

Yesterday I added to my Shell position.

• RDS-b:  120 shares @ $36.52 --- Yield  10.30%

Total capital invested is $4382.30 and will increase my yearly dividends by $451.20.

It looks like there will be a snap back in the markets today, but there are tons of depressed stocks still available. 

I'm closely watching MET, PRU, DOW, XOM, PFE, and MO at the moment. Airlines, cruise lines, hotels are also interesting, but dangerous.  I will continue adding to energy positions especially Shell over 10% and XOM over 8%.

DEFY MEDIOCRITY