Thursday, December 27, 2012

Update month 8



The theme of the month is dividends! The Project Portfolio has had a great month with 5 companies paying them. When receiving a dividend payment there is a choice between taking cash payment or to reinvest the dividend into shares or partial shares of the company at the current price. I have made a few changes to the spread sheet to update the amount of dividend payments received and how many times I have chosen to drip (dividend reinvestment plan). Also on Dec. 1st a deposit of a $100 was made because of the holiday season it is a little less than usual.


Information on the dividends

On Dec. 3rd Intel (INTC) paid $10.66 and was reinvested into more shares. INTC is a company I think is undervalued and am looking to buy when it goes under $20 a share. On Dec. 12th Walgreens (WAG) paid $5.54 and was reinvested into more shares. I think WAG is fairly valued but still chose to reinvest the dividend.  On Dec. 13th Microsoft (MSFT) paid $6.34 and was taken in a cash payment. I like MSFT but am going to put the money towards other investments like INTC as of now. On Dec. 14th Waste Management (WM) paid $16.91 and was taken in a cash payment. I feel WM is fairly valued and didn’t want to invest more at this time. On Dec. 17th McDonalds (MCD) paid $26.67and was reinvested into more shares. I love MCD at the current prices!

The total amount collected this month is $66.12. The yearly total is $193.91. The new yearly estimate is $506.80 or $42.23 monthly.

This brings me to why I think dividends are the best investment and why they are important. The dividends are a share of company profits paid out to its shareholders (owners). It provides us with income. Choosing the right companies we hope for dividend raises and pay raises for us. On other investments to get the profit you need to sell to make it unrealized to realized gains. The dividend also allows us to buy more shares making future dividend payments larger because of the more shares owned. The goal of the portfolio is to yield 10% and when it happens it will outperform the market on dividend payments alone!

Thanks for reading see you next time.

DSF

Thursday, November 1, 2012

Update Month 7 October

The "Project Portfolio"

Monthly Update: October


Investing Account
Starting Balance -- $9048.76

Deposit -- $200

Silver Gold sell -- $3460.00
Dividends -- $3.86
Net Gain or Loss -- ($348.39)

Realized Gain or Loss -- $0

Expenses -- ($9.95)
Ending Balance -- $12,354.28
November Starting Balance -- $12,354.28


Stock Shares and Dividend Update
This month there was only one dividend payment with ERF. The new monthly estimate of dividends is $35.29. On the new transaction log on page 3 of the spreadsheet we added to different companies. The two new additions were Mondelez International Inc. (MDLZ) 95 shares and Seagate (STX) around 8 shares. I have a video about MDLZ on my You-Tube channel. STX is a company I heard from Pullingmyselfups channel his link is on my You-Tube channel as well. I aslo added to a few other holdings through automatic investing through Share builder.  


Thoughts
The major actions of the portfolio this month were the sale of silver and gold. All gold was sold and only 5 oz. of silver remain I do like having at least 1 percent in hard assets if the price is right. The next major action was the addition to International company  Mondelez international Inc. (MDLZ). This was a major purchase and now represents 20.4% of the account right behind the largest holding of MCD at 23.6% of the account. I like that MDLZ goals are to grow at least 7% a year and it has a dividend at 2% making returns at least 9% if not more.  The performance this month saw a drop in the accounts paper value but in income it rose and that is the measure I am looking for. One last note the portfolio is ahead of the SP 500.

Thanks for following
DSF


Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

Wednesday, October 3, 2012

Waste Management Inc. (Getting paid to wait)

Waste Mangement Inc. (WM)

As a dividend stock investor when I buy a company’s stock I usually look to hold it for a long period of time. I don’t mind waiting if I am getting paid a dividend while I wait. I currently own Waste Management Inc. (WM) and will take a look if adding more at current prices. This can also be a guide for someone new looking for a solid company and doesn’t mind being paid a dividend while waiting for margins to improve.

The company currently has a yield of 4.5% making it look attractive for an investor. Taking a look at the last five years a $1000 investment today would be worth $955.80 or an annualized ROR of -1.2%. Taken dividends into account the amount would be $1,091.31 or 2.4% annualized ROR. This shows the importance of dividends and purchasing a stock at the correct time. During this time the P/E ratio has been 16.4 and is currently 14.8. The average dividend growth during this time is 4.5%. This company will never be a high growth stock. I don’t expect any problem with the company maintaining its dividend even with its current payout ratio of 72%. The estimated EPS is 2.15 and if the company were to maintain its payout ratio or a 70% payout ratio the current dividend would be raised from 1.42 a share to 1.50 a share. The 70% is at the high end I would like to see a dividend growth stock.

Many people take short term view of the market and companies. When quarter earnings do not meet expectations the stock will suffer. Looking at WM’s second quarter earnings call this may have been an overreaction. The company had a negative $0.03 a share due to electricity prices. And in the first half of the year had headwinds in recycling and waste-to-energy this is also predicted for the second half of the year with another $0.07 a share revision. Management expects this to improve as commodity prices rise. The company is also moving there fleet of vehicles to CNG which will help other expenses as well the environment. The full year guidance is still $2.15 to $2.20. This could also change through the year and the next earnings call is 10-30-2012. It is a positive that management is looking to the future and is working on the problems.

A few future positives could be in the housing sector recovery. WM can benefit from opportunities with more residential customers and disposal for construction and other jobs. The 10 year Treasury note is under 2% compared the 4.5% current yield. The company will have a floor as the dividend rises, more people will keep it from falling to far in my view. What are your views? Does WM deserve consideration moving forward?

Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

Tuesday, October 2, 2012

Update month September month 6

The "Project Portfolio"

Monthly Update: September


Investing Account
Starting Balance -- $9053.06

Deposit -- $0
Dividends -- $39.22
Net Gain or Loss -- ($4.30
)
Realized Gain or Loss -- $214.50
Ending Balance -- $9048.76
August Starting Balance -- $9048.76


Stock Shares and Dividend Update
This month there was many dividends from WM, MCD, ABX, MSFT, ERF, and WAG. The year to date dividends payments are $121.68 which is 1.3% of the total money in the investment account. The average payment per month is $10.14 with estimate full year at $22.55.
 

Thoughts

As I mentioned last month both MCD and MSFT raised there dividends. I am looking at adding more WM as I think the company is being ignored. The company is a longer term hold but it will pay us to wait. The current yield is moving toward 4.5% and I expect a raise after the next payout. The company has had some headwinds with its earnings per share hit with commodity prices and the recycling not making as much because of the economy. The company is also moving its whole fleet to CNG natural gas this will help with fuel expenses and the environment. The payout ratio is high at 72% but I don't think the dividend is at risk. The earnings are projected at 2.10 to 2.15. If the dividend payout moves to a 70% payout ratio and the earnings move to 2.15 the dividend can still be raised .08 or .02 a quarter. This payout ratio is high but like I mentioned I think it is temporary.



Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

Saturday, September 1, 2012

Project Portfolio Update for August Month 5

The "Project Portfolio"

Monthly Update: August


Investing Account
Starting Balance -- $8047.30
Deposit -- $500
Dividends -- $12.25
Net Gain or Loss -- $493.17
Realized Gain or Loss -- $23.71
Ending Balance -- $9053.06
August Starting Balance -- $9053.06

Stock Shares and Dividend Update
This month we had two stocks pay a dividend they were (PBCT) with a div. of $8.41 and (ERF) Enerplus with $3.84.

Total dividends this year: $82.46

Sold two companies NPK and ARKR.
I still would like to add some more MSFT, and MCD before they announce the dividend rises but only if the price is right.

Totals
Investment Account is 69.39% of the portfolio
Emergency Fund is 3.83% of the portfolio
American Silver Eagle 1 oz. Coins (48) is 12.28% of the portfolio
American Gold Eagle 1 oz. Proof coin (1) is 14.49% of the portfolio

The investments are up 6.51%
The SPY benchmark is up 1.82%
The Total Portfolio is up 5.37%

Thoughts
I am looking to put a stop-loss on ABX just because it has been a fast 19% gain and I want to make sure I make profit I may initiate the stop-loss at 16% profit. I also would like to add to McDonalds and/or MSFT if the price is right before they raise the dividend.


 Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

Wednesday, August 1, 2012

Project Portfolio Update for July Month 4




Project Portfolio Update for July Month 4 

The "Project Portfolio"

Monthly Update: July

Investing Account
Starting Balance -- $7,527.19
Deposit -- $400
Dividends -- $18.76
Net Gain or Loss -- $101.35
Realized Gain or Loss -- $97.39
Ending Balance -- $8047.30
August Starting Balance -- $8047.30

Stock Shares and Dividend Update
This month we had two stocks pay a dividend the were (ARKR) Ark Restaurants with a payment of $15 and (ERF) Enerplus with $3.76.

Total dividends this year: $47.52

Sold one company (TCAP) Triangle Capital for a nice profit of total ROI $111.39 for a 19.4% gain. Purchased (ABX) Barrick Gold Co. total of 28 shares. Barrick is a senior miner with a long dividend history and has announced the most recent dividend. The company's dividend yield is at 2.5%. Its earnings are  at the estimates but the stock has fallen 41% making it undervalued at only 7x EPS.

I still would like to add some more MSFT, and MCD. I also want to build the cash position and it is the first priority.

Totals
Investment Account is 68.04% of the portfolio
Emergency Fund is 4.23% of the portfolio
American Silver Eagle 1 oz Coins (48) is 12.45% of the portfolio
American Gold Eagle 1 oz Proof coin (1) is 15.28% of the portfolio

The investments are down -.93%
The SPY benchmark is down .64%
The Total Portfolio is down -.47%

Thoughts 
One company that is getting really tempting is (SBUX) Starbucks it has been dropping on some not so good news in Europe but I think the company has a solid business plan and I like management. I will continue to watch it. I also don't like how fast the market has been rising looking to build up cash while things are hot and be ready when they drop.

Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.


Monday, July 2, 2012

Project Portfolio Update for June Month 3



The "Project Portfolio"

Monthly Update:  JUNE

Starting Balance $5,684.69
Deposit $510
Dividends $36.84
Net Gain or Loss $166.54
Realized gain or loss $0   
Ending Balance $5495.77
July starting balance $7527.19

Stocks Shares and Dividend Update

Nice month for dividends we had (WM) Waste Management at $13.24, (TCAP) Triangle Capital at $14, (MSFT) Microsoft at $4, (MCD) McDonalds at $5.60. 

We made two purchases this month on two companies that have been struggling. The first was (WAG) Walgreens Co. I made the purchase after they announced an acquisition and a raise of the dividend. The move allows it to make a footstep in Europe. The dividend raise was substantial at 22.5 cents to now 27.5 cents per/share. 
The second company is (ERF) Enterplus it is an oil and Nat gas company. The share price has fallen along with the price of Nat gas and oil. I am looking out further as the company still pays a healthy dividend to wait. The problem is can it survive these low prices and with the move to more oil than Nat gas I think they will be able to. 

I continue to add to shares of NPK, MSFT, MCD, and PBCT. 
Totals 
Investment Account is 67.06% of the portfolio
Emergency fund is at $500 and is 4.45% of the portfolio
Silver we have 48 oz all in American Eagle 1 oz coins it is 12.45% of the portfolio 
Gold we have 1 oz in American Eagle 1 oz coin 2011 proof it is 16.04% of the portfolio

The investments are down (2.06%) the SPY benchmark is down (2.28%) and the total Portfolio is down (2.24%) 

Thoughts
I will spend a minute talking about Silver and why I have it in the portfolio. I love gold and silver (more silver) I just want it to be proportionate to the overall portfolio. One of my favorite experts is David Morgan and he recommends 20% but it is a personal preference. I have decided to go this route and use 20% but if I do see a deal in the price of silver I won't hesitate to buy. I have been purchasing it since 1992 and have sold 50 oz at the $28 level but received $33 an oz at the end of 2010. The problem was the next year in 2011 I bought it back in the high thirties and low forties. Not wise to sell low and buy high but it was a lesson learned. This has hurt my DCA but I still have about a $28 price per oz and that is with all premiums paid (you get the premiums back when you sell).  With Gold I sold almost everything in the summer of 2011. I bought it back at the end of the year but I am using the price for the proof that I paid after buying it back. Overall the silver I bought pre 2011 has a great return and the silver bought in 2011 is an investment moving forward as I am still bullish on the metals and do like the private ownership of them. I think I will always keep some. 


Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

Friday, June 8, 2012

Makeover to the Portfolio








The old spreadsheet was tough to read and understand when it came to things outside of the stocks we owned in the investment account. I wanted to make a clear starting amount and build on it for the goal of retiring. The amount I picked was a round number of $10,000. Not the easiest to start with but if one wants to start with less they easily could do so. I want to show how if you invest and always fund your account you will be able to achieve your goals. The account is broken down to 3 sections a Investment account, emergency fund, and a precious metals. As I mentioned before I will be selling some metals to get down to only 5 or 10% of the overall portfolio. The main focus will be how the investments stack up to the S&P 500 Benchmark and how the overall portfolio does. The metals will be updated only on a monthly basis with the unrealized gain or loss. The rest should be in the video thanks for following along and comment if you like. Just to note everything on the spreadsheet are my actual holdings. 

Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

Friday, June 1, 2012

Project Portfolio Update Month 2

The "Project Portfolio"

Monthly Update:  MAY



Starting Balance $4,704.17
Deposit $1079.14
Dividends $14.61
Net Gain or Loss (265.79)
Realized gain or loss $(14.41)
Ending Balance $5495.77
June starting balance $5495.77


Stocks Shares and Dividend Update

FCX $8.69
PBCT $5.92
Cash $0




Totals

Emergency fund. $1000
Opportunity fund $ 789.49
Precious Metals
Silver 300oz
Gold 3oz




Thoughts
Dropped BWLD for MCD we need dividend yield and support while the market is uncertain and throughout time dividends are a great source of total returns. I am looking to add more to the positions that we already have may use the opportunity fund if stocks continue to slide. I will raise cash again after the market starts to go up until then I will DCA. 
Side note: For June and July the book club will be reading the The Intelligent Investor 


Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

Saturday, May 5, 2012

Why Microsoft?


The Why?
It comes down to the fact that I just ended up liking the direction of the company. The share price came down a little from the high a week ago but this is a long term buy on a name I think is undervalued at $30.98 and $31.40 after commission. The dividend is a positive as well as I see MSFT can raise it  in the future with no problems. The current yield is 2.5% and that can be paid easily.The next ex-dividend date is May 14th so it also qualifies for this. The stock has over $6 per share in cash.  The company has many exciting business partnerships with Facebook, Nokia (Lumia 10), and Barnes and Noble (Newco). Xbox and Windows 8 look like they will help the company grow. The project portfolio was missing a large cap stock and a tech stock and Microsoft will be a great addition.

Total transaction 19 shares at $31.40.

Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

Tuesday, May 1, 2012

Project Portfolio Month 1 update


The "Project Portfolio"


Monthly Update:  April 

Starting Balance  $4,339.04
Deposit  $498.00
Dividends  $0.00

Net Gain or Loss $(104.28)
Realized gain or loss $(28.59)
Ending Balance $4704.17

May starting balance $4704.17
 Stocks Shares and Dividend update. 
No dividends to report this month.
WM 30.0174
NPK 15.4697
BWLD 6.0459
PBCT 37
TCAP 28
ARKR 60
Cash 85.63




 Totals
Emergency fund.    $1000
Opportunity fund    $ 979
Precious Metals
Silver 315oz
Gold 3oz 



Thoughts
I sold FCX just because we have a large position in the metals already and a few things about the company worried me moving forward so I felt its better to sell. The new addition is Ark Restaurants with a great yield of 6.6%. If your not from NY or Las Vegas you may not know about ARKR but it is a consistent performer and I think as the economy improves it is a generous company with dividends. This is also a company I have in my personal portfolio. It does give us 2 restaurant stocks but both can be profitable and are run by incredible CEO's. This month I will be looking at MSFT to possibly add a position (watch for the update). We will also continue to add on weakness to positions in the portfolio.

Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

Friday, April 27, 2012

Value in Companies after taking a One Day Hit

Is it time to step in and buy these companies that have one day beat downs.

I have been watching the market as I always do and with earnings here we can expect some big gains and big losses depending if companies over or under perform. As I look out there today three great companies that are dividend growth stocks are being hit because of the news this quarter of not meeting or beating expectations. Is this extreme sell off really warranted though?

First is (RSG) Republic Services which is in the Waste Management Industry and Industrial Goods Sector. This stock is down $4.06 (13.02%) at the time of this writing because of an increase in sales but the company missed estimates on earnings. The last time the stock price was this low was in the lows of October. The next is in the Project Portfolio and a personal favorite (WM) Waste Management this stock is also in the Industrial Goods Sector. It is down $1.03 (2.92%) at the time of writing. I think this is more of a over reaction to the sector causing  this stock to fall. I see little reason for such a one day drop. Both these stocks go over 3% and 4% yields on the pullback making them very attractive. The last stock I wanted to mention is PG Procter & Gamble a well known stock in the Consumer Goods Sector. It was knocked down $2.81 (4.19%) and now yielding 3.5%. They had to cut estimate earnings from $3.88 to $3.82 a share.

It may not be the best idea to buy right after bad news but it can be a place to make an initial position if you have had any of these stocks on your watch list.

Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.  
I am long WM

Thursday, April 19, 2012

Investing Misconceptions (gold, silver, dividend)

I have spent many hours looking for great investments and trying to find why some investments are better than others. My first investment as I was growing up was some 1992 silver eagles 1oz coins. I bought these after working with my dad and mom. I would wake up and help him deliver newspapers before school.  I was only 11 but my grandfather and grandmother always told me to buy silver because it was a great way to save. The key word being SAVE.

Moving forward I never really had a mentor to guide me with investing. I learned of who exactly Warren Buffett was when I was stationed in Omaha Nebraska while I was in the Air Force. I started investing in stocks young but other things stopped me from really spending time to understand investing. 

During the Crash of 2008 everyone who gave advice to us in the Air Force were saying now is NOT the time to buy. This was true as few people bought anything. When asking most people they said they have sold to not lose anymore money.  I was 26 and put some money into Coke (KO), and ConocoPhillips (COP). Looking back I'm happy I didn't sell. I also bought some gold and later sold it.


The quick rise in Silver and Gold after 2008 was not a surprise to me as that is why I was buying it. But the problem is with silver and gold to make any money you need to sell. There are benefits to gold and silver as they can help hold wealth. Just holding gold and silver you don't make any return. Note: (This is why it is not a good investment but average and why I want income producing assets.)

I have done research on gold and silver I do know the thousands of years of history I have read Mike Maloney's book Guide to Investing in Gold and Silver. I have listened to countless hours of how the dollar will crash and people owning gold and silver will be rich. I think this is flawed analysis because gold and silver throughout time are over and undervalued but someone else has to want the asset at a higher price. To me it ends up being a pyramid where you hope you are not at the bottom when it breaks down and the ones above you sell. That is why in Warren Buffett's letter to his share holders he has a category where an asset doesn't produce anything. 

There is no investment that has the impact on ones purchasing power as does a dividend growth stock where it grows better than inflation. An interesting blog from Dividend Growth Investor Blog: http://seekingalpha.com/article/506941-dividend-investing-misconceptions?source=yahoo
Here he shows how you can own an asset and the misconception of it only returning 2% is to new investors if you been an investor form the beginning you are rewarded. 
 Apple has done the same a divided paid is not to attract new investors now but to reward past investors and reward the ones who buy now and stay in the years to come with divided growth. 

All investments can go down and not survive but to have an income producing asset if it produces that passive income that is what in the end matters. 

One last thought is the conspiracy that the dollar will collapse. Currencies have collapsed in the past and a new one has been born. The dollar is a rare currency throughout history a collapse would have consequences not seen before. Before this was to happen I think a solution would be conceived. There is always crisis in the world and the ones who don't lose their vision will succeed. I think an investment strategy on this fact alone. Strategies of fear will not profit and will not be my choice as an overall investment strategy. 

Sheldon

Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing. 


Monday, April 16, 2012

First Update April 16 "Project Portfolio"

The "Project Portfolio" is a portfolio that fits my risk level please do your own research before making any investments.

The portfolio setup
 Monthly Update:
This will be done on the 1st of the Month after the month so April will be updated on May 1st.
--Included will be money added to the portfolio and the performance and dividends of each stock.

Stocks
BWLD    5.44shares
FCX      27.8 shares
NPK     15.13 shares
PBCT    37 shares
TCAP    28 shares



 Totals
Emergency fund.    $1000
Opportunity fund    $ 979
Precious Metals
Silver
315oz average cost $27.88 tot. $8727.20
Current silver price 31.34    tot.  $9872.10
$1144.90 profit

Gold
3oz  tot $5772
Current value $1651.20 tot $4953.60
(818.40)


Thoughts
This will add anything I missed in the YouTube video. Also any other ideas I might have for the Portfolio.

Sheldon


Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

Wednesday, April 11, 2012

Stock Investments

Hi this is my first blog its to help myself keep track and to share with others who are interested. 

Following stocks are long term investments 
Two Stocks that I have my eye on are Buffalo Wild Wings (bwld) and National Presto Industries Inc. (npk).

 First I will talk about BWLD. I did a video on here is the link: Here

The purchases so far done with ING direct automatic investment purchase.

Bwld  total stock  5.4444 shares  Cost/share 88.16
As mentioned before this stock will have many days where it could be up or down but I'm in it for the long haul. It doesn't pay a dividend as of now.

NPK total stock 15.12 shares  Cost/share 77.68
I plan on making a video for this stock it has come down to about $70 from $113. It has paid a dividend since 1990 and has a special dividend each year that makes the return to about 8.5% at current share price. It is well diversified with Defense sector, home appliances, and diapers for the elderly.
This stock has a annual dividend so I plan on accumulating it through out the year. (last div march 2nd)


Other stocks
WM is a new position opened recently 30 shares  Cost/share 35.04 giving me a 4.1% yield.

FCX another new position that just qualified for a dividend 27.8 shares Cost/share 38.42

Watching
To add to VZ
and open a new position in DPS


 
Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

New Strategy for investing in Under Armour Inc. (UAA) and Monster Beverage Corp. (MNST)

On March 24, 2017 my blog entry Under Armour Inc. (UAA) Opportunity I talk about my purchase of 100 shares of UAA on 2/6/2017 for $20.55. I...