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

General Motors (GM) the GOOD, BAD, AND UGLY!

I've been talking about GM on this blog because of its really big dividend yield. The company has been undervalued to the market for som...