Saturday, August 31, 2013

Weekly Roundup - August 31, 2013

Another week has come and gone and it seems like each one goes by faster than the previous.  Everything is settled with the upcoming house purchase so now we just have to wait until closing.  We're about 1.5 weeks away and my wife and I are more than ready to get this done with.  I'm just glad that all of the financing is taken care of and now there's nothing else to do other than move a little bit more money from my savings account to my checking account for closing.  It's going to be so exciting to get to move forward on this.

Thursday, August 29, 2013

Baxter International (BAX) - Dividend Stock Analysis

If you take a look at my portfolio I'm lacking in two major areas that I'd like to get more exposure too.  One is the food industry, I only have KO and MCD that are direct plays on food and the other is healthcare.  The demographics both in the United States and globally is trending towards an older population which generally means more healthcare services.  Today I'm going to take a closer look at Baxter Intenational, Inc.  BAX closed trading on Tuesday, August 27th at $70.60.

Company Background (sourced from Yahoo! Finance):

Baxter International Inc., through its subsidiaries, develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. The company operates in two segments, BioScience and Medical Products. The BioScience segment processes recombinant and plasma-based proteins to treat hemophilia and other bleeding disorders; plasma-based therapies to treat immune deficiencies, alpha-1 antitrypsin deficiency, burns and shock, and other chronic and acute blood-related conditions; biosurgery products; and certain vaccines. The Medical Products segment manufactures intravenous (IV) solutions and administration sets, premixed drugs and drug-reconstitution systems, pre-filled vials and syringes for injectable drugs, IV nutrition products, infusion pumps, and inhalation anesthetics. It also provides products and services related to pharmacy compounding, drug formulation, and packaging technologies; and to treat end-stage renal disease or irreversible kidney failure. In addition, this segment manufactures solutions and other products for peritoneal dialysis, a home-based therapy; and distributes products for hemodialysis, which is conducted in a hospital or clinic. Baxter International Inc. serves hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors’ offices, clinical and medical research laboratories, and patients at home under physician supervision in the United States, Europe, the Asia-Pacific, Latin America, and Canada. The company sells its products through its direct sales force, as well as to and through independent distributors, drug wholesalers, and specialty pharmacy or other alternate site providers.

Tuesday, August 27, 2013

Recent Buy

As I mentioned in my stock analysis on Visa (V), I was very interested in purchasing some shares even before yesterday's pullback.  If you're wanting to invest in Visa you have to go into it knowing that it's going to give good dividend growth but it's much more of a total return investment.  I've been wanting to add a few more high dividend growth companies to my portfolio and Visa fits the bill quite nicely, as well as my recent IBM purchase.  I'm quite bullish on the company and expect to see lots of continued growth.

Monday, August 26, 2013

Visa (V) Dividend Stock Analysis

I wanted to get this analysis out last week but I was just way too busy with work.  Today we'll take a closer look at another lower yielding but higher growing company in Visa (V).  Visa Inc. recently became a publicly traded company with FY 2008 being their first year.  Visa closed trading on August 23rd at $179.10.

Company Background (sourced from Yahoo! Finance):

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet that provides fraud protection for consumers and assured payment for merchants. It also offers a range of payments platforms that enable credit, debit, prepaid, and cash access programs, as well as digital, mobile, and eCommerce payments for individuals, businesses and government entities. The company provides its payment platforms under the Visa, Visa Electron, Interlink, and PLUS brands. In addition, it offers risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. Visa Inc. is headquartered in San Francisco, California.

Sunday, August 25, 2013

Recent Buy

Ahhh...you know what that sound is?  It's me enjoying making a purchase for my FI portfolio after about 1.5 months.  It's a shame too because there's several positions that I'd like to be adding to right now but capital is pretty light due to the pending house purchase.  All will be well though once September rolls around and I can build my emergency fund to the level I feel comfortable and start investing the rest.  I initiated a new position on Friday by purchasing 10 shares of International Business Machines (IBM).

Saturday, August 24, 2013

Weekly Roundup - August 24, 2013

This past week was very busy for me.  It started off with a quick call out on Monday to head back to work.  I was hoping to be home at least until Tuesday and maybe until Wednesday, but they got things done at the rig much faster than I expected.  I don't like starting these jobs up because it's a lot of work for about 2 days, then catch up on sleep, then a lot of work for 2 days, then catch up on sleep and then everything slows down a bit and it's much better from then on.  But the the start is such a pain and time is very short.  I was hoping to get at least one stock analysis out this week but I was too pressed for time.  I'll get at least one out next week and hopefully two or three.  There wasn't much to do with my portfolio this past week.  Although I did sell off some more shares of Halliburton and closed my position in Alcoa.  I also started a small position in IBM as well and I'm hoping to be able to add to it over the coming months.  It's going to be great to start investing capital again after taking most of the last 1.5 months off due to the upcoming house purchase.

Friday, August 23, 2013

Recent Sells

Yesterday seemed like as good a day as any to try and sell off some more shares of Halliburton and also close my position in Alcoa.  I sold 25 shares of Halliburton, leaving me with just 100 more.  I had been debating whether or not to sell those shares or not because they changed the ESPP program and purchases are now made on a quarterly basis rather than semi-annual.  This leads to lots of less than 100 shares every quarter which means no covered call capabilities.  I might hoard up some more shares in the future and keep some extra handy to take advantage of call writing, but for now I decided to sell off some more shares and diversify into other dividend growth candidates.

Wednesday, August 21, 2013

Recent Option Transactions

Last Friday was the third Friday of the month and that means option expiration for those that use them.  I like when expiration Friday rolls around because it means I'm getting to purchase shares in quality companies or getting to turn a nice profit for waiting.  In general I look to achieve a 10% annualized return if the option expires out of the money or a cost basis that is at a price I'd be willing to purchase anyways.  That's why I like options because as the name implies there's multiple outcome possibilities.

Saturday, August 17, 2013

Weekly Roundup - August 17, 2013

This past week was just plain busy.  We finally settled on the house are just going through the financing steps.  We finished drilling that last well and I got to head home Wednesday night and then back to working on documents for the financing.  What a mess.   I'll be glad when all of the house stuff is done and we can officially close on it.  I'll definitely take some pictures and share those whenever we get moved in.

Friday, August 16, 2013

Automatic Data Processing (ADP) Dividend Stock Analysis

Third analysis of the week is now up.  I previously looked at Dr. Pepper Snapple Group and International Business Machines, and now we'll move on to a financial services firm, Automatic Data Processing.  It feels good to get back to analyzing stocks and learning as much as I can.  The more you learn and study and practice the better you'll get.  Investing is a skill as much as an art.  ADP closed trading on August 13th at $72.99.

Company Background (sourced from Yahoo! Finance):

Automatic Data Processing, Inc. and its subsidiaries provide business outsourcing solutions. The company operates in three segments: Employer Services, Professional Employer Organization (PEO) Services, and Dealer Services. The Employer Services segment offers a range of human resource (HR) information, payroll processing, time and labor management, and tax and benefits administration solutions and services, including traditional and Web-based outsourcing solutions to employers in the United States, Canada, Europe, South America, Australia, and Asia. Its solutions assist employers to recruit, staff, manage, pay, and retain their employees. The PEO Services segment provides employment administration outsourcing solutions comprising payroll, payroll tax filing, HR guidance, 401(k) plan administration, benefits administration, compliance services, health and workers’ compensation coverage, and other supplemental benefits for employees. The Dealer Services segment offers integrated dealer management systems, digital marketing solutions, and other business management solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment retailers in North America, Europe, South Africa, the Middle East, and the Asia Pacific region. It also provides integrated applications for various department and functional areas of the dealership, such as customer relationship management applications, front-end sales and marketing/advertising solutions, and IP telephony phone systems; and computer hardware, hardware maintenance services, software support, system design, and network consulting services, as well as designs, establishes, and maintains communications networks for its dealership clients.

Wednesday, August 14, 2013

International Business Machines (IBM) Dividend Stock Analysis

I'm finally getting back to posting some stock analyses.  For some reason I just didn't have the motivation, I'm not sure if it was a bit of a burn out but I think it was mainly just due to laziness.  I don't mind compiling the data but actually writing the posts is what I always get hung up on.  I've got a new focus and motivation of course that might also be since I'll be able to start investing again.  A lot of my free capital has been going towards the house down-payment so investing has taken a backseat.  Today I'm going to look at International Business Machines (IBM).  They were trading around $189.31 during trading on Monday, August 12th.

Company Background (sourced from Yahoo! Finance):

International Business Machines Corporation provides information technology (IT) products and services worldwide. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The Global Technology Services segment provides IT infrastructure and business process services, including outsourcing, process, integrated technology, and technology support. The Global Business Services segment offers consulting solutions for strategy and transformation, application innovation, enterprise applications, and smarter analytics; and application management, maintenance, and support services. The Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, performance management business analytics and intelligence, and data analytics; Tivoli software for cloud and datacenter management, enterprise endpoint and mobile device management, asset and facilities management, storage management, and security systems; Lotus Software to connect people and processes for communication; rational software to support software development in IT and embedded systems; and operating systems software. The Systems and Technology segment provides computing power and storage solutions; and semiconductor technology, products, and packaging solutions. The Global Financing segment provides lease and loan financing to end users; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services for equipment. The company has a strategic alliance with Kutxabank. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924.

Monday, August 12, 2013

Dr. Pepper Snapple Group (DPS) Dividend Stock Analysis

It's been a long time since I've posted a stock analysis.  Much too long in fact and I apologize for that, but I've gotten renewed vigor to post some analyses and I'm hoping to get several out this week.  If there's any other companies that you'd like me to take a deeper look at feel free to email or comment about it.  Today I'm going to look at Dr. Pepper Snapple Group (DPS) and it's dividend growth prospects.  The company was spun off from Cadbury in 2008.  I enjoy the namesake product of Dr. Pepper as well as several of their other products.  Shares closed trading on August 9th at $46.85.

Company Background (sourced from Yahoo! Finance):

Dr Pepper Snapple Group, Inc. operates as a brand owner, manufacturer, and distributor of non-alcoholic beverages in the United States, Canada, Mexico, and the Caribbean. The company offers flavored carbonated soft drinks (CSDs) primarily comprising beverage concentrates and fountain syrups; and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, and mixers. It also provides carbonated mineral water and bottled water. The company offers CSDs primarily under the brand names of Dr Pepper, Crush, Canada Dry, Sunkist soda, Schweppes, 7UP, A&W, RC Cola, Squirt, Peñafiel, Sun Drop, Diet Rite, Welch's, Country Time, Vernors, and the concentrate form of Hawaiian Punch; and NCBs under the brand names of Snapple, Hawiian Punch, Mott’s, Clamato, Yoo-Hoo, Deja Blue, FIJI, AriZona, ReaLemon, Nantucket Nectars, Mr and Mrs T mixers, Mistic, and Rose’s. It sells its products to bottlers, distributors, and retailers.

Saturday, August 10, 2013

Weekly Roundup - August 10, 2013

This week has been exciting and frustrating and stressful all at the same time.  Purchasing a house is such a huge financial decision and there's just so many aspects that go into the purchase.  I can't wait for this process to be over.  We're currently still in the option period, although that ends Sunday at midnight, and I'm really hoping that every goes well.  The inspection came back really clean except for the roof and we're having some roofers out to inspect it today and we also have the appraisal going through.  There's no damage to the actual structure of the roof but the inspector was saying the shingles needed to be replaced but the homeowner's are saying no.  So who knows what will happen.  As soon as the final price is agreed upon, a huge burden will be lifted because then there's no more negotiating and no more issues.  Just answering stupid questions from the loan writer about where this money came from and where that money came from.

Thursday, August 8, 2013

Recent Portfolio Moves

I made 2 moves to my portfolio today as well as two moves to report from last week so I've got a bit of a backlog of transactions.  Even though I've slacked a bit on getting the announcements up, it's mainly been from lack of free time and I wasn't as rushed because none of these moves effected my dividend growth strategy.  As I've mentioned, my wife and I are in the process of purchasing a house and I needed to get the last bit of down-payment settled.  What better way than the use the shares purchased at a discount through the employee stock purchase plan at work?

Wednesday, August 7, 2013

Net Worth Update - July 2013

While cash flow is more important when it comes to financial independence, it's still good to look at the balance sheet too, which is why I provide these net worth updates.  The markets surged higher again through July which when coupled with a very good savings rate helped to push my net worth up over $10k last month after a very disappointing June.  I had a little over $900 in combined 401k contributions, $670 in ESPP withholdings, and over $5,850 in after tax savings from my income.  The rest of the change was due to market changes and dividends.

Monday, August 5, 2013

Income Update - July 2013

Keeping track of your expenses is step one for anyone trying to improve their financial situation.  After you get a better idea of what you're spending money on, then you can look for ways to save money by smarter decisions or completely stopping spending on areas that aren't really adding any value to your life.  This is why I like to keep track of all of my expenses to help keep myself accountable and looking to see what areas I'm just doing poor in.  Of course this isn't for everyone but I do recommend that for at least a few months every year you go through this process to try and look for better uses of your money like paying down debt or investing for your future; whether that's early retirement or a more traditional one.

Saturday, August 3, 2013

Weekly Roundup - August 3, 2013

This past week went by extremely fast.  As I've mentioned my wife and I are looking at purchasing a house and we spent most of our time while I was home looking at potential houses.  We had put an offer in last week and it was accepted.  Now I just want to get the process started toward actually getting keys in hand.  We'll be having the inspection done on Monday and hopefully there's no big issues that need to be taken care of because that could seriously effect the purchase.  It's newish construction since it was built in 2000 so I wouldn't expect there to be anything that bad.  I know our monthly costs are going to go up with a house but my wife really wanted to have a place of our own.  Once the house is ours for sure then I'll post up some pictures.  If everything goes smoothly we should close around the first week of September.

Thursday, August 1, 2013

Dividend Update - July 2013

And another one bites the dust!  Seriously, was July shorter this year by about 10 days?  It was a pretty quiet month for dividends as well as new additions to the FI Portfolio.  I only started small positions in Realty Income and General Electric but other than that it was selling off shares of Halliburton, which I purchase through the ESPP program offered at work.  I've been selling off some shares to try and diversify away from my employer and also use those proceeds to help with the down-payment for our potential house purchase.  We actually have an offer in right now so we'll see what happens.