Sunday, May 31, 2015

Weekly Roundup - May 31, 2015


My weekly roundup is coming a bit later in the weekend than normal but I'm taking advantage of the time I get with Luke while I can.  He's been doing well the last week and it's been so great having him be relatively stable.  Especially after how crazy the past two weeks have been with him.  I hope to start getting a bit more consistent writing done and get on a bit of a schedule but that really depends on how Luke does and what's going on with work.

We've also been dealing with lots of flooding around the city.  Just for some perspective there was an estimated 35 trillion gallons of rain over the state during May and we had even more fall since that infographic was made.  The flooding was absolutely crazy and even more shocking was how quickly it came.  Luckily we weren't out and about in the rain and didn't have any issues at our house so the flooding was just an interesting story to break up the day in the NICU.


Saturday, May 30, 2015

Semi Recent Buy


Whenever I make a new purchase for my portfolio I feel it's only fair to get a post written giving all of the juicy details. I want to be as transparent as possible with my journey to reach financial independence through dividend growth investing. Being open about the moves I make allows for better discussion with all of you and helps spread ideas around as well as letting me create my own "investing journal" to chronicle why I purchased a company in the first place and that way I can revisit if something changes and make the decision on whether to continue owning the company or not.

Saturday, May 23, 2015

Weekly Roundup - May 23, 2015

Quick update this weekend since this past 1-1.5 weeks has been absolutely crazy with Luke.  I don't want to go into too much detail here, but he ended up having both the best and worst day of his life so far but luckily he's still here and still fighting.  That's all we can ask for.  But I hope that we've turned a corner again with Luke and stability will return which will allow me to get in some more writing.

Due to all of the issues with Luke I got very little writing done.  Actually none over the past week.  But that doesn't mean that I haven't been looking for investment opportunities.  My last purchase was when I added shares of Omega Healthcare Investor (OHI) and since then I've made two more purchases that I need to get write ups for.  I've still got enough capital for another purchase and have a few companies in mind.


Thursday, May 14, 2015

Recent Buy


Whenever I make a new purchase for my portfolio I feel it's only fair to get a post written giving all of the juicy details. I want to be as transparent as possible with my journey to reach financial independence through dividend growth investing. Being open about the moves I make allows for better discussion with all of you and helps spread ideas around as well as letting me create my own "investing journal" to chronicle why I purchased a company in the first place and that way I can revisit if something changes and make the decision on whether to continue owning the company or not.

Wednesday, May 13, 2015

Now's Not the Time for McCormick & Company, Inc.

I mentioned in my dividend growth checkup that my plan for the year was to allocate less capital to the consumer staples due to their general overvaluation. However, that doesn't mean that I won't identify excellent companies with large moats within the consumer staples for purchase at more opportune times. McCormick & Company (NYSE:MKC) is a dividend champion having increased dividends for 29 consecutive years and have paid dividends for the last 125 years. There's no doubt about McCormick & Company's quality as a company; however, investors are valuing MKC at a premium. McCormick & Company closed trading on Monday, May 11th at $76.91 giving a current yield of 2.08%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from McCormick & Company, Inc.'s investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates:

Historically, owners of McCormick & Company have earned solid returns. According to longrundata.com, MKC has rewarded investors with a total return of 283% or 11.0% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the operational results that McCormick & Company has delivered.

You can read the full analysis of McCormick & Company, Inc. at Seeking Alpha.

Tuesday, May 12, 2015

Union Pacific Corporation: Keeping Your Portfolio on Track

As long as consumers continue to consume, Union Pacific (NYSE:UNP) will be there to ship goods across the country. Union Pacific Corporation is a dividend challenger with 8 consecutive years of dividend increases. Union Pacific closed trading on Friday, May 8th at $107.44 giving a current yield of 2.05%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from Union Pacific Corporation's investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates:

Historically, owners of Union Pacific have earned solid returns. According to longrundata.com, UNP has rewarded investors with a total return of 796% or 23.0% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the operational results that Union Pacific has delivered.

You can read the rest of the stock analysis of Union Pacific on Seeking Alpha.  Also you can check out the rest of my stock analysis reports here.

Saturday, May 9, 2015

Weekly Roundup - May 9, 2015

This past week has been pretty crazy and I'm glad I haven't gone back to work yet.  Each month we get a new doctor to be the attending, doctor in charge of Luke, and this past Monday they swapped again.  Since we had a new doctor coming on we expected the first week to be relatively uneventful even though we knew there was plenty to do to figure out the best route to take to keep Luke progressing.  So much for that though as Tuesday he had a CT scan and then Wednesday he was taken to the cath lab to close one of the pathways in his heart that should have closed on its own by now.  The real test of whether that was the right decision will come next week when they lift his paralysis, but so far so good.

There wasn't much news to report for my portfolio although I did close out one position of mine because it just didn't fit the narrative of my portfolio any longer.  Actually for a couple months now but I finally decided to close the position.  I have some plans for what to do with that capital but any suggestions are always welcomed.  As of now I'm looking at investing part of that capital into a REIT and then I'm not quite sure what else I'll invest in.  I hope to start getting more stock analyses written over the weekend, but that will definitely depend on whether I end up going back to work or not.  The start of a new job is always very hectic and throws my schedule out of whack for a couple days.

Friday, May 8, 2015

Recent Sell


Whenever I make a purchase for my portfolio my intention is to own the company forever.  However, every now and then a company will have a material change that warrants a reassessment of that company as an adequate investment.  Like everyone else I make mistakes with investing.  Just as I'm transparent about the purchases that I make, the sales are probably more valuable in the long run because they give more opportunities to reflect on our decisions and are a chance to learn.  I want to be as transparent as possible with my journey to reach financial independence through dividend growth investing. Being open about the moves I make allows for better discussion with all of you and helps spread ideas around as well as letting me create my own "investing journal" to chronicle why I purchased a company in the first place and that way I can revisit if something changes and make the decision on whether to continue owning the company or not.

Wednesday, May 6, 2015

Johnson & Johnson: Quality at a Reasonable Price

I mentioned in my annual dividend growth checkup that I was underweight the health care industry and was looking to increase my exposure there. I recently added shares of one health care giant, Becton, Dickinson & Company (NYSE:BDX) (Full Analysis Here), to my portfolio; however, there's another giant that is absolutely wonderful. Johnson & Johnson (NYSE:JNJ) recently announced a 7.1% dividend increase which would mark its 53rd consecutive increase, marking JNJ as a dividend champion. Johnson & Johnson closed trading on Friday, May 1st at $101.13, giving a current yield of 2.97%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from Johnson & Johnson's investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates:

Historically, owners of Johnson & Johnson have earned solid returns. According to longrundata.com, JNJ has rewarded investors with a total return of 196%, or 7.0% annualized returns, over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the operational results that Johnson & Johnson has delivered.
You can read the full analysis of Johnson & Johnson on Seeking Alpha.

Monday, May 4, 2015

Dividend Update - April 2015


It's the end of one month and the beginning of another so it's time for my favorite update: my dividend update.  These dividend updates reflect all dividends that I receive through my investing pursuits. I hope they can help inspire you to take control of your own finances and invest to build a passive income stream. What you use that stream for is up to you, whether it's to fund early retirement, just provide some FI/FU money, or even to provide for an annual vacation; the key is that it can provide options and open up all sorts of possibilities. You can check my dividend income or progress pages to see what dedication to an investment plan can give you.

Sunday, May 3, 2015

Recent Buy

Whenever I make a new purchase for my portfolio I feel it's only fair to get a post written giving all of the juicy details. I want to be as transparent as possible with my journey to reach financial independence through dividend growth investing. Being open about the moves I make allows for better discussion with all of you and helps spread ideas around as well as letting me create my own "investing journal" to chronicle why I purchased a company in the first place and that way I can revisit if something changes and make the decision on whether to continue owning the company or not.

I've had to slow down the pace of my investments over the last month because there's a whole lot in flux right now with our finances.  Starting in May I should be covering all of our expenses since my wife resigned early this year to be with our son while he's in the hospital.  So I've been trying to conserve more capital to help with the transition.  However, since I had sold some shares of HAL, my employer, I had some capital to invest back into some excellent dividend growth companies.  I mentioned in my dividend growth checkup that I wanted to increase my exposure to the health care industry.  I'm very bullish on the sector over the long term as the global population ages and also as a larger percentage of the emerging/developing markets' population moves to the middle class and demands better health care service.  That's two big tailwinds for the industry.

Saturday, May 2, 2015

Weekly Roundup - May 2, 2015

It's been great being off work for just over 2 weeks but I do have to admit that I'd like to get back to work as long as Luke is stable.  I actually ended up making two purchases this week which was the first ones in just over a month.  I was starting to have a bit of withdrawal.  The first purchase wasn't for the best valuation possible but I believe it's one of the best companies in the health care space.  Especially since I've seen how much they go through the company's products with just Luke.  I haven't gotten a post written up about the second purchase I made but I hope to get that out over the next few days.

One thing that I really want to get done this year is swapping my little place of the internet to a self hosted Wordpress blog and try and revamp things a bit.  There's just a lot more freedom going that route although there will be a bit of a learning curve.  I also would like to get a logo as well but unfortunately the creativity gene skipped me.  If anyone has any tips, tricks, ideas feel free to email me or leave them as a comment.  I know, this was a goal for last year too.  Ooops!  But there's no sense in dwelling on the past.

Friday, May 1, 2015

Recent Buy

Whenever I make a new purchase for my portfolio I feel it's only fair to get a post written giving all of the juicy details. I want to be as transparent as possible with my journey to reach financial independence through dividend growth investing. Being open about the moves I make allows for better discussion with all of you and helps spread ideas around as well as letting me create my own "investing journal" to chronicle why I purchased a company in the first place and that way I can revisit if something changes and make the decision on whether to continue owning the company or not.

I've had to slow down the pace of my investments over the last month because there's a whole lot in flux right now with our finances.  Starting in May I should be covering all of our expenses since my wife resigned early this year to be with our son while he's in the hospital.  So I've been trying to conserve more capital to help with the transition.  However, since I had sold some shares of HAL, my employer, I had some capital to invest back into some excellent dividend growth companies.

Dividend Growth Investing at Work - 2 More Increases

Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of the companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!

First up was IBM.  IBM had another disappointing round of earnings with their 12th consecutive quarter of revenue declines.  Although the cloud computing division saw solid improvement and on a currency neutral basis revenues were flat.  Dividend growth investors are being rewarded with a dividend increase.  And a big one at that!  IBM increased the quarterly payment from $1.10 to $1.30.  That's an excellent 18.2% increase.  I expected a much smaller raise this year while IBM continues its transformation from a hardware to software and service company.  I don't know about all of you but I've never once received an 18.2% increase from my employer.  Since I own 30.220 shares of IBM this will increase my forward dividends by $24.18.

Later in the week it was ExxonMobil's turn.  The decline in oil prices has been well documented but I think the oil majors will weather this storm just fine.  ExxonMobil rewarded shareholders with another dividend increase.  The quarterly dividend was raised from $0.69 to $0.73.  That's a 5.8% increase.  Unfortunately, raises this good are still hard to come by as well from an employer but they come quite regularly from excellent companies.  Since I own 52.744 shares of XOM this will increase my forward dividends by $8.44.

The two increases combined to raise my forward 12-month dividends by $32.62.  Based on my portfolio's current yield of 3.01% these increases are like I invested an extra $1,083.72 in capital.  Except I didn't.  Some of the companies that I own just decided to pay me more.  That's how you can eventually reach the crossover point where you dividends received exceed your expenses.

My FI Portfolio's forward-12 month dividends are up to $5,647.45 and including my Loyal3 portfolio's forward dividends of $55.98 brings my total taxable account forward dividends to $5,703.43.