Tag Archives: de

July 2014 Balance Sheet

Today I’ll be sharing my personal balance sheet, listing all of my assets and liabilities to figure out what my current net worth is. Tracking your net worth is a good exercise in my opinion since it provides you a quick snapshot of your financial life.

Overall July was an all right month, considering the high level of expenses that I had. Used up a lot of my cash reserves with apartment related expenses plus added to my position in Philip Morris (PM) toward the end of the month. Note: the +/- after each category total represents the change only from the prior month.

Assets

Emergency Fund: $4501.76 (+.38). Yay for interest! ;)

Cash Savings: $3903.13 (-976.40). Combining this amount with the increase in credit card debt accounted for all of my initial apartment costs-security deposit, first month’s rent, renter’s insurance, furniture, etc.

Roth IRA: $12867.82 (-301.82). Just following the ups and downs of the market for now as I maxed out the account with my purchase of Deere (DE) in June.

Brokerage: $12024.55 (+1172.71). Added to my position in Phillip Morris (PM).

Loyal3: $2414.25 (-65.43). No activity this month except for a small dividend check from Coca-Cola. Investing some cash here is one of my goals for August with both Coca-Cola and McDonald’s recently dipping into my price range.

Thrift Savings Plan: $1347.55 (+42.17). I started contributing a small portion of my paycheck to the TSP in March, splitting my contributions between a S&P 500 and a small-cap stock index fund. This is the one portfolio where I’m investing primarily for total return as these funds do not pay dividends. However, they do have some of the lowest expense ratios you can fund in a retirement plan.

Auto Worth: $4985.00 (-313.00). The value of my ‘ole Chevy sedan continues to slowly decline as to be expected. The only reason I include it here is that is is the one non-financial “asset” that if I ever needed to sell, could probably get close to its market value. Also a nice reminder each month to not think of cars as an investment.

Assets Total: $42,044.06 (-441.39).

Liabilities

Credit Cards: $987.61 (+894.48). As I never carry a balance on my cards and the billing cycles ends in the middle of each month, this is simply my current balance at the end of the month. Like a lot of personal finance bloggers, I’m only in it for the rewards! ;)

Net Worth: $41,056.45 (-1335.87). First month over month loss since I started tracking this back in January which was to be expected considering all of the expenses I had planned for July. Depending on the markets, I plan on getting back to positive increases here in August.

 

Disclosure: I am long DE, PM, MCD, and KO.

How was your July for finances? Do you track your net worth and if so, are there any other items you track? Share below with a comment and thanks for reading!

 

June 2014 Balance Sheet

Today I’ll be sharing my personal balance sheet, listing all of my assets and liabilities to figure out what my current net worth is. Tracking your net worth is a good exercise in my opinion since it provides you a quick snapshot of your financial life.

Overall June was a solid month, continuing to increase my net worth by more than the amount I’m saving each month. Just shows you what happens when you use your money to buy cash producing assets. Note: the +/- after each category total represents the change only from the prior month.

Assets

Emergency Fund: $4501.38 (.37). Yay for interest! 😉

Cash Savings: $4854.53 (-1277.72). One large order of Deere stock will do that for ya. The majority of the rest is set aside for all the up-front expenses moving off-base will incur: security deposit, furniture, etc.

Roth IRA: $13,169.64 (+2476.72). Added 23 shares of Deere (DE).

Brokerage: $10,851.84 (+243.49). Just following the ups and downs of the market at this point. With my Roth now maxed out for the year, I’ll start adding to this account once again.

Loyal3: $2479.68 (+451.12). Added to my position in Target (TGT) and opened a new one in Dr. Pepper Snapple (DPS).

Thrift Savings Plan: $1305.38 (+128.53). I started contributing a small portion of my paycheck to the TSP in March, splitting my contributions between a S&P 500 and a small-cap stock index fund. This is the one portfolio where I’m investing primarily for total return as these funds do not pay dividends. However, they do have some of the lowest expense ratios you can fund in a retirement plan.

Auto Worth: $5298.00 (-418). I guess the market or Kelly Blue Book anyways doesn’t like 10 year old Chevy’s. The only reason I include it here is that is is the one non-financial “asset” that if I ever needed to sell, could probably get close to its market value. Also a nice reminder each month to not think of cars as an investment.

Assets Total: $42,485.45 (+1604.51).

Liabilities

Credit Cards: $93.13 (-131.08). As I never carry a balance on my cards and the billing cycles ends in the middle of each month, this is simply my current balance at the end of the month. Like a lot of personal finance bloggers, I’m only in it for the rewards! 😉

Net Worth: $42,392.32 (+1735.59). Back on track after an expense heavy May ate into my returns.

 

Disclosure: I am long DE, TGT, and DPS.

How was your June for finances? Do you track your net worth and if so, are there any other items you track? Share below with a comment and thanks for reading!

 

 

Monthly Investing Recaps: June 2014

At the start of each month I detail all the buy/sell activity here for each of my 3 individual stock portfolios: Loyal3, Roth IRA, and Taxable Brokerage accounts. It’s just one way I am chronicling my journey to financial independence here at Starting From Zero.

In addition to these 3 accounts, I also continued investing in my Thrift Savings Plan (TSP) again this month. Right now I’m contributing 4% of my base pay but may adjust this in the future. The majority of my investing will still be in my taxable and Roth accounts. The TSP is basically a 401k plan for federal employees including the military. It only offers index funds but does have probably the lowest expense ratios around, even lower than Vanguard. Right now I’m putting my contributions in the C Fund which mirrors the S&P 500 and the S Fund which is a small cap index fund. Since these deposits typically take a while to reach my account, I won’t be detailing those transactions here.

After not investing any new funds in May, I pooled all the cash I had and made one final purchase for my Roth IRA for the year and used the excess to make some smaller purchases through Loyal3.

Loyal3 Account

Buys

3.43 shares of Target (TGT) @ $58.31 per share.

3.3624 shares of Dr. Pepper Snapple (DPS) @ $59.48 per share.

Sells

None.

Quick Hits: With Target continuing to trade at an attractive long-term entry point and recently announcing a 20.9% dividend increase, this dividend champion was a no-brainer to add to.

Dr. Pepper is a new position for my portfolio. DPS is a manufacturer and distributor of non-alcoholic beverages that are sold in the United States, Canada, and Mexico. The company’s brands include its flagship Dr. Pepper and Snapple drinks, Sunkist soda, 7UP, A&W, Canada Dry, Crush soda, Hawiian Punch, Mott’s, Schweppes, and my personal favorite as a kid, Yoohoo. Unlike its main competitors, Coca-Cola and Pepsi, both of which are trading at P/E’s of 19+, Dr. Pepper’s P/E comes in at 17.5 with a forward P/E of 15.2, both of which are less than the S&P 500′s current and forward P/E ratios of 18.3 and 17 respectively. Although they have only been growing their dividend for 5 years, the stock does sport dividend growth rates of 10.4% for the past year, and 22.8% average for the last three years while still keeping the payout ratio at 47%.

Roth IRA

Buys

23 shares of Deere (DE) @ $91.80 per share.

Sells

None.

Quick Hits: Deere is another new position for my portfolio and one I’ve been looking to add for a while now. Growing up in a rural town and with plenty of farmers and other users of Deere tractors and equipment in my family, I guess I have a soft spot for the stock. Although earnings are expected to decrease in the coming few years, I like the long-term growth story of this company which is summed up nicely at their investor page. After keeping their dividend static for five quarters, Deere recently announced a 17.6% increase, bringing the quarterly payout up to $0.60 from $0.51. Sweet. :) Even after the recent run-up in price the stock continues to trade at an attractive valuation with a P/E of just 9.9.

Taxable Brokerage

No activity this month.

 

Full Disclosure: I am long TGT, DPS, DE, and KO. This post is not intended to be a buy or sell recommendation for any stock mentioned and is intended for educational/entertainment purposes only.

How was your June for investing? What do you think of my stock picks this month? Share with a comment below and thank you for reading!

Mulling Over Investment Options

After not investing any new capital in May for a variety of reasons, I’ve now built up a decent little stash of cash ready to be deployed into quality dividend growth stocks that will provide me with a reliable source of passive income going forward.

So what to buy? Looking over my watch list, I struggled to come up with any ideas for a while. Seems like the majority of them are overvalued. Can we please just have a market correction already? 😉

But I figured I’d find some candidates eventually and after going through my list again and looking at other blogs and investing sites, this is what I came up with.

J. M. Smucker Company (SJM)-This dividend contender with 16 years of dividend growth was founded in 1897 and operates in the consumer staples sector. Although a name like Smucker makes you think of grape jelly, the J.M. Smucker Company’s largest business segment is in the brew at home coffee industry which was bolstered by their acquisition of the Folger’s brand in 2008. Smucker is the market leader in the brew at home coffee industry here in the United States and also holds the number one brand in the $2 billion a year peanut butter industry, Jif. Coffee makes up 48% of sales, which is way ahead of their number two product, peanut butter, at 13%. The company’s namesake fruit spreads only account for 6% of all product sales as of 2013, but are the market leader in that category.

Although not undervalued by any means, I think the stock is trading at fair/possibly slightly overvalued price right now with a current P/E of 19.5 and a forward P/E of 16.8. Looking back over the last ten years, SJM has traded between a P/E of 11.45 and 23.95.

Dr. Pepper Snapple Group (DPS)Thanks to Brian over at Dividend Mongrel for giving me this idea. DPS is a manufacturer and distributor of non-alcoholic beverages that are sold in the United States, Canada, and Mexico. The company’s brands include its flagship Dr. Pepper and Snapple drinks, Sunkist soda, 7UP, A&W, Canada Dry, Crush soda, Hawiian Punch, Mott’s, Schweppes, and my personal favorite as a kid, Yoohoo. Unlike its main competitors, Coca-Cola and Pepsi, both of which are trading at P/E’s of 19+, Dr. Pepper’s P/E comes in at 17.5 with a forward P/E of 15.2, both of which are less than the S&P 500’s current and forward P/E ratios of 18.3 and 17 respectively. Although they have only been growing their dividend for 5 years, the stock does sport dividend growth rates of 10.4% for the past year, and 22.8% average for the last three years while still keeping the payout ratio at 47%. While their current P/E of 17.5 is above their 5 year average of 14.9 since being spun off from Cadbury in 2008, I think we have to take in to account that the P/E stood at a low of 13.01 at year end 2009 due to the recession and bear market which skews the average.

Exxon Mobil (XOM)-I remember reading on The Conservative Income Investor a while back something to the effect of, when in doubt buy Exxon stock. 😉 In all seriousness though, the global oil giant and dividend champion is currently trading at a P/E of 13.9 with a forward P/E of 13.2. What most attracts me to a potential buy of Exxon right now though is the PEG ratio is currently at .9. The PEG, which was popularized by Peter Lynch compares the P/E ratio of a company to its growth rate. A PEG of 1 which is considered fair value by most investors indicates a stock is selling at a P/E equal to its growth rate. Exxon appears slightly undervalued here going by that metric. While not the flashiest of stock picks, Exxon has been and should continue to make for a great long-term dividend growth investment.

Deere & Company (DE)-Another stock that looks undervalued based on the PEG ratio. Although earnings are expected to decrease in the coming few years, I like the long-term growth story of this company which is summed up nicely at their investor page. After keeping their dividend static for five quarters, Deere recently announced a 17.6% increase, bringing the quarterly payout up to $0.60 from $0.51. Sweet. 🙂 Even after the recent run-up in price the stock continues to trade at an attractive valuation with a P/E of just 9.9.

And for some stocks I already own that I would consider adding to at current levels.

Target (TGT)-The dividend champion with 47 years of dividend growth continues to trade at a depressed share price due to the fallout from their data breach and difficult roll-out in Canada. After a very impressive 20.9% increase to their dividend announced last week, shares now trade at with a froward yield of 3.66%.

Visa (V)-Even though shares have run up a bit since my first purchase in April, the company is still trading at an attractive valuation, in my opinion, for those seeking to open a long-term position.

Disclosure: I am long TGT, V, and may initiate a long position in SJM, DPS, XOM, and DE in the coming weeks. Please my portfolio page for a full list of my holdings.

What do you think of these stocks? Are there any others you are looking to buy right now?