Tag Archives: loyal3

Monthly Dividend Income: October 2014

My favorite post to write each month. :) This is when I get to share all my dividend income for the previous month. These dividends are what I’ll eventually use to live off of when I become financially independent.

I share these figures along with monthly income/expenses to not only track my progress towards financial independence but also to hopefully show others that it is possible to get started with dividend growth investing with a low income. The hardest part is weathering the first few years of small dividend payments and allow the compounding snowball to get rolling.

Here is October’s dividend income from my 3 stock investment accounts: Roth IRA, Loyal3, and Taxable Brokerage. I automatically reinvest all dividends in my Roth and taxable brokerage and selectively reinvest dividends, combining them with fresh capital every month or two, in the Loyal3 account. Note: I recently made the switch to dripping all dividends in my taxable account but due to a broker error, the change didn’t end up taking effect until the beginning of November. Mostly my fault, as I didn’t monitor my portfolio too closely over the month of October.

Roth IRA

Coca-Cola (KO): $4.40-reinvested into .105 shares @ $41.91 per share.

Realty Income (O): $2.89-reinvested into .067 shares @ $42.89 per share.

General Electric (GE): $5.91-reinvested into .233 shares @ $25.38 per share.

Loyal3

Coca-Cola (KO): $8.08

Dr. Pepper Snapple (DPS): $1.38

Taxable Brokerage

Altria (MO): $3.64

Phillip Morris (PM): $22.00

Realty Income (O): $19.96

General Electric (GE): $1.76

October Total: $70.02. As expected, October was a lighter month for dividend income but still managed to increase the amount over last October from $23.99. With two months left in 2014, I’ve now received $696.43 in dividend income and estimated forward 12 month dividends now stands at $1,131.29.

 

Full Disclosure: I am long all stocks mentioned. This post is not intended to be a buy or sell recommendation for any stock mentioned and is for entertainment/educational uses only.

How was your October for dividend income (or portfolio gains for any growth investors)? Share below with a comment and thanks for reading!

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!

 

Monthly Dividend Income: July 2014

My favorite post to write each month. 🙂 This is when I get to share all my dividend income for the previous month. These dividends are what I’ll eventually use to live off of when I become financially independent.

I share these figures along with monthly income/expenses to not only track my progress towards financial independence but also to hopefully show others that it is possible to get started with dividend growth investing with a low income. The hardest part is weathering the first few years of small dividend payments and allow the compounding snowball to get rolling.

Here is July’s dividend income from my 3 stock investment accounts: Roth IRA, Loyal3, and Taxable Brokerage. I automatically reinvest all dividends in my Roth and selectively reinvest dividends, combining them with fresh capital every month or two, in my other accounts.

Roth IRA

Coca-Cola (KO): $4.37-reinvested into .103 shares @ $42.25 per share.

Realty Income (O): $2.85-reinvested into .062 shares @ $45.49 per share.

General Electric (GE): $5.86-reinvested into .226 shares @ $25.88 per share.

Loyal3

Coca-Cola (KO): $7.31

Taxable Brokerage

Altria (MO): $3.36

Phillip Morris (PM): $5.64

Realty Income (O): $19.92

General Electric (GE): $1.76

July Total: $51.07. As expected July came in a little light compared to previous months. With seven months down I’ve now earned $439.00 so far this year.

 

Full Disclosure: I am long KO, O, GE, MO, and PM. This post is not intended to be a buy or sell recommendation for any stock mentioned and is for entertainment/educational uses only.

How was your July for dividend income (or portfolio gains for any growth investors)? Share below with a comment and thanks for reading!

Monthly Dividend Income: June 2014

My favorite post to write each month. 🙂 This is when I get to share all my dividend income for the previous month. These dividends are what I’ll eventually use to live off of when I become financially independent.

I share these figures along with monthly income/expenses to not only track my progress towards financial independence but also to hopefully show others that it is possible to get started with dividend growth investing with a low income. The hardest part is weathering the first few years of small dividend payments and allow the compounding snowball to get rolling.

Here is June’s dividend income from my 3 stock investment accounts: Roth IRA, Loyal3, and Taxable Brokerage. I automatically reinvest all dividends in my Roth and selectively reinvest dividends, combining them with fresh capital every month or two, in my other accounts.

Roth IRA

Aflac (AFL): $8.14-reinvested into .132 shares @ $61.33 per share.

Visa (V): $2.80-reinvested into .013 shares @ $211.80 per share.

Chevron (CVX): $10.97-reinvested into .087 shares @ $124.77 per share.

Realty Income (O): $2.84-reinvested into .065 shares @ $43.67 per share.

Royal Dutch Shell Class B and Class A (RDSB and RDSA): $13.51-reinvested into .171 shares of RDSA @ $78.90 per share.

Loyal3

Target (TGT): $5.55

McDonald’s (MCD): $2.51

Taxable Brokerage

Wal-Mart (WMT): $0.96

Chevron (CVX): $5.35

IBM (IBM): $9.90

Target (TGT): $0.86

Realty Income (O): $19.89

BP (BP): $9.95

June Total: $93.23. Getting so close to that $100 mark! Maybe in September when all these companies pay out again. 😉 At the half-way mark of the year I’ve now earned $387.93 for the year.

 

Full Disclosure: I am long WMT, CVX, IBM, TGT, O, BP, AFL, V, RDSB, RDSA, and MCD. This post is not intended to be a buy or sell recommendation for any stock mentioned and is for entertainment/educational uses only.

How was your June for dividend income (or portfolio gains for any growth investors)? 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!

Sunday Morning Reading: July 6, 2014

Good morning! I hope all of you had a good week and are enjoying the holiday weekend.

Things have been pretty busy here over the last few weeks as I have spent most of my time looking for apartments downtown as I get closer to moving out of the dorms here on base. Good news is I managed to find one at the end of this week that is both fairly close to work and reasonably priced so that I can hopefully continue to maintain a high savings rate.

And now on to some of my favorite posts from around the web that I’ve read recently.

Fortunes Are Built By Being Exceptional In One of Three Ways by The Conservative Income Investor. Great post by Tim detailing 3 of the main ways to build long-term wealth through stock investing. With an investment in Visa, a relatively high savings rate (percentage wise), and a long-term horizon before early retirement, my strategy has elements of all 3 but Way #2 is what I hope will ultimately allow me to retire early.

Can everyone achieve financial independence with Dividend Paying Stocks? by Dividend Growth Investor. DGI provides a good overview of how to be successful with dividend growth investing. The first step of spending less than you earn and living within your means is a very important one and shouldn’t be overlooked when considering investing. This ties directly in with Way #2 in Tim’s article above.

Growth Update: June 2014 by My Dividend Growth. Ryan shares his portfolio progress for the month of June. With only half of the year complete he has already almost hit his goal of $17,500 in new funds invested. That’s like maxing out your 401k in 6 months! Awesome stuff.

Long Term Mindset Portfolio-Purchase 008-Mastercard by Long Term Mindset. Brian shares his latest portfolio purchase of Mastercard and provides an analysis of the stock. As a big fan of Visa, I may have to take a look at MA next. Similar to Visa, Mastercard has high margins and plenty of room to grow. Although a low yielder, MA does have the potential to offer very large dividend increases going forward as well as large capital gains.

Ten Spot Friday-3 Reasons For Wal-Mart (WMT) by Dear Dividend. DD gives an overview of why he thinks Wal-Mart is a good investment at current levels and why he will be using Loyal3 to buy some stock. After putting money into Target over the last 6 months through Loyal3 I may take a look at Wal-Mart for a purchase later this summer.

Sporting World Dividend Investing by DivHut. Keith continues his series of dividend growth stocks with a look at companies in the sporting goods industry. As a fan of Peter Lynch’s philosophy of buying what you know, Nike has always intrigued me as a potential dividend growth investment. Although as Keith points out, the stock has run up quite a bit here with a P/E of 26 and forward P/E of 22. On the other end of the valuation spectrum is Dick’s Sporting Goods (DKS) which a P/E of only 16.6. I’m familiar with the company after frequenting their stores a lot while growing up on the east coast so I’ll have to take a look at DKS as well.

Financial Books Everyone Should Read by Julie @ Millennial Cents. Julie shares 6 financial books to put on your reading list for the summer. Great picks for anyone interested in personal finance. To her list I’d add Rich Dad, Poor Dad and The Single Best Investment as two books I really enjoyed and think those starting out with investing and in particular dividend growth investing should read.

Hope you enjoyed these posts from around the blogging world. Have a great week everyone!

Disclosure: I am long Visa (V) and Wal-Mart (WMT).

Monthly Dividend Income: May 2014

My favorite post to write each month. 🙂 This is when I get to share all my dividend income for the previous month. These dividends are what I’ll eventually use to live off of when I become financially independent.

I share these figures along with monthly income/expenses to not only track my progress towards financial independence but also to hopefully show others that it is possible to get started with dividend growth investing with a low income. The hardest part is weathering the first few years of small dividend payments and allow the compounding snowball to get rolling.

Here is May’s dividend income from my 3 stock investment accounts: Roth IRA, Loyal3, and Taxable Brokerage. I automatically reinvest all dividends in my Roth and selectively reinvest dividends, combining them with fresh capital every month or two, in my other accounts.

Roth IRA

AT&T (T): $12.28-reinvested into .344 shares @ $35.67 per share.

Apple (AAPL): $6.75-reinvested into .011 shares @ $592.23 per share.

Realty Income (O): $2.82-reinvested into .065 shares @ $43.01 per share.

Kinder Morgan Inc.: $13.86-reinvested into .415 shares @ $33.36 per share.

Loyal3

No dividends this month.

Taxable Brokerage

AT&T (T): $18.86

Realty Income (O): $19.89

May Total: $74.46. A new monthly high! 🙂 Just by a couple bucks, beating March’s numbers. With 5 months down I’ve now received $294.70 for the year. I can probably now safely say I won’t be hitting my goal of $1000 in dividends this year but with projected annual dividends approaching 1k, I should be able to reach that figure for sure next year. Oh, well, as long as I am making progress. 😉

 

Full Disclosure: I am long T, AAPL, O, and KMI. This post is not intended to be a buy or sell recommendation on any stock mentioned and is designed to be used for educational/entertainment purposes only. Only you are responsible for your investing and I always encourage you to conduct your own research prior to investing. Please see mydisclaimer page for more information.

How was your May for dividend income (or portfolio gains for any growth investors)? Do you have any dividend income goals you are trying to reach this year?

Credit/Debit Card Policy Change for Loyal3

Good evening everybody! Sitting here watching the NFL draft (come on Bill, we need a TE for my Patriots 😉 ) and I saw the following e-mail pop up on my cell. Since it relates to investing here on the blog, I figured I’d share it with all of you.

CaptureIf you’ve been reading me for a while here, you’ll know I’m a fan of Loyal3’s commission free brokerage service. Since January, I’ve been using it to dollar cost average into positions in Coca-Cola (KO), Target (TGT), and McDonald’s (MCD). This e-mail highlights a policy change regarding using credit/debit cards for purchasing stock which has been one of the nice perks with this service. With no commissions, if you use a credit card you can literally be paid to buy stock with cash back rewards.

So now you’ll be limited to only buying stock with a credit/debit card in the amounts of $10, $25, and $50 which have always been the default options on the site with previously an option to set your own amount. Since I usually make buys in purchases above $50 and always use my credit card to harvest those cash back rewards, I guess I’ll now have to make those buys in smaller batches. Since it looks like you’ll still be allowed to buy more with a card, you’ll just need to split up your purchases into amounts of $50 (or $10/$25). The $2500 maximum total investment each month will still be in place.

I asked a Loyal3 rep through their chat feature on their site and they said making multiple small purchases of those preset amounts will be allowed. However they recommend you waiting at least a few minutes in between placing orders so the system doesn’t think the same order is being sent multiple times.

Kind of a pain, and not really sure why they would made the switch, but I’ll still continue to use them as long as the trades remain commission free. Still one of the better brokerages to slowly build up a dividend growth portfolio.

What do you think of Loyal3’s new policy? Will this affect your use of the service?

 

Loyal3 Dividends

One of the more popular google search terms that have led readers to my site lately has been loyal3 dividends. I’m guessing people are asking what happens to dividends you receive from stocks you hold in your Loyal3 account. This isn’t made very clear on Loyal3’s website and it was something that I too wondered about until I received my first dividend recently.

Dividends received are collected in your cash account, which is the “Available Funds” portion on your account overview page. They are not automatically reinvested but with the $10 minimum purchase you could easily set an order to pick up some more fractional shares if your dividends total at least $10.

When you go to make a new purchase using your credit/debit card Loyal3 will automatically use the cash collected in your account from dividends first and then charge the rest from your card. For example if you have $5 in dividends in your cash account and you put in a order using your credit card for $100 of McDonald’s stock, the cash will be applied to the order and you will be charged $95 on your card.

You can also transfer funds out of your “Available Funds” to your checking account if you have it linked to your Loyal3 account if you want to spend your dividends or put them into a different account. You can also use this option to add money to your “Available Funds” if you don’t want to use your credit card. Personally I prefer to use a credit card so I can get cash back rewards for all of my purchases. With no commissions or fees to buy stock through Loyal3, it’s like getting paid to buy stocks. Awesome deal, right? 😉

Hope this helps!

Disclosure: I am long McDonald’s.

Updating My Potential Buy List: April 2014

Good morning fellow dividend growth investors and personal finance enthusiasts!

Today I’m reviewing some of the stocks on my potential buy list. I recently got my tax refund back so it’s time to go shopping for stocks. 🙂

I’ve broken the list down into two parts, stocks that I already own and would like to add more to, and stocks that would be new additions to my portfolio.

First off, the stocks I currently own and would consider adding to.

Coca-Cola (KO)-As long as KO trades at less than $40 a share, I plan on continuing to dollar cost average using my commission free Loyal3 account.

General Electric (GE)-With a P/E of 17.3 I think GE is trading at fair value and I’d like to add more to position in the stock. With an increased focus on returning to its industrial roots and reducing the size and spinning off portions of its financial arm the company looks to be returning to its former dividend growth blue chip status.

McDonald’s (MCD)-Although shares have popped a little since my last purchase, I’d like to add more on a pullback as I have just a small position. While MCD doesn’t have as much of a margin of safety in the share price as I’d normally like, with a very long-term investing horizon, I feel comfortable paying up a little for a quality stock as I detailed here.

Philip Morris (PM)-Even though the price has rebounded a bit since my last Buy List post, the international tobacco giant continues to trade well below its 52 week highs and currently yields 4.5% at today’s levels.

Target (TGT)-This stock continues to be punished after a weak roll-out in Canada and the data breach during the last holiday shopping season. Like KO, I plan on continuing to dollar cost average into this stock using Loyal3.

Now for stocks that would be new additions to  my portfolio.

Aflac (AFL)-The insurance dividend champion continues to trade at an attractive valuation with a current P/E of just 9.1. With its strong dividend growth rates AFL should make a great long-term holding and also give me some exposure to the financial sector since I recently sold my shares in Powershares Financial Preferred ETF (PGF).

General Mills (GIS)-Man, I so wish I had just bought this when I was starting out and it was trading in the low 40’s. I’m still waiting for a slight pull back before initiating a position as the diversified food company continues to trade at a premium to its historic P/E but with a long-term investing horizon I may consider adding it if it dips below $50.

Kinder Morgan Management (KMR)-I recently purchased KMI in my Roth IRA last month. Rather than adding more to this position I was thinking of adding Kinder Morgan Management. KMR provides a similar yield to Kinder Morgan Partners (KMP), the master limited partnership, and issues stock dividends so you don’t have to worry about dealing with a K-1 come tax time. Once you decide to sell your position, you are given a 1099 just like with regular dividend growth stocks. Since it is structured as an LLC C-Corp it can be held in a retirement account so I’m thinking of adding this to my Roth to shield those future capital gains.

Visa (V)-Wait, what? Isn’t Visa a growth stock, I thought you were a dividend growth investor? 😉 With its low yield (currently less than 1%), it’s easy to look at V as only a growth stock and forget that it now has a 7 year history of raising dividends and a very impressive dividend growth rate as well. It currently sports dividend growth rates of: 40.4% for 1 year, 38.3% for 3 year, and 45.9% for its 5 year average. With shares pulling back below $200 a share recently, off from a 52 week high of $235, Visa looks attractively valued at today’s levels for starting a long-term position.

Full Disclosure: I am long KO, GE, KMI, MCD, PM, TGT, and may initiate long positions in AFL, GIS, KMR, and V over the coming weeks. For a full list of all my holding please visit my portfolio page. As always don’t take anything I post here as a buy or sell recommendation and I highly encourage you to do your own research before investing.

What do you think of these stocks? Do you hold any of these in your portfolio or looking to add them? Let me know in the comments! 🙂