Wednesday, April 18, 2018

Recent Buy: Dominion Energy (D)

The second purchase I made this month came right after the first. The market has been volatile, but the most important thing is getting money into the market as often and as fast as you can. There is no point waiting days or even months to try and see if the market will go lower. I try to find stocks that are undervalued or that I think are a good value relative to the market. You can always find value in the market even when it was at all time highs. It may have been harder, but there were still good buys out there. 

On April 6th, I was able to buy 15 shares of Dominion Energy Inc. (D) for $66.90 a share. This adds $50.10 of yearly dividend income to my portfolio! 

Some quick facts about Dominion Energy:
  • EPS of 3.38
  • P/E of 19.45
  • Current yield of 5.08%
  • EPS growth as follows
    • 1 year - -1.9%
    • 3 year - 14.6%
    • 5 year - 6.3%
  • Dividend growth rate as follows
    • 3 year - 8.1%
    • 5 year - 7.5%
    • 10 year - 7.6%
  •  Dividend payout ratio at 89%
The utilities sector has gotten hit hard recently with many names performing very poorly this year. However, all of these companies boast generous dividend yields and will be fine in the long term. I'm actually a customer of dominion energy in northern Virginia. They serve a large number of customers in northern Virginia and will continue to do so going forward. This area is growing rapidly and their business will continue to grow. I don't see any competitors taking over the space anytime soon. 

This was probably my last purchase until June, but I'll keep you guys posted. 

Let me know what you guys think! What have you guys been purchasing?

Tuesday, April 17, 2018

Recent Buy: 3M Company (MMM)

I've made two purchases this month to conclude all my purchasing for the month. I was able to continue to take advantage of market weakness and get shares at a discount! This company has been on my radar for a long time now and I was happy that the market weakness offered a good opportunity to get my hands on it. Every buy is on step closer to financial freedom and it feels absolutely amazing. I look forward to purchasing more and more stock as I know it will get me closer and closer to that sweet freedom. 

On April 2nd I was able to buy 5 shares of 3M Company (MMM) for $210.70 a share. This adds $27.20 of yearly dividend income to my portfolio!

Some quick facts about 3M Company: 
  • EPS of 9.17
  • P/E of 23
  • Current yield of 2.50%
  • EPS growth as follows
    • 1 year - 12.4%
    • 3 year - 7%
    • 5 year - 7.7%
  • Dividend growth rate as follows
    • 3 year - 11.2%
    • 5 year - 14.8%
    • 10 year - 9.4%
  •  Dividend payout ratio at 59%
This is a tremendous company that makes a ton of different products. I'm really happy with this purchase and the ability to add a high quality dividend growth company at a discount. As I write this the stock is already up 4% since I bought it. Now, again I don't really care about price as long as the dividend grows and is a good rate relative to the price. 

Let me know what you guys think! What have you been buying this month?

Wednesday, April 11, 2018

Dividend Income Update - March 2018

I have to apologize as I have been very busy with work and life this past month and it has been very hard to find time to write about my dividend progress. Nevertheless I want to continue writing and posting to try and help others achieve financial freedom. While the market continues to be volatile I continue to buy shares of high quality dividend growth companies.

March was my best month ever in terms of dividend income. It was truly incredible that in only 3 years time I've able to record nearly $500 in one month from dividend income. That number IS a tangible number that can help pay bills or for now simply reinvest in the market!

The companies that paid me this month are as follows:


This month I received $494.40 in dividend income! 

This is up from $331.44 for March, 2017. 

This represents a 49.17% increase year over year!

This was truly an incredible month and I'm already looking at close to $550-600 for June! Again, this only took me 3-4 years to achieve and it is incredible the power of dividend growth investing! I can't wait to see where the numbers are in a few years! 

I've already added two stocks in April which I'll write posts about, but that will most likely conclude my buying for this month. The market has been super volatile lately, but all investors should have patience and be happy that you can buy shares at a discount. There are a lot of stocks out there that are at year lows that are sporting generous dividends! 

How did you guys do in March? Let me know!

Friday, April 6, 2018

Portfolio Update - March 2018

I haven't been able to update this blog as I'd like as work has been super busy lately and I haven't had much time to write. I'm still following dividend stocks and actively investing though! This is just another reason why I want to reach financial freedom as early as I can. Having to worry about the stress of work and not having time to do other things like write blog posts is really not ideal. 

With that being said, March was another brutal month for investors and for me as well. I own a lot of Facebook and they got hit hard because of the privacy scandal. I believe they will be fine long term though and think it presents a good opportunity for anyone looking for a non-dividend stock to purchase. They have no competition and have an incredible user base. They also have many other apps that are very popular. 

This March I saw my portfolio value decrease $4,203.54 or -2.15%

It's not fun to see your money go down, but this just presents a good buying opportunity if you have capital to invest. I'm in this for the long term and I will rarely ever sell any stocks so the short term noise does not concern me! As stock prices decrease, dividend yields increase! This means my money is earning me even more while the market is down. 

I was able to make two purchases this month during days that the market was down. On March 7th, 2018 I was able to purchase 14 shares of Exxon Mobil (XOM) at $73.90 a share. This stock has been beaten up lately and I think this is an excellent price for the company. On March 8th, I was able to purchase 6 shares of Home Depot (HD) at $176.80 a share. Again, the market was down and I've wanted to Home Depot for a very long time. They are an excellent dividend growth company and I'm happy to join the team. Overall this added a total of $67.84 of dividends to my annual dividend income. The snowball keeps growing!

This was my 2nd month ever that my portfolio value decreased in a month. I'm not worried since I'm here for the long haul and this just presents great buying opportunities. I'm going to be able to buy another two times in April and hope the market continues to stay lower since the dividend yields are propped up! 

Let me know what you guys think! How did you guys do in March?

Wednesday, March 14, 2018

Recent Buy: Home Depot Inc. (HD)

I knew I was going to be able to make at least two purchases this month, but I wasn't sure when that would be. Well because of continued market turbulence, it was relatively early in the month. It's just too good of an opportunity to pass when the market  takes a dip. When the market goes down it provides two excellent opportunities. The first opportunity is that the dividend yields all go up. The second opportunity is that the return on principal is much greater. I'm a long term investor so I'm not too worried about the price of a stock as long as it continues to pay and raise dividends. 

However, being able to buy a stock at a discount will provide me a margin of safety in the future. 

If the stock doesn't perform well and I need to sell, then I won't have lost as much. Perhaps I won't lose anything and come out even all because I was able to buy at a discount in the first place. Long term investors should welcome market weakness with open arms. Unless it is the apocalypse or world war 3 there really shouldn't be cause for concern. The market will go back up and if you are able to take advantage of the weakness then your money will do twice as well once it does. 

On March 8th I was able to buy 6 shares of Home Depot Inc. (HD) at $176.80 a share. This adds $24.72 of yearly dividend income to my portfolio!

Some quick facts about Home Depot:
  • EPS of 7.39
  • P/E of 24
  • Current yield of 2.33%
  • EPS growth as follows
    • 1 year - 14.7%
    • 3 year - 16.2%
    • 5 year - 19.8%
  • Revenue growth as follows
    • 1 year - 6.7%
    • 3 year - 6.7%
    • 5 year - 6.2%
  • Dividend growth rate as follows
    • 3 year - 23.7%
    • 5 year - 25.1%
    • 10 year - 14.7%
  •  Dividend payout ratio at 55%

Even with such a mature company, Home Depot has continued to grow at an impressive rate. Their dividend has also grown with it as well and there is plenty of room for it to continue to grow in the future. 

Home Depot has been on my list forever and it rarely ever takes a dip to allow for a buying opportunity. This is an incredible company with staying power. They provide essential products for home improvement. They are the world's largest home improvement retailer. If you need to do any work on your house or apartment where do you go? You could order items on Amazon, but what if you needed it right away? Companies and contractors building and remodeling homes can't afford to wait for products to ship even if its a day or two. They also sell a lot of large items that would be too expensive to ship.

A company like this is not going away anytime soon. Building/remodeling homes is an incredible industry that will be around for a long time. 

Let me know what you guys think! What have you been able to buy with recent market weakness?

Friday, March 9, 2018

Recent Buy: Exxon Mobil (XOM)

I've been able to continue to take advantage of market weakness and sector weakness as well. It's hard to say that I want the market to go down, but it really benefits one long term when it does. Price and yield are inversely correlated so if the market goes down all the dividend yields go up. This means my money is worth more and will earn me more dividend income. I've been able to save up some money this month and will be able to purchase stock at least two times.

My first purchase this month was 14 shares of Exxon Mobil (XOM) at $73.90 a share. This adds $43.12 to my yearly dividend income!

I have been watching Exxon fall for quite some time now and figured I had to pick up some more. Exxon is the largest of the world's big oil companies. This is a great company making tons of money off a vital resource that will be around for awhile. Alternative energy is coming, but it is going to take awhile before we are able to completely switch off of oil. Also, Exxon will have the resources to easily switch into another energy solution if need be. 

Exxon is now one of my larger positions at 51 shares. I really don't think you can go wrong with such a great company. Their price has been hit hard lately, but they will eventually recover. It is hard to find such great companies paying you a 4% yield so I had to pick up some more. 

Some quick facts about Exxon:
  • This is a company with revenues of $237 billion in 2017 and an estimated $298 billion in 2018
  • EPS of 3.23 (They have been hurt by the price of oil, but they are slowly recovering)
  • Dividend Yield of 4.15%
  • 3 year dividend growth rate of 4.3%
  • 5 year dividend growth rate of 7.0%
  • 10 year dividend growth rate of 8.4%
  • P/E of 22.91
Now their dividend growth rate may not be stellar over the next year or two, but the current yield will make up for that at this point. 

They will continue to increase their efficiency and remain one of the largest companies in the world. Oil is not going away anytime soon and even if it does they will be well suited to switch to the next energy resource. 

Let me know what you guys think! What have you guys been buying?

Thursday, March 1, 2018

Portfolio Update - February 2018

February was a brutal month for investors and even as I write this post the market continues its trend downward. However, I'm a long term investor and this is just short term noise. It actually prevents some great buying opportunities and I don't mind when the market is down. If I can invest during periods of weakness then I can increase my purchasing power. 

This will all lead to me being able to retire even earlier than expected. I welcome market weakness because I don't plan on selling stocks and dividends and price are inversely correlated. When the price goes down the dividend goes up!

This month I saw my net worth decrease by $7,527.52 or -3.70%

This is all due to the market having a rough month and the value of my stocks decreasing. I'm hoping to deploy some fresh capital (about $2k) in the market this month and hopefully I can capitalize on the market weakness. 

On February 6th, 2018 I was able to purchase 13 shares of AFLAC Incorporated (AFL) for $83.90 a share. This was a day when the market was down and I believe this was a good price for a great dividend company. They have been on my radar forever and I decided to pull the trigger to add this great company to my collection. Overall, this will increase my yearly dividend income by $27.04

This was my first month ever that I've seen my net worth actually decrease. It is hard to see your money decrease, but I can't complain given that it has steadily increased for the past 4 years now. I look forward to investing while the market is down and capitalizing on the current weakness. Even if the market continues to fall I will just continue to buy!

Let me know what you guys think! How did you guys do in February?