Trade - Buy

I added a new position. Ensco PLC (ESV)

22 shares @ $56.25 on 12-27-2013

This will increase my forward 12-month dividend  by $66.00 to a total of $1,116.20

I updated my Portfolio to reflect the changes.

Based on the 15 year chart you can see that ESV is undervalue. Also notice the debt/cap which is at 27%.

Here is a 4 year graph which shows that it is undervalue based on earnings.

Here you can see that the payout ratio for last year was 27% which is really good so there is a lot of room for dividend increases. 

Here you see that 36 analysts predict a 5 year estimated return of 36.4%

Here you see that the dividend yield is at the highest right now. This tells us that the price is under value.

Morningstar (4 star out of 5) Fair value of $70.00

Yahoo Finance Target of $63.22

Marketwatch Target of $63.09

Done any shopping lately? What do you think of ESV?

Trade - Sell

I made a few sells last week. Here they are. All company ,listed below, I felt were overvalue or don't have the growth I would like to see.


Sold 17 shares @ $56.25 of  Vodafone Group Plc (VOD)

As you see here VOD is overvalue.

Sold 8 shares @ $35.06 of AT&T Inc. (T)

I sold T because it only increase its dividend this year by only 2.2%. In the past 4 years it has only increase dividend by 2-3%. Here you see that it is fairly value.

Sold 5 shares @ $61.25 of Magellan Midstream Partners, L.P. (MMP)

Here MMP is overvalue.

I will buy into theses company once the price comes down below fair value.

The money that I received from theses sold shares I put right to work in buying and adding a new position. I will post about the recent buy soon.


Have you sold anything recently? 

2013 in Review

2013 has come and gone. I remember when the year just started and I was looking for a rental property (Here). Now I am a dividend growth investor.

Now that the year is over, I set out some financial goals for myself. Which can be found Here.

Here were my goals for 2013 that I set out for myself when I started dividend growth investing and this blog.

2013 Goals:
Receive $200 in dividends for the year.
Have a portfolio of $15k or greater by the end of the year.
Have a net-worth of $45k or greater by the end of the year.

I am very happy to inform you all that I have accomplished all my 2013 goals.

In this post (Here) I mention that I passed my $200 of dividends received for the year goal.

In my portfolio page, Here, you can see that I surpass the $15k portfolio value. As of right now my portfolio value is $30,177.12

I am also happy to inform you all that I just passed my Net-worth goal of $45k,

Here you can see that I just passed the goal by $5.

I am very blessed that I am able to set out my goals and accomplish them.

Thank you all for supporting my blog. Please continue to follow me on my financial freedom journal.

Dividend Income - December 2013

Once a month I will be updating the dividend that I received for that month.


December 2013 Dividends Received:

• Realty Income Corp. (O) - $4.00
• American Rlty Cap. PPTYS (ARCP) - $9.87
• McDonalds Corp (MCD) - $9.72
• Coca Cola Co (KO) - $10.08
• Chevron Corp (CVX) - $10.00
• International Business Machines (IBM) - $5.70
• Exxon Mobil Corp (XOM) - $8.19
• Aflac Inc. (AFL) -$9.25
• BP plc (BP) - $16.53

Total dividends for the month of December: $83.34


This is by far the biggest passive income I received for a month this year.

One of my many Goals is to receive $200 in dividends for this year.

I am happy to inform all of you that I surpass my goal with a total of $220.43 in dividends for this year.

All of the income that I'm getting from dividends are all being reinvested. I am currently reinvesting it all into BP or KMI.

Also, don't forget to check out my Dividend Income page which shows the total income by month.




Was December a good month for you?

Trade - Buy

I added more shares to my position with  BP plc (BP).

25 shares @ $47.52 on 12-24-2013

This will increase my 12-month forward dividend by $54.72 to a total of $1093.52

I updated my Portfolio to reflect the changes.

Based on this 15 year graph of BP it looks to be very much under value.

Here we have a 4 year graph and it shows also that it is undervalue.

In this graph you can see that BP is about to hit a resistant point. at around $48. However, I believe that it will eventual break this resistant level in the near future and start heading to $60 which will be the new resistant level.

Morningstar (3 stars out of 5) Fair value of $48.00
Yahoo Finance Target of $49.44
Marketwatch Target of $49.91



What do you think of BP?

Trade - Buy

I added a new position.  Target Corporation TGT

20 shares @ $62.00 on 12-23-2013

This will increase my forward 12-month dividend  by $34.40 to a total of $1,036.52

I updated my Portfolio to reflect the changes.

Based on the 15 year normal P/E of 19.1 TGT is undervalue with a current P/E of 16.5 (Google Finance).

Here is a 4 year chart which shows that it is slightly fair to overvalue.

Here is a chart of the Estimated Earnings that shows that the amount I invested today should return almost 100% in 10 years.

Here you can see that the current yield (Orange Line) is at a 5 year high. This shows that at current prices TGT is undervalued.

In this graph I point out that in the $60 range TGT has had either a support or resistant. If it breaks the $60 support, then I think TGT will go down to the lower $50-53 range. If it does that, I plan to buy more shares to average down.

Morningstar.com (3 stars out of 5) with a fair price of $64.00
Yahoo Finance fair value of $68.05
Marketwatch Target Price of $67.64



What do you think of TGT? Plan on buying or do you already have it in your portfolio?

Portfolio Page Update

I changed the layout of my Portfolio Page Here

I listed the 8 sectors of the NYSE. This will help me to make sure that I am diversified and to show me what sector that I am heavy in or light.

If you go to my Portfolio page to see the changes, you will see that I am heavy in Basic Materials and Consumers good. This does not mean that I will stop buying from company like BP, KMI, and PM. I will continue to buy if I see opportunity because my portfolio is just a few months old, so eventually it will be diversified with time.

This change will just give me a better picture of my portfolio.

If you have any idea for good information that I should put in my Portfolio page please let me know. Suggestions are always welcome.

Blog Milestone

I am so happy to say that I just passed the 10K page view milestone. I really appreciate all the viewers that keep reading my blogs and the new ones that will start to follow my blog and my journey to financial freedom. 

I started this blog in the end of August, so in about 3 and half months I reached 10K views. I think that is amazing.

I hope you continue to follow my blog. I feel this new year will be great. I will tell you why later this month in a post.

Here is a screenshot of my blog page view history.

Again, Thank you all for reading and following my blog.

FRIP Purchase

I added more shares to my position of Kinder Morgan Inc. (KMI).

1 Share @ 32.93

I also talked about KMI Here, and why it is a great buy at this price.

This increases my forward 12-month dividend income by $1.64 to a total of $994.84

I also updated my portfolio page to reflect the change.


What was your recent Buy/Sell?

Stock to Buy

Kinder Morgan (KMI) is a Buy right now.

KMI announces 2014 financial expectations and expects to increase dividends ~8% Here

Morningstar: 4/5 with Fair Value of $40.00
Yahoo: Fair Target: $41.20

KMI took a big hit. It drop 7.09% in the last 5 days.

As you can see in the chart below, there is a strong support around $31-$33. Also the RSI tends to pick up at this level as well.

This chart shows that it is a little overvalue base on F.A.S.T. Graph.

 Here is a chart of the Estimated Earnings.

 Here is what a $10k investment would look in 10 years at current price.

I don't have fresh capital right now to buy, but I will be using my dividends to buy a few shares.



What do you think of KMI? Do you own shares?

Dividend Income - November 2013

Once a month I will be updating the dividend that I received for that month.


November 2013 Dividends Received:

• Realty Income Corp. (O) - $4.00
• American Rlty Cap. PPTYS (ARCP) - $9.55
• AT&T Inc (T) - $3.60
• Magellan Midst (MMP) - $2.79
• Clorox Company (CLX) - $10.65
• Kinder Morgan Inc (KMI) - $21.73
• Procter & Gamble Company (PG) - $9.02
• Caterpillar Inc (CAT) - $8.40

Total dividends for the month of November: $69.74


This is by far the biggest passive income I received for a month.

One of my many Goals is to receive $200 in dividends for this year.

As of right now I gain a total of $137.09 in dividends for the year. I am 69% complete of reaching my goal of $200. It looks like that I will just pass my goal of $200 for the year by a few dollars after I collect the divided for the month of December. I am very excited to see that I will be able to complete my goal that I set for myself.

All of the income that I'm getting from dividends are all being reinvested. I am currently reinvesting it all into BP or KMI.

Also, don't forget to check out my Dividend Income page which shows the total income by month.




How much did you received in passive income for the month of November?

Trade - Buy

I added more to my position with Philip Morris International (PM)

13 shares @ $86.68 on 11-25-2013

This will increase my forward 12-month dividend by $48.88 to a total of $993.20


I  think the stock will continue to go down somewhere between $84-$85. However, this is why I am not a day trader. I may be wrong or I may be right. All that I am fairly sure of is that PM will continue to hand out dividend and increase them greater then inflation for years to come.


This will be my last buy this year, unless something crazy happens to the stock market.


I added the transaction to reflect on my Portfolio page.



What have you been buying/selling?

The Video that Started It All...

In my About me section of my blog, I talk about how I was debt  free and was looking for a way to get passive income. One source of passive income I was looking to get was to buy a rental property. Since my parents have a rental property that was fully paid off, they are reviving a little over $2k a month on passive income. I wanted something like that for myself.

I decided to buy a rental property of my own in December 2012. Since I was debt free and have money saved up, I thought this would be the perfect opportunity to find a house to buy since the housing market was just starting to pick up.

However, I was not able to close a deal to achieve my first property. I put about 15 different offers to different house, but I was always getting out bid. I was just writing out offers for asking price, but I was getting out bid by $5k-$10k. This would always be outside of my budget.

As a few months passed, I saw less and less houses that I can afford. and less houses that I saw had great potential. All that was left for me to buy were really beat up houses that needed a lot of work and money that I did not have the time or capital.

I still wanted to some how make passive income. I did what I always do when I have questions or a thought that I need to figure out. I "Google It".

I found this video that showed the power of dividend investing and compounding. When I saw this video, I knew this was the way for me to build passive income.





Once I saw the video, I started to learn about dividend investing though other bloggers like:

http://www.dividendmantra.com/
http://www.passive-income-pursuit.com/
http://dgmachine.blogspot.com/
http://www.dividendgrowthinvestor.com/

and other bloggers that can be found here.

I started reading there site like a mad man on a mission. Reading all there old posts and learning what and how to invest in dividend paying stocks.

Therefore, the video above really started my new found journey of dividend growth investing. I am very grateful to have found that video and to have found other bloggers sharing the same dream.




How did you get started with dividend growth investing? What gave you the motivation to start?

Stocks to Buy

Right now I am looking at one stock that I would like to buy:  PM

I had a few other stocks that I am currently watching which are: O, DE, TD, RCI, and CAT. However, I think PM would be the better buy.

PM lost 2.37% today and it may even go lower. I decided that if it gets under $85 I will make a buy. Hopefully it won't happen this week since I won't have capital until next week Monday.

As you can see in this chart between $84-$85 there is a strong support level dating back to May 2012.

Last time I brought PM was Here. I brought shares at $84.75. Hopefully I can add more shares at that price or a little bit lower to average down.


F.A.S.T. Graph has fair value at $81.59.

Here is a recent article about PM and why it is a buy either now or very soon. Here

Morningstar has a fair value at: $95.00





What do you think about PM?

FRIP Purchase

I added more to my position of Kinder Morgan Inc. (KMI).

2 Shares @ 35.17

My last buy was Here on September 17.

This increases my forward 12-month dividend income by $3.28 to a total of $944.32

I also updated my portfolio page to reflect the change.


What was your recent Buy/Sell?

Trade - Buy

I added more to my position with American Realty Capital Properties (ARCP)

76 shares at $13.22 on 10-24-2013

This will increase my forward 12 month dividend by $73.56 to a total of $952.56

I made this buy because ARCP is growing and growing really fast. They brought Cole Real Estate Investments Inc. for nearly $7 billion.

This deal will make ARCP the largest net-leases real estate investment trust (REIT). Also, ARCP will increase its annualized dividend to $1.00 when the deal closes. Currently it is at 94 cents annualized.


Here is a great article on ARCP: American Realty Capital Properties Finally Getting Noticed

Also here is ARCP fact sheet from June 30, 2013: Fact Sheet

I added the transaction to reflect on my Portfolio page.


What have you been buying/selling?

Dividend Income - October 2013

Once a month I will be updating the dividend that I received for that month.


October 2013 Dividends Received:

• Realty Income Corp. (O) - $4.00
• American Rlty Cap. (ARCP) - $3.79
• General Electric (GE) - $11.02
• Philip Morris (PM) - $14.10
• Altria Group (MO) - $13.92
• Coca Cola Co. (KO) - $10.08

Total dividends for the month of October: $56.91


One of my many Goals is to receive $200 in dividends for this year. 

As of right now I gain a total of $67.35 in dividends for the year. I am 34% complete of reaching my goal of $200. 

This is by far the biggest passive income I received for a month. That is about a week and a half of gas that I did't have to pay. This is such a great feeling. 

All of the income that I'm getting from dividends are all being reinvested. I am currently reinvesting it all into BP.

Also, don't forget to check out my Dividend Income page which shows the total income by month.




How much did you received in passive income for the month of October?

Roth IRA Portfolio Update

At the end of every quarter of every year I will post an update of my Roth IRA portfolio. The performance and my holdings can be found Here.

As I mention on my last post (Here) I was going to update this blog with my Roth IRA portfolio.

I use Vanguard for my Roth IRA account. Right now I have all my money in one "egg basket". Which is not a good thing. Since I already invested the max amount of $5,500 for this year, I will not touch it for now, since this fund has been doing great so far. I have a gain of 26.2% since I first started this account.

When I can start adding for the 2014 contribution, I will be selling portions of the shares. I will then look for high quality company's that I find to be undervalue at the time. I will keep you guys posted with all transactions that happen with my Roth IRA account.

My holding as of now are:

Funds:                                                                                              Allocation %:

Vanguard Health Care Fund Investor Shares (VGHCX)                         100%



Here is a quarterly look on how it has been performing. Which can also be found Here.







Do you have a Roth IRA/Retirement tax deferred account? If not, why not?

401k Portfolio Update

At the end of every quarter of every year I will post an update of my 401K portfolio. The performance and my holdings can be found Here.

I am contributing 5% of my gross pay and my company is matching 2.5%. The 5% is the minimal I can put to get the full match from my company. I will not increase my contribution percentage. I am saveing the rest of my money on my Roth IRA, which I will post about soon, and my Scottrade account which I talk about Here..

My holding as of now are:

Funds:                                                                             Allocation %:

T.Rowe Price Equity Income Fund (PRFDX)                       10%

MainStay MAP Fund Class 1 (MUBFX)                              15%

T. Rowe Price Growth Stock Fund (PRGFX)                       10%

JPMorgan Mid Cap Value Fund (FLMVX)                            10%

Aston/Fairpointe Mid Cap Fund Class 1 (ABMIX)                15%

Munder Mid Cap Core Growth Y (MGOYX)                         15%

Munder Mid-Cap Core Growth Fund Class Y (JSMGX)         10%

T. Rowe Price Health Science Fund (PRHSX)                     15%

Here is a chart of how my 401K portfolio has been doing so far which can also be found Here.

Do you participate with your company 401k? If so, how much of a percentage do you save and do they match?

Compounding has Begun

I am very new to dividend investing and to investing in general, so I hope you, the readers, follow me on this amazing journey which will have a lot of ups and downs along the way. This is a very exiting time for me. I just brought my first share while only using the dividends I received the previous months.

That's right. I did not use any of my capital to buy more shares of a company. The money that I invested, which you can see in the Trade - Buy tags, are all working for me to receive more money in the form of dividends.

My brokerage account is with Scottrade. They have this program called "Flexible Reinvestment Program". This allows the user to pool all there dividends that they received from the portfolio in one lump sum. What I like about this program than the traditional DRIP, is that I get to pick and choose the company that I want to buy with the dividends I received. This allow me to purchase company's that I feel that are under value and have a high potential for future growth.

Today I received enough divided to make my first purchase.

I brought shares of BP

1 share @ $42.24

This now gives me 29 shares of BP

This increase my 12-month forward dividend by $2.16 a total of $876.88.

I updated my Portfolio to reflect the change.



What have you been buying with your dividends or just using DRIP?

Trade - Buy

I open a new position with Chevron Corporation (CVX)

10 shares @ $117.60


This will give me and increase of $40 to my annual dividend income. I now have a 12-month forward dividend of $874.72.


The RSI is 28.74 which means it is oversold at this time. This was one of the reasons why I decided to open a position with CVX today.

I also updated my Portfolio and Watchlist to reflect the changes.


Here are some great analysis of the company and some fair value.

Dividends4Life @ Seeking Alpha fair value of $145.87

Achilles Research @ Seeking Alpha fair value of $108.68

MarketWatch gives it a fair value of $133.06

MorningStar gives it a 3 star for a fair value of $125.00

Dividend Income - September 2013

Once a month I will be updating the dividend that I received for that month.


September 2013 Dividends Received:

• Realty Income Corp. (O) - $3.99
• American Rlty Cap. (ARCP) - $3.79

Total dividends for the month of September: $7.78


One of my many Goals is to receive $200 in dividends for this year.  

Trade - Buy

I brought more shares of Baxter International Inc. (BAX) today since it had a 5.40% drop.

17 shares @ $67.39


A lot of reviews/analysis has this company at a fair price of around $80. I felt this was a great buy.
MorningStar
Seekingalpha

Trade - Buy

I Brought more shares of Kinder Morgan Inc (KMI) today.

 34 Shares @ $34.75

 This will give me $54.40 in dividend forward 12 month.

Trade - Buy

I Brought The Clorox Co. (CLX) today.


15 Shares @ $84.54


 This will give me $42.60 in dividend forward 12 month.

Dividend Increase: PM

Philip Morris International Inc. (PM)announced that they increase dividend by 10.6% from $0.85 to $0.94. Here


That's great news. I received a 10.6% pay raise.

Trade - Buy

After receiving the $15k to my bank account this morning, I transfer it to my Scottrade account and went shopping.

I brought 9 stocks. I purchase 7 different company and 2 that I had positions already.


Symbol           Quantity         Price
PM                   15                 84.75
MCD                12                 97.10
BAX                 16                 71.54
KO                   31                 38.75
CAT                 14                 86.89
XOM                13                 88.27
GE                    50                 23.67
PG                    15                 78.50
BP                    28                  41.88


I ended up keeping $4k in the account for when there is a dip in the market.

New Capital

I learn that with dividend investing it is a lot like trowing a snowball down a hill. the longer the snowball is rolling down the hill the bigger it gets. This is called the "Snowball Effect".

Since I started this blog, I only had $8k in my portfolio that I invested. I had no more capital to add to my portfolio. This made my "snowball" roll very slow down the hill right from the start.

Since I want a big start, I took out a loan of $15k from my bank. It has a 0% APR good until July 2014 and only 3% fee for the transition. Since I had no debt at the time of this loan, I would not have any problem paying it off in about 6-8 months. This will give my portfolio $23k which is a nice start to get the "snowball effect" going.

Depending how this goes and how much I make in the next 6-8 months, I will decide if I will do this again. But for now, I am happy that I did this.

Dividend Income - August 2013

Once a month I will be updating the dividend that I received for that month.


August 2013 Dividends Received:

• MMP - $2.66

Total dividends for the month of August: $2.66

Trade - Buy

Here are my recent buys for the month of September.

Symbol	Quantity	Price		TradeDate
IBM	6	183.49		9/5/2013
WMT	16	72.85		9/5/2013
KMI	19	35.27		9/5/2013
AFL	25	57.8996		8/30/2013

Trade - Buy

Here are my Recent Buy


Stock:               Shares:   Prices:                          Date:

ARCP	50	13.0399		8/20/2013
VOD	17	29.95		8/16/2013
MO	29	34.35		8/16/2013
KO	5	40.55		7/31/2013
MMP	5	55.08		7/31/2013
GE	8	24.57		7/31/2013
T	8	35.51		7/30/2013
O	22	44.4499		7/30/2013