Dividend Income - January 2014

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


January  2014 Dividends Received:

• Realty Income Corp. (O) - $4.01
• American Rlty Cap. PPTYS (ARCP) - $9.87
• Wal-Mart Stores (WMT) - $7.52
• Baxter International (BAX) - $16.17
• Altria Group (MO) - $13.92
• Philip Morris Intl (PM) - $26.32
• General Electric Co (GE) - $12.76

Total dividends for the month of January: $90.57

This is a great start to the new year. 

One of my many Goals is to receive $2,000 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 KMI.

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



Was January a good month for you?

Negative Value for my Portfolio...

For the first time in my financial freedom journey my portfolio market value is less then my cost basis value. Ooooh NOOOO!!!!

Take a look Here

Its all good. In the past I would have panic and maybe sold some shares. Now I am happy because this means that I can average down on some of my positions. I brought high quality companies that increase there dividends year in and year out, so this does not worry me one bit. This is why I love DGI!! As long as the company pay dividends and increases the dividends every year, then there is nothing to worry about. All I have to do is just monitor it for any dividend cuts.

The ones that I would like to buy right now to average down are PM, CVX, TGT, ESV, KO, and BAX. They are all great price right now, but I would pick PM first when I get paid this coming Friday.

Some new ones that I would like to add right now because I think the price is right would be TGH, COP, DE, and NSC.


What have you brought recently or plan to buy?

Trade - Buy

I added more to my position with Ensco PLC (ESV)

23 shares @ $54.84 on 1-17-2014

This will increase my forward 12-month dividend by $69.00 to a total of $1,189.44

I updated my Portfolio to reflect the changes.

I last posted my ESV buy Here


Here you can see that there is a strong support for ESV around the $54 range, and it is almost hitting the trend line. Another thing to look at is the RSI graph. You can see that around the 35 range it bonuses back up. This lead me to believe that it is a good time to buy more shares of ESV.

Here is a 15 year FAST graph. This shows that it is very much undervalue. Notice the Debt/Cap at 27%. Which is very good.

Here is a 4 year FAST graph which shows earnings going up and the price staying much the same.

This is the future estimated earnings and how my current investments may perform in the next 10 years.

My only concern with this company is that it does not have a long history of dividend growth. They do have a nice history of paying dividends with no cuts.

Graph from http://www.longrundata.com/index.php

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

S&P Capital IQ (4 star out of 5) Fair Value of $61.50

Yahoo Finance Target of $62.72

Marketwatch Target of $62.93

What do you think of ESV? Like what you see or don't?

401K/Roth IRA Portfolio Update

At the end of every quarter I will update my 401K and Roth IRA performance. The History of my two portfolio can be found Here.


401K:

Roth IRA:

Here you can see that I gain about $1,300 for the 4th quarter. 

FRIP Purchase

I added more shares to my position of Kinder Morgan Inc. (KMI) and American Realty Capital Properties Inc. (ARCP)

1 Share @ $35.90 of KMI
1 Share @ $13.00 of ARCP


This increases my forward 12-month dividend income by $2.60 to a total of $1,120.44

I also updated my portfolio page to reflect the change.


What are you buying with your dividends?

Dividend Income Page Update

I just added a new spreadsheet to my Dividend Income page Here

Here is a screen shot of the spreadsheet. 

My main reason for creating this spreadsheet is because I want to know as soon as possible when a company increase or decrease its dividends.

On the second column "Start Jan. 2014 Div" I manually input the current dividend per shares for each company that I hold. On the third column "Current Div Per Share" the information in this column are automatically inputted from Google Finance. This column will change as soon as Google Fiance changes a company dividends which in my experiences has been right away. The Fourth column will tell me the percentage change either up or down.

This spreadsheet will help me tremendously because I look at my blog almost everyday. Therefore, if I see a company with a negative percentage in the fourth column, I will right away look to confirm it and sell the entire holding of that company once I confirm it did cut/decrease its dividends.


What do you guys think? Like the idea?

I'm Confused...

I need your help. I am not sure how cost-bases and dividends work.

For example, I received $83.34 in dividends for the month of December. Here

I used those dividends and reinvested it in KMI Here

Now here is my question.

I had 57 shares of KMI. Like so:

Notice the "Costbasis", "Basis", "Total Value" and "YOC" column.

Now I used the dividend received in December and brought 1 more share of KMI. Now I have 58 shares of KMI.

Since I only change the shares from 57 to 58. The only things that gets change are "Basis", "Total Value", "% Ch.","Weight","Annual Income" and "YOC" column.


My question to you guys is do I add the dividends I used to the "costbasis" column, or should I just change the shares column since I am using dividends to buy shares.




Here is what I think.

I think I should just change the shares amount because I am using money, dividends, that I did not have to buy more shares. The only time I change the "costbasis" column is when I use my own money that I received from work or other means beside dividends.


Please let me know what is the right way and why. Also please let me know if I need to clarify.

FRIP Purchase

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

1 Share @ $35.87


This increases my forward 12-month dividend income by $1.64 to a total of $1,117.84

I also updated my portfolio page to reflect the change.


What are you buying with your dividends?