Dividend Income Report March 2014

Here we are again, my favorite time of the month.  It's time to report my dividend earnings for March, 2014.  We are just three months into this new dividend investing strategy and already the numbers are beginning to add up.  March was by far my best month yet, here are the results:

Prospect Capital Corp (PSEC):     $11.04

McDonalds (MCD):                        $8.91

Target (TGT):                                $7.74

Chevron (CVX):                             $9.00

Intel Corp (INTC):                          $10.13

This was by far my best month yet!  The grand total for March came in at $46.82.  For the first time I was even able to use some of this dividend money to purchase shares of Kinder Morgan(KMI) which was the second purchase I made in March.  Now for the important part, the breakdown of my spending for March vs dividend income.  

Holy moley is that a green bar I see?!  Prior to this month special equipment (a magnifying glass) was required to see my dividend income compared to my spending.  This month a good pair of reading glasses is all it takes.  We are movin' on up in the world!  This month I was able to cover 2.01% of my total expenses with dividend income alone.  In comparison last month I was only able to cover 0.618% of the expenses.  This is fantastic considering that March was also my most expensive month of the year.  Next month should be another big one as some of my largest positions pay out in April.  Hope you all had a great March!

Disclosure: Long PSEC, MCD, TGT, CVX, INTC, KMI

March Spending Report 2014

March is finally over which means it's that time of month again, spending report time!  My total spending for the month of march came in at $2,326.27.  While I failed to meet my goal of spending less than $2,200 this month I still feel like it was a major success.  My average monthly spending for the last six months has dropped down to $2,315.  Compared to last month's six month average I dropped a total of $90.  My spending can be broken down as follows:

This month contained another massive energy bill ($292) which is really disappointing because I kept my house a chilly 61 degrees Fahrenheit all month.  The month also contained an unusual bill of $400 when I bought a new smartphone/plan with Republic Wireless.  So far the service has been excellent and I absolutely love having a smart phone finally.  This plan drops my future monthly phone expenditure by ~$40.
Finally, I found out this month that the bank has accepted my offer on a house for short sale.  While this will cause me to have a huge spending bill in May (Closings costs, etc.) this should lower my monthly spending by ~$200 not including the equity that will build in the house.  The total home cost is $140,000 at an interest rate of 4%.  It should also provide savings on the energy bill (home built in 2005 with great insulation vs the 1905 house I am renting now)  and it is within walking distance of my work so my commute costs won't change at all.  Once the dust settles I expect to lower my monthly spending significantly meaning more money for investments!   Thanks for reading!

How did you do this March?

March 2014 Bonus Buy

Well it's still March but I couldn't resist making a new purchase (stocks are my comfort food).  One of the benefits of working insane hours (up to 13's now) and graveyard shifts means they compensate well in return. This morning I decided to pull the trigger on 45 new shares of pipeline giant KMI (Kinder Morgan) at $31.89 per share.  This was an investment of $1,435.05.  KMI currently pays out $0.41 per share which works to increase my total yearly dividend by $73.80.  This brings my forward yearly dividend from $497.49 up to $571.29.

This brings me one step closer to hitting my goal of $900 forward dividends by the end of the year.  Right now, assuming a 3% interest rate on future investments this, would require an investment of $10,957 new dollars or $1,217.44 per month for the rest of the year.  I am still hoping to write articles about PM, and KMI to further explain my purchases but for now I will be holding off until time becomes less constrained.

My portfolio has been updated to reflect this new purchase.

Disclosure:  Long PM, KMI

A Penny Saved is a Fistfull of Dollars Earned

Hello again, it's been an extremely hectic week.  Work has intensified immensely and I now find myself working 72+ hour weeks.  While this is great for the pocket book (hello overtime!) my time available to manage Dividendasaur has suffered.  I also recently made on offer on a house.  This offer was accepted by the owners of the house but now awaits final acceptance by their bank (short sale).  Even through all of this madness I have still found a way to increase my invest-able income in the long run.

When I consider monthly spending, one of my favorite things to do is convert that monthly bill into an equivalent lifetime dividend income to see how much the service is actually costing me.  I use a simple conversion (no tax included) to see just how much money I would need to save in order to cover that bill for the rest of my life.  One example of this is my monthly phone bill which I have recently attacked.

Currently I pay $54 per month for a Verizon service which provides me with 1000 texts, 400 minutes and extremely limited data.  I have paid this bill monthly since 2008 and while I have no problem with the service, I know that I can do better.  To analyze this monthly payment I make the assumption that the average dividend paying stock I purchase will provide me with a 3.5% return yearly.  Here is the calculation:

12 months * 54 (dollars/month)  / 0.035 = $18,514

This means that to cover my $54 phone bill for the rest of my life I would need to have $18,514 invested in my portfolio earning a yearly 3.5%.  Well that just isn't very good when my goal is to cover my total monthly spending each month with just my dividend income.

To address this problem I went shopping.  For the cost of ~300 dollars to buy a new smart phone I have decided to try out service with Republic Wireless.  This will provide me with a smartphone for the first time in my life, unlimited talk and text, and data when I am within range of WiFi.  Most importantly it should lower my monthly bill by ~ $44 each month.  This savings requires me to invest  $15,086 LESS money in my portfolio to cover my total phone bill. Now instead of having to earn that extra $44 monthly I have an extra $44  to help the dividend snowball grow.

While I do not recommend Republic Wireless at this time I will be evaluating the service over the next month or two to see if it is satisfactory.  If I am impressed with the service I will likely write a followup post about them as I like to promote frugal services that I personally enjoy/use.

  

March 2014 Stock Buy

It's stock buying time and here are my results for March 2014.  I may need help because it seems like I have an addiction... to tobacco stocks.  This morning I purchased 13 more shares of PM (Phillip Morris) at $80.24/share for a total cost of $1,043.12.  This satisfies my goal of buying at least $1,000 worth of stocks each month, but most importantly PM is currently paying $0.94 per share quarterly increasing my dividend by a total of $48.88 per year for a new forward yearly dividend of $492.09.  

In order to reach my goal of $900 in forward yearly dividends by the end of the year I would need to invest about $13,600 or  about $1,510.8 per month at a 3% return rate.  This is going to be a serious challenge because I have recently made an offer on a new house which if successful will eat into my emergency fund.  If this new house deal goes through I will more than likely stick to my $1,000 per month while I refill the war chest.  Regardless I am confident that I will meet my original goal of $700 per month in forward dividends.

My portfolio has been updated to reflect this new purchase.  

Disclosure:  Long PM

What stocks are you buying this month?

Dividend Income Report February 2014

Hold on to your shorts, we have an exciting dividend income report for February 2014!  One of the downsides of starting this blog so early in my investing career is that there are certain time periods when I will not be receiving much of a monthly dividend income.  Last month happened to be one of those months.  I currently hold no positions in companies that regularly pay in the Feb, May, Aug, Nov cycle.  So without further ado my income for the month is as follows:

PSEC: $11.03
C: $0.10

For a grand total of $11.13.  While this may not be a dazzling sum of money it does represent at least two subway sandwiches worth of income, a valuable prize indeed.

This income represents about 0.618% of my total spending for February a decrease when compared to last months coverage of 0.671%.  You can barely see the tiny green bars peeking out in the graph on the right.  You will also notice a stock which no longer exists in my portfolio.  Before the creation of this blog I sold my entire position in Citigroup in order to purchase assets with a higher dividend payout.  The majority of my positions pay out on the March, June, Sept, Dec schedule so this month should be the largest yet in my investing history, stay tuned!  

February Spending Report

It is that time of the month again, time to report spending for the month of February.  Spending for the month came in at a grand total of $1,863.29.  This meets my goal to spend $2,200 or less every month, and brings my six month average spending down to $2405.13.  Overall my spending for the month was a huge success and hopefully I can continue to decrease this average each month.  I have some big plans for the near future that could greatly lower this monthly spending so stay tuned!  My spending can be broken down as follows:

Compared to my January Spending Report I was able to lower costs in the Bills and Utilities ( $-123.08) and Food and Dining ($-68.60), my Auto & Transport, and Entertainment categories grew slightly but overall I spent $368.04 less this month then last.  I have been extremely busy with work this month (60+ hrs/wk) which really keeps my entertainment spending low.  If my plans work out (they never do as intended) I will be able to lower this total by approximately $414 more each month by June.  All the more money to invest and grow the portfolio!  By continuously auditing my spending each month I am constantly able to find ways to improve.