Tuesday, January 17, 2017

Is Target a good value stock or a value trap?

Having recently bought V.F. Corp stock (I talked about it here: Why I am adding VF Corporation to my portfolio, my eyes are now on Target (ticker: TGT). Target is another dividend aristocrat in the depressed retail sector which has recently pulled back by about 15% from its 2016 highs.

At a current dividend of 3.4% and a P/E of 13.6, TGT is starting to look attractive. Currently, I have a very small position (<1% of total portfolio value) in Target. I bought these shares in August of 2016 with a YOC of 3.4%. You can see my entire portfolio here: My Stock Portfolio

It looks like TGT is about at the same yield level as when I bought it five months ago, this is shown in the F.A.S.T Graphs TGT price chart below. The green dot shows the date and price when I bought my TGT shares.

TGT Historical Price Graph
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Wednesday, January 11, 2017

Bought more Abbvie (ABBV) on dip today

I love the days when my favorite stock takes a dip as it creates a buying opportunity in a stock that I already own or is on my watch list.

Abbvie (stock ticker: ABBV) is one of such stocks. I already have a half position in Abbvie which I started back in November of last year, just before the elections. I briefly talked about it back then in this article: Are your investments election ready?

Today ABBV took a nice 3.5+% price dip. I was able to pick up some shares at $61.0 just around 2pm (EST). I would have done slightly better if I had bought it a bit earlier. Oh well it's hard to time the dip perfectly, but still I was able to pick up these shares deep in the dip and before the stock started to climb back out a bit.

Source: http://data.cnbc.com/quotes/abbv

Monday, January 9, 2017

Why I am adding V.F. Corporation to my Dividend Portfolio

I am always looking for bargains to add good quality dividend paying stocks to my portfolio regardless of what the stock market is doing. There are always bargains or discounts available in the stock market even during the current overvaluation period.

The key is to find a market sector that is currently unloved or out-of-cycle and find the best stock in that sector. It's like buying the best house in the worst neighborhood which has the potential of best gains when the market turns around.

Retail is one of such sectors/neighborhoods that has been taking quite a beating due to the recent holidays sales disappointment and continued pressure from online retailer Amazon.

Wednesday, January 4, 2017

My Business Plan for Financial Independence and Early Retirement

No big feat can be accomplished without a set of goals and a plan to follow. You also need to have some guidelines and the means to track your progress. This is especially true for investing.

Sunday, January 1, 2017

My 2016 Year End Investment Summary

Another year has come to an end and it's time to look back and see how I did with my investments.

1-Year Return

My non-retirement accounts (Active Individual Stock Investments): 21%
My retirement accounts (Passive Index Investments): 10.2%
My average return (all accounts): 15.6%

Note: The above returns don't include dividends.

My average 1-year return is excellent, given that S&P 500 Index only returned 9.54% for the year. Also, my retirement accounts are mostly in S&P 500 Index funds and why the return of my retirement accounts is almost the same as the Index.

The overall high return on top of the passive investments was contributed by my actively and self-managed non-retirement accounts which are invested in only dividend paying stocks.

In this article, we will take a closer look into my dividend paying stock portfolio.