Showing posts from 2017

Beware Of Risks In Utilities - PG&E Suspends Its Dividend

I was shocked to read the news yesterday about PG&E (ticker PCG) suspending its dividend. It was quite unbelievable since the company recently (as of May of this year) increased its dividend by 8.2% with a dividend paying history of over 10 years.

What makes a company go from raising a dividend to completely stop paying it, in just a few months?

My November Stock Buys

I've been busy shopping in November, the only kind of shopping I like is when I get to buy high quality stocks at fair or near fair value. In this post, I will be sharing my November buy transactions along with reasons for buying these stocks.

My This Year's Winners And Losers

We are almost at the end of the year, and I'm pretty much done buying stocks for the year. It is also a good time to look back and see how my this year's stock purchases have done so far.

I Did The Unthinkable

I bought shares in Tesla stock. It doesn't pay any dividend, nor does it has cash to pay dividends. It also doesn't have any decent fundamentals, such as earnings or even a good credit rating. You may be asking, have I gone nuts?

I can assure you, I'm fully aware of what I'm doing, even though it may seem like out of a character for a dividend growth investor to even look at a stock like TSLA, let alone buying it.

So what happened? How did I end up buying Tesla's stock?

It's Raining Dividends!

I don't mind rain, especially when it's my favorite type of rain "The Dividend Rain".

The dividend rainy season starts each quarter when most companies announce quarterly reports and dividend payouts. The dividend rain increases in intensity and volume as more and more companies, announces their dividends, with many increasing their dividend payments.

The season normally ends with one or two lightning bolts of a few big dividend increases and payments. In this post, I will show you what my dividend rain is made of.

Quick Update On T

Since my last blog post on T here, the stock has further declined a bit while I've been dollar cost averaging.

At this point, I've maxed out my T allocation with a bit overweight at 6.16% of Portfolio Value. I normally like to keep allocation of blue chip companies around 5%. So, T has been an exception for me.

I thought, it might be helpful for my readers who may still be contemplating on whether to buy or wait on purchasing T, if I share updated valuation charts:

My Dividend Paradise

In this blog post, I'm going to talk about my dividend paradise, which is built on high quality dividend paying stocks. I'll also shed some light on how I track and ensure high credit quality across all my stocks. Below is an illustration of my paradise with its foundation supported by dividend paying stocks.

AT&T: A Telecom Giant On Flash Sale (Part 2)

As of Friday's closing stock price, T is trading at about 23% discount to its fair value of $40 as determined by a P/E of 15 multiplied by its 2017 earnings estimates.

On the downside, historically T has never traded below a P/E of 11 since last recession. Therefore, the P/E of 11 becomes our worst case support for this stock and translates into a risk of additional 9% downside from Friday's stock price.

AT&T: A Telecom Giant On Flash Sale (Part I)

On October 11, AT&T (stock ticker T) warned on Q3 results, which caused its share price to decline by about 6%. Such a big one day price decline is no less than a correction and could possibly be a great opportunity to buy shares in one of the largest and well known blue chip telecom companies while earning a very juicy 5.5% dividend yield.

Building A City Of Dividend Stocks

I like to track my investments in a visually fun and appealing manner instead of just plain boring spreadsheets. Don't get me wrong, I like spreadsheets, but creating visualizations of my investments is more fun and it keeps me motivated and engaged while providing useful data about my investments.

My Magic Heat Map Says: IBM Shares Ripe For Buying

The "Heat Map", which I've implemented as part of my stock watchlist system, identifies stocks that are cheap or expensive based on their 52-week trading range. I call it a Heat Map because stocks with lots of red indicate stocks that are likely expensive or in high demand vs. green bar which indicates stocks that are not so hot, but are trading cheap.

My Dividend Radar

Just as Air Traffic Controller tracks every incoming and outgoing airplane in his airspace or airport, I track my dividends as they come in for a landing into my account.

I have built a Dividend Payment Radar that helps me track every single payment from the moment it shows up on the radar (via company dividend announcement) till the time it lands into my account.

Never Ending Equifax Headache: A Fourth Credit Bureau?

Man, I thought I had it all covered after putting credit report locks across all three major credit bureaus (Equifax, Experian, and TransUnion) in the aftermath of Equifax security breach: How I am Protecting My Credit Report

Little did I know that there is a fourth and smaller US credit service bureau called Innovis that we also need to worry about in terms of locking/freezing our credit reports.

How I am Protecting My Credit Report

Today most Americans (about 143 million people) are waking up to the news of their personal information such as Social Security numbers, names, date-of-births, and in many instances driver's license numbers stolen from Equifax.

Equifax is one of the three credit information provider companies that collect and provide credit information to lenders such as credit card companies and banks. They are the ones who maintain our credit scores which then along with other personal information such as credit history is used to determine if we are worthy of a new loan or a credit card.

Our Utah Summer Vacation Part II

I wanted to finish writing about our Summer Vacation Part II before the summer ends. Well, the summer has officially ended, and I'm a bit late posting part II, though better late than never. So, here it is.

BTW, if you missed Part I, you can read it here: Our Utah Summer Vacation Part I

For Part II of our summer vacation, we headed over to Zion National Park which is located in the South-Western part of the great state of Utah.

A Lesson From History: Market Does Not Go Down In A Straight Line

During the 2009 market crash, we had three chances to get out before the market took a nose dive. Once you miss these chances, you better hold-on tight and make sure you don't own any low quality stocks.

How To Know When To Sell A Stock?

One of the most difficult decisions in stock market investing is to know when to sell a stock.

I've been investing for over 20 years now, but I still struggle with this decision. It is especially true when the stock in question is one of my top performing stocks. It can be quite tempting to take a profit and run; however, taking a profit may not be a good long-term decision.

To make a decision to sell such a stock, I go through a sequence of questions that I ask myself and then depending on the answers I get, I would either keep the stock or sell it for a profit.

Our Utah Summer Vacation Part I

Thought, I write about our recent Utah summer vacation and take a break from usual investment related topics and "market is falling" rant.

For 2017 summer vacation, we picked Utah as our destination because we wanted to visit Zion and Bryce Canyon National Park.

My Dividend Stock Shopping List

Check out my stocks shopping list!

I maintain a shopping list of stocks that I'm interested in buying under right buying conditions.

The right buying conditions come true when certain valuation, dividend, and price movement metrics reach a reasonable value or an attractive range.

My Half Year Stock Buy Performance Analysis

In this post, I will share with you the performance of my recent stock picks using a simple back-testing method.

You can use short-term back-testing to fine-tune your stock picking ability to maximize long-term profits and margin of safety.

Should You Be Investing In The Current Stock Market?

We are at or near a peak of a second longest bull market in the US history. A bull market is defined by a stock market that keeps on rising without being interrupted by at least a 20% decline.

So how long will this bull market continue? Let's look at what has been driving this bull market and then maybe we can get a better understanding of where it may be going.

Signs You Should Quit Your Job

Do you hate your job? Are you frustrated at work? Do you wish you could do something else with your life?

Well, you are not alone. According to a new Gallup study on the American workplace, two-thirds of employees are disengaged at work, or worse resent their jobs.

This is no way to live your life!

Is Apple A Buy After Recent Sell-Off?

With a market value of nearly $750 billion, Apple is by far the most valuable and well known technology companies today. In terms of its stock price, it has had a great run for the past 12 months with a one year return of around 20%. In comparison, S&P 500 has returned about 15% for the same period.

Apple also pays a current dividend yield of 1.74% and has recently increased its dividend in access of 10%. Barring the low yield, the dividend increase is quite good and qualifies it as a high quality dividend growth stock that is also a fast growing technology company.

Lessons To Be Learned From My Stock Sale History

I believe, there is some truth to the following investment quotes:
More money is lost selling stocks than just keeping the shares and enjoying the ride through ups and downs of the market.Your stock portfolio is like a bar of soap, the more you touch it, the smaller it gets.

Consider These Issues Before Investing In Foreign Stocks

Market pundits and investment experts have been telling us to start investing in foreign stocks. This is mainly because the US stock market is at its all-time highs and due a major correction whereas foreign markets have been lagging considerably for the past few years and now are primed to grow again in double digits.

If you look at the 5-year chart below which compares developed international stocks fund MSCI EAFE ETF (blue line) with US S&P 500 Index (green line), you will notice that international stocks have been grossly lagging US stock market since about mid 2014 and it is only recently that they have started to grow again.

A Stock Watchlist Makes A Better Investor

What is a stock watchlist?

Stock watchlist is simply a list of stocks that one wants to buy when the conditions are right. Buy conditions can be triggered by a short-term company issue or industry specific downturn, but many times they can also be triggered by a broader market correction.

My watchlist contains stocks that I've already researched and interested in buying at sometime in the future when they are trading at the right valuation or price.

Which department store stock should I buy?

A value investor is always looking for bargain stocks to buy. With the US stock market trading at a P/E of around 22, it's hard to find cheap good quality stocks.

However, if you have been paying attention to the retail business environment, you may have noticed that retail industry is not doing so well as more and more stores are closing their doors and have been reporting dwindling sales for the past several quarters.

How do you define a high quality stock investment?

At least for me, a high quality stock investment is the one that exhibits the following three qualities:

1. High Quality Financials
2. High Dividend
3. High Dividend Growth

I'm a value and dividend growth investor which means I only invest in stocks of companies that are of high quality and pay a growing dividend.

You may ask why I only invest in dividend paying stocks?

Why I Never Answer Calls from Investment Advisors

I got another call yesterday from one of the investment consultants at a brokerage firm that I have an account with. They seem to be calling me quite a bit lately. It seems almost every week I get a call from these financial experts across all three of my brokerage accounts.

They leave a message for me to call them back, but I never call them back. Normally, their message would be something like this:

My First Quarterly Investment Report for the Year 2017

I like to do a comprehensive evaluation of my investments at the end of each quarter to track my investment returns including dividends and dividend growth and all the buy/sell transactions I made during the quarter.

I also look back at any changes/improvements I may have made to my investment tracking system which includes tools and investment guidelines.

Therefore, as the first quarter (Q1) of 2017 has just ended, it is time to review how my portfolio has performed and what improvements I've made to my investment tracking system.

My Personal Activity Happiness Tracking

They say true happiness is found in doing things that you enjoy the most and least time spent on things you dislike. So, I went on an exercise to see what daily chores or activities I like or dislike and how they rank on my happiness score.

Happiness Score of 10 - I love it!
Happiness Score of 1 - I would rather go back to work (unretire) than do this.

Where to find free stock research material for your investment needs

I've been somewhat lazy when it comes to updating my blog. Well they say, spend more time doing things where you get the most returns and less time on things that give least returns. Therefore, I spend more time on my investments and improving my health than on blogging. Nevertheless, I still like to keep my blog alive with occasional updates.

10 Smart Ways Americans Save Money

I got the idea for this blog post from a recent article I read on MSN. It is called "6 really dumb ways Americans waste money", I have attached the link to it at the bottom of this post in case you want to read it.

I didn't quite like the negative tone of that article and how it was portraying us when it comes to money matters.

A Better Way to Build a Bond Ladder

Investors often gripe with what to do with the uninvested cash sitting in their brokerage accounts earning next to nothing interest rate while waiting for a market correction. I've been feeling the similar blues as I do have some cash from recent sales of a few overvalued stocks that I would like to reinvest.

However, the market is quite overvalued and it's hard to find bargains. Therefore, I would like to find a good place to park my cash while I wait for a bargain or a correction to show up.

So what are the choices for parking cash and earning some interest?

"Blogging" What's in it for me and you?

I started blogging about six months ago and after retiring early from my engineering job/career of 20 years. Since then, I have published about thirty nine different posts (including this one) covering personal finance, early retirement, and investing related topics.

As of today, my total page viewership is close to 12,000 pages from many different countries with majority from the US, Canada, and Israel. It's not too bad for a readership and a fair return for the amount of effort.

I don't actively promote my blog other than occasionally commenting on other early retirement or investment blogs. You will also not see any ads or affiliate links on my site. It is not my intention to make money from this blog despite being "Mr. All Things Money". I will explain later why I chose this name for my blog.

Blogging is mainly a hobby for me, I don't see it as anything more. It's just a way for me to pass some free time while practicing writing skills and sharing my inves…

Taking Profits while increasing Dividend Income

Applying one of my Investment Business Plan rules today, I sold some of my Intel (INTC) shares at a price of $37.70 and at a profit of 127%. That's an awesome return in a 5-year period, not including dividends which I have collected on these shares since 2011.

As a dividend growth investor my main goal when investing in a stock is to generate dependable and growing income via dividends.

In my view, when a dividend paying company fails to raise its dividend annually, it's a sign that company is either not dividend investor friendly or it is in a cash crunch.

Time to add this high quality stock to my Healthcare portfolio

Healthcare stocks have under performed last year and are further beaten down starting this year due to the continued drug price pressure and lingering Obama Care repeal.

Despite the short-term negatives, there are some excellent blue chip bargains in the sector and a good time to grow and diversify my healthcare portfolio which currently makes up only about 6% of my entire dividend stock portfolio.

You can see my complete portfolio here:My Dividend Stock Portfolio

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.

Bought More Abbvie (ABBV) On A 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.

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.

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.

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.