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Showing posts from 2018

Micro Blog Post #30: Taking Advantage of High Yielding Dividend Stocks to Pay for Healthcare

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For dividend investors like myself, our primary goal is to increase cash flow through dividends. The capital gain is a secondary objective and in many cases we use capital gains as a means to increase dividends through reinvesting.

So, if you are a dividend investor then you should be rejoicing on the prospects of having so many great companies offering 5% plus dividend yield and it's hard to sit back and not take advantage of such a great opportunity.

Keeping this opportunity in mind, I converted my entire HSA investment from a Vanguard VYM ETF to a group of blue-chip high yielding stocks.

Micro Blog #29: Least Known Benefits of a Health Savings Account (HSA)

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In the US, Health Savings Account (HSA) is a great way to save for healthcare tax-free. However, besides the obvious tax-advantage benefit, there are several other least known benefits of having an HSA account. Some of these least known benefits can easily enhance your long-term tax-free income for meeting future healthcare costs and even general expenses in retirement.

Micro Blog #28: My April Stock Buys

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Despite being cautious due to lingering risks to the stock market and overall economy, I've been selectively adding shares to my existing companies. My strategy is to keep adding shares to the companies I already own when they beat earnings or raise guidance/dividends.

It's Hump Day Heat time at Defined Sight

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Today is Wednesday and it's a special hump day as Mr. ATM is flying high on the back of Defined Sight. Read more to check out my new animation and what's sizzling on the hump day at Defined Sight.

Micro Blog #27: How I'm Managing Market Volatility and Impending Macro Risks

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So far, April has brought us quite a bit of market volatility. A continuation of the nightmare that started on February the 5th when DOW plunged almost 1600 points -- easily the biggest point decline in history during a trading day.

As we know now, it was no dip and market was merely giving us a big jolt to announce an era of high volatility.

Micro Blog #26: My Dividend Glide Slope

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If you have been reading my blog for a while, you probably know I like to make cool graphs to track my investments and dividend income. In the past, I've shared with you my Dividend Radar, a Dividend Paradise, and a Dividend City.

Today, I'm going to show you how to build and use a Dividend Glide Slope to land the target dividends, like an airplane uses a glide slope to land on target a runaway.

Micro Blog #25: Some Utilities are Wolves in Sheep's Clothing

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In my previous post, I showed you how much these five (SO, D, DUK, ED, and PPL) utilities have paid in dividends over a 10 year period on a $10,000 initial investment.

In this post, I'm going to show you that not only you can earn more dividends over a long period of time, you can even beat the market in many cases by investing in blue chip dividend paying utilities.

Micro Blog #24: Which Utility has Paid the Most Dividends in the Past 10 Years?

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Too often we get hung up on the dividend growth percentages and forget about the actual cash that gets paid as dividends over a period of time, which is what really matters at the end. Therefore, I wanted to see which ones of my five utility companies have paid the most dividends in the past 10 years in terms of real dollars and cents, given same amount of initial investment.

Micro Blog #23: What Morningstar has to Say About Utilities and Growing Dividends

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Interest sensitive stocks such as the ones in the Utility sector have taken a stumble lately. Many of the blue chip utility stocks are now trading at a relatively lower valuation than what they have been for the past several years (the low interest rate environment).

The transition from low to high interest rate environment has provided an opportunity for dividend or income focused investors to scoop up some of the blue chip names in utilities, especially when they are yielding at historically high levels.
Here is what Morningstar has to say about the current state of Utility sector:

Micro Blog #22: I Missed Out on Potential Gains by Selling Too Soon

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I hate selling stocks as I'm a long-term investor. However, I find myself selling stocks more often than I like. When I look at all my sales of stocks in the past three years, I find myself cataloging those sales into three main categories:

Micro Blog #21 My Tactics For Investing In Dividend Stocks

Alright, so today I'm going to share with you my tactics for investing in stocks, especially dividend paying stocks. Tactics are what I use to execute my investment strategy to meet my investment objectives (see the last two blog posts).

In my investment philosophy, tactics are simply methods for executing stock buy and sell transactions based on some triggers or technical metrics or a list or a combination of all.

Micro Blog #20: Have A Strategy For Your Investments

So, you read my last blog and now you have some objectives for your investments. You now know why you are investing, and what you are trying to achieve. That's great!!! I'm happy we got this far. So, what's next???

Well, the next thing you need to do is have a Strategy. How are you planning to achieve your objectives? Objectives don't just achieve by themselves. You got'a have a plan, a strategy that you can execute to make those objectives come true.

Micro Blog #19: Know Your Objectives Before Investing In Stocks

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One of the things that I have found to be very useful in investing is setting clear objectives. Having clear objectives have helped me stay the course, especially during times when market anxiety is running at all times high.

I consider myself an income investor primarily with growth as a secondary objective. What does this mean?

Micro Blog #18: My Q4' 2017 REIT Dividend Update For OHI, WPC, and O

In this post, I will give you a brief dividend related highlights on three of my REIT holdings OHI, WPC, and O based on the latest earnings report.

Micro Blog #17: My Quarterly Dividend Health Update For Utilities: PPL, SO, DUK, D, and ED

Tracking dividend health is part of my job as a dividend investor. I don't like to solely depend on dividend ratings and other analysis provided by various professional websites, as they are covering hundreds of stocks and may miss or delay reporting issues/concerns related to a company I own.
Instead, I like to read the latest available earnings report to determine what management is saying about dividends and the overall health of the company. 
Here are the quarterly dividend health highlights for utilities I own as of Q4 '2017 Earnings Reports:

Micro Blog #16: A Brand New Dividend Stock Tool For You To Try For Free

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I've been testing a new dividend stock screener tool. It's called "The Dividend Growth Screener".

The tool is based in Germany and so is the developer/owner. I was contacted by the developer to help him test it for the US audience. In return, I get the full complementary access to it ;) But don't fret, there is an option for you to get a free limited access as well. I will talk about it at the end of this post.

Micro Blog #15: My 2018 Early Dividend Growth Update

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For a dividend investor, it is important to track dividend growth as well as when a company is expected to announce its dividend increase.

A slowing or frozen dividend growth rate could indicate a problem with company's business or an overall industry slowdown. An increasing dividend growth on the other hand, indicates improving business and cash flows.

I track both dividend growth and the actual/expected announcement dates for all my stocks and here is how I'm doing so far:

Micro Blog #14: Which Is A Better Staple Stock KMB or PG?

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I'm now focusing on building up my staple positions. I currently own Kimberly-Clark and want to add more shares to its position. However, Procter & Gamble is also a good choice. I don't currently own PG, but could start a position.

With the market correction, both stocks are yielding over 3% and have a very long dividend history of consecutive yearly growth.

Micro Blog #13: How Do I Define A Core Stock?

Before I go and share my own definition or rules for a core stock position, I want to share how some of the most popular and very respected DGI investors on SA define core stock positions in their portfolios.

I have followed these investors for years on SA and tried to learn from their DGI investment wisdom.

Micro Blog #12: Has The Southern Company (SO) Reached Bottom?

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The Southern Company (ticker SO) is one of my favorite utility stocks. It is not only one of the largest utilities in the US, but also a great dividend stock with a 17 years of consecutive annual dividend growth history.

SO is currently yielding at slightly over 5% at a blended P/E of 15, which makes it fairly valued at the current price. A fair value is indicated by the orange line in the FastGraphs.

Micro Blog #11: Selling Is Harder Than Buying

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Knowing when to sell a stock is one of the hardest things, when it comes to investing.

Many times the reason to sell is simply risk management, such as the case with my GE and MAT positions in 2015. These companies were struggling and there was ample warnings that things will get worse for them.

Micro Blog #10: Next Week Is A Big Dividend Week

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Next week is going to be a big dividend week for most of us as many of the dividends for February are paid next week. For my portfolio, there would be at least seven companies paying dividends next week:


Micro Blog #9: Taking Advantage Of This Market Pullback

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Given the recent pullback in the market, a rather quick and steep pullback, many utilities have come down below fair value.

I took advantage of this pullback and added to all my utility positions. Below are the utilities I currently own and have added to during this pullback. I'm listing them here along with the fair values that I have determined using FastGraphs valuation method.

Micro Blog #8: O Say Can You See, What A Wonderful Value Is O

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Folks,

With the recent market turmoil, the Monthly Dividend company, The Reality Income Corporation (ticker O) is on sale.

All you have to do is look at the 20 year FastGraphs chart below and decide for yourself.

Micro Blog #7: I Survived The Crazy Day

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I woke up this morning thinking it would be a nice day to buy some stocks after the Friday's selloff.

I had some money sitting in my brokerage account from a recent sale and some dividends. I also had a good idea of what I wanted to buy, since I keep a buy list at all times. But little did I know that today was going to be one of the largest one day declines market has seen in a long long time.

So what gives? What caused such a decline?

Micro Blog #6: How To Decide Between Low vs. High Yielding Stocks

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Some experts say it's better to own a higher dividend growth stock than a low dividend growth stock as the high yield is likely a sign of a higher risk.

But what if the risks are the same as there are high quality blue chip stocks that are also the high yielders? Many of the blue chip utilities/telecom and REITs would fall under this group, especially as the increasing interest rates drive their yields higher.

If you have to pick between say T (AT&T) yielding a 5.3% yield with only 2% annual dividend growth and HRL (Hormel Foods) with 2.2% yield and 10% annual dividend growth? Which one would you pick and why?

This is what I would do. I would look at my objectives first, which is to earn more cash flow or income from my investments in a period of about 10 years. The more cash I earn now in dividends, the more of it can go to generate even more dividends in future by re-investing.

I picked a 10 year period as it is more realistic for me in terms of making forward estimation on …

Micro Blog #5: Did The Toilet Flush Today?

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I was watching CNBC today when Mr. Wonderful made the following comment on market's 600+ point drop today:

"I love when the toilet flushes on Friday"

I would have to agree with him. Friday is a perfect day for the market to flush as there is a full weekend to cool things off and think about what happened and to strategize for the next week's buying opportunities.

Micro Blog #4: So HCN (Welltower) Froze Its Dividend. What Now?

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Well, I was eagerly waiting for a 1% dividend increase from HCN (Welltower) as I track when each one of my dividend stocks are expected to raise their dividends.

Therefore, when HCN announced its next quarter dividend yesterday, which did not include the raise, I was quite disappointed.

Let's see what management said about dividend and FFO in their Q3 Earnings Report:

Micro Blog #3: Is It A Good Idea To Buy A Stock After A Dividend Cut?

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Should you buy or even hold a stock after it cuts its dividend?

Here is what happened to the five companies I was tracking after they cut/suspended their dividends: Only two out of five companies showed recovery in stock price.


Micro Blog #2: Recent Market Dip and Dividend Opportunities

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Despite all the excitement around the stock market with its ups and downs, it all comes down to one thing for me and that is income.My investment mission statement is to build dependable, predictable, and growing income regardless of what the market does day-to-day.

Even though the market has been in a nose dive for the past two days, cumulatively losing close to 2% of its value in just two days, my investment income hasn't changed at all.


Micro-Blog #1: REIT Selloff and its Affect on my Portfolio

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Today stock market lost 177 points due to concerns over rising interest rates. Sectors like REITs are most sensitive to interest rates and were hit hard.

Assessing damage to my portfolio from today's REIT selloff:



Speed Reading Earnings Report: Beyond The First 60 Seconds

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This is a continuation of my previous post: How To Speed Read An Earnings Report In 60 Seconds Or Less

Assuming you did the first 60 second read of the earnings report and still didn't get a warm fuzzy feeling for the dividend safety. Well, now you have to spend a bit more time digging into the report.

But fear not. I promise, you can still get through the earnings report in less than 15 minutes and get to a reasonable conclusion about the dividend safety. You do this by simply extending your word search in the earnings report and paying attention to the management's use of words to describe dividends.

How To Speed Read An Earnings Report In 60 Seconds Or Less

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I own around 40 stocks in various sectors of the market and during the earnings season, I have to read each one of the 40 earnings reports to make sure companies I invest in are doing well, and there is no imminent danger to my investment objectives.

Reading quarterly earnings report on companies one invests in, is a due diligence that I think all serious investors should do. However, reading earnings report can be a daunting task, especially if you have a well diversified portfolio of several stocks. In my case, you may think it would take me days if not weeks to go through all the 40 reports.

But, what if I tell you, it only takes me less than 60 seconds each, to go through the majority of my stock's earnings reports? How I do this?

Well, let me fill you in on a couple of tricks I use to speed read the earnings reports.