Wednesday, June 24, 2015

Recent Buy - Boeing (BA)

Hi Everyone,

My wife and I continue to be blessed with the way this year has shaped up.  Personally, these buy posts make me hungrier than ever to keep saving, keep making money and keep investing.  The income that we are starting to make every month is could put a significant dent into our expenses.  If you jump over to our Portfolio page, you can see that we almost have an entire month of expenses taken care of if we so choose to quit our day jobs.  Eleven more months to go and we are home free!!

The next couple of months are going to be extremely busy with activities and such going on just about every single weekend.  Between weddings, birthdays, parties, etc. hopefully we will still be able to keep saving at the pace we have been the past 2 months.  

In my last post, I asked you readers what company I should buy after the RAI/LO merger gave me about $1,700 of capital to work with.  I received quite a few comments but ultimately I decided to buy Boeing (BA). 

With this purchase, my wife and I have put a total of around $28,000 to work since the beginning of 2015.  My goal of investing roughly $40,000 is coming ever so close! We are about half way through the year and our total is 70% of the way to our goal.  So now for the numbers... 

Sunday, June 14, 2015

What would you do? RAI Merger

Hi Everyone,

I just logged into my retirement account and noticed that the RAI, LO merger has gone through.  My 33.69 shares of LO turned into 9.89 shares of RAI and a deposit of $1,717.10 into my account.

So what would you do?

Would you immediately buy shares in RAI?  Would you spread the money out into other stocks?  Would you buy a different tobacco company like MO or PM to stay in the same area as LO but could provide better returns than RAI that has a PE of 25?

I currently have a list of 5 other stocks that I would like to be a part owner of so I could easily spread the money out into those. They are OHI, DPS, DE, T and BA.

At the time of the LO merger, I was receiving roughly a 3.65% yield on my money so I would like to get at least that through a single purchase or a combination of different companies so I do not lose out on any dividend income.

I'm leaning towards buying some more OHI since they are still depressed a good bit and then some DPS because they have fallen from their highs by roughly 8%.  I'd be looking to initiate a position on a 10% pullback.

Any advice is greatly appreciated.  One of my best picks is now gone...   :(   If I had it my way, LO and RAI would have never merged, but so is life.

Lets try to pick out my next best performer!!


Recent Buy - Parker-Hannifin Corp.

Hi Everyone,

I fell behind a little bit with getting this post out, but its been a busy couple weeks.  This purchase actually occurred on June 6th.  It looks as if I'll make another purchase here pretty quickly because of the RAI/LO merger.  I received quite a decent chunk of funds for my shares.  I might just buy RAI to stay in the tobacco area, or maybe split the funds between RAI and MO.  Not sure what I'll do with those yet.  My wife and I had a record month of May on the savings front and that has opened up the opportunity to invest some extra capital which is always an amazing feeling!  

With this purchase, my wife and I have put a total of around $26,000 to work since the beginning of 2015.  My goal of investing roughly $40,000 is coming ever so close! We are just about half way through the year and our total is just a tad more than 50% of the way there.  We are in a great position to reach this goal.  I moved away from the REIT area with this purchase but I feel this is a great time to start a position so without further ado...

Thursday, June 4, 2015

Dividend Income - May 2015 Update

Hi Everyone,

It's that time again when we get to post about a favorite topic of mine, dividends!  We hope this post inspires other families out there to start saving and investing as soon as they can.  The power you feel knowing that you are richer than you were yesterday and you didn't have to work for it is a wonderful feeling.  Watching the totals pile in from all the various bloggers out there in this community continues to be a driving force to get ourselves to save and invest more and more.

We realize that our situation is different than every other blogger out there but its not how much you make, its how much you save.  We make a middle class income but we live well below our means and this gives us the benefit to invest the surplus month after month and subsequently drive our passive income to new heights!  The month of May is typically the slowest month and the past 31 days was no different.  However, any money we do not have to work for is far better than working.  So with that being said, lets get down to the numbers.

Between last year and this year, we have put a ton of money to work in the market and the decisions of our past continue to reward us quite well!  This months total came in at $257.18 which is a 85.34% higher than last year.

We made two stock purchases in the month of May, WPC and DLR.  The REIT's continue to remain a bit depressed so we are looking to add to our position in O and OHI.  As my wife and I continue to put more and more capital to work, it is truly paying off...  literally.  This is the first month of the year that we have not had a 100% increase in dividends from last year.  To see that kind of growth month after month is really exciting!  My wife and I continue to be blessed and this journey continues to inspire us to keep on going.

March Dividend Income:
  • VZ - 68.16
  • T - 23.58
  • OHI - 18.46
  • GLP - 29.68
  • PG - 15.36
  • O - 8.83
  • KMI - 46.86
  • PSEC - 43.62
  • Money Market - .02
  • Bonds - 2.61
Total:  $257.18

Jump over to our dividend income page to see the increases month after month.  There is also a nice chart on that page for all you visual learners out there.  On that page, you can easily see dividend income investing at work which hopefully one day will be greater than our expenses and that's what we like to call The American Dividend Dream!  Check out our complete portfolio here updated on 6/1/2015.

Looking out in 2015, we are thinking of adding some more O, OHI, another healthcare (perhaps DGX or GILD) and WAGE.

How was your April?