Investing

This is my buy for October 2017

So its already October! That means a new capital injection into my portfolio for a grand total of €250. Last month I made not one but two buys growing my forward annual income with a nice jump in cash (birthday!). Since I was heavily into the tech stocks in recent months I’ve decided to diversify again and saw one of the dividend aristocrats in a postion for me to pull the trigger. Maybe I really should start doing more side-hustles to up the amount of capital I can deploy…

The buy for this month is…..Hormel Foods (HRL)!  I purchased 10 shares @ $31,59.

hormel_logo

  Hormel Foods
P/E 19,5
Yield 2,15%
Payout Ratio 40,43%
Trackrecord Aristocrat: 51 years (!) of dividend increases
Valuation $1,04 above 52-week low | $7,25 below 52-wk high

With a quarterly dividend of $0,17 this should bring me (10 x 0,17 x 1 (one payout in the last quarter) -15% tax = $1,45 closer towards my goal for 2017. My forward annual income should ofcourse increase with four times that amount: $5,78 to a total of $170,93.

As always your comments are much appreciated.

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Investing

September 2017 Dividend Report

August has come and gone and its already time for my dividend report for September! I read it a lot on other blogs and I am experiencing it as well, time really flies by this year.

A total of five companies paid me in september:

Date Ticker Shares Amount (€)
01/09/2017 NYSE:PFE 9 2.06
01/09/2017 NYSE:INTEL 8 1.55
15/09/2017 NYSE:O 5 0.75
18/09/2017 NYSE:VFC 6 1.76
20/9/2017 NASDAQ:QCOM 6 2.44
€8.56

So the total amount for this month is €8,56 which is less than previous month total of €12,26. This amount already has been adjusted fo the foreign withholding tax of 15% (not 30% since our country has a tax treaty).

My year to date graph is now looking like this:

deviden_report_september_2017

With these dividends received I am also inching towards my 2017 goal:

goal_2017_september

Inspired by Divicents I like to list what I can buy for my received dividends:

So for my €8,56 I can for instance buy the book: The Circle by David Eggers for a total of €7,99 and have €0,57 left to buy some fruit at the local grocery. 🙂

So how was your September month?

Investing

Additional Birthday-buy in September

A first time for me! September is my birthday month so a while ago I celebrated my birthday with my loved ones. Although not required there is usually a few gifts here and there, mostly money. Since my financial “awakening” I’ve been very careful what to do with my money, so instead of buying another Bluray for my evenings entertainment I’ve decided to purchase some more shares!

Since GIS was still on my watchlist and all signs were green I’ve added 5 shares to my already existing position. I’ve bought the shares @ $52,20, dollar cost averaging for the second time! So my average cost at this time is (5 x 58,83)+(5 x 52,20) / 10 = $55,52.

general_mills

  General Mills
P/E 18,71
Yield 3,75%
Payout Ratio 63%
Trackrecord 13+ years of dividend growth
Valuation $1,80 above 52-week low | $11,98 below 52-wk high

With a quarterly dividend of $0,49 this should bring me (5 x 0,49 x 1 (one payout in the last quarter) -15% tax = $2.08 closer towards my goal for 2017. My forward annual income should ofcourse increase with four times that amount: $8,32 to a total of $165,15.

As always your comments are much appreciated.

Investing

This is my buy for September 2017

After much consideration I decided to dip my toes in another tech stock, namely IBM. IBM seems to be part of most DGI portfolio’s and not without good reason. I’ve initiated a small position with 2 shares @ $143,89 and as usual with all my purchases it proceeded to dip the next day to lower $142. Oh well…

ibmlogo

  IBM
P/E 11.95
Yield 4,17%
Payout Ratio 47,42%
Trackrecord Almost Aristocrat status (in 4 years)
Valuation $4,76 above 52-week low | $38,90 below 52-wk high

With new developments in cloud, AI, autonomous driving and blockchain I am very confident that IBM has a very bright future ahead.

With a quarterly dividend of $1.50 this should bring me (2 x 1,50 x 1 (just missed the ex-dividend date 😦 ) -15% tax = $2.55 closer towards my goal for 2017. My forward annual income should ofcourse increase with four times that amount: $10,20 to a total of $154.01.

As I had some additional funds left, I like to keep my cash close to $0 on my brokerage account, I also added 1 share of OHI at $32,33. This buy provides me with an additional (1 x 0,64) – 15% is $0.54 towards my goal of 2017. This also marks the first time that I have expanded an existing position in my portfolio, dollar-cost-averaging in effect!

My total forward income increases with this additional OHI share to $156,82.

So what did you buy in September?

Investing

August 2017 Dividend Report

As promised here is my dividend report for August. I am pleased to annouce that it is my best month yet!

So the dividends of this month came from four different companies:

Date Ticker Shares Amount (€)
01/08/2017 NYSE:T 12 4.21
01/08/2017 NYSE:GIS 5 1.75
15/08/2017 NYSE:OHI 12 5.54
15/08/2017 NYSE:O 5 0.76
€12.26

So the total amount for this month is €12,26 which is more than previous month total of €6,55. This amount already has been adjusted fo the foreign withholding tax of 15% (not 30% since our country has a tax treaty).

My year to date graph is now looking like this:

div_total_august_2017

With these dividends received I am also inching towards my 2017 goal:

div_goal_august_2017

It looks like I am at the 1/3 mark of my 2017 goal, nice!

A great and fun thing I saw on another DGI blog (sorry I don’t remember at the moment which but if one of my readers does, please let me know so I can edit this entry for proper credit) is to show something that can be purchased with your received dividends.

So for my €12,26 I can for instance buy the ebook: The 10-Minute Millionaire for a total of €11,49 and have €0,77 left to buy some fruit at the local grocery. 🙂

So how was your August month?

Crypto · Investing

A different buy: Crypto Coin – Ripple

As you have seen on different blogs, a part of the community has jumped on the crypto-bandwagon. I have been interested in crypto currencies for multiple years, actually owning a mining rig for a few months to mine LTC (Litecoin). Unfortantely I did not have the foresight to just buy bitcoins when they were cheap but my interests in the subject never wavered.

After reading the blog of Investmunt Hunting on his purchases I was triggered again to do something with my ongoing interests. So after some investigating I decided to buy into the Ripple coin.

Ripple’s website describes the opensource protocol as “basic infrastructure technology for interbank transactions – a neutral utility for financial institutions and systems.” And it already has the attention of large parts of the financial and banking world.

The protocol allows banks and non-bank financial services companies to incorporate the Ripple protocol into their own systems, and therefore allow their customers to use the service. Currently, Ripple requires two parties for a transaction to occur: first, a regulated financial institution “holds funds and issues balances on behalf of customers.” Second, “market makers” such as hedge funds or currency trading desks provide liquidity in the currency they want to trade in. At its core, Ripple is based around a shared, public database or ledger that has its contents decided on by consensus. In addition to balances, the ledger holds information about offers to buy or sell currencies and assets, creating the first distributed exchange. The consensus process allows for payments, exchanges and remittance in a distributed process. According to the CGAP in 2015, “Ripple does for payments what SMTP did for email, which is enable the systems of different financial institutions to communicate directly.”

 

Market capitalization overview:

coin_marketcap

As of April 2017, members of the network known as the Global Payments Steering Group (GPSG) are Bank of America Merrill Lynch, Canadian Imperial Bank of Commerce, Mitsubishi UFJ Financial Group, Royal Bank of Canada, Santander, Standard Chartered, UniCredit and Westpac Banking Corporation. The group will “oversee the creation and maintenance of Ripple payment transaction rules, formalized standards for activity using Ripple, and other actions to support the implementation of Ripple payment capabilities.”

15 of the 50 largest banks in the world are already testing with the Ripple Network and it has received investment capital from Google Ventures, China Growth Capital and other like Standard Chartered, Accenture Ventures, SCB Digital Ventures, and SBI Holdings.

So what did I do? I opened an account at an online trader and bought €500,- worth of Ripple Coins (XRP). I received (minus the fees) about 2641 coins at a price of €0,189. Part of what interested me on this coin was the relatively low valuation of the coin similar to the early days of Bitcoin.

So is this an investment or a gamble? I think it is a bit of both to be honest. Technically it is an value investment since I hope that the coin will steadily grow in value so I can make a healthy profit when the coins hits $1 (or maybe $15? :)) and I sell them. But with the volatility (in 1 week + 40% and now -12%) of the crypto currencies this is a lot more of a gamble then my dividend stocks.

So anyone else decided to start buying crypto currencies?

Investing

This is my buy for August 2017

I’ve decided (after conducting my own research ofcourse) to follow the footsteps of a lot of people in the DGI community and initiate a position in Qualcomm. I’ve bought 6 shares @ $52,49.qcom

  Qualcomm Incorporated
P/E 20,11
Yield 4,34%
Payout Ratio 82,76%
Trackrecord Dividend increases for over 12+ years
Valuation $1,44 above 52-week low

Even though there is a lot of rumor regarding this stock with ongoing lawsuits I also believe there is a large upside in the long term (and short term with the NXP deal). To read more I suggest you check out this article on Seeking Alpha written by Fiscal Voyage: Recent buy.

With a quarterly dividend of $0.57 this should bring me (6 x 0,57 x 2)-15% tax = $5,82 closer towards my goal for 2017. My forward annual income should ofcourse increase with twice that amount: $11,63 to a total of $143,81.

So what did you buy in August?