Friday, January 13, 2017

UTG JANUARY DISTRIBUTION NEARLY 7 TIMES NORMAL MONTHLY PAYOUT!

Collected 4 great dividend payments for Friday the 13th!  Was very happy with the payout from UTG, which included a special capital gains distribution, making the January payout 6.8 times higher than December 2016!  Yes I know about the taxable event created by capital gains distributions, but since my shares are held in my IRA and Roth IRA accounts, I'm not too concerned about taxes.  Reinvested all distributions except JMP.  I'm taking some JMP distributions in cash since I originally purchased the stock for possible capital gains.  Just taking a little money off the table should the price drop instead of increasing in value.  Right now I'm ahead, but not planning to sell anytime soon.  I'll continue collecting the dividend in the mean time.

Missouri is getting hit right now with a big ice storm, so I'm a little concerned about making it to work tomorrow.  If I have to call in, it will be the first day I've missed work in the last two years.  Would much rather go to work, since I don't want to lose any hours, but just in case, I've been racking up Swagbucks on my days off.  I figure if I do miss work, the cash I earn online will help minimize the loss.

Dividend income for January 2017 already exceeds January 2016 dividends by nearly 50%!  With some of the biggest dividends yet to come, it will be interesting to see what the monthly total comes to.  Just off the top of my head, I'd say I could easily see a 100%+ increase over last year!  I did expect a nice increase, but frankly I'm blown away.  Never expected the big payout from UTG, so that's a very nice surprise and the rest of the month looks pretty good too.  We'll see how it goes.

Friday, January 6, 2017

EASY WAY TO AVOID TOTAL LOSS ON ANY DIVIDEND STOCK

As a long time investor, I have to admit to having a couple of total loss investments.  My old shares of Kmart which I purchased during their bankruptcy went to $0.  I had 1,000 shares of Atlantic Energy Solutions which also ended up worthless.  There was also a high flying REIT back in the 90's that dropped to $0.  As scary and disappointing as this may seem, I've found an easy way to avoid this as soon as I switched to dividend investing.

What's the secret?  Take some money off the table.  When you own a stock paying dividends, it's quite easy to take some money off the table by simply collecting your dividends in cash instead of reinvesting.  While I'm a die hard advocate for reinvesting your dividends, there are times when this would be contraindicated.  If you own some high yield, high risk stocks like I do, it never hurts to take some of the risk out by collecting some cash dividends.  If you collect cash, that money is yours and even if the share price drops to zero, you still have the cash.  Thus you avoid having a total loss on your investment.  

I employ this strategy regularly and it helps me sleep much better at night knowing I'll never lose my entire investment in any one stock.  You don't have to collect all the dividends in cash.  To continue growing monthly income, I'll have the dividends reinvested for 3 months and collect cash for the next 3 months.  That way I'm covered if the stock does well and I'm covered if it doesn't.  Maybe I miss out on a little growth, or maybe I avoid excessive loss and have a nice tidy bundle of cash to take advantage of other investment opportunities as they present themselves.

Just a simple way to any avoid total loss.  

Thursday, January 5, 2017

HWBK INCREASES DIVIDEND!

Collected first dividend payment from Hawthorn Bank (HWBK) for 2017 and was pleased to see they'd increased the dividend from .05 to .06 cents per share.  Also received the first dividend payment from monthly dividend payer CCD.  It's always gratifying to add a new stream of dividend income.  Should also get the first dividend from SPLV later in the month.

Reviewed my 401k statement online.  Looks like my two fund picks are far outperforming the target retirement fund the company picked out for me.  So much for their expertise.  Still it's nice to see the total investment increasing every month.  The return is not all that much but the regular deposits from my paychecks are adding up pretty fast.

Signed up for Swagbucks to add another small stream of income.  Looks like it will be pretty easy to make an extra $25 to $50 per month.  Definitely plan on investing any cash earned.  They say you can earn up to $150 per month watching videos, but I'm thinking that's not very likely to happen.

Just finished reading Charles Carlson's "The Little Book of Big Dividends."  I'd highly recommend it for anyone interested in dividend investing.  It's explains everything you need to know about dividend investing and is packed with actionable advice including sample dividend portfolios.  While it was nothing new to me, it was an interesting read and provided some good ideas I could incorporate into my own investment plan.


Monday, January 2, 2017

KICKING OFF THE NEW YEAR WITH 7 GREAT DIVIDEND PAYMENTS!

2017 has finally arrived and I couldn't be happier to start the new year off right with the first 7 of 27 dividend payments for the month of January!  While these 7 payments may not seem like much, they are equal to over 50% of the total monthly dividend income for January 2016.  With 20 more dividends for the rest of the month, which include the majority of the big dividend payments,  it's a pretty safe bet I'll see a huge increase in monthly income for January compared to 2016.

The first order of business for the new year is to purchase the final two monthly dividend stocks to guarantee a dividend for every day of the year.  As long as I complete this task before the end of March, it's a done deal.  Since I already have the cash to make the new purchases, it shouldn't present a problem.  I've decided to buy shares of NCV and SPFF.  NCV is strictly an income play, going after the high yield, SPFF provides a smaller yield with possible dividend growth and capital gains.  I'm also planning to purchase shares of AEG, the parent company of TransAmerica, to recover the fees they charge me for my 401k through AEG's dividends.  Should complete all three purchases before March 1st.  

The plan for the rest of 2017 is simple, reinvest dividends and make additional cash purchases of current holdings to boost monthly cash flow as rapidly as possible.   

Friday, December 30, 2016

DECEMBER 2016 SETS NEW RECORD FOR MONTHLY DIVIDEND INCOME!

O.K., so I knew this was going to be the best month ever for dividend income.  But I was not expecting it to beat the previous record, set in July of this year, by over 30%!  This month's record was helped along by 32 dividend payments, the most I've ever received in one month.  Add to that a couple of special dividends and the first monthly dividend from GAIN and it was a sure bet to be a great month!

What makes it even greater is, the first of January is only a day away and I'll be kicking off the new year with another great round of dividends!  Although I'm only expecting 27 dividends in January, it should still be a good month, with three new monthly dividend payers (SPLV, FSC and CCD) all paying their first dividends.  The first goal of 2017 is to purchase two more monthly dividend stocks before the end of March to guarantee at least a one dividend payment per day for the new year.  From that point on, I'll be concentrating on increasing positions in the 5 star funds, going for quality holdings and boosting monthly income through reinvested dividends and additional cash purchases.

I'll be working New Year's weekend to get the double time pay for the holiday, so I'd like to wish everyone a say and Happy New Year's Eve!



Tuesday, December 27, 2016

2016 YEAR IN REVIEW

Wow, here we are less than a week away from 2017, seems like the year has flown by.  Time to review accomplishments in my investment portfolio and finalize investment plan for the new year.  

Major goals for 2016 included doubling annual dividend income, reducing taxable income while increasing non-taxable income and keeping investment costs to a minimum.  I was able to keep investment costs low by reinvesting dividends for free and making larger cash investments, reducing commission costs as a percentage of investment.  As for doubling annual dividend income, that's in the bag.  Turned out it was much easier than I'd expected.  Not sure it will be so easy in 2017, but I'm optimistic, since I'm already projecting a 50% increase.  

The majority of dividend income for 2015 came from my taxable account.  So in order to reduce taxes on dividends, I opened a Roth IRA in 2016 and made the majority of new stock purchases through the Roth account, for tax free income.  I sold some stock in my taxable account and transferred the money to the Roth account and boosted monthly dividend income by a significant amount, while reducing taxes.  I also collected cash dividends from the taxable account and transferred that money to the Roth account as well.  Bottom line, the Roth account now makes up the largest of my 4 investment accounts and generates the lion's share of monthly dividend income tax free.

Balances in my taxable account, the IRA, 401k and the Roth account continue to increase every month from reinvested dividends and additional cash investments.  Monthly dividends go up every month and total number  of shares owned nearly doubled during the year!  I had planned to make a "dividend per day" my main goal for 2017, but was able to increase total dividend payments to 348 in 2016, so it turns out this will be only a minor goal, since I only need to add an additional 17 dividend payments.  All in all, I'd say it's been a great year!

Friday, December 16, 2016

CHANGE OF PLANS, NCV IS OUT, CCD IS IN.

Made a last minute change to my stock order, cancelling NCV purchase and replacing it with CCD.  While CCD is higher in price and has a lower dividend yield than NCV, I would have had to wait until February to catch the first dividend from NCV.  If I purchase shares of CCD instead, I'll get the first dividend in January.  That's the main reason for the change, but I also had to take into consideration that NCV is quite similar to NCZ, which I already own quite a few shares of.  So making the change adds to more diversity in my overall portfolio of investments.

This will lower the monthly income increase from 8% to 7%, but a 7% increase is still quite good.  I may still purchase NCV later in the year, just have to see how things go.