Monday, February 1, 2016

WHY THE RICH KEEP GETTING RICHER AND YOU SHOULD BE TOO!

On the heels of record January dividend earnings, February started off great with 4 dividend payments for the first of the month!  Will collect 10 more payments before the end of the month, with 2016 dividend earnings set to beat out 2015 by a wide margin!  Should boost monthly cash flow by another 3-4% with purchase of additional shares of PHK this month.  If available cash allows, I'd also like to boost my stake in AOD, but I'll have to wait and see.  May have to make that purchase in March.

I keep seeing so much in the mainstream media about the rich getting richer and the poor getting poorer.  While on the surface this seems horribly unfair, it's really just a matter of educating people to change their habits.  I am not rich by any stretch of the imagination, yet my dividend income will increase this year by 25%, pretty much on it's own.  If I could live long enough for compounded earnings to work it's magic, I'd eventually be one of the "rich getting richer."  From a more practical standpoint, considering my age, I'm just looking to boost retirement income.  However, there is no reason young people have to stay poor in the United States.  If you save your money and invest in income producing assets, whether it's dividend stocks, real estate or whatever, then eventually you earn more from your assets working for you.

To illustrate more clearly why the rich keep getting richer, I recently read the annual report from one of my mutual funds.  It has a little over $1 billion in assets and earns over $83 million dollars in dividends per year!  Most of us will never have $83 million in a lifetime, but it shows the earning potential of putting the money you do have to work.  There are several billionaires in the world today, who have way more than $1 billion dollars, so of course they keep getting richer because their money is working 24/7 to earn them even more.  While you or I may not have the means to make that kind of cash, the principle works the same for a small amount of money as it does for a billion dollars.  So if you're investing in income producing assets and reinvesting profits, then you will become wealthy over time.  This is what mainstream media needs to be telling people, instead of giving them the impression that successful people are conspiring against them, or that they should have their money seized and redistributed.  That is socialistic nonsense.

So the rich are getting richer and you should be too.  It's as simple as saving as much as you can, investing in income producing investments and reinvesting profits.  


Friday, January 29, 2016

I DO NOTHING AND DIVIDEND INCOME IS UP BY 25% IN 2016!

Just finished posting my end of the month dividends and comparing this month's total to January 2015.  While doing this I noticed that monthly dividend payers alone would pay more cash this year than my entire portfolio paid out last year.  So I did a quick estimate of dividends from quarterly paying shares and was pleased to see that if I do absolutely nothing between now and the end of 2016, my dividend income will be a little more than 25% higher than 2015!

This is exciting in itself, especially since this does not include reinvested dividends.  Since I will be reinvesting dividends and I will be adding additional shares through cash purchases throughout the year, it should be a piece of cake to reach my goal of increasing dividend income by 50% over last year.  I may revise my plan around June or July because I'm thinking I may reach my yearly goals by then.  No matter how it works out, it's surely a powerful motivator to see income increasing at such a tremendous pace.  It also gives me a great deal of confidence in my investment strategy.  At this rate, by the time I retire, I'll be collecting a nice tidy sum to supplement my Social Security checks.

Wednesday, January 27, 2016

INTERNATIONAL HOLOCAUST REMEMBRANCE DAY


With Israelis under attack daily, it's more important than ever that we remember the Holocaust and say, "Never Again!"

Monday, January 25, 2016

FRIDAY'S RALLY DIDN'T LAST LONG

It didn't take long for the market to start it's downward slide again.  Had a good day last Friday and it's back down on Monday due to the price of oil dropping once again.  While this all sounds like bad news, I'm thinking there are some hidden opportunities here.  Mainstream media are hyping low oil prices and Iran's oil coming back on the market but it's not painting a clear picture of what's really going on.  Supply is up, demand is down but what you rarely hear mentioned is that production is rapidly decreasing.  I've talked before about the correlation between low gasoline prices and presidential elections, which you don't have to take my word for, you can look it up yourself.  The price of gasoline almost always drops during during presidential elections.  But this time around we also have Iran moving back into the oil market when prices are already low.  I'm thinking it's creating a "perfect storm" for profits.  By the time the elections are over, I believe that demand will have caught up with supply and we'll see a rapid rise in the price of oil.  Which means anyone buying in at the current low prices should see some substantial gains by next year.  I've already made my oil play by buying shares in an oil royalty trust.  Whether I picked the right one or not remains to be seen, but it represents only a small part of my overall portfolio, so it shouldn't do much damage if it doesn't work out.

February income is likely to be lower than January, with only 14 dividend payments for the month.  However, I should more than make up for it in March with a whopping 22 dividends!  Despite stock market turmoil, I remain excited about my investments and the ever increasing income from dividends.  

Saturday, January 23, 2016

STOCK MARKET ENDS THE WEEK ON A POSITIVE NOTE!

After watching the value of my portfolio drop since the first of the year, it was refreshing to see at least one day where every one of my holdings were up for the day.  As I've mentioned before, as a dividend investor, I concentrate more on increasing monthly income from dividends than I do on the day to day ups and downs in the market.  But I am only human and no one likes to see the value of their investments declining.  I am happy to report that this latest mini crash didn't cause me much angst because of the positive increases in monthly cash flows.  Whether the run up in stock prices will hold or not we'll have to wait and see.  

Collect dividends from GE and PSEC this past week, bringing monthly total of payments up to 11, with 5 more to go towards the end of the month.  This month's dividend income will set a new record for the month of January and I expect to see new record earnings for the month of February as well.  In accord with my plan to boost dividend income by 50% this year, I'll be purchasing more shares of PHK in February.  The new shares will boost monthly income by an additional 3% on top of the 2% increase from January's purchase of AOD shares.  If you add on the 2% increase from reinvested dividends in January and February, that's 7% of my 50% goal.  So I just need to boost income another 43%.  Since reinvested dividends increase monthly income by 1% each month, I really only need another 33% to hit my goal, but I think I can do better than that.


Friday, January 15, 2016

DIVIDEND INCOME FOR JANUARY UP 65% OVER PREVIOUS YEAR!

Just estimated total dividend income for January 2016 and compared it to what I received in 2015.  Total cash flow from dividends is up a whopping 65% for the month, compared to January 2015!  Even with the stock market prices being down lately, what a great way to start off the year!  I have to say, this caught me by surprise.  While I expected income to increase, I didn't expect to see such a large gain.

Collected 4 dividend payments this week from ROYT, MAIN, CLNY and UTG.  This brings the monthly total of payments up to 9, with 7 more payments to go before the end of the month.  Looking ahead towards February, I'll only collect 14 dividend payments for the shortest month of the year, but still expect to see a good increase in year over year monthly income.  Don't want to do the estimate this far ahead, I like being surprised, it keeps me motivated.

On the job front, my earned income is up over last year.  Didn't see any pay increases, but I did pick up more hours at work.  So I'm off to a much better start job wise, compared to last year.  If I stay with my current job, I expect my total earned income to go up about 20% this year.  Don't have any plans to change jobs, but you never know what might come up. 

Tuesday, January 12, 2016

MAKING YOUR MONEY LAST IN RETIREMENT

Just read an interesting article in Money magazine about making your money last during retirement.  They gave the current standard advice to take 4 - 4.5% of your money out each year to make it last at least 30 years or more.  But what if you live longer than that?

So I decided to do the math on my dividend portfolio to see how well it would hold out if I followed their advice and withdrew 4.5% of my money, raising the amount by 2% a year to account for inflation.  My portfolio consists of a mix of individual stocks, stock funds and bond funds.  I was pleasantly surprised to find that, if I followed these guidelines, my money would not only last over 30 years, but it would never run out!

Why would I never run out of money?  Because my current dividend income exceeds the amount I'd be withdrawing by over 30%!  So even if I increased my withdrawals by 2% each year, the extra 30% being reinvested would increase income more than the 2% increase in withdrawals.  Which means I'd never touch my capital, I'd be withdrawing dividend cash only.  I'd planned on doing this when I retired anyway, but with a target amount in mind, it's nice to see how well the plan will work out.  Now here's the crazy part.  I could start taking 4% a year withdrawals right now, while I'm still working and still not run out of money.  I'm not going to, but it's nice to know I could.  Just another good reason to be a dividend investor.