Saturday, July 4, 2015


Although not so surprised, I was very pleased to see Hawthorne Bank pay a special stock dividend to shareholders this month.  It wasn't surprising, since they've paid the special dividend every July since I've owned the stock.  I am a bit partial to HWBK, although not emotionally attached.  I bought my initial stake when share prices were down, following a bad earnings report.  Since they have a strong presence here in central Missouri, I was very familiar with the bank and their operations and saw an opportunity for gains from a turnaround.  I haven't been disappointed.  My stake in Hawthorne is up nearly 60% since my initial investment!

It's been a good week overall for my portfolio.  Even though some of my holdings were down, ended the week with a record high balance in my investment account.  Got a lot of great dividends in the past 7 days, which always renews my enthusiasm for dividend investing.  During the past 5 days I collected a whopping total of 15 dividend payments!  While the total dollar amount is still small, it is growing every single month.  Imagine if you could find a job where you didn't have to do a lot of work, you got paid 16 times a month and every payday you got a small raise.  Would you be excited about a job like that?  That's exactly why I'm excited about dividend investing.

Thursday, July 2, 2015

Wishing Everyone a safe and Happy 4th of July Weekend!

Wednesday, July 1, 2015


July started off with a bang, as I collected another 5 dividend payments for the first day of the month!  That makes 11 payments total in the last two days!  Who says dividend investing is boring.  I get pretty excited about it when I see the money rolling in.  

UVE is set to pay on the second, shares ended up 4.42% today.  Overall 75% of my current holdings ended higher for the day, so I'm pretty happy about that.  Total portfolio value is still down, mostly due to seasonal drop in price of UVE which is still my largest holding.  Don't intend to ever sell any shares of UVE as long as they're paying dividends.  It's been a great investment over the past 10 years.  I've bought low and sold high and collected a lot of dividends along the way.  I bought back in a little over 2 years ago, held until the price doubled, sold enough shares to pull all my out of pocket money out and kept the rest.  Since then I've reinvested dividends to build my stake back up, with no additional cash investment on my part.  Warren Buffet says a good investment should continue to grow without adding additional cash.  So I'm pretty sure UVE is one of the best investments I've ever made.

ROYT dropped in price today, but I'm looking forward to the increased payout this month.  Last month's increase was a nice surprise, but I never expected to see them increase the payout again, especially while the share price is so low.  I'm reinvesting it all and letting it ride.  I'm still convinced that I'll see some fantastic gains from ROYT as soon as the price of gas goes back up.  We all know that's just a matter of time.  I wouldn't be surprised if gas prices stayed low until after the presidential election in 2016, since historically gas prices always drop before during the presidential campaigns.  The article I read about it theorized that the government manipulates the pricing so the incumbent party has a better chance of retaining the White House.  

Tuesday, June 30, 2015


Just collected 6 dividend payments on the last day of June.  While I was pleased to see the increase in dividends from last month, what makes me even more excited is that tomorrow, on July 1st, I'll have a repeat of today with all of the first of the month dividends rolling in.  This is the greatest part of dividend investing.  The market is down, yet the money keeps pouring in.  Not only am I collecting more each month, as reinvested dividends increase monthly cash flows, but I'm also seeing my total stock holdings increase with every payment.  While your portfolio is small, the increases seem slow, but as your holdings increase, the money rolls in in ever increasing quantities.

I'm at the point now where I'm in the maintenance mode.  I don't expect to add any new stocks anytime soon, but I'm working on building positions in current holdings.  The only thing that would trigger a trade would be a dividend cut, then it's time to sell.  Otherwise it's just a matter of monitoring my investments.  I do plan to increase my portfolio to a total of 30 holdings after doing more research in dividend investing.  According to my research, a portfolio of 30 investments stands a greater chance of positive returns with less volatility than a smaller portfolio.  I don't feel particularly rushed to buy stakes in an additional 10 stocks.  I think at this point I should be very selective and search out quality stocks at good prices to add to my holdings.  I'll be looking for the best deals with the most profit potential.  When I do decide to buy new stocks, they will most likely all be from the list of Dividend Aristocrats.

Monday, June 29, 2015


Today's drop in the stock market is actually not all bad news.  At least not for me, or people like me, who re-invest dividends.  I have several stocks that pay at the end of the month and on the first of the month.  With dividends being re-invested and prices being down, I'll get more bang for my buck.  Lower priced shares also mean rising dividend yields, as long as dividends aren't cut.  Don't really see that happening anytime soon.

I am a bit concerned about the rumors of the IMF adding China's yuan to the international basket of reference currencies.  If other countries begin to sell off U.S. dollars in exchange for the Chinese yuan, it could create havoc in the U.S. economy and the stock markets.  Although, I'm not convinced that it would be the end of the world scenario that some are predicting right now.  If it all goes down, it could lead to a massive transfer of wealth, which means that there will be opportunities to make money as well as the potential of losing money.  

Thursday, June 25, 2015


An active comment writer on Seeking Alpha shared their brief story of success investing in companies with growing dividends.

Actually, having owned CL since 1991, the facts are:
Purchased 200 shares at $69.75
Original cost: $13,950.00
Stock split 2-1 in 1991, 2-1 in 1997, and 2-1 in 1999.
The 200 shares grew to 1600 shares.
Dividends reinvested added an additional 527 shares
Currently holding 2172 shares.
Current price $82.41
Current value $178994.52
Change in value: $165044.54
Cost Basis Per Share: $6.42
Current Dividend: .58 per share per quarter or $2.32 annually
Income from Cl holdings: $5039.04 annually or $419.92 per month.
Peace of Mind: Priceless
Just Sayin
This reminds me of the kind of success the early buyers of Walmart have had – without even counting reinvested dividends, an original investment in 1970 of 100 shares has grown to over 200,000 today, with an income of $292,000.


Below is an excerpt from my initial blog post dated October 27, 2007, I thought it was worth re-posting:

At this point, I don't have much doubt that I will reach my goals, but telling the story as I go is very appealing to me and I hope will be of interest to others who might want to follow along. I most certainly welcome advice from others along the way and hope that my example might inspire people who, like myself, may not see any way out of the wage slave racket of going to work day after day and spending all their hard earned cash to pay bills and just get by. Opportunities and money abound in this country, that's why so many people want to come here. Sometimes when you're so close to something every day, you don't really notice it. I've finally realized it was time to open my eyes and my mind to all the possibilities and to take action to get from where I am to where I want to be. The future starts NOW!