Friday, September 22, 2017

QUESTIONING CLM AND CRF'S LATEST REPORTS TO SHAREHOLDERS

I've been a shareholder in both CLM and CRF for quite some time now.  As a dividend investor, I love the high monthly dividend payments even though I know they're not really representative of the funds earnings.  It's just nice to get those big payments every month.  However, I had considered selling both after looking over their most recent reports to shareholders.  Once again, they both report substantial returns which I would ordinarily be quite happy with.  The problem is, they always seem to report positive returns while the value of my shares continue to diminish.  Maybe I'm missing something here, but if the fund is making money, should the value of your shares be going up instead of down?  O.K., I understand that a major part of the big monthly dividend is a return of capital, which reduces my average cost per share.  I'm just wondering if I continue to take dividends in cash, will my shares eventually dwindle down to nothing?  Not really sure how that will work out.  

Instead of selling, I decided to keep both positions for now.  To reduce the risk of a total loss, I'm taking the precaution of collecting monthly dividends in cash and putting them to work elsewhere, at least for now.  What made me decide to keep the funds was the fact that they're both pretty highly rated on Morningstar.  I trust Morningstar ratings pretty well, so I'll hang on to them for a while longer and see how it goes.

COLLECTED 15 DIVIDENDS IN THE PAST 7 DAYS!

It's been a great week dividend wise, with 15 dividend payments received during the past seven days!  That's whats so exciting about dividend investing, the money just keeps rolling in.  Whether I take the cash or reinvest it, I just keep collecting more and more each month!  With recent stock purchases, I'm up to a total of 481 dividend payments per year or an average of 40 dividends per month.  While most of the dividend payments are still pretty small, the monthly total is a significant amount.  It's already enough to cover some of my monthly bills.  Just got to keep growing the payments through reinvested dividends and additional cash investments and I should be doing quite well by the time I retire in 5 years.

The 401k is moving right along.  While total return for 2017 is only around 1.39%, twice monthly payroll contributions have increased total account value quite nicely.  This is really my wild card account.  While I got to pick where to invest my money, I have very little control over the account otherwise.  So whatever it eventually grows to, it will have involved very little effort on my part.  Hopefully it does well.

I'm about to collect another $25 from Swagbucks, which I'll divert to my investment account.  I'd like to add a third monthly dividend stock purchased with money made from Swagbucks.  I like the idea of creating streams of income from money earned outside my regular job.  This is money I've earned from working online at home.  It would be great to see more income from sources outside my regular job.  So I'm working to make that happen.   

Wednesday, September 13, 2017

PSEC STAKE INCREASES MONTHLY CASH FLOW 3%!

Last month I purchased shares of PSEC for my Roth account, but after doing a little more research, I decided to buy a stake for my IRA account as well.  Total shares purchased will boost monthly dividend income by 3%, which is exciting in itself.  However, the real reasons I decided to purchase more shares was due to heavy buying by insiders and because of an article I read saying that the stock was trading at a discount to net asset value, whereby you were getting $1 in assets for 93 cents.  Sounds like my kind of deal!

When I looked up the insider buying, I noticed one officer of the company had accumulated over 7 million shares.  This would put his stake in the company around $50 million.  I figure if this guy who really knows what's going on with company is willing to risk so much money, it's probably O.K. for me to risk a few hundred.  At any rate, his investment is earning him $420,000 per month in dividends (7,000,000 x .06)!  That works out to 5 million 40 thousand dollars per year!  If the stock remained roughly where it is, it would take him less than 10 years to collect all his money back in dividends.  If it moves up some, he stands to make a killing.  I don't have anywhere near that kind of money to work with, but whatever I make, I make.    

Friday, September 1, 2017

SEPTEMBER 2017 OFF TO GREAT START WITH 11 DIVIDENDS!

While the month of August didn't generate any new records, the month of September looks promising.  Collected a total of 11 dividend payments on the first day of September, with 31 more to follow!  Was happy to see my first dividend from INTC and PFE, since adding them to my portfolio.  Looking forward to many more to come from these two.  

No major plans for this month, although I have put into play an idea I had for increasing overall yields while lowering average price per share.  I followed the effect reinvested dividends had on average price per share and naturally, when prices are rising reinvested dividends increase average price per share, lowering dividend yields.  So my idea was to only reinvest dividends in stocks who's prices have gone down and collect cash dividends from stocks showing price increases.  While, on the face of it, this may sound like a bad idea, since I'm reinvesting in stocks who's prices are dropping and not buying more shares of stocks showing a profit, I think it will work out in the end due to the fickle nature of the stock market.  I've invested long enough to know that prices go up and down frequently, with seemingly no real rime or reason.  That being the case, why not pick up more shares when the prices are low and stop buying when the prices are high.  If some of my shares jump way up in price, I can always sell and collect cash profits in lieu of future dividends.  Since initiating this plan two weeks ago, my cash balances have doubled in all three of my personal investment accounts.

While August didn't set any new records, I am pleased to report my total number of shares owned has increased by 46% from the beginning of 2017 to the end of August!  Average monthly dividend income has also increased by over 40% during the same time frame!

    

Tuesday, August 15, 2017

MID MONTH DIVIDEND PAYMENTS SET NEW RECORD FOR ANNUAL INCOME!

The seven dividend payments collected today pushed annual dividend income to a new record high, beating out the total year's income earned in 2016!  With the biggest half of this month remaining (income wise) and four of the biggest months of the year still to go, it's going to be a great year!  With today's purchase of PSEC and reinvested dividends, I'll have more shares working for me next month, so the last quarter of the year is going to be a big money earner dividend wise.  Of course I still could not retire on my current dividends, but every month is making my retirement look better and better.

Today's purchase of PSEC shares and the purchase of MAIN for my Roth IRA were both paid for with money earned from Swagbucks.  If I continue investing my Swagbucks earnings until my retirement in 4 1/2 years, I'll be earning way more in dividends per month from the stock purchased, than I currently earn from Swagbucks!  Currently, I'm less than $5 away from earning another $25 payment from Swagbucks.

Just to give readers an idea of the progress I've made since January 2013 until now, I earned more in dividend income from today's 7 dividends than I earned for my biggest month in 2013.

Friday, August 11, 2017

PURCHASING SECOND STOCK WITH CASH EARNED FROM SWAGBUCKS!

Next Tuesday's scheduled purchase of PSEC shares will be my second purchase of stock using money earned through Swagbucks!  (See link in Link Exchange)  I'm excited about this because it's a second stream of income created using money earned at home, over the internet.  This purchase will add another 12 dividend payments per year, bringing total number of annual dividend payments to 469.  It will also increase monthly income by a little over 1%.  Not a big increase in income, but it all adds up.

So, with 469 dividend payments per year, 25 paydays from work, 28 interest payments and 12 Swagbucks payments, I'm now getting paid 534 times per year.  While most of these payments are still small, they continue to increase every single month.  It's like getting a raise every month.  If you add in the 12 cash back payments I get from my Discover checking account and the 12 gift cards from Bing rewards, I actually get paid at least 558 times per year!  At some point, this is all going to start adding up to a lot of money. 

Friday, August 4, 2017

ANNUAL DIVIDEND INCOME SET TO DOUBLE FOR FOURTH YEAR IN A ROW!

Did a quick estimate of dividend income for the remainder of 2017 and am pleased to report that, for the fourth year in a row, annual dividend income will double compared to last year's total!  As I've said before, I don't expect this trend to continue indefinitely, since it will require more and more cash contributions to keep doubling income year after year.  At some point, earned income is unlikely to keep up with demand.  But for now, it's nice to see the trend continues.  

Since this year's income double is in the bag, so to speak, I'll be looking at ways to double annual dividend income in 2018.  If I implement a plan now, I should be able to pull it off for a 5th year in a row.  I don't count income made from trading stocks, only dividend income.  I also don't count income from my 401k account, since I have no way of knowing how much of that is actual dividends.  So I'll be looking at ways to dramatically boost dividend income in the following months.  One easy way would be to invest my entire Christmas bonus, but I've already decided to use half that for Christmas presents.  Still, investing half my bonus will significantly increase monthly dividend income going in to the new year.  While this will most likely entail taking on some risk by increasing positions in some of the higher yield stocks, I plan to balance out the risk by increase stakes in some of my less volatile big name shares.

Then there's always the bond funds to consider.  Price wise, they're not likely to do well in an environment of rising interest rates, but they do still pay pretty well.  I'll most likely build positions in these through reinvested dividends more than cash out of pocket.  While bond funds have always seemed like an iffy proposition to me, I've collected a lot of money from them for the past few years.