O.K., so maybe it was just a slow week for me, but I did get a decent dividend from BGC Partners Inc. (BGCP). While one dividend per week is a far cry from my goal of daily dividends, I'm making progress. I made a list of stocks I'd like to own, with current dividend yields and the months they pay their dividends. I'm working my way through the list until I own positions in 92 different stocks or at least enough stocks to pay 365 dividends per year. What I realized when reviewing my current holdings is I already own some stocks that pay once or twice per year, instead of quarterly and a couple of issues that pay monthly. So I may be able to get to 365 dividends a year with a lot less than 92 stocks.
While this month has been slow for dividends, I added an additional 8 payments per year with the purchase of EXC and NU. In the month of April I'll be adding at least 8 more payment by adding CLX to my IRA account and CH to my taxable account. While doing spring cleaning I realized I have a lot of stuff I no longer use, so I'm taking it all to my sister's next yard sale and plan to use whatever money I make to buy additional shares of stock. So it's possible I could add an additional 16 dividends for a total of 32 new annual payments by the end of April.
One thing I've learned from all my years of investing, it's important to have a plan and stick to it. What kind of plan do you need? Whatever works for you. The most important thing is to stick to your plan and make adjustments where needed along the way.
Showing posts with label investment plan. Show all posts
Showing posts with label investment plan. Show all posts
Friday, March 30, 2012
Sunday, March 11, 2012
GETTING ORGANIZED FOR MY BIG INVESTMENT PROJECT
In order to focus my attention on my 2 year portfolio building project, I spent the weekend getting organized at home. Got caught up on all my yard work, cleaned and organized my apartment. Had to get my old bedroom cleaned up and dried out for the painters. My landlord finally got the roof fixed and they plan on repairing my apartment first. I thought it would speed things up a bit, not to mention making things more comfortable for myself, to get everything ready so they can come in and get the job done as quickly as possible.
It's been quite an ordeal, dealing with the water leaks and mold for the past 6 months or so, but they're finally making some progress. I've taken advantage of the time to decide what I could live without. I figure I'll kill two birds with one stone. I'll clear up room in my apartment and make some money by selling all the things I no longer want or need at my sister's next yard sale. Whatever money I make from the sale I'll put to work in my investment plan. Rather than having a lot of things collecting dust, I'll add shares of stocks to my investment account and collect dividends.
The restaurant where I work gave me a couple of Coca Cola clocks I intend to put in the sale. I would have been happy making a few bucks, since they cost me nothing, but I've found out they're actually quite valuable. If I sell them at the rummage sale I won't make as much as selling them on Ebay, but I should still do all right. Whatever I make off them is pure profit.
As soon as they repaint my old bedroom, I plan on making it my new home office. I'm keep my bedroom on the north side of the building where it's more shaded during the hot summer months. I have most of the furnishings, so I just need to pick up a writing desk and another filing cabinet. I know a place near here where I should be able to get a good deal on used office furniture and should be able to get any office supplies I need with register rewards from Walgreens.
It will be nice to get everything back to normal and get busy building my new investment portfolio and pursuing some of my other small business ideas. 2012 is beginning to look like a good year for me, we'll see how it goes.
It's been quite an ordeal, dealing with the water leaks and mold for the past 6 months or so, but they're finally making some progress. I've taken advantage of the time to decide what I could live without. I figure I'll kill two birds with one stone. I'll clear up room in my apartment and make some money by selling all the things I no longer want or need at my sister's next yard sale. Whatever money I make from the sale I'll put to work in my investment plan. Rather than having a lot of things collecting dust, I'll add shares of stocks to my investment account and collect dividends.
The restaurant where I work gave me a couple of Coca Cola clocks I intend to put in the sale. I would have been happy making a few bucks, since they cost me nothing, but I've found out they're actually quite valuable. If I sell them at the rummage sale I won't make as much as selling them on Ebay, but I should still do all right. Whatever I make off them is pure profit.
As soon as they repaint my old bedroom, I plan on making it my new home office. I'm keep my bedroom on the north side of the building where it's more shaded during the hot summer months. I have most of the furnishings, so I just need to pick up a writing desk and another filing cabinet. I know a place near here where I should be able to get a good deal on used office furniture and should be able to get any office supplies I need with register rewards from Walgreens.
It will be nice to get everything back to normal and get busy building my new investment portfolio and pursuing some of my other small business ideas. 2012 is beginning to look like a good year for me, we'll see how it goes.
Saturday, March 10, 2012
INVESTMENT PLAN 2012 UPDATE
I'm excited about my new investment plan for 2012. If you haven't read my earlier posts, in a nutshell, I plan on purchasing shares in 50 additional dividend stocks paying quarterly dividends, with the goal of earning a dividend payment for every day of the year.
This week I received dividends from Advance America Cash Advance (AEA) and Centerpoint Energy (CNP). I also deposited cash in my taxable account and my IRA. I've put in orders to purchase the next 2 stocks for my accounts: Exelon Corp. (EXC) for my taxable account and Clorox (CLX) for my IRA. I figure it will take me 2 to 3 years to accumulate shares in 50 stocks, although that may be accelerated with the additional dividends I'll be picking up along the way. Also, with the economy improving at a slight pace, it's possible I may find a better paying job during this time which will allow me to speed up the process.
I know most "experts" would advise against this, however I've never really had a great deal of luck following the "experts" advice, so I'm going with my own instincts on this one. There have been times during my investment career when I've held shares in as many as 50 dividend stocks and I was amazed at how quickly those dividend payments added up. With this plan, I will own nearly shares in almost twice as many stocks! The rate of compounding on my investments will increase dramatically. When I've reached my goal of 92 stocks, all the dividends payments will be used to build my positions, constantly increasing payouts. If some of the companies should falter, I plan on replacing them with shares in other companies.
If all goes well, when I retire I plan to draw only the dividend payments minus 10% which I'll reinvest to account for inflation. Kind of an ultimate buy and hold strategy.
This week I received dividends from Advance America Cash Advance (AEA) and Centerpoint Energy (CNP). I also deposited cash in my taxable account and my IRA. I've put in orders to purchase the next 2 stocks for my accounts: Exelon Corp. (EXC) for my taxable account and Clorox (CLX) for my IRA. I figure it will take me 2 to 3 years to accumulate shares in 50 stocks, although that may be accelerated with the additional dividends I'll be picking up along the way. Also, with the economy improving at a slight pace, it's possible I may find a better paying job during this time which will allow me to speed up the process.
I know most "experts" would advise against this, however I've never really had a great deal of luck following the "experts" advice, so I'm going with my own instincts on this one. There have been times during my investment career when I've held shares in as many as 50 dividend stocks and I was amazed at how quickly those dividend payments added up. With this plan, I will own nearly shares in almost twice as many stocks! The rate of compounding on my investments will increase dramatically. When I've reached my goal of 92 stocks, all the dividends payments will be used to build my positions, constantly increasing payouts. If some of the companies should falter, I plan on replacing them with shares in other companies.
If all goes well, when I retire I plan to draw only the dividend payments minus 10% which I'll reinvest to account for inflation. Kind of an ultimate buy and hold strategy.
Saturday, March 3, 2012
CURRENT YEAR AND LONG TERM INVESTMENT PLAN 2012: DAILY DIVIDENDS
This year I've made some radical changes to my investment plan. Due to tax law changes regarding 1099's I've decided to reinvest dividends in my IRA account only. All dividend payments in my taxable account I'll be taking in cash. I may decided to reinvest some of this money in lump sums at a later date, but I no longer intend to reinvest small amounts, avoiding the extra work I had to do on this years taxes due to sales of some shares last year.
Another change, which represents an entirely new direction for me, I've decided to make it my goal to earn a dividend payment for every day of the year. The plan is quite simple really. Between my retirement account and my taxable portfolio I plan to purchase shares in 92 companies paying quarterly dividends. This will bring my total dividend payments per year to 368 (92 stocks x 4 dividends each per year = 368 total dividend payments). While I'm sure most "professional money managers" would think I'm crazy, I think it will work for me. Consider this, if the rate of compounding determines your ultimate investment success, what better way to invest than daily compounding. While this may sound overly ambitious for a small investor, I believe it's quite within grasp. I already own shares in 40 companies between my two accounts, so I only have to buy shares in 52 more companies. I've already identified several good investments with a calendar of purchases scheduled for the rest of 2012. I'll be buying shares in at least 2 companies per month. One new company for my taxable account and one for my IRA. This will also accomplish my goal of reducing taxes for 2012 by increasing contributions to my IRA.
Daily dividend payments are the ultimate goal here. Once I've accomplished that, I'll work on building positions in each stock. Think of it as making every day of the year payday. What could be better than that?
Another change, which represents an entirely new direction for me, I've decided to make it my goal to earn a dividend payment for every day of the year. The plan is quite simple really. Between my retirement account and my taxable portfolio I plan to purchase shares in 92 companies paying quarterly dividends. This will bring my total dividend payments per year to 368 (92 stocks x 4 dividends each per year = 368 total dividend payments). While I'm sure most "professional money managers" would think I'm crazy, I think it will work for me. Consider this, if the rate of compounding determines your ultimate investment success, what better way to invest than daily compounding. While this may sound overly ambitious for a small investor, I believe it's quite within grasp. I already own shares in 40 companies between my two accounts, so I only have to buy shares in 52 more companies. I've already identified several good investments with a calendar of purchases scheduled for the rest of 2012. I'll be buying shares in at least 2 companies per month. One new company for my taxable account and one for my IRA. This will also accomplish my goal of reducing taxes for 2012 by increasing contributions to my IRA.
Daily dividend payments are the ultimate goal here. Once I've accomplished that, I'll work on building positions in each stock. Think of it as making every day of the year payday. What could be better than that?
Subscribe to:
Posts (Atom)
