Thursday, July 14, 2016

Recent Transactions - Late June/Early July 2016

Normally I would just be posting about my recent buys, but this time I had a sell in there, with my buys. After much inner debate with myself, I decided to sell some shares of my company stock, as when compared with the companies I research and decide to buy stock in, there really is no comparison, as without the 15% discount, I would not normally be a buyer of my company stock. Thus, I decided to sell 50 shares and use the proceeds to fund my Roth IRA as well as my taxable Robinhood account.

This in addition to my normal contributions at the end of my pay periods, investing the surplus resulted in the following additions to my portfolios

Below are my buys. For Robinhood buys, I try to take advantage of the lack of commission fees, so these buys are more common (usually weekly), and so the quantities are typically lower than adding to my TD Ameritrade Taxable account, or my Roth IRA (which charge $9.99 per trade).

CSCO - Cisco
Cisco has been accused of being "Old Tech" as it has been around for quite a while. However, as more and devices are becoming connected, that requires proper networks, and I see Cisco as still relevant these days. Also with things moving to the cloud, and security becoming more of a concern, Cisco has the ability to play in this space as well. They generate lots of cash, meaning they can cover the dividend, however, over the years they seem to be stuck in the same range of $20 to $30 per share. Plus they have not been paying dividends for too long (only about 5 yrs), however, their annual dividend growth rate is quite impressive.

I see Cisco as fairly valued, and am willing to add shares with a nice yield above 3%. I recently added 2 shares for my Robinhood account.

CMI - Cummins
Cummins has intrigued me, as a leading diesel engine manufacturer, but also in their desire to be in the forefront of building more efficient engines, which will undoubtedly be needed going forward. It's volatility scared me in the past, but I feel I am at a place where I can stomach the ups and downs, along a nice yield well over 3%. It is in for a rough rest of 2016, but I feel its outlook will be much better afterward. I feel that infrastructure will be a priority in the near future, and many industrials, including Cummins stand to benefit. Also, their recent annual dividend growth rates have been quite attractive.

I consider them to be at least fairly valued, if not undervalued, so I recently bought 4 shares of CMI for my Robinhood account.

CAH - Cardinal Health
Cardinal Health has intrigued me, as they are a company that has a decent rate of expected growth along with a nice Dividend Growth Rate. Potentially they are a good balance between EPS/share price growth and dividend growth. Also, with their latest dividend increase, forward yield is now up to 2.3%, above the S&P 500 yield, even if just barely.

Healthcare is also a good sector to be in for the long haul, as it never goes out of style. There is always a market for it, as we need to stay healthy, and part of that is spending money to accomplish that. A big part of their business is distribution of pharmaceuticals, and I like the fact that they aren't tied to one "wonder-drug", so there is less risk compared with a company that is betting the farm on a particular drug product. As time goes on, people will need their drugs, and CAH will play a big part in that.

I recently bought 2 shares of CAH for my Robinhood account, and likely will soon buy some additional shares for my Roth IRA

TD - Toronto-Dominion Bank (Canada)
I have been an admirer of this bank from afar, but mainly from a consumer standpoint. My interactions with them as a non-customer has been positive (mainly to change money, or accompanying friends while they did their banking there). They have struck me as a bank with solutions that seem very intuitive, tech savvy, and contain a lot of common sense (in contrast with some other banks out there). Over the years, I've noticed many more branches springing up in my location, and other locations that I drive and travel to within the eastern US.

My portfolios have been severely lacking in the financial sector, so I have been looking into potential options, but have been less than impressed by the US banking options. Many are undervalued, but with the bull market that we have been in, I noticed that many still have not been able to get back to their pre-financial crisis levels. Also, I have my doubts that all the lessons from the crisis may not have been learned.

After doing some more research, I like that the finanical crisis did not have an impact on the TD dividend. TD appears fairly values, and there appears to be more room to grow, especially here in the US. Currency fluctuations impact on the dividend are a concern, but one I am ok with.

I added 22 shares of TD to my Roth IRA,

I look forward to the increase in dividend income that these will provide!

What recent transactions are you excited/relieved about?

Wednesday, July 6, 2016

June 2016 Dividends

With it being the beginning of July, it makes it a good time to reflect on the dividends received last month. It pleases me to say that June 2016 was my best ever month for dividends received at over $90 (vs $59 from May 2016, and $57 from March 2016). My ETFs paying out at the end of June were a big reason, especially those in my Roth IRA. Let's get to it:

Taxable Accounts (Robinhood & TD Ameritrade):
INTC - $2.86
EMR - $1.43
PSEC - $18.50
QCOM - $22.29
VYM - $7.54
VNQ - $4.64

Total: $57.26

Roth IRA:
VYM - $20.23
IJR - $2.50
IVV - $10.98

Total: $33.71

The grand total was $90.97 combined between the two groups, and this does not include any of my 401(k) investments. After a couple years of dividend investment (though most of that was not consistent, and was not dividend growth investing, I only started with DGI in March 2016) My goal is to bring my taxable account dividend monthly income to match my monthly expenses, but I also want to make sure my retirement accounts are maxed out as well, so I can take advantage once I reach the appropriate age. I still have a good 20 years before then, so I want to keep the appropriate balance while I grow my dividend income in the taxable account. This amount is not terribly high at the moment, but it is $57 higher than I would have had otherwise, and it will be growing in the future. Sounds pretty good, if you ask me.