Friday, November 21, 2014

RECENT BUY - BHP Billiton Plc (NYSE: BBL)

 
 WE RECENTLY PURCHASED THE FOLLOWINGBHP Billiton
  • BHP Billiton Plc (BBL)
    • Purchased 10 shares of BBL on 11/20/14 at $51.00
    • Total Spent: $510.00
      • $24.20 added to annual dividends

With everyone's help from our recent post ASK THE READERS - Should I buy BBL, UL, XOM, or BNS?, it was clear (based on the voting results) that many of you felt that BBL offered the best value out of the four stocks we had contemplated on buying.  As of this post, the currently tally was: BBL-7; UL-2 , XOM- 2,BNS-1.  In addition to the voting results, the stock also hit it's 52-week low yesterday.  Although we did not catch the stock at the bottom, we were still happy to have picked up some more shares of BHP Billiton Plc (BBL) for what we felt was a nice buy.

If you follow us, you may recall that we last picked up shares of BHP Billiton Plc (BBL) at $59.75. Today's purchase represents a roughly 15% discount from our buy just two months ago on September 15th.  Definitely glad to have found the opportunity to average down our cost.   

Our family's dividend stocks portfolio currently has a total of 31 dividend paying companies that pay us just a little over $2,705/year in dividends. 

Our family's dividend stocks portfolio may be found by
clicking on the link below: 

We also maintain an extensive list of stock analysis
that can be access through the link below: 



 

HERE IS A QUICK FACT SHEET FOR THE STOCK I JUST PURCHASED:



BHP Billiton Plc (BBL)
  • P/E: 10.04
  • Payout Ratio: 56%
  • Dividend Yield: 4.80%
  • Dividend Growth rate (5yr AVG): 8.19% 
  • 11 consecutive years of dividend increases
  • Recent dividend Ex date: 9/3/2014
  • Next dividend Ex date: approx. 3/5/2015
  • Have paid a dividend since: 2002 (12 years)
  • Pays a dividend 2 times a year.
  • Market Cap: 138.7 Billion
  • 52-week high: $71.44
  • 52-week low: $49.49
 
If you missed it, I had prepared a stock analysis of BBL back in May of this year where I concluded that I felt the stock was a good value under $60. Well, the stock has continued to dip and is now near $50 and my feelings haven't changed so took the opportunity to invest in a company I think is a good value at today's prices.  

What are your thoughts about my recent purchase?

What are you buying?


 

Tuesday, November 18, 2014

ASK THE READERS: Should I buy BBL, UL, XOM, or BNS?

Just thought we'd try something new for our next stock purchase.  We have four stocks that are at the top of our watch list but cannot seem to make up our minds on which one we like better.  So my wife came up with the idea of asking fellow bloggers and our readers what they thought we should buy. 
So here I am reaching out to anyone who is willing to spend a few minutes to vote for one stock from this group that you would consider buying in the upcoming week.  Please briefly tell us why you like the stock that you picked. 
If all goes well, I hope to post results of the voting as well as our stock purchase a week from today.  Thanks in advance for your contribution!




STOCK #1 (BBL)

  • Sector: Materials - Metals & Mining
  • Market Cap: 93 Billion
  • Dividend Yield: 4.26% 
  • Consecutive years of dividend increase: 11 Years
  • Paying Dividends Since: 1990
  • Payout Ratio: 56%
  • P/E Ratio: 11.6

STOCK #2 (UL)
Unilever_logo
  • Sector: Consumer Products - Food & Beverage
  • Market Cap: 52 Billion
  • Dividend Yield: 3.58% 
  • Consecutive years of dividend increase: 2 Years
  • Paying Dividends Since: 1999 
  • Payout Ratio: 64%
  • P/E Ratio: 16.6

STOCK #3 (XOM)
quien vive mal la crisis financiera cuando aun esta recibiendo alguno ...
  • Sector: Energy - Oil & Gas
  • Market Cap: 402 Billion
  • Dividend Yield: 2.90% 
  • Consecutive years of dividend increase: 31 Years
  • Paying Dividends Since: 1882
  • Payout Ratio: 35%
  • P/E Ratio: 11.97

STOCK #4 (BNS)

  • Sector: Finance - Banking & Savings
  • Market Cap: 83 Billion
  • Dividend Yield: 3.96% 
  • Consecutive years of dividend increase: 3 Years
  • Paying Dividends Since: 1832
  • Payout Ratio: 42%
  • P/E Ratio: 10.32

**LET US KNOW WHICH STOCK YOU WOULD PICK AND WHY**


Saturday, November 15, 2014

Stocks Added to Collection of Stock Analyses (Update) - Mid-Month (November 2014)


For those who are not yet familiar with my extensive collection of individual dividend stocks. The collection is currently comprised of 502 stock analyses (and still growing) with links to various stock analyses that I found throughout the dividend blog community.  
 
The collection was created in a Google Docs Spreadsheet so that I may continue to maintain and update the list periodically. My plan is to provide bi-monthly updates (one at mid month and another and the end of the month) to inform everyone of new stock analysis I have recently added to my collection. 
 
The collection goes back two years.  Eventually, as the collection grows, I am planning to only keep stock analyses for a one year time period. You should also know that to help highlight the stock analyses that have recently been created during the last 2 months, I have provided NEW!! at the end of those analyses. 
  


The following is a list of newly added stocks analysis that were prepared during the first half of the month of NOVEMBER (2014):
  1. Abbvie Inc (ABBV)
    • by Dividend Growth Stocks
  2. Aflac Inc (AFL)
    • by Sure Dividend
  3. Air Products & Chemical (APD)
    • by Sure Dividend
  4. Archer-Daniels-Midland Co (ADM)
    • by Dennis McCain
  5. AT&T Corp (T)
    • by Sure Dividend
  6. AT&T Corp (T)
    • by The DIV-Net
  7. Bank of Montreal (BMO)
    • by Roadmap 2 Retire
  8. BCE Inc (BCE)
    • by Roadmap 2 Retire
  9. Bemis Company Inc (BMS)
    • by Passive Income Pursuit
  10. Becton, Dickinson and Co (BDX)
    • by Dennis McCain
  11. Chevron Corp (CVX)
    • by Dennis McCain
  12. Cincinnati Financial Corp (CINF)
    • by Sure Dividend
  13. Conoco Phillips (COP)
    • by Dividend Developer
  14. Consolidated Edison (ED)
    • by Dividend Growth Investor
  15. Dover Corp (DOV)
    • by Sure Dividend
  16. Dow Chemical (DOW)
    • by Dividend Diplomats
  17. Eaton Corporation (ETN)
    • by Dividend Growth Investor
  18. Exxon Mobil Corp (XOM)
    • by Dividend Growth Stocks
  19. Illinois Tool Works Inc (ITW)
    • by The DIV-Net
  20. Las Vegas Sands Corp (LVS)
    • by Dennis McCain
  21. Lowe's Companies Inc (LOW)
    • by Sure Dividend
  22. McDonalds Corp (MCD)
    • by Sure Dividend
  23. Monsanto Co (MON)
    • by Dividend Growth Stocks
  24. Precision Castparts Corp (PCP)
    • by Dividend Developer
  25. United Technologies Corp (UTX)
    • by Passive Income Pursuit
  26. Waste Management Inc (WM)
    • by Dividend Growth Stocks
  27. W.W. Grainger Inc (GWW)
    • by Sure Dividend
  28. Verizon Communications Inc (VZ)
    • by The DIV-Net
Hope you like the new and improved updates with links provided
directly in this post!
 
Please feel free to leave me a message if you prepared a stock analysis during first half of November 2014 that I did not include in my post.  I would be more than happy to add your stock analysis to this post and my collection.  Please make sure to confirm that it is a dividend paying stock and that it is a individual stock analysis.

My goal is to make this collection become the centralized source where one begins their research on a particular dividend stock company or at the very least, a source to confirm if a company stock is worth buying. Whether your a beginner or a veteran, I want this list to become an invaluable reference tool for you all. Best part, unlike other subscription based sites, I plan to keep this completely free for everyone to enjoy and benefit from. Feel free to share with all of your friends and family! 
 
Click on Link Below

Complete Collection of Stock Analyses

Tuesday, November 11, 2014

P2P Accounts (Update) - November 2014


October was somewhat flat month for us on Lending Club as we purchased a total of $677.17 worth of notes this month (a total of $450.00 in new notes and $227.17 notes from the trading platform). We received $690.48 in payments from our outstanding notes.  We came close this past month towards are goal to immediately reinvest the money we collect each month. Glad we found some notes worth investing in this past month.
 
On November 1st, our Lending Club account balance was at $9,045.93 (an increase of $56.24 from last month). We received $690.48 in payments from our active notes; of which, we received, $62.48 in interest (an increase of $1.75/mo.).  The principal balance of our active notes was $8,403.08 (an increase of $49.01 from last month), with $125.00 of loans in review or funding and a remaining cash balance of $517.85.  We are currently generating 4.96% on our seasoned notes. No loans were charged off this month.
 
 
 
 
_____________________________________________________________ 

  
The month of September was somewhat of a disappointment for our Prosper account as we purchased a total of only $262.59.  For the third month in a row, we didn't even find enough notes to reinvest our payments for the month.  That meant our money didn't getting the immediate compounding effect that we always hope to achieve through our P2P accounts. 

Work has continued to be pretty busy for me lately.  Find just 5-10 minutes to do a quick search for new notes continued to be a challenge. If this doesn't change soon, I will need to set aside some time each night before bed to find notes because one of the biggest draw for us toward P2P notes is the ability to immediately re-invest our notes into more notes almost immediately each month.  I will just missed the opportunity to buy the best notes as they are usually grabbed within the first 5-10 minutes after they are listed (*HINT* if you didn't already know, Prosper notes are listed at 9:00AM and 5:00PM each day). Nevertheless, notes that meet my criteria (see below) are hard to find these days.  Therefore, we are also buying notes off the trading platform.   

On November 1st, our Prosper account balance was at $8,760.47 (an increase of $88.96 from last month).  We received $367.11 in payments from our active notes; of which, we received, $63.46 in interest (a increase of $2.82/mo.).  Since we were not very successful in finding new Prosper notes to invest in, the principal balance of our active notes was $8,022.32 (a decrease of $104.82 from last month). We also had $50.00 of loans in review or funding and a remaining cash balance of $558.15.  We are currently generating 7.40% on our seasoned notes.

 ________________________________________________________________
 
Total Value of Both P2P accounts: $17,806.40
($145.20 increase from last month)
 
Total Interest Earned in October: $125.94
($4.57 increase from last month)
 
Estimate Average Interest Earned: 6.18%

 ________________________________________________________________ 
 

NOTES CRITERIA:

Our family has been investing in peer-to-peer lending notes for approximately 3 years now. And because of past defaults, we have now refined our search criteria. As a result, we now take a slightly more conservative approach with the notes we invest in. Currently, we only invest in notes that fit the following initial criteria:
  • Amount requested is under $6,000;
  • Credit score of 700 or more; and
  • Monthly payment will be less than $250.
From those we evaluate (Employment Status):
  • The borrower's income (prefer > $50,000 but depends on amount requested);
  • Length of employment (must be > 2 years); and
  • Their occupation (certain occupations, known to be more secured, are more desirable).
We then look at (Ability To Pay):
  • Their credit history;
  • Revolving balance; and
  • Debt to income level, etc.
We do not invest in any notes where borrow is currently delinquent, of if they have had  a public record within the last 12 months. We also do not invest in notes where the description provided is "Other." We feel that there is too much risk involve when the borrower is not willing to reveal why he/she needs the money.

Click below to view  our peer-to-peer lending accounts

PEER-TO-PEER LENDING ACCOUNTS

Sunday, November 9, 2014

Retirement Accounts (Update) - November 2014


For several years now, our retirement accounts have been growing at a decent pace...this year, however, the performance has been pretty anemic! I am thankful that, overall, we are not losing money. But as our readers probably already know, the anemic growth is one of the reasons why our family has now decided to switch our focus towards building our Dividend Stocks Portfolio and P2P Lending Accounts so as to have optional income streams in retirement. Nevertheless, we will still continue to track these accounts as they are still part of our retirement plan.

EXISTING RETIREMENT ACCOUNTS - NOVEMBER UPDATE:

Below is a quick update to show the current values of our retirement accounts as of November 1, 2014.  For a more comprehensive list of values (beginning January 2014) and details of these accounts, please visit the Retirement Accounts page on our blog.
 

As of November 1, 2014

PENSION
Cash Value of Pension$208,470 ($1,874 increase from October update of $206,596)
 
457K
Total value of 457K: $117,910 ($2,554 increase from October update of $115,356)
 
Roth IRAs
Total value of Roth IRA accounts: $54,583 ($1,883 increase from October update of $52,700)
 
So its safe to say that we saw a decent recovery this past month as the market began its recovery from the September dip.  In all, our accounts increased a total of $6,311 from the October 1, 2014 totals.  Glad to see things on the rise again in these accounts.    

As it stands, the total amount of our retirement accounts is currently valued at: $380,963 (up from $374,652 reported last month). We currently contribute to my 457K (up to my company's match - 3%) and also $200 each to a Roth IRA for both myself and my wife. Although we are not entirely happy with their growth, we still feel that the 457K and Roth IRAs should remain part of our retirement plan.  If for nothing more, the 457K and Roth IRAs are our back-up plan or supplement to my pension. 
 
Click below to view retirement accounts page 

RETIREMENT ACCOUNTS

Thursday, November 6, 2014

Mortgage Balance (Update) - November 2014


If you have viewed our family's Net Worth Page, you probably already know that it does not include the equity in our home.  Although, we do realize that it is technically part of our overall net worth, we decided that since our home equity is not an asset that we can count on for income (unless we sell and buy something cheaper) we would exclude it from our net worth calculation.
 
For the purpose of this blog, we are more interested in documenting our loan balance rather than our home equity.  With that said, we will use the current Zillow value as our estimated home value and use it to figure out the percentage we owe on our home. For those interested, we will include the amount of our home equity, but know that we are less concerned with the equity since we have no plans to cash out or otherwise sell our home. Our main goal is to pay off our home on or before my retirement date. 


HOME VALUE:
According to Zillow, our home is currently worth: $781,080 (just barely down from $781,435 in October post). The housing market in our area has been steadily climbing this year. However, the gains seemed to retreated since reaching the summer highs. 
 
 
Mortgage Balance (November 2014):
$338,557 (down from $340,261 in October)
Percentage Owed:
43.34% (down from 43.54% in October)
Home Equity:
$442,522 (up from $441,174 in October)

Even though we don't consider home equity as part of our net worth, since I am sort of a statistics nerd, I still like to look at the numbers and draw fancy comparisons. :) With that said, our home equity did increase slightly this past month to $1,348. For percentage owed,  the number remained essential flat, going from 43.54% to 43.34% during the past month.  For now, it feels like the housing market is keeping steady...at least until the Feds decide to raise interest rates.  I have a feeling we may see a dip in home prices in 2015 as a result of rising interest rates.  

Mortgage Background:
For those that have not read the Preface on our home equity, we currently hold a 15-year fixed rate mortgage at the incredibly low rate of 2.875%.  My goal is to retire within 13 1/2 years so we are setting out to pay off our mortgage on or before my retirement date. We have a little less than 14 years left on our mortgage but I would like to have it paid off in another 10 years (or less) so I can use the last few years to aggressively build our retirement nest egg. 
 
Right now we are not putting any extra money towards the principal given our low interest rate. We feel that we could make our money grow faster by investing it and while keeping the money more liquid. At a certain point, maybe in 8-10 years, we may consider using money from our investment accounts to wipe out the remaining mortgage balance.  Until then, we will continue to grow that money outside, rather than have it locked into our home.
  
Click on the link below to view our mortgage balance history:

Monday, November 3, 2014

Dividend Stocks Portfolio (Update) - November 2014


Here is the recent update to our dividend stocks portfolio – November 2014.

 

SALES

As noted in the narrative for our dividend stocks portfolio, we are in the process of re-balancing our portfolio to meet our current stock criteria. Some of our holdings, therefore, do not reflect our current goals. We are in the process of selling a few of them as they reach our pre-established limit price.

We are now currently in the 7th month of re-balancing our portfolio. Our goal is to finish the transition sometime before the end of the year. Unfortunately, our re-balancing efforts was non-existent again for a 2nd consecutive month as we did not sell any shares in our portfolio this past month. With stock prices mostly on the decline these past two months, we haven't seen any worthwhile opportunities to sell.  With the DOW back up at all time highs on Halloween, we are hoping that an end of the year run may be in the works.  If that happens, you may see us increase our sales activity and thereby exit a few short-term holdings.

TOTAL VALUE OF ALL SALES: $0.00

OVERALL DECREASE TO ANNUAL DIVIDENDS: $0.00
Since we did not sell any shares this past month, that means our annual dividends did not decrease.

 

PURCHASES

Although we did not sell any shares, that did not stop us from picking up a few shares this past month.  As stocks appear to be on the decline, we decided to seize the opportunity to add some more shares to our family portfolio. In all, we made a total of 12 purchases during the month of October.  We initiated shares in 3 new companies that we previously had not owned: EMROXY, and IBM were companies we did not owned prior to our acquisitions this past month. With the three new acquisitions, we now own stocks in 30 companies.

With the recent decline of SDRL, ARTNA, BBL, ESV, RIG, and AFL, we also took the opportunity to average down our cost basis in these companies.
 
The following are the actual buys that we made during the month of October:

10/1/14
9 shares of SDRL (Seadrill Ltd) at $25.50 ($229.50)
  • Estimated Annual Dividend Received: $36.00
 10/1/14
15 shares of ARTNA (Artesian Resource Corp) at $20.00 ($300.00)
  • Estimated Annual Dividend Received: $12.90
10/2/14
5 shares of BBL (BHP Billiton Plc) at $54.00 ($270.00)
  • Estimated Annual Dividend Received: $12.10
10/3/14
10 shares of ESV (Ensco Plc) at $38.00 ($380.00)
  • Estimated Annual Dividend Received: $30.00
 10/7/14
9 shares of EMR (Emerson Electric Co) at $61.00 (549.00)

  • Estimated Annual Dividend Received: $15.48
10/8/14
10 shares of RIG (Transocean Ltd) at $30.00 ($300.00)


  • Estimated Annual Dividend Received: $30.00
 10/9/14
25 shares of ARCP (American Realty Capital Properties) at $11.60 ($290.00)
  • Estimated Annual Dividend Received: $25.00
10/15/14
5 shares of OXY (Occidental Petroleum Corp) at $83.00 ($415.00)

  • Estimated Annual Dividend Received: $14.40
10/15/14
40 shares of ARCP (American Realty Capital Properties) at $11.50 ($460.00)
  • Estimated Annual Dividend Received: $40.00
 10/19/14
 6 shares of AFL (Aflac Inc) at $55.69 ($334.14)

  • Estimated Annual Dividend Received: $9.36
10/23/14
3 shares of IBM (International Business Machine) at $167.50 ($502.50)

  • Estimated Annual Dividend Received: $13.20
10/29/14
125 shares of ARCP (American Realty Capital Properties) at $8.00 ($1,000.00)
  • Estimated Annual Dividend Received: $125.00
 
TOTAL SPENT ON NEW ACQUISITION: $5,300.14*
*We receive 100 free trades per year through our brokerage account so there was no commission paid on these purchase.
 
As of 11/1/2014, we still have 80 free trades to make until 9/15/2015

OVERALL INCREASE TO ANNUAL DIVIDENDS: $363.44
With the additional $363.44 in annual dividends, our new estimated annual income is now $2,533.39 or and average of approximately $211/month. We have continued to add a healthy amount of money to our portfolio these past few months as we feel there was a few soft spots in this market with this recent dip.  The last time we saw an opportunity similar to this was back in February of this year. I'm just happy that we were ready to take advantage of this recent dip.

DIVIDENDS

September was an average month in terms of dividends received. During this past month, our dividend total was $291.61. To date, we are averaging $204.05 in dividends each month.  We had 8 companies pay us a dividend this past month. 

For the month of October, we receive the following dividends:

WELLS FARGO INVESTMENT ACCOUNT:
10/01/14 - Dividend from EDIV (SPDR S&P Emerging Markets ETF): $34.76
10/02/14 - Dividend from BPY (Brookfield Property Partners): $1.04
10/03/14 - Dividend from BPY (Brookfield Property Partners): $15.56
10/10/14 - Dividend from CIG (Companhia Energetica De Minas): $45.77
10/15/14 - Dividend from ARI (Apollo Commercial Real Estate): $50.52

10/15/14 - Dividend from ARCP (American Realty Capital Properties): $13.33
10/27/14 - Dividend from GE (General Electric): $4.40
10/31/14 - Dividend from AMTG (Apollo Residential Mortgage): $80.20


EDWARD JONES INVESTMENT ACCOUNT:
10/22/14 - Dividend from CMCSA (Comcast Corp): $46.03

OVERALL DIVIDENDS TOTAL THIS MONTH: $291.61*

* We currently receive our dividends as cash in all stock positions held.
  

In case you interested, our family's dividend stocks portfolio may be found by clicking on the link below: