Recent Buys Creates Dividend Paying Machine

My recent sell of Sony (SNE) has given me $793 of capital to reinvest into companies that are paying dividends. 100% of my portfolio consists of stocks that pay dividends. The only growth stock I would consider buying is BRK.B but for now all of my stocks pay dividends. After over half a century of paying out dividends to shareholders, Sony decided to cut their dividend. This was a huge red flag and I had no choice but to sell here. The bad news is I had a capital loss of $160 due to the sell, but the good news is I have decided to quickly put that money back to work. I have decided to buy into companies that I feel will be long term dividend payers. I was focused on higher paying dividend stocks with good P/E ratios so that I know my money is being invested properly this time around. The criteria for my new picks were stocks that had a higher dividend yield than 2.5% and a lower than 19 P/E.

Company	Amount Invested	Share Price	Dividend Yield	P/E	Annual Dividends	Years of Dividend Increase
Kraft (KRFT)	$200	$56.37	3.73%	13.98	$7.45	0
McDonald’s (MCD)	$150	$94.70	3.59%	17.16	$6.34	38
Kellogg’s (K)	$150	$61.75	3.17%	12.14	$4.76	9
Unilever (UL)	$100	$42.00	3.60%	18.46	$3.66	4
Wal-Mart (WMT)	$100	$76.49	2.51%	16	$2.51	39
Microsoft (MSFT)	$50	$46.41	2.67%	17.64	$1.34	11
Dr. Pepper Snapple Group (DPS)	$50	$64.05	2.56%	17.67	$1.28	4
Total Invested	$800				$27.34

 

My recent sell of Sony did net me a loss of $160 but let’s take a look at the pros of why I made the decision to sell in the first place.

·         I was able to diversify my new capital into 7 companies that are currently paying dividends on a quarterly basis.

·         Since I used Loyal3 I was able to take advantage of the credit card benefit of 1.5% cash back. This gave me an extra $12 of free money right from the start.

·         I created a mini portfolio consisting of stocks that had a less than 19 P/E and higher than 2.5% dividend yield.

·         I can now add an additional $27.34 of forward dividend income with my new investment vs. the $0 of dividend income I would be getting from Sony if I would have kept it.

·         With the exception of Kraft, my new investments have over 4 years of dividend increases.

·         Piece of mind!

What do you think of my recent decision? Would you have done anything different?

 

Recent Sell (SNE) Sony

Cape May, New Jersey

• As I mentioned to a fellow reader. Sony was my first stock pick back in January when I had no idea about how the stock market works. I actually picked it up because I thought the PS4 would be enough to make the stock go up, but later I realized that was not the case. I am much wiser now and I read that SONY has now cut it's dividend due to it's struggle with the mobile phone business. So I could sell and put my money to work somewhere else or hold and see if they will make a comeback. It's just very disappointing that they cut their dividend since going public in 1958. 

• I thought it made sense to me back in January. I didn’t know other things could affect the stock price such as currency, wars, and earnings reports. I remember Sony dipping over 20% at one point. Even now I think the stock is down 15% since I have owned it.

 

• I have held on to Sony for a couple of reasons. Number one being I think the company had a ton of innovation left in them and they are currently winning the console war against Microsoft. Secondly, every Sony product I have ever owned is made with the greatest of quality. Thirdly, I haven’t lost any money because I haven’t sold the stock.
• Well I had some hope until they announced the dividend cut. I have no choice but to finally sell and invest my money elsewhere.

Sell 45 Shares for $793

 

Would you sell Sony after the dividend cut or would you hold and wait to see if Sony will turn things around? Selling would mean a $160 loss, but you could reinvest the remaining $793 into another dividend paying company.

Recent Buys DNKN, UL, APPL, DIS, WMT, and MCD

 

Trump Taj Mahal, Atlantic City, NJ

After a much need vacation to South Jersey, I am now back to my normal life. It’s always hard to come back to reality after a fun and adventurous vacation. One or two vacations a year is what I am limited to. I am grateful to have experienced what life should be like on my last adventure. The reality is I basically have to buy my freedom. How much does freedom cost? I am unsure of the dollar amount but a good estimate would be between $600,000 and $800,000. I can invest that money into real estate, stocks, and CD’s. This would allow me to live off of the passive income from my investments.

                I’m never going to hit the lottery because I never play so I have to suck up my pride and continue working for that freedom. I am not looking to be rich. I just want to be free to do what I want. If I want to go hiking in New Hampshire or Vermont; I don’t want to have to worry about when I have to get back home in order to be at work the next day. “Live free or Die” is the New Hampshire slogan. I wish I could pack my things and just drive along the beautiful Kancagmagus highway. I am tied to a ball and chain and can’t break free. That’s how I feel pretty much every day. Although the thought of packing a suit case with whatever I need seems appealing; I would only have the funds to live free for a comfortable 20 months. What an amazing 20 months that would be!  

                I have been consistently adding to my portfolio on a weekly basis. This week I decided to buy into 6 great companies that I feel will continue to produce solid dividends in the future. 

Company	Amount Invested	Share Price
Dunkin Donuts (DNKN)	$50	$44.15
UNILEVER (UL)	$50	$42.18
APPLE (APPL)	$100	$101.12
DISNEY (DIS)	$100	$89.12
Wal-Mart (WMT)	$50	$76.02
McDonalds (MCD)	$50	$93.45
TOTAL	$400

What are you buying this week? Are you a fellow shareholder of the companies I mentioned above?

Recent Buys, 6 New Blogsters, and a New Goal

I have been consistently adding to my portfolio on a weekly basis. This week I decided to buy into 6 great companies that I feel will continue to produce solid dividends in the future. 

Company	Amount Invested	Share Price
TIME WARNER (TWX)	$50	$75.95
UNILEVER (UL)	$50	$44.09
APPLE (APPL)	$100	$98.99
DISNEY (DIS)	$50	$90.65
KRFT (KRFT)	$100	$58.38
MATTEL (MAT)	$50	$35.02
Total Capital Invested	$400

 

This week I am just going to give you a short description or opinion of each of these companies. I have written about all of these companies in the past so I want to keep things simple this time around.

Disney

Disney may not seem cheap at the moment but you really have to look at the long term growth for the company. I don’t really like to speculate, but I am anticipating the next 4-5 years are going to be huge for Disney. The dividends are low but the growth possibilities are huge.

Mattel

Another company I would like to briefly talk about is Mattel. Mattel doesn’t seem to get much love because of their poor quarterly earnings. I am honestly in shock because every time I go to a child’s birthday party, most of the action figures or toys are made by Mattel. If you walk into a Toys-R-Us, you will be amazed at how many toys Mattel actually makes. Again I might be speculating here, but I don’t think phones and tablets will ever replace toys in general. I am really hoping Mattel will figure out how to stay innovative and continue producing toys that kids will love for years to come. In the meantime I will continue making small purchases at the current cheap prices.

Time Warner

I wish I could have TimeWarner as a cable service but unfortunately only Comcast is available in my area. Comcast is obnoxiously overpriced and I would never get cable from them.

Apple

Could Apple be a future trillion dollar company? I wouldn’t doubt that at all. This company never seizes to amaze me even though I don’t own any of their products.

Unilever & Kraft

What household doesn’t have Unilever and Kraft products? I purchase Axe products and Kraft shredded cheese all the time.

 

New Blogsters

I am pleased to announce that I have added 6 new blogsters to the list. I can now stay up to date with each and every post that you make. Thanks for the ongoing support and I look forward to reading your articles.

 

 
Tawcan

Dividend Digger

Roadmap2Retire

Two Investing

Average Dividend Yield

Dividend Growth Journey

 

My Net Worth Goal for 2015

I recently wrote about how I successfully completed a net worth goal for 2014. In order to stay motivated and continue moving forward I have posted a new net worth goal for 2015. In order to successfully complete this goal I must have a new net worth of $50,000 by the end of 2015. I am ahead of the game because there are still 3 months left in 2014. Cheers to a bright and successful future!

 

Goal Update - Net Worth Goal Completed

• Have a net worth of $22,000 (includes Savings, Checking, 401k, and broker accounts)

About a year ago I was sitting on less than $5,000 in my savings account and to some people that`s not that bad.  I also owed over $2,000 to the credit card companies and $2,500 in student loans. I was only worth about $500 when you subtract my liabilities. 

How Could This Be? 

I have worked and busted my butt for 12 years and somehow the money I made was gone. It's called consumerism in my book. I liked the fancy Bulova watches, Jordan shoes, and Express clothing. I didn't need any of it. It took me a long  time to wake the hell up. My experiences I write here are to explain how someone who came from nothing turned his life around. In just one year I was able to pay off those credit cards and I am now sitting on over $22,000 in multiple accounts. This is way better than $500 from where I am standing. The numbers are real and it wasn't hard to accomplish this goal. I am going to keep pushing forward and I want to prove to myself that $50,000 is not that hard to save. To some people that is a lot of money, including myself. I plan on explaining how I save the next $28,000 right here on my blog. 

Invest, invest, and invest your money.

Make your money work for you. Work hard, play soft. Another words make your money and stop spending and start investing. In a year from now when I am sitting on $50,000 I will be much more confident and closer to being an entrepreneur. Think about it, I can start a business or buy investment properties with that to make even more money. Money is power. Knowledge is power to. Work hard and invest is my philosophy and it got me this far. The next 28K will be a piece of cake with a cheap bottle of champagne!

Recent Buys (KRFT, VIAB, and DIS) and KRFT is now offered on LOYAL3

Wharf Tavern, Warren RI

The following stock orders have been executed for this week:

.61 Shares of VIAB @ $81.15
.56 Shares of DIS @ $89.88
.89 Shares of KRFT @ $58.90

Total Capital Invested-$150.00

I want to start off by saying that I am very excited to start a position with Kraft (KRFT). I just found out that Loyal3 has added KRFT to the line up of stocks that is already offered. I am now able to start adding small $50 incremental purchases in another great dividend producing stock. It's also no surprise to see that I bought more shares of Disney. Disney is one of my favorite companies and I will continue to add shares before the Star Wars movie make it's debut. Another company that doesn't get much love within the dividend investing community is Viacom. This is a very well diversified company and I understand the dividend yield is low but the long term growth for this company looks good. Now let's take a look at some key points on why I choose to invest in the above mentioned companies. 

KRAFT (KFRT)

• The dividend yield is very attractive at 3.8%
• The current valuation of Kraft makes it attractive at a current P/E ratio of 12.81.
• Net income increased by 65% in 2013 and has paid $2.05 per share in dividends in the same year.
• Growth potential for KRFT still remain a solid long term investment. I have no doubt that KRFT will be able to grow faster than it's peers due to it's dominance in the food sector. 

DISNEY (DIS)

• More growth is anticipated with the Shanghai Park to open before the end of 2015.
• I am cheerful about the latest movie successes thanks to the great deal to acquire Marvel.
• DIS outperformed the S & P and it's peers in the last 12 months. 
• I strongly believe in holding this one for a few decades and quietly watching it help compound my wealth and dividend income. 

VIACOM (VIAB)

• Media giants are gaining tremendous cash flow and I am beginning to realize this after 21 century Fox tried to acquire TIME WARNER. 
• VIACOM has the lowest P/E RATIO (15.21) compared to it's peers.
• A healthy balance sheet so investors can rely on the company to maintain great returns for years to come.

Do you currently own any of these companies? How do you feel about these purchases?