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My Dividend investing 2015 year end report and goals for 2016


If you follow my blog you know that I developed from a chaotic, ignorant investor (sucker) into a dividend investor and later progressed into a chaotic, ignorant options sucker (hoping one day progressing into a trader).

 
A few years ago I created a plan to build a dividend portfolio for my retirement and learn options trading to create an income stream to invest into the dividend portfolio.
 

As of today, I am still partially failing with this plan.

I can proudly claim that I am successful in creating and building my dividend portfolio, which is growing satisfactorily but that trading part is still lacking any good results. Actually I must admit, that I suck in trading. But I learned my expensive lesson and hope in 2016 I will be successful again.

This post will review my dividend investing throughout 2015 and sets my goals for 2016. I plan on writing about options trading in 2015 and goals for 2016 in my next post.

 

 · My accounts review

 

I do not hold all my money in one account. I have a few more accounts because I believe in diversification not only inside a portfolio but also among brokers. Do you remember a scam of Bernie Madoff? Some people invested with him all their money. Instead of retiring, they have to continue working to be able to retire with at least some pension. They lost everything.

I am not saying that the broker I invest with is a scam or will go belly up, but it may happen. It happened once and it can happen again if a broker house gets itself too close to the margin limits. This happened in 2003 when the dot com bubble blasted and many brokers were left with uncovered margin calls and had to foot the bill. It happened again in a currency market in January 2015 when the Swiss National Bank de-coupled the Swiss Franc from Euro and forex brokers found themselves insolvent.

That’s the reason for me to spread my investments among several accounts (but still keep it on a reasonable and manageable level).

Because of that, I have a trading account with some play money to trade options – I call the account as “TD account”

Then I have money invested in a 401k account where I invest into dividend/distribution paying mutual funds. I do not report this account, as there is nothing to report much. All I did in 2015 was some rebalancing to trim gains from health sector and large caps and moved them into basic materials and energy which were underperforming. I also increased my contribution into 401k by 1% along with my salary raise. So as of now I contribute 7% and my employer adds another 3%. If in 2016 I get a raise (usually in June) then I will be again raising my contributions by 1% too.

I also have money in Scottrade account and motif investing. In both accounts I use strictly dividend growth investing and do not mix trading styles. With Motif investing I liked the idea of fractional purchases of the stocks. First you create a desired portfolio of stocks you want and then you are buying the entire portfolio and money you use are spread and spend into all stocks in the portfolio according to your desired target allocation. I loved this idea because in my regular ROTH IRA account I couldn’t afford to buy some stocks I wanted to own, for example at some point it was a Visa (V) stock. Before split, it traded for $200 or more dollars and I didn’t have enough cash to buy this stock (and I didn’t want to buy one or two shares only). Using Motif Investing was a great idea to buy all stocks at once with little money. With Motif investing I can invest the same way as you invest into mutual funds only this is your own mutual fund you create yourself.

Lastly, I have my ROTH IRA account where I use dividend investing and some options trading. This report and all reports on this blog is about this account.

 

 · My 2015 goals review

 

I didn’t set any specific goals for my ROTH IRA account for 2015 as I considered investing in this account as a secondary task and I mostly focused on my trading account and trading results.

It came a lot later to me to work on my ROTH IRA account more than I originally wanted.

During 2015 I made the following steps:

 
1) I activated a DRIP program

I did this because this year I started teaching my kids how to invest money into dividend stocks. I started their own accounts and set up DRIP for them as I wasn’t sure whether they would be able to manage dividend reinvesting the way I was doing it. For their age I considered my method too complicated. DRIP was easy.

Before, I used no-transaction-fee ETF into which I invested all dividends and contributions and once I saved enough, I sold the ETF and bought a stock.

Once I saw how easy and effortless the DRIP was in my kids’ accounts I decided to switch and use DRIP too.

 
2) I decided to start options trading in ROTH too

At some point I polished my options trading strategy so well that I felt invincible and my strategy almost perfect. So I decided to use it in my ROTH IRA account too. Well, Mr. Market showed me that my strategy wan nowhere near to perfection and I lost money.

I stopped trading opt6ions in this account until I learn better. I still have one bad trade in that account which will cost me money and I will be closing it soon (most likely for a large loss). However, I plan on returning options trading in this account as an income generating strategy.

 
3) I renewed my contributions

During 2015 my family budget prevented me from contributing into my account (that was one of the reasons why I hoped for options as an income tool to substitute my contributions – and I still hope for it). At the end of the year I was able to renew small contributions into this account and partially use bonus to contribute.

 
4) My dividend income in 2015

My dividend income was at a satisfactory level considering that many of my stock holdings (mainly in the energy sector) cut the dividends. I noticed a drop in income on a monthly basis, but overall year end result was surprising to me.

In 2014 my dividend income was $1,096.28 and in 2015 I ended up with $1,074.90 dividend income; only $21.38 dollars less. Considering dividend cuts in KMI (true, KMI will show the drop later this year) or LGCY stocks, it is not a bad result at all and it actually came in as a surprise to me.

 
Here is my dividend income on annual basis:

Annual dividend
 

I contribute this result to the DRIP program which helped to offset the losses of income from the dividend cuts.

When reviewing my portfolio, my overall portfolio dividend yield is now 9.43% (thanks to some stocks price drop such as AGNC, LGCY, or KMI). Not bad if those companies continue paying their dividend.

 
5) My capital gains/losses 2015

When I started trading options, overall I realized -$801.89 (-0.99%) loss in 2015
My unrealized gain/loss for 2015 is -$2,648.04 (-7.17%)

Part of that unrealized loss is the option trade I was talking about above which will most likely end up bad in two weeks, unless the market jumps up a bit, which is unlikely, or I do not expect it. The rest is stocks which were beaten down significantly during last two years, such as KMI, LGCY, AGNC, etc. and I still sit on a loss. However, in dividend investing I do not consider capital value of the portfolio and unrealized loss important. I consider dividend income important and I believe, that my portfolio is already stable (I do not expect more dividend cuts) so I should now be well,

Remember, I am investing for the next 20 – 25 years. In this time period I can afford to wait for some stocks to come back up from current losses.

 
6) My stock holdings EOY 2015

Here are my holdings of stocks I have in my portfolio:

Holdings
 

 

 · My 2016 goals

 

 
1) Contributions

I will continue contributing my small money into ROTH. I can only afford $50 dollars per month and bonuses throughout the year. I will keep all contributions in my account as cash until I save at least $1,000 dollars to buy another set of shares to minimize commissions’ impact.

Typically, I will be able to contribute at least $1,000 semiannually my bonus (part of my bonus) and that money will be used directly to buy new shares or invest into existing holdings (accumulate).

 
2) Dividend investing

I plan on continuing using DRIP program reinvesting all dividends into the companies I hold. I will continue building up the portfolio by adding more shares of the companies I want to have such as AT&T (T), Verizon (V), Chevron (CVX), Abbvie (ABBV), Walmart (WMT), etc. I will focus on high yield (but safe) stocks with high yield growth and long dividend history. The stocks listed here are just an example and not the actual list although these are stocks I want in my portfolio so I will be buying them at some point in 2016 or following years. I will be performing my selection process individually when the time comes.

I will only invest minimum $1,000 dollars or more into each company at one time only to save money on commissions.

 
3) Options trading

I will be trading options in ROTH selling spreads against $SPX (S&P 500 index), but I will only limit the trades to risk $500 at this point and no more. Overall, I will risk no more than 10% of my account, which means that in 2016 I can risk no more than $1,500 dollars. That gives me an opportunity to take up to (3) $500 dollar trades at one time (3 contracts), but I will start with one contract only and grow to those three contracts slowly and gradually.

I will trade short term (less than 4 days to expiration), 5 dollars spreads. I will not compound any gains should they occur (meaning increasing number of contracts traded). I will only increase the number of contracts as long as the value of the entire portfolio increases so my total risk will still be within 10% limit.

The goal will be to reach consistent 5% – 8% gain every week trading SPX spreads. There will be drawdowns in options trading and I am aware of it. In a losing week I may realize up to 50% loss, but that wouldn’t be a loss of the entire portfolio, but of the dedicated trading limit (in this case $1,500 limit for 2016). That can be a wipe out of approx. 7 weeks of trading.

All profits will however be kept in cash reserve and once they reach $1,000 amount I will invest them into a dividend paying stock.

As of now, my goal is to reach 5% – 8% weekly profit and $360 monthly cash income from options in 2016 in my ROTH IRA account.

I will write details on trading this strategy in my next post about options trading review and goals for 2016 where I will be lining up the strategy, opening trades, trade management, and trade protection.
 

Please let me know what is your investing plan and what do you think about mine. What would you add to it if it was your account and your money to invest?
 




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Dividend stock picks and market outlook for 2016


I expect 2016 to be a bad year as we are heading towards a recession. I still believe FED had it wrong and raising rates was a bad move, although it was a minor hike, it will still do the damage.

Generally, higher rates is an economic brake preventing fast growing economy from overheating. We do not have fast growing economy. The growth is mediocre at best. Stepping on a break now is futile.

I have heard many saying that FED had to raise rates to save their credibility. What the heck is that? So are we saving our economy or FED’s credibility? We all know that FED has no credibility at all! All their economic predictions were always wrong in 70% of the occurrences.

I believe, FED actually lost the rest of their credibility by raising rates instead of saving it. Why? Yellen was always assuring us that she was data dependent. By raising rates now when incoming data are actually bad, GDP is slowing, PMI index is in recession (the index came in at 48.7 in November and 42.9 in December; any number below 50 is considered recessionary) proved she never was data dependent and she was actually lying! Or she increased rates just to please Wall Street’s expectations.

Yellen is truly a true Democrat dumb enough to raise rates into slowing economy. FED did this move in 1986, just to lower the rates again in 1987 as the recession hit the country. FED again didn’t foresee what was coming. They do not see it again today.

And once again the pundits on Wall Street are all optimistic and laughing at those who are warning about coming recession. I remember Peter Schiff warning about recession coming, warning since 2005 until 2008 about what FED, commercial, and investment banks were doing to the economy and mainly credit and housing market. Everybody laughed and mocked him.

I watched a video on Hedgeye website portraying a chief economist with BNP Paribas Senior U.S. Economist Laura Rosner predicting how great 2016 will be and that the growth will be driven by a consumer’s (thus us) spending. What spending was she talking about? All data on personal income and consumption point to slow growth (personal income grew only 1.7% annually during last seven years compared to 4.32% the pre-recession seven years, source FRED). In other words, people do not have enough income to spend these days! They do not feel comfortable spending (if they were spending their hard earned money, it would have had an impact on prices and consumer spending data).

I live in a region which sees economic growth and busy days in construction, yet I do not feel comfortable spending as I was before the Great Recession. It is also driven by the structure of jobs we are being told by this administration. Economists and FED are cheering about job reports, but when you take a look at the Labor Department, and see what was the jobs made of, the picture is actually sad and nothing to cheer about.

Involuntary part time workers increased, and most of the gains were in retail (15%) and healthcare (24%). The rest was construction (12%) and professional services such as book keeping or computer services (7.5%), etc. Most of the jobs are seasonal, part time jobs, and construction. The construction sector is quite related to the housing market growth which may actually be tampered by the recent interest hike and as a result slow down.

 

 · Dividend stock picks for 2016

 

Although, I am expecting 2016 year to be bad with either a major correction or a recession, it can be actually good for dividend growth investors.

A typical dividend growth investor does not look at the value of his portfolio. At least I do not look at it. I mean that it is not important to me whether my portfolio goes down or up. All I like to see is that my income from that portfolio is up and growing (or in bad years at least same). Then, I do not care much if my portfolio loses 15% in a a bad year. All what matter is that my dividend income is stable and growing.

The only time I look at the value of my portfolio and stock prices is when I can see an opportunity to buy my stocks cheap. If you are using DRIP and reinvest dividends, low stock prices are a blessing to every dividend investor. That’s the only reason why I would be concerned about stock prices and value of my portfolio.

Looking at the portfolio value also requires another perspective – time.

If you are at the beginning of the journey and started building your portfolio a few years ago or even starting this year, then every stock market collapse is actually your friend and you should welcome it with open arms.

It is easy said but gut wrenching to sit tight and watching your portfolio shrinking in front of your eyes. Many people panic and sell. If we see a blood bath in Wall Street this year, do not panic, take it as a great opportunity and invest into your stocks. Take your time consideration into account. Repeat to yourself that you are going to invest for the next 20 or 25 years and from that time horizon perspective any price collapse is insignificant. You can actually become very aggressive with your investing. You can even apply long term options strategies such as buying LEAPS calls or selling long term LEAPS puts (depends on your guts).

Just look at the market in 2008. When everybody was panicking, selling, and predicting end of the world, those who stayed calm and actually continued purchasing stocks at those beaten prices doubled or tripled their holdings.

SPX

The same goes with today’s energy stocks, mainly those involved in oil. They are beaten up, people are predicting more bad years to come, and end of the world. I even read a comment on Yahoo! from one commenter that oil is finished because of alternative renewable energy and that we will be using electric cars.

Quite laughable argument. Although cars are a significant segment using product from refined oil, it is not the only one. Military, large transportation (mainly maritime transportation – unless we go back using sails) will be using products made of refined oil; or can you imagine a large transoceanic carrier running on wind or solar panels?

Transocean

And what about other products which are made of crude oil? Our roads are made of by-product from crude oil (asphalt), lubricants, plastics, computers, paraffin vax, jet fuels (unless we start using hot air balloons again), and many pharmaceutical products. Yes, gasoline accounts for 46% of all crude oil consumption, but it cannot be eliminated whatsoever as the commenter assumed.

Thus I look at oil companies, mainly those dividend paying companies as a great opportunity to buy them cheap in 2016.

If you will be buying those companies, do not be however, discouraged by their price action. Remember, people will be panicking, selling them, running away, screaming, and predicting end of the world. When investing in those companies, consider your biggest friend – time. You are not investing for the next 12 months. You are investing for the next 20 years. No matter how depressive it may feel investing into crushing stocks today, you stay the course.

 
 
Here are my dividend picks for 2016 (not all are oil companies though):

Company Name Symbol Price Yield Growth Div. History (yrs)
Abbvie Inc. ABBV $59.24 3.85% 0.00% 2
Archer Daniels Midland Co. ADM $36.68 3.10% 13.52% 41
Ameriprise Financial Inc. AMP $106.42 2.50% 30.90% 10
BHP Billiton Plc BBL $22.65 10.90% 7.47% 13
Chevron Corporation CVX $89.96 4.80% 8.62% 20
Ford Motor Co. F $14.09 4.30% 48.33% 3
Cedar Fair LP FUN $55.84 5.50% 87.90% 5
GameStop Corp GME $28.04 5.10% 22.20% 3
Meredith Corp MDP $43.25 4.20% 15.30% 20
Magna International Inc. MGA $40.56 2.20% 28.22% 6
Potash Corp. of Saskatchewan Inc. POT $17.12 8.90% 69.84% 5
Southside Bancshares, Inc. SBSI $24.02 3.80% 8.33% 5
Targa Resources Corp. TRGP $27.06 13.50% 30.77% 4

 
 

I will not be necessarily investing to all of those stocks as I do not have enough cash, but they are my favorite list of stocks for this year to choose from. I think they can bring nice dividends and dividend growth.

What do you think about these stocks? Which would you choose to invest to?
 




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December 2015 trading, investing, and dividends results


December is over and it is time to review how my trading and dividend investing performed during this month and throughout the year 2015.

I will be posting a few posts about my trading and investing these days. Today, I am posting about the December’s trading and investing results. In my next posts I will be posting my whole year trading and investing results, plans, and goals for 2016. I will post them in separate posts to make it clearer to review for all my readers and followers.

I would like to take this opportunity to thank you all for following our blog, reading, and commenting. Also, I would like to thank to all the followers who were interested in following my options trading and subscribed to my Facebook Group where I am posting my options trades against $SPX.

The trades I post in the group should show to everybody my struggle learning profitable trading creating a sustainable income. I also wish to create a legacy so the followers will benefit from my trading and they will be able to use those trades themselves, learn, and create an income themselves.


 


 
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If I will be able to reach this goal, I will be happy. So far, I am in the process of creating my own sustainable income from trading.

 

 · December 2015 trading results

In November I became profitable again trading options, but I had a few trades which I tried to save and rolled them into December. It once again showed up as a wrong move. Instead of closing the trade for a few hundred dollars loss, I rolled the trade and created an even bigger loss. I was then forced to close and take a few thousand dollars loss.

This was the biggest lesson I have learned this year that salvaging a trade is a bad idea. It worked with a few trades, but then it stopped working with one trade which destroyed the rest of my effort.

My December 2015 trading ended up with a big loss instead and literally, I am again at the beginning of my trading race. If you follow this blog, you may remember that in 2012 I started trading with $2,000 dollars, overtime I increased my account into $24,000 dollars but later in 2014 and whole year 2016 I erased it all. I am back at the starting point.

I know, it can be discouraging to many people and they cannot stomach these big swings of going from $2k to $24k and back to $2k. Many people will never do that and will never trade. Many may use my results as an evidence that options trading doesn’t work.

Well, it does work if you do it right. Also, I use only a portion of my money as a play money, I still save money in few different accounts. I have a trading account where I used dividend investing and options trading but later I decided to eliminate dividend investing in that account and now use it for options trading only.

I also have 401k account which I invest into dividend paying mutual funds and use employer contributions advantage. I have a ROTH IRA account which I use for dividend growth investing only (at some point I started trading options in there but stopped for now until I learn to be consistent in making money). I also have an account with Scottrade and Motif Investing.

I started Motif investing account because I wanted to take advantage of fractional investing. I love the idea of creating a portfolio of stocks I wanted to own by creating a motif and then investing in those motifs the exact same way as if you invest into a mutual fund. Start investing with Motif and Get Upto $150 bonus. You can also buy my dividend stocks motif

So my trading account is a very small portion of all my money and although in my trading account I lost 78% of my money, it is only about 3% of all my money I have in other accounts.


 


 
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If you are interested in seeing and following those trades, I created a Facebook closed group in lieu of my newsletters where you can join and see the trades in real time when I post them at the time of opening. It is easier to manage and follow all the trades than via a newsletter and I hope that it will be beneficial for all members of the group who might be interested in trading options and generate an additional income.

To me, at first, I may generate an income of $120 to $360 per month, but as my account will be growing bigger, this amount will grow too.

All trades are spreads against SPX with minimum money to trade as low as $500. If that is something you may be interested in, I recommend you joining the group.

However, if you decided to trade options against SPX, be ready for some hard work, frustration, and tears. Be prepared for your account net-liq fluctuating up and down almost to a break point. Trading is not easy, get rich quick scheme. We will have to work it up slowly, step by step before we become confident, consistent traders.
 

Here is my trading result for the month:

 

December 2015 options trading income: -$2,833.00 (-24.20%)
2015 portfolio Net-Liq: $2,539.72 (-37.47%)
2015 portfolio Cash Value: $2,639.72 (-58.96%)
2015 overall trading account result: -78.53%

 

Here are the results of my options trading:

Options Income
(Click to enlarge)

 
Here are the results of my new options strategy:

Options Income
(Click to enlarge)

 
Here is the entire account value from the beginning of tracking it up to today:

TD Account Value
 

No matter how discouraging this may look I am positive and look forward to 2016 as I hope and believe that I will be able to trade with positive results again and create the desired sustainable and consistent income.

 

 


 
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 · December 2015 dividend investing results

Of course, my dividend investing was great and I am pleased with results. I like to see my investments slowly growing as I use DRIP for reinvesting my dividends and buying more shares of the stocks I own.

Even though I had a few shares which suffered and were beaten down by the market for various reasons (some for dividend cuts) I still love the companies and I decided to stay the course. One company which cut dividends significantly (by 75%) was Kinder Morgan (KMI). The stock lost 60% of its value. Some investors decided to sell the stock and took 50% – 60% loss on their holdings I decided to stay, keep the stock, and actually plan on investing more in KMI. It may no longer be a dividend growth investment for me, but I look at it as a capital growth stock for now. If I get some dividends while waiting for recovery, I am fine with it.

And waiting for recovery? What if it takes years? What if it takes next 20 years to recover? Well, why not? I have 20 – 25 years to wait. I do not have to sell it now and take 60% loss! I can wait it out. And what if five years from now the stock goes back up to $25 a share, or $30 a share? Reinvesting dividends and investing more into this company can help me to recover faster. Is it good money being thrown against bad money? As of now, I do not consider it to be. It may change if the company starts losing money, losing their infrastructure of an energy transportation company. Nothing is the case here.

I have a few more companies like that, mostly companies involved in oil. I still take it as an oil recovery play. At some point in the future this oil glut will become a non-issue again and investments I am making today when everybody is running away will pay off. I only have one concern about my MLPs (LGCY and VNR) and that is whether they survive this threat or not. I believe they will but if not, then that will be a loss. But I am willing to take this risk and continue investing into those stocks.

 
 
 

Dividend stocks added or removed from portfolio:

 

December 2015 dividend stock buys: 27 shares
Archer-Daniels-Midland Company (ADM)
@ $37.09
December 2015 dividend stock sells: none

 

I had a dilemma this month which stock to add to my portfolio. I was about to invest some of the proceedings from my bonus and I was thinking to continue investing into oil involved companies and add Chevron (CVX), but I also wanted to know what my readers think, so in my last post I added a poll asking you what stock would you invest in if it was you and you could choose only one dividend growth stocks. The winner was ADM. So I decided to take another look at the stock and compare it with CVX. What I liked the most was the dividend growth of ADM.

Here is what I saw:

  ADM CVX
Div. history 41 years 20 years
Div. yield now 3.10% 4.80%
Div. yield in 10 yrs 14.49% 5.66%
Avg. div. growth 13.52% 8.62%

 

What a few more percent of growth can do in ten years! This made me to change my opinion as I wanted that growth! So I decided to buy ADM instead. I will of course purchase CVX next time as I have a few stocks which I like to invest in, but one step a time!

Byt the way, this is why I like Motif Investing as in that account I could already buy it as a fractional investment while in my ROTH IRA I have to wait to save enough money before I invest.
 
 

 

 
 

snowball

I also continued reinvesting my dividends using DRIP program. I love how my holdings grow when reinvesting the dividends and when the stock prices are going lower. As I believe we are heading into a recession I will be able buying more shares for a lot cheaper. For example I own American Capital Agency Corp. (AGNC) and as the stock was sliding down I was able to buy 1.451 shares, the following month it was 1.592 shares, the next month 1.648 shares, etc. The more shares I buy the more dividends I receive and the more shares I can buy. It is like a snowball rolling down the hill and becoming bigger and bigger.

 

Dividend stocks DRIP:

 

December 2015 DRIP: ConocoPhillips (COP)
Johnson & Johnson (JNJ)
American Capital Agency Corp. (AGNC)
Realty Income Corporation (O)
Vanguard Natural Resources, LLC (VNR)
Prospect Capital Corporation (PSEC)

 

Here are my ROTH IRA trading/investing results:

 

December 2015 dividend income: $71.28
December 2015 options income: $0.00
2015 portfolio value: $15,139.89 (1.57%)
2015 overall dividend account result: -13.24%

 

Here my dividend income:

ROTH IRA account value
 

Here is the entire account value from the beginning of tracking it up to today:

ROTH IRA account value

 

 


 
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Below is my dividend income review for the entire year:

Dividend Income
My ROTH IRA dividend income breakdown per month and per company.
 
 

 · All accounts

Besides trading and dividend accounts I also have 401k account, emergency savings account, etc., which I do not report in detail. You can review those accounts in my “All Accounts Value” table at the bottom of My Trades & Income page.

My accounts dropped from previous month and are losing -3.71% (down from previous month) for the year. This year will be a losing year for my investments.

Remember, if you like trading options and want to have trade ideas for free, join my Facebook closed group and follow my SPX trades in real time, comment, ask questions, and interact with other members.

 
 

 
 

What do you think?

How about your investing or trading results?
 
 




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Gerald Celente on interest rate hike a few days before the hike and recession


Gerald Celente – publisher of the Trends Journal – talking about the US economy. Gerald explains what kind of effect Fed hikes will have on currencies, markets and the global economy at large. And he gives us his take on what’s happening with oil plus much, much more as outlined in his latest Trends Journal.

 

 

Mark my words, the USA will slip into recession by the end of 2016, at 2017 at most.
 




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Posted by Martin December 24, 2015
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Santa, Bonus, Merry Christmas!


Merry Christmas

I just finished a trade which gave me a hard time a bit. I was expecting the market to be silent with a bias towards down, so I opened a bear call spread. However, although volume in the market was low, S&P 500 managed to push higher this week and endangered my trade.

Fortunately, it still closed below my short strike and even though I was completely wrong on this trade, I ended up with a profit. You can follow my trades for free at my Facebook Group I created in lieu of the newsletter (because the group is easier to maintain and manage). You can join. It is free and you will be able to track all my options trades and if you like them, you can even mirror those trades.

 

 · What’s next? Will Santa come or not?

 

Santa rally officially starts next week. Usually five days after Christmas and two days into the New Year are considered a Santa rally. But will Santa arrive this year? This week we saw markets recovering from last week’s losses and it pushed higher than I expected. This may be a good push and indication that we may see a Santa rally for the rest of the year.

We will see next week. If the market continues pushing higher, I will be adding some bull put spreads to my options trading account and ride the rally. If weakness persists, I will be adding more bear call spreads. Next week will be important to my next trading.

This will be also important to the overall trend. As I posted a chart of the current trend last time I pointed out that my outlook is bearish. Let me re-post that picture:

SPX trend
(click to enlarge)

And now, let me show you the same picture cleaned a bit without all the noise around. I removed everything which could be distractive and just left the regression channel I use to determine how the market would probably act.

I added big magenta arrows pointing to the upper channel trend lines and lower channel trend lines. Also, in between, you will see a median line. As of today, the market bounced from the median line heading upwards towards the upper channel trend line.

SPX trend
(click to enlarge)

And here comes the fruity part. Before August 2015 the channel was trending up. What changed it? Well the sudden drop in August made the damage. The premise of this charting study is, that the price tends to stay inside the channel as long as it breaks out. If it breaks out, however, it still means nothing to the trend. It must break the channel and stay there for some time. The longer it stays out of the channel, be it below, or above, the more likely the trend is going to change.

And that’s what happened in August 2015 and since then, we have a down sloping trend.

I also added dashed lines on top of each regression channel trends. They project the channel into the future as you can see for yourself, it also shows me how the channel is changing over time.

The channel lines are changing based on the price (I track 9 months time frame) but the dashed lines don’t. They stay static, they do not move. If the channel starts sloping down steeper than it is today, I will see it. If it starts turning upwards, I will also see it as a difference between the new channel trend lines and static dashed lines.

As you can see, as of now, there is no change in trend what so ever. The new channel trend lines are following my dashed lines in a perfect alignment (I put the lines on top of the channel at the end of September). This means, we are heading further down and if nothing changes the prices will be dropping in the near future.

So why is Santa rally important?

Santa can break this downtrend. If in the next 7 or so days the Santa pushes the price towards the upper trend line (somewhere between 2100 – 2110 level) and the price manage to stay there for longer time or will be bouncing at the top of the trend then we may see a reversal in trend and I will become bullish again. If Santa fails, we will again head down.

What’s also positive here is that we are bouncing from the mean level to the upper level and not opposite. This can also move the market higher. But as of now, do not expect much. Rather, expect the market trading inside that sloping channel.

 

 · Bonus, yay! But where to put it?

 

As many of the bloggers who blog about their investing we put some, or all of our yearend bonus towards our investments. I do the same. Part of my bonus goes to my 401k account automatically (it is deducted and saved in my 401 k by my employer before I even see it. The next part will go towards my debt and the last part will go towards my ROTH IRA account where I will invest it into a dividend growth stock.

As every year, I have a dilemma which stock will be that happy one and become my adopted baby. And this year, with prices falling, it is even worse to make a decision.

I will probably invest into oil involved companies as I see an opportunity in this sector. Although I will be overweight in this sector, I think it is OK since I am still building up my portfolio and thus allocation isn’t as much important to me. As oil starts improving, I will focus to other sectors which will depressed at that future time.

Here are stocks I am eyeing to purchase, but didn’t make my mind which one. Can you help me to choose?
 

[poll id=”27″]

 

If you choose “other”, please let me know which stock you prefer to buy in comments and why.

 

 · Merry Christmas!

 

The year 2015 is almost over and we are heading to celebrate end year holidays. Let me take this opportunity to wish you Merry Christmas, success, health, and happiness to you and your families! I hope the next year will be better to all of you and that all your dreams will come through!

Merry Christmas!

 




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Posted by Martin December 22, 2015
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Is Santa coming?


Santa
 

If you watch markets regularly you may feel its pulse time to time and feel whether it has steam to push prices higher or whether it is weak and prone to further selling.

We have seen nice recovery recently from 2000 support back up to 2040 level. But if you look under the hood, the recovery isn’t that impressive. The whole day looked like lazy day and volume was slightly drying up hour after hour.

Only the end of the day saw some activity and we dropped hard and recovered it sharply almost at the same time.

Will this be enough? are we seeing Santa finally coming? Or was that it? As holidays are coming my guts are telling me that we are about to stall and we will not see much this week. We only have one and a half day left to the end of trading this week and the market may not move anywhere. Everybody will be gone for Christmas.

However, this low volume/activity environment can actually be violent both sides and we may see sharp moves tomorrow or on Thursday. And the moves can go both ways. Yet I am bearish.

Below is a chart indicating why. I am bearish both time frames – long and short time. The market is below 21 day MA, 50 day MA and 200 day MA which is bearish and also a strong resistance. Will the market have enough strength to overcome that resistance? We will see tomorrow or on Thursday if so. As of now, I do not think the market will have that strength.

What worries me more however is the entire market direction. I use linear regression channel for the overall market trend (magenta lines in the chart below). In August 2015 when we saw the dramatic decline in prices the damage has been done to the trend and since then we are sloping down. What’s even worse is the dashed white projection lines. I draw them manually above the entire channel and extend them further to the right. On the chart, they are on top of the magenta lines although it may not be visible at the first glance. These lines help me to see how is the market changing. Is the channel sloping down more or slowly turning back up? The dashed projection lines help me to see the change.

And that’s the issue. As you can see, there is no change! The dashed lines are still on top of the magenta lines and every day the new portions of the channel are added and they follow exactly those dashed lines! What does that mean? That we are heading down and there is no indication of changing this trend.
That’s why I am bearish overall and unless anything happens, this bull market is over for now. It may change, and I will notice that change when the magenta lines start rising off of the dashed lines.

But now? Now we are heading down.

SPX trend
(click to enlarge)

 




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Posted by Martin December 15, 2015
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Is FED going to raise rates tomorrow?


Yellen

I have been a longtime proponent of an idea that FED will not raise rates at all although they have been talking about it for the entire year. They simply cannot afford doing it.

I always said that interest rates is a tool to cool the economy and prevent it from overheating. It is a tool to manage inflation. We do not have economy overheating. It is doing well, but not so spectacular so we need to slow it done. We do not have inflation (at least not the official one).

And I think, FED is well aware of it. If they raise rates tomorrow, they will derail the market, bond market will crash, and dollar will skyrocket.

A strong dollar will hurt our export even more and slow it down.

Higher rates will slow (if not stop) already tight lending, so the housing will slow down and all ARM mortgages will reset to higher rates which will have a negative impact to the lenders.

Higher rates will hurt housing market.

Car loans will stop too if the rates go higher. Today, consumers are buying new cars using low interest environment (rates) and yet many cannot afford it so they take out 6, 7 or I even saw 8 years long loans! When did this become a new normal?

Higher rates will slow car lending and car sales will go down too.

In my opinion, raising rates into slowing economy is foolish. Yet, Yellen may be foolish enough to do it.

People say, they have to raise rates otherwise they lose credibility. In my opinion, they lost the credibility several months ago. Raising rates now would be as damaging to the FED as not raising them at all.

Yellen always claimed that she was data dependent. If they raise rates now, she will prove that she never was data dependent as data coming in are tepid at most. ISM index has been slowing since 2012 and now is in recession level, consumer spending is non-existent, New York FED recently lowered their 4Q GDP expectations to 1.2% from 2.4% (what a surprise!) and employment data is nothing to celebrate about. We are seeing a seasonal increase in employment due to Christmas season (just review at the Department of Labor website what jobs made the data – all temporary jobs in service sector and retails). After the New Year we may see a slow down again.

Raising rates now would do the same damage (and bigger) than letting them at the same level. In short, FED is trapped.

Recently I received an email from one trader telling me what he thinks about FED and their rate hike rhetoric:

“At the end of the day, the Fed can talk all they want about how it is time to raise rates and start moving things back to normal.
But the truth is, the last thing they want to do is upset the apple cart.
Raising rates is for cooling down a hot economy and for fighting inflation. We have neither. Commodity prices are in a deflationary spiral, and a strong dollar would only add downside pressure to that group.
How can they suddenly appear hawkish without scaring the markets to death? Simple. They can’t. Whatever it is they do tomorrow, they will do it with an eye towards keeping the dollar in its current range, being friendly to stocks, and making sure the bond market doesn’t collapse.
I think everyone is looking for both bonds and stocks to collapse tomorrow. Which is why I think ultimately both of those markets will destroy shorts.”

We are also heading into election year. This is a big deal for Democrats. It is historically proven that every party tries to manipulate economy at the election year.
During 1962 – 1973 Federal spending increased by 29% during election year. Social security increased 100% higher compared to non-election years. Nixon pumped $1 billion a month into economy and pockets of unhappy voters, President Bush awarded federal grants to projects in strategically important states; tax cuts, drug benefits to seniors, military spending increasing the federal budget deficit by $477 billion in 2004 (Stock Trader’s Almanac 2016, p.28).

If you think, Obama administration will be doing otherwise, you are mistaken. Yellen is a Democrat. She will protect her party and she cannot afford markets collapsing and economy crumbling even more during election year. She needs a Democratic presidential hopeful wins the election if she wanted to be re-appointed to continue as a chair if the FED.

Whenever Yellen (or any other of the FED’s members) tests waters and releases a blah about a “strong possibility of raising rates” at the next FOMC meeting, markets tank heavily. This has been happening for the entire half of 2015 year. I believe, that this is what scares FED members and at the end they back off.

I think, FED will continue their talks but they will keep rates at the same level tomorrow. If they, however, raise it, it will be a small raise and they will be forced to lower the rates again next year.

What do you think? Will Yellen move forward and raise rates because everybody expects it or stay the course because economy is not ready for the hike?
 




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Posted by Martin December 08, 2015
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KMI cuts dividend by 75% slapping their investors face


beating

 
So the news is out. KMI cut the dividend by 75% after the market today. After hours, the stock dropped 6.5% and we may expect more investors abandoning the ship. If you feel like your investment fleet took a beating, don’t worry, you are not alone.

The dividend cut is a blow to all investors who were diligently building their portfolios and such behavior from the management who knowingly brought the company into this situation deserve a punishment. And there will be many who invest in their taxable accounts and they will tax harvest and sell.

But if you are like me, I need a different strategy.

 

 · What are my options and views?

 

  • I have all my stock investments in ROTH IRA account. Tax harvesting doesn’t make sense for me.
  •  

  • Selling now would mean I will be taking almost 60% loss. My cost basis is $35.68 per shares. At current prices I am not willing to take that loss.
  •  

  • Because I own shares in my ROTH IRA account I have more than 20 years time to wait for this stock to recover. In the meantime, I will be reinvesting dividends and even buying more shares to further lower my cost basis.
  •  

  • In other words, I will no longer look at this stock as a dividend growth stock, but a growth stock. At least for the time being.

 

KMI is a pipeline company owning large infrastructure, it will not go under. I expect this stock to recover when the energy stocks recover too. If the management improves and gets better in managing balance between their debt and other obligations such as dividends and investments the price will go up and the dividends may also go up. If so, I may keep the stock, if not, and my cost basis will be low enough to sell, I will sell.

 
But for now, it is all about a damage management. Lower the cost and wait for recovery. I believe, in the next 20 years it will happen.
 




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Posted by Martin December 06, 2015
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Should you continue investing in Kinder Morgan (KMI) or run away?


If you are a dividend investor you may be invested in Kinder Morgan (KMI) as I am and you are desperately searching the internet for news about this company to find out why it was falling recently while scared that you may lose your hard earned money.

KMI

Kinder Morgan lost almost 40% from its peak and quite lot of people have gloomy prediction about this company. Analysts started downgrading the company and even Moody’s rating agency joined the group and lowered rating of Kinder Morgan.

When I pick a company to invest in I try to select one in which I can believe for the next 20 years without too much worrying about the stock and studying it anytime it goes down in price. However, the recent drop made me to check what’s going on with this stock.

So I searched internet and found so many people scared and predicting end of the titan. I have seen even experienced dividend growth stock investors bailing on this stock or being ready to jump the boat.

Although these investors have the right to do what they want and see fit to their portfolio, I disagree with those who pushed the sell button and run away from KMI. Here are my reasons for staying invested and even accumulate this stock.

First, let’s see why people were so negative about this stock. What I could find was two main areas of discontent.

 · Bad acquisition

Kinder Morgan acquired a stake in Natural Gas Pipeline Company some time ago and recently they increased their investment in the company (NGPL). Many consider this a bad acquisition and investment because NGPL was a bankrupting company. Some say, KMI overpaid for the company.

I disagree with this view. Although, I am not an expert but considering that KMI is primarily a transporting company involved in natural gas, this was a natural result of capitalist behavior – taking over a weaker company and their infrastructure which under a new stewardship will prosper.

Don’t we see that over and over happening? Even A New England wire and Cable company was taken over because it was weak and making no money! It was more worth dead than alive. NGLP is more worth when navigated by Kinder than on its own.

Moreover, by acquiring NGLP Morgan gained access to locations and areas which would allow the company to better arbitrage and deliver natural gas to places where they can better profit from it.

 · Exposure to oil

I think this is a big misconception and misunderstanding of how Kinder Morgan makes money. This company is not involved in production of oil whatsoever. The company is involved in its transportation. It is an oil UPS version. So, no matter what the price of oil is the company would be making money. While other oil involved companies were losing money (almost the entire 2015) KMI remained profitable showing $186 million profit during the third quarter on $3.7 billion in revenue.

So KMI is exposed to oil indirectly and its price doesn’t influence the company. As long as people will need and use oil, KMI will make money on it. However, majority of the business is in natural gas.

 · Dividend cut

Recently KMI followers and analysts expressed their belief that the management should consider a dividend cut although the financial reports indicate that they can easily cover the dividend. I have seen investors claiming dividend unsustainability of companies for many years. A good examples are Realty Income (O) or AT&T (T) when investors claimed that those companies would cut the dividend soon. I have heard them saying this for many years, yet both companies managed to pay dividends for 40 or more years and increasing it for a similar amount of consecutive years.

Yet the analysts caused a big panic among investors and they sold the stock pushing its price to $16 a share. Is this justified?

The 2016 dividend obligations are expected to be at approx. $4.55 billion, with current cash flow KMI should have $450 million in excess cash flow and $705 million in cash reserves. The dividend is secured at least for 2016.

Even if they cut the dividend and the price drops lower, I will continue investing in KMI as I will show later.

 · Stay the course

You may do whatever you want, but I stay the course, keep the company, reinvest dividends into the company, and even put more capital in it. Why? As I mentioned above I do not think that this crisis is anything KMI wouldn’t sustain.

In the past, I have seen companies being bashed, downgraded, predicted to bankrupt and yet they survived. One example is Johnson & Johnson (JNJ) which a couple of years ago had a significant products recall hurting company’s revenue, cash flow, and profits. Analysts and investors were predicting an end of JNJ, being spun off into several smaller companies and the losing one either sold or dissolved. The dividend was predicted to be cut or even suspended.

Any of it happened and JNJ which fell hard in price now doubled and its dividend continued growing.

KMI is now compared to another Enron and bankruptcy is predicted. Such comparison is obviously ridiculous and shows that the investor making such comparison has no understanding of KMI business.

There is however, one big issue why I stay the course (and which goes to the JNJ example a few years ago): consider your investment time frame. Are you invested in this company for the next two to five years? Are you already retired? Or are you at the beginning having the next 20 to 25 years ahead of you?

If you are a retiree, a portfolio adjustment can make sense. To me, it doesn’t make sense at all. I started investing in this company three years ago, accumulating slowly, and reinvesting dividends into it. I believe in this company and its management and I am in it for the next 20 or 25 years. I believe, that five years from now, this crisis will be forgotten.

So, even if KMI cuts its dividend, I will continue investing in it and reinvesting dividends because once this panic and “crisis” is over, the stock price will be going up again and all I miss on dividends now I will make in capital appreciation later. Even if it takes two or more years to wait. I have a plenty of time. And in the meantime, I believe, KMI will start raising the dividend again.

What do you think about KMI? Are you bailing out or going to weather this panic? From my trading experience, trading SPX I can see what the market can do when it is in a panic. It can recover as quickly as it fell down. Since the price action of KMI is a panic reaction, five years from now, nobody will remember this the same way as no one remembers JNJ crisis anymore.
 
 




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November 2015 trading, investing, and dividends results


November passed by even faster than October. I feel like it was just yesterday when October finished and cannot believe that it was already November which ended a few days ago.

It is time to review my November result and see how my investing and trading performed.

Those of you, new to my blog, here is a quick review of my investing and trading strategy. I invest into dividend growth stocks in my ROTH IRA account, reinvest all dividends using DRIP program and plan on investing for the next 20 – 25 years. I believe that it would be better for me to have a portfolio made of fewer stocks as such portfolio is better to manage.

Thus I hold about 10 – 15 stocks only, reinvest dividends, and accumulate stocks.

I also like to trade as I believe that one day I will be able to generate enough income to retire early and trade for a living. I plan to contribute my trading proceeds to my dividend portfolio and invest into dividend growth stocks so once I build a large enough portfolio I can stop trading and live off of my dividends.

This is a report how I did fulfilling this plan in November 2015. I must admit that 2015 year will be a bad year for me, however, I may state that I have learned enough to start trading successfully and be consistent.


 


 
You may be interested in:

 
How to Create a Dividend Tracker Spreadsheet By Dividend Meter with Dividend Meter

 
SPY Vs Dividend Growth Portfolio By Mike with The Dividend Guy

 
Paying Off Your Partner’s Debt By Dan with Our Big Fat Wallet

 
Financial Disaster- From Baby Boomers To Elder Doomers, So What’s A Millennial To Do? By Rich Rabbit with Cure Rabbit Ears

 
November Aims By Nicola with The Frugal Cottage
 


 

 · November 2015 trading results

November was finally a month when I was able to stop my losing strike, calm myself down and get back to be in sync with the market. I have two trades in my accounts which are a bit risky and it will take some effort to manage those trades so they do not end as a disaster, but other trades are finally in shape and I hope I will be able to manage them well and make money.

I slowed down on my trading frequency as well as number of opened trades at one time as it showed to be a bad trading strategy. It was nice to have several trades at a time when they were all making money, expiring one by one, but when they turned ugly on my I wasn’t able to react, panicked, and lost money.

To avoid this bad trading I decided to trade only two to three trades at a time and open a new trade only when the old trade will be over. For example, I will open a bull put spread, then I can open a bear call spread against it to make the trade an Iron Condor. To that I can open a second trade and that’s it. No more trades.

I will be opening one trade (combo) with longer time frame (expiration 45> DTE) and weekly short term trades (expiration <5 DTE). I will be opening one trade for each strategy only and max. 10 dollar wide spreads.


 


 
You may be interested in:

 
Moved to Manhattan to Make More, Save More, and Speed Up FI By Fervent Finance with Fervent Finance

 
How Much is a Commute Worth? By Red to Riches with Red to Riches

 
Sorry for the delay – we totally restructured our finances, so we can retire in 2-5 years By KV with King Viking

 
Wealth inequality and averages: Where do you land? By Revanche with a gai shan life

 
How much do you need to become financially independent in the Netherlands? By CF with Cheesy Finance

 
The Ten Questions to Answer Before You Retire Early By Our Next Life with Our Next Life

 
5 Things To Do Instead of Standing In Line on Black Friday By Thias with It Pays Dividends
 


 

If you are interested in seeing and following those trades, I created a Facebook closed group in lieu of my newsletters where you can join and see the trades in real time when I post them at the time of opening. It is easier to manage and follow all the trades than via a newsletter and I hope that it will be beneficial for all members of the group who might be interested in trading options and generate an additional income.

To me, at first, I may generate an income of $120 to $360 per month, but as my account will be growing bigger, this amount will grow too.

All trades are spreads against SPX with minimum money to trade as low as $500. If that is something you may be interested in, I recommend you joining the group.

However, if you decided to trade options against SPX, be ready for some hard work, frustration, and tears. Be prepared for your account net-liq fluctuating up and down almost to a break point. Trading is not easy, get rich quick scheme. We will have to work it up slowly, step by step before we become confident, consistent traders.
 

Here is my trading result for the month:

 

November 2015 options trading income: $184.00 (1.57%)
2015 portfolio Net-Liq: $4,061.51 (-13.53%)
2015 portfolio Cash Value: $6,431.51 (-6.01%)
2015 overall trading account result: -65.31%

 

Here are the results of my options trading:

Options Income
(Click to enlarge)

 
Here are the results of my new options strategy:

Options Income
(Click to enlarge)

 
Here is the entire account value from the beginning of tracking it up to today:

TD Account Value
 


 


 
You may be interested in:

 
Trade – Buy (GILD) By FF with Financial Freedom

 
The S&P 500 Hot Hand Fallacy By Ben Carlson with A Wealth of Common Sense

 
4 Companies Moving Higher By Dennis McCain with Dennis McCain Investing

 
It’s F$*$ing Tiring Losing Money By Under The Money Tree with Under The Money Tree

 
Dividend Income Update November 2015 By Keith with Dividend Hut

 
Investment Income Update – November 2015 By RBD with Retire Before Dad

 
End of the Month Summary – November 2015 By Alex with My Trader’s Journal

 
November 2015 YTD Progress Toward Goals By Bill with Retirement Income – Stocks and Options

 
Top 10 Things You Must Know Before You Trade Options By OP with Option Pundit

 
How to Trade Successfully with a Small Trading Account By Nial Fuller with Learn To Trade The Market

 
Real-Time Option Alpha Performance Stats & Options Trading Metrics Now Live By Kirk Du Plessis with Option Alpha
 


 

 · November 2015 dividend investing results

My dividend investing continues growing slowly but steadily, although the portfolio value dropped this month thanks to a turbulence in the market when traders are too fixed to FED policy instead of on the economy and companies.

In October the FED was supposed to raise the interest rates. It didn’t happen and everybody is now expecting the FED to hike the rates in December. I personally believe that FED will not raise rates. If they do it, then they will prove that they never were “data dependent” as Janet Yellen was always claiming. As a Democrat, I believe she will be protecting Obama administration until the election. Or she will be that stupid that she will really raise rates into coming recession.

High interest rates are considered to be and work as a break to speeding economy, to slow it down if it moves too fast not to overheat. I am not convinced that our economy is in such shape that we can afford slowing it down.

Yet, if Yellen really raises the rates in December, it will have an impact on your and my stocks. They will temporarily drop in price and if you have been accumulating in recent years, be ready for losses in your portfolio. The question would be, how long the drop will last and how long it will take to recover. Nevertheless, it will be the second time when FED’s policies hurt the regular folks like you and me damaging their savings.

But if you are in this game for a long haul, like next 25 years, don’t be afraid. Your portfolio will survive it. Just do not panic, do not react to the short term storms. Have your plan ready and execute it every day. My plan is continue saving into dividend growth stocks even if they are beaten down hard. I do not care about the value of the portfolio, but about the income it generates.

 
 
 

Dividend stocks added or removed from portfolio:

 

November 2015 dividend stock buys: none
November 2015 dividend stock sells: none

 

This month I didn’t purchase any stock. I am out of cash and fully invested but saving hard for my next purchase. I plan on adding KMI stock and I will write about it why in my next post although the stock is heavily beaten down by recent oil turmoil. I do not consider it a tragedy for this stock but a great opportunity.

 

Dividend stocks DRIP:

 

November 2015 DRIP: American Capital Agency Corp. (AGNC)
MasterCard Incorporated (MA)
Legacy Reserves LP (LGCY)
Vanguard Natural Resources, LLC (VNR)
Kinder Morgan, Inc. (KMI)
Realty Income Corporation (O)
Prospect Capital Corporation (PSEC)

 

I continued reinvesting my dividends and accumulating into the stocks listed above. It is nice to see the stocks falling down and seeing that I could buy more shares than originally planned and now those stocks will bear more dividends into my account. I consider those stocks good stocks although you may argue that some are risky and you may even find opinions on the internet that some of the stocks will bankrupt. I do not think it will be the case.

However, I admit that it is a gut-wrenching to invest into stocks heavily falling in price and the company battling its survival like LGCY. But I think LGCY will survive the oil glut and in the near future we will see the stock performing well again. And if not, well, I will take the loss and move on.

Last month I also used a FRIP program in my Scottrade account (I am not listing it in here) accumulating my LGCY holding and I can see the snowball rolling faster and faster down the hill. In my last report I expressed my hope that I would soon see the same result in my ROTH IRA account. I must say that my DRIP in my ROTH is already rolling faster and faster, so I must admit I regret that I didn’t use DRIP earlier. I fell in love with this program.

Before I used to keep the dividends in the account and invested them once I accumulated enough to invest. You can do this as long as you accumulate enough to invest right away and without waiting. If your account is small (like mine) and you collect little dividends every month, do not do this, use DRIP. Believe me. I have my experience now that your account will grow faster. Once you receive at least $1,000 dollars in dividends every month then you can switch from DRIP to individual reinvesting.

I also used non-transaction fee ETFs to park my money in there but it also didn’t grow as well as I would expect.

Here are my ROTH IRA trading/investing results:

 

November 2015 dividend income: $86.92
November 2015 options income: $0.00
2015 portfolio value: $14,905.70 (-7.16%)
2015 overall dividend account result: -14.58%

 

As I mentioned above, my portfolio value dropped this month due to some oil exposed companies. See for yourself:

Gainers by Position ($)  
JNJ $6.96
PPL $6.01
RWX $5.80
Losers by Position ($)  
KMI -$316.90
LGCY -$103.81
EPD -$76.20
Gainers by Percentage (%)  
RWX 0.6%
JNJ 0.6%
PPL 0.3%
Losers by Percentage (%)  
KMI -29.5%
LGCY -20.6%
VNR -20.4%

 

Here my dividend income:

ROTH IRA account value
 

Here is the entire account value from the beginning of tracking it up to today:

ROTH IRA account value


 


 
You may be interested in:

 
What Should I Teach College Students About Money? By Neil & Kalie with Pretend to Be Poor

 
4 THINGS TO REMEMBER ON YOUR JOURNEY TO FREEDOM By Laura with How To Get Rich Slowly

 
How To Manage Personal Finances? Money Management Ideas You Should Follow By Raj with Mint Investor

 
Financial Independence 101: What are Stock Dividends and Stock Splits? By Steve with We Retired Early
 


 

Below is my dividend income review for the entire year:

Dividend Income
My ROTH IRA dividend income breakdown per month and per company.
 
 

 · All accounts

Besides trading and dividend accounts I also have 401k account, emergency savings account, etc., which I do not report in detail. You can review those accounts in my “All Accounts Value” table at the bottom of My Trades & Income page.

My accounts dropped from previous month and are losing -3.00% (down from previous month) for the year. This year will be a losing year for my investments.

Remember, if you like trading options and want to have trade ideas for free, join my Facebook closed group and follow my SPX trades in real time, comment, ask questions, and interact with other members.

 
 

What do you think?

How about your investing or trading result?
 
 




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