Quarterly Update – 2nd Quarter 2018

Wow, half the year has already gone! Time does fly! I hope everyone had a great 4th of July.

Below is a summary of my activity for the quarter:

Notable Purchases:

MO – currently largest position (I’ve added over 10k this quarter, slowing down purchases now)
PM – currently 3rd largest position (I’ve added over 20k the past quarter, new purchases on hold)
V – currently 2nd largest position (added 8k this quarter, still adding every month)
T – I’ve built up a 500 share position since the recent weakness (currently holding what I have, would add more at $28)
BBVA – I’ve almost doubled position here with recent weakness.
TD – added some recently (I’m planning on TD being my largest bank holding for the long-term)
JNJ – Doubled position, posted about that here
SBUX – Nearly doubled position, mentioned here

FOXA – I’ve temporarily sold most of my DIS shares (around $107/share) and bought FOXA (around $44/share), up about 10% on that trade so far. I expect Disney to win bid for FOXA and receive my DIS shares back but if Comcast bids any further that will raise the price of FOXA even more. I’m not much of a trader except for my options trades, I typically like to buy and hold. However, this is an unusual circumstance and seemed like a win-win situation. I’d say there’s a 90% chance FOXA is bought out by DIS, in a mostly all stock deal. I’ll get DIS shares and New Fox shares back. If somehow Comcast comes up with a high enough bid it will be all cash and shares of FOXA will bounce higher, I’ll likely sell FOXA and buy back DIS.

KIM – I bought my second REIT (OHI was first) when shares were under weakness recently, I just dipped my toe in the water and grabbed 100 shares at 13.60 and another 100 at 14.40. I was hoping shares would stay depressed and I could get more but they popped quickly to around 17.

Posts about some of my purchases can be found by following the “Buys” label here.

Dividends (2nd QTR ’18): $3097

April – $1405
May – $709
June – $983

June payers:

V – 11.55 , 30.02 , 15.18
UL – 49.33 , 66.41
XOM – 127.10
JNJ – 45.90 , 26.51
WBA – 52.00
HSY – 13.12, 62.48
RDS.B – 94.00 , 157.89, 22.56
PEP – 23.19 , 13.91
NSC – 73.44
GILD – 53.59
HBI – 33.60
CRI – 11.43

I earned $3097 in dividends for the quarter. I’ve never surpassed the $3000 quarterly mark so this is a big milestone. I hoping to hit a $5k quarter sometime next year.

Here’s a look at my recent quarterly dividends:

Forward 12-month Dividends:

Forward 12-month dividends are the total amount of dividends I’m expecting to received over the next 12 months.

My expected forward 12-month dividends as of 07/01/18 are $16,061 ($1,338.42/mo). My forward income has risen quickly since last year. I broke the $12,000 level ($1,000/month) recently and wrote about that in March. My goal is now a forward dividend income of $18,000 by the end of the year.

I keep a forward dividend projection on my Dividends tab.

I’ve had 22 companies raise their dividends since the beginning of the year. The only expected dividend increase that didn’t occur was from GIS, they kept their dividend the same.

Some of these increases can be found on my Dividend Increases label. All of the increases are marked on my Dividends tab.

2018 Goals:

1. Reach 500k in market value for my DG portfolio, it was $375k at end of Dec. 2017 and up to about 440k now.
2. Reach $13,000 in forward 12-month dividends (already completed, new goal is $18,000)
3. Earn $11,320 in dividend income , 40% increase from 2017.
4. Increase Net Worth to 750k, I know it says I hit this in 2017, which I did but I’m
   adjusting real estate values to a more conservative number. (already completed)
5. Buy two more rental properties, making the total 5 rentals. (bought 1, mentioned here, 1 more to go)

All goals can be found on the Goals tab.

Rental Real Estate:

I currently own 3 4 rental properties and all are currently leased. I’m earning over $1800 per month after all expenses. I am not counting the principal payments that are going to equity, that’s just a bonus and shows up as a net worth boost. The next rental that comes up for renewal is on 09/30, which means I need to start looking for a new tenant or seek an extension around 07/30.

All of my real estate posts will be found on my real estate label.

You can find a break-down of my individual profits per rental and cash-on-cash returns on my real estate tab.

Options:

I’ve had a lot of options activity. You can follow all my updates from my Options label.

Net Worth:

I’ve started to update my net worth again. Currently at $880k. I’m closing in on that $1 million mark.

You can find the details of this on my Net Worth page.

Looking Ahead:

I plan to add as much capital as possible to continue building my portfolio. I’m well on my way to a $500,000 portfolio goal by the end of the year. Even if the market stays flat I should put enough fresh capital with dividends back into the market to make this goal. With that being said, I’m also looking at the properties my local realtors Lynchburg have got on the market because I just can’t help myself! I just don’t want to miss out on a bargain.

I’ve blown past my $13,000 forward dividend goal. I didn’t expect to be able to put this much fresh capital to work. I’ve been working hard on reducing my expenses and earning more in extra income.

On the real estate front, I made an offer on another property but was outbid. I’m not in a big hurry so I’ll bide my time and wait for a good deal. I have 6 months to reach my goal of 2 rental bought this year.

My Net Worth has a small chance to break the $1 million mark this year. I’ll need a little help form the markets to make that happen. You can bet I’ll be posting that milestone for sure once I hit it.

Some stocks on my watchlist:

NVS, MO, DEO, JNJ, DEO, RYT, ATRI, SHPG, ENSG, NHC, BR.A, DIS, SBUX, TCEHY, SQ, PG, CMG, NSRGY, IBM, WBA, BLK, AMGN, UA, V, PM, ABBV

How was your quarter?