Quarterly Update – 2nd Quarter 2019

Hey Guys! It’s time for an exciting quarterly update! I love writing these to see how I’ve been doing over a 3-month period.

I’ve had a lot going on! My son started pre-school so I have some extra time during the week now. Expect to see more articles coming out!

I’ve been hustling and trying to buy as many rental properties as I can before September. I’ll talk about that below.

It’s all about interest and cash flow, check it out!

If you missed it you can find my 1st quarter update below:
Quarterly Update – 1st Quarter 2019

Here are a few other articles I wrote during this past quarter including my 2-year-old son’s update on his portfolio, an article I wrote at Seeking Alpha and a Milestone post about becoming a millionaire!:

Milestone – $1 Million Net Worth
Baby AAI Recent Purchases
Baby AAI 2-year Portfolio Update
Business Plan For A Dividend Growth Investor
How To Calculate a Cash-On-Cash Return

Below is a summary of my activity for the quarter:

Purchases ($33,047):

The sells and purchases this month look a little confusing. Essentially I needed some funds for taxes and rental #6, sold shares and I have been replacing some of the sold shares fairly recently. These aren’t typical months, I hate selling more shares than buying. Once September starts I’ll be back on a normal buying schedule.

100 MO @ 49.36 – This was after the sell of 200 MO
100 MO @ 51.24 – This was after the sell of 200 MO
50 WFC @ 45.89 – I decided to add more to existing holding
50 XOM @ 71.02 – I sold 100 @ $80.38 in March and this replaced half.
200 T @ 35.00 – I had a couple options assigned
100 PM @ 78 – this was after the sell of 200 at 83.46.
50 WFC @ 46.82

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

Sells ($75,821):

These were made to pay a tax bill and fund the purchase of rental #6.

200 MO @ 54.51/share
300 BAC @ 28.87/share
25 PEP @ 125.49/share
181 BBL @ 47.87
21 ALC @ 59.58
400 MO @ 52.49
200 PM @ 83.46
91 KO @ 51.97
16 FOXA @ 38.04

Dividends (2nd QTR ’19): $4519

Jan. – $1971
Feb. – $790
March – $2141
April – $2230
May – $931
June – $1358

I earned $4902 in dividends for the first quarter and dropped to $4519 for the second quarter. This is no surprise as I sold a lot of stocks for reasons I mentioned and most of these were high yielders. My goal is still to break $5k/quarter by the last quarter of this year. I now have more catching up to do.

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 google docs API’s have been changed and I’m working to fix it so sorry about not updating the graph, I’ll have that fixed very soon.

My expected forward 12-month dividends at the end of March 2019 were just over $19,000 which is up from $18,039 last September.  Currently my forward dividend income is right at $17,000. My new goal of $21,000 in forward dividend income by the end of the year is going to be extremely hard to reach.

I keep a forward dividend projection on my Dividends tab.

Dividend Increases: 

I’ve had 11 companies raise their dividends since the beginning of the year.  Two companies I own have frozen their dividend since last year so I don’t expect an increase from CVS or HBI. Both companies recently issued debt to purchase another business and I’ll be watching these companies to see if they are paying it down fast enough. Also MO had 2 increases last year due to the tax cuts so I just expect 1 this year.

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

2019 Goals (in progress): 

1. Reach 600k in market value for my DG portfolio
2. Reach $21,000 in forward 12-month dividends 
3. Earn $20,000 in dividend income
4. Increase Net Worth to 1.1 M
5. Buy two three rental properties
6. Reach total forward passive income of $45,000
7. Improve golf game to a 10 handicap average
8. Write at least 1 article a week.

All goals can be found on the Goals tab.

Rental Real Estate:

Recent Posts:

How to Calculate a Cash-On-Cash Return – Don’t miss this post.
Welcome Rental Property #6 – recent post about my purchase of rental #6.

If you missed it, rental #5 was purchased in December. I closed on rental #6 in June and you can find it at the link above. It took me about a week but I have the property rented with a COC return of 30%, yes 30%, check it out! That’s a new record for me.

My current goal is to buy two more rentals this year, I have an offer pending and supposed to close at the end of this month. I’m still hoping to grab one more by September.

All properties but one are leased and I’m selling the property that I had an eviction at. That property was in a really small town and a tough area to find good tenants. So I decided to get rid of it and focus on my local area.

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.  In fact this is my most profitable options year yet. I can’t waiting to get a new post out! You can follow all my updates from my Options label. 

Net Worth:
I just broke through the $1,000,000 net worth mark! I posted about that here: Milestone – $1 Million Net Worth. My goal is 1.1 million net worth by the end of the year.

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

Looking Ahead:

I had a larger than expected tax bill and have aggressively been buying rentals, that’s the main reason I’ve had to sell some shares of some of my stocks. My current portfolio value is right around $500k now and it’s going to be really tough to hit some of my goals like reaching a portfolio value of 600k. This depends a lot on the markets.

I plan to make some incredible strides over the next 3 years. I’m going to come up with a 3 year plan but am taking it one day at a time. If you guys didn’t know, 3 years is when my company buyout ends and I’ll stop receiving payments for the sell of my business. I haven’t talked a lot about that for obvious reasons. I want my passive income high enough by then to never have to return to having a normal job. I also plan to work a lot on the blog. I enjoy writing and want to get back to the basics.

I’m aggressively buying rentals through September and then all my extra money will be plowed back into the markets. I now own 6 properties with one pending sell and another pending purchase which would keep my total still at 6. Rates are really good right now but it’s been a seller’s market in my area so it’s tough to find good cash flowing properties to buy.

I also have a 3 week long trip to Asia coming up soon. I’ll take a lot of pictures as always!

Some stocks on my watchlist:

CVS, WFC, MO, DIS, ABBV, BMY, BRK.B, V, PM

How was your quarter?

*Picture is from Thailand, I figured I’d post an Asia picture since I’ll be headed back to that part of the world soon.