Daily Dividend Investor Portfolio Performance Update – February 2017

So I just published a quick video on YouTube showing how well the DDI Portfolio has performed over the last year as well as since inception. How well did the DDI Portfolio do compared to the S&P500? Watch the video and see for yourself. Let me know how your income investing  is going – always interested in hearing what others are up to!

Filling in the holes….

soldToday I sold some shares of one of my best performers and picked up a few shares of a couple new names. Over the last few months I’ve been mostly focused on adding new names to the DDI Portfolio in an effort to “Fill in the holes”. After all, the goal is to generate income *EVERY* day!

Looking back over the last 8 years while building the DDI portfolio, I believe I’ve built a good base of companies that have worked hard to provide an increasing stream of monthly income. After watching the destruction of the 2007 Global Recession it’s not unfathomable that the DDI portfolio could take a 60% haircut or more from current levels. And I know we’ll see a pull-back in the market sometime in the future, it’s just part of how the market works, but my intuition tells me that what we saw starting in 2007 was likely a “once in a lifetime” event.

When to sell?

One of the things I’ve struggled with in building the DDI portfolio has been if / when to sell a position. Way back in the day, I proclaimed that my holding period was much like Warren Buffet – that is “forever”. But then just a year or two later after seeing some fantastic gains, I panicked and ended up selling a good number of positions. I sold my position in Costco (ticker: cost) a few years back for around $110/share only to buy it back last October for $150/share – whoops!health-care-trust

Today I sold 100 of my 300 share position in Health Care Trust of America (ticker: HTA). This was originally a private REIT that was sold to accredited investors back in 2007 at between $9 – $9.50/share. Today the share price is near the $30 mark and so I decided to sell a portion of this holding to redistribute into other companies. My thinking moving forward is to start “harvesting” the DDI Portfolio of any holdings that reach 100% appreciation. My plan is to take some percentage, probably 100% of the original investment, and cash it in. I’m still working out the details, but my intention is to have a “hard and fast” plan that I can stick to.

As I’m now focbingo-ddi-investmentsused on filling holes in the portfolio, I’m looking for companies that will pay out on days that my current holdings don’t. The goal here is to try and reach “BINGO!” each and every week. BINGO! is a catchphrase I came up with to describe any week that I get a dividend payment everyday, Monday through Friday.

Past Mistakes

WARNING! There is an inherent flaw in what I’m proposing to do here by owning companies that will pay each and every weekday – and I’m guessing you’ve already figured it out. By buying companies based on their payout dates, and not completely on their financial worthiness, I could be setting the DDI Portfolio up for some oversized losses.

For now, it’s a risk I’m willing to take. What I often find when searching for companies that payout on a certain day is that there are several to choose from. Many of these companies tend to be smaller niche-y firms that have been around for 20, 30 or more years and have a good record for dividend payments. Also, by the sheer fact that the DDI Portfolio is over diversified, a hit taken by any one company isn’t going to sink the over all income stream or capital gains of the DDI Portfolio.

Case in point – in 2015 I purchased about 20 shares of United Development Funding IV (ticker: UDFI) and started collecting some nice oversized 7%+ dividends. By early 2016 UDFI had been accused of fraud and possibly running a ponzi scheme – both the dividend *AND* the shares were halted! Now I not only lost my income stream but couldn’t even get what was left of my principal out! I originally paid $1768 for 100 shares in August 2015 and sold those same shares after trading resumed in December 2016 for $429.00 – taking a little over a $1300 loss. With the DDI Portfolio currently valued near $550,000.00, this loss represents less that 2 tenths of 1% of the total portfolio value. I believe it’s a small price to pay and really, short of not buying the shares, I don’t think that I could have foreseen the problems before they happened.

So, what did I buy?

Today I bought:

  • 100 Shares – Bluerock Residential Growth REIT: ticker BRG -next payout Thursday Feb. 3rd
  • 20 Shares – MASCO Corporation: ticker MAS – next payout Monday Feb. 13th
  • 50 Shares – Vodafone Group PLC: ticker VOD -next payout Thursday Feb. 3rd

I’m too late (past the x-dividend date) to get the payout for each of these companies this month, but I’ve planted the seeds and will begin to reap the benefits next quarter.

I’m always interested to hear what you are buying and why? I’d love to hear from you in the comments below – thanks for following along on the Daily Dividend Investor journey!

 

 

 

 

 

Updated the DDI Goals

take action invest daily dividend passive cash flow incomeGoals are one of those things that if you don’t write them down *AND* pay attention to them, they are of little value. Looking back over my successes in life, I’ve noticed that when I write my goals down and spend even just a few minutes a day acting on them, or even just thinking about *HOW* I might be able to achieve them, it’s likely I’ll be successful in completing them.

The DDI goals aren’t as specific as I’d like them to be, but it’s a start. I think they should also be more of a stretch, but for now I’m focusing on writing them and achieving them!

The one goal that I’m primarily focused on presently goes to the heart of what the DDI Portfolio is all about, DAILY INCOME.

I track the performance / income of all my investments daily so I always have a good idea about how much income is being produced and when it’s being deposited into my accounts. Looking back over the last couple of months, I noticed that a trend is forming with regards to the DDI income stream. In most weeks, I’m achieving income 4 out of 5 days – while this is great, my goal is 100% daily income throughout the week, month and year. As I wrote about previously, discounting the fact that dividends aren’t paid on weekends or holidays, I wasn’t sure I could really get to 100% daily dividend income. As I dug deeper and found some new tools for dividend investment research, I now believe it, actually I KNOW it’s possible to get dividend income DAILY!

So that’s my current focus – DAILY dividend income. While I was able to achieve 5 out of 5 days of income back on April 28th through May 1st – I’m looking to make that a consistent reality moving forward. Today, I just added shares of CME Group (Ticker: CME) – yield is about 2.4% but they tend to pay “BONUS” dividends which can bring the yield up closer to 5% or higher. I just made the cut-off (x-div June 8th) for the next dividend payout  later this month.

What are your investment GOALS? Add a comment below – I think it’s helpful to see what others are doing to push our own boundaries.

 

It’s more than just the cash flow…

22 percent interest cash flow income passiveOver the last week I’ve been checking out a bunch of other financial bloggers and I’ve come to realize, cash flow and passive income is great, but what’s better is “WHAT” it buys you.

For some people that might be fast cars, big houses and parties every night, but really for me the big win is FREEDOM, the freedom of TIME that the passive income provides. A good friend of mine once told me, “I’m not afraid to lose money in business, I can always make more money.” But the thing we can’t get back is TIME – time is really what I want.

As I read a lot of the finance blogs, my own included, there’s always a bunch of talk of increased earnings and price valuations, what the market is going to do now that we’re in an election year and on and on.

At the end of the day though, the real goal for me is to increase my cash flow so that I can spend more time doing the things I enjoy without having to worry about the “responsibilities” of life (taxes, mortgages, insurance, etc…)

For now, more freedom means I get to spend more time with my kids before they go off to college in a few more years. Time spent helping their teachers at school, the coaches on their softball and track teams and just being “present” in their lives. I know this time for my kids is short and I don’t want to miss it working a 40-hour-a-week job. That’s why passive cashflow is important to me.

In the future I hope to spend more time traveling (Europe, South America, Cruising, etc. ) with my wife . But for now, I get to live vicariously through the blogs of some of my new found writers. Take a look at few I’ve listed below, I think you might enjoy seeing the ways they’ve created financial independence to gain more time and freedom in their lives.

Finally, what about you? Leave a comment or drop me a line  – how are you building financial independence in your life? What steps are you taking to fulfill your life passion? Why is passive income important to you?

Here’s a short list of some of my new favorite “Financial Independent” bloggers:

 

Weekly DDI Income Update – May 16th

Weekly DDI Income Update – Week of May 16th – $4134.88

One of the motivations for writing this blog is to track my progress in building thmassive dividend increase 30 days passive activitye DDI portfolio over a long period of time. It’s interesting to look back and see how far the portfolio has come.

I was just reviewing a post from November 2012 where I was so excited to have $623.77 in monthly income! Hey, 600 bucks is nothing to sneeze at, but I’m way past that now with a current monthly goal of $2000/month.

A little over a year ago, before oil started to slide in price, the DDI portfolio was hitting between $2000-$2400/month, but since a good deal of the DDI income comes from oil royalty stocks (SBR, CRT, BPT, etc…) the income has taken a hit. So I’ve been trying to shore-up the income stream with some other diversified holdings while waiting for oil prices and the royalty stocks to recover.

The good news is that oil has bounced back from the low $30/bbl range and is now closer to $50/bbl which should help the DDI income stream start to recover.

In the mean time I’m continuing to monitor the weekly income and add to the portfolio when I have excess cash to deploy.

Weekly Totals

For the week of May 16, 2016 the DDI portfolio had 11 income paychecks with payouts on 4 out of 5 days! The total payout for the week was $462.88 in cash + 100 shares of Alliant Energy (LNT) worth $36.72/share. While I’m not planning to sell the Alliant shares now, the total cash payout is equal to $4134.88!

 

How Many Monthly Dividend Paying Stocks?

How Many Monthly Dividend Paying Stocks?

I took a few minutes this morning and did a search to find how many stocks make a monthly dividend payment. Take a look at this quick video to find out how many monthly dividend stocks are out there – you might be surprised!

I’ll be keeping an updated list of individual companies that pay monthly dividends on the Monthly Dividend Payers Page. 

Q&A For The Daily Dividend Investor – The Top 5

I’ve been collecting questions from readers of the blog and folks checking out the YouTube channel over the last few months and finally sat down and put together this Q&A video. I hope this will give you a little better sense of how I think about and manage the DDI portfolio.

Take a look and let me know if you have questions about the Daily Dividend Portfolio – you can drop me a line at info@dailydiviendinvestor.com or leave a comment here or on the YouTube Channel.

Enjoy!