It’s time like these, that make me appreciate that I can take time off and know that I’ve still got a stream of income coming into to pay my bills.
Each day the DDI portfolio continues to grow the income stream, and is quickly approaching my target of paying out $500/month on a consistent basis.
Family time is something we highly value, so I figure now’s a good time to enjoy some of the fruits of my labor and take a few days off from managing my trading and income portfolios.
While catching some rays and enjoying an ice cold Blue Moon or Anchor Steam brew, I’m going to take some time to work on my 6 & 12 month life and business plans. Taking time out to recharge really helps to clear your mind and figure out what is most important in your life. I’m excited about coming back with a great action plan in had ready to roll.
Yesterday I got an email from one of my readers, asking if they should buy one of the stocks I talk about buying for the Daily Dividend Investorportfolio or even those that have had recent increases in their dividends.
To be clear, I do NOT recommend that any of my readers buy any of the stocks or other investments I might write about here at the Daily DividendInvestor blog.
So why am I writing this then? Good question, read on…
After reviewing yesterday’s list of dividend increases, Gladstone Investment Corp. caught my eye for a couple of reasons.
Number one of course is the above average payout which is hovering right around an 8% annual yield.
The second thing and perhaps even more important to the DDI portfolio is the fact that this is a MONTHLY dividend payer. That’s important to the DDI portfolio because it means cash will be flowing in on a more regular and constant basis which in turn allows the portfolio to re-invest funds all that much sooner.
The largest increases in dividends came from Pope Resources L.P. (ticker: pope) with a huge 40% increase, followed by the drugstore chain, Walgreen Company (ticker: wag) with an equally impressive increase of 28%, keeping it’s 35 year tradition of dividend increases alive.
Completing today’s line-up of dividend increases are Gladstone Investment Corporation (ticker: gain) and Genesys Energy L.P. (ticker: GEL) with increases of 11% and 1.8% respectively.
Week in review
This week over 10 separate companies have delivered dividend increases which offers up good evidence that not only the US economy, but those around the world are not only healing but are beginning to show signs of continued growth and expansion.
As always when evaluating investment opportunities it’s important to keep in mind not only the fundamentals of the stock itself, but also how the holding entity (Limited Partnership, Royalty Trust, Master Limited Partnership, Business Development Company, Preferred Stock) may affect the way you report income on your annual tax return as well as the amount or percentage of tax you will be required to pay. Adding shares of any of these special entities to tax deferred / retirement accounts may also present additional issues that should be discussed with your CPA or tax planner / advisor before purchasing.
I’ve spent some time over the last week or so tweaking the design and look of the Daily Dividend Investor blog. While ultimately, it’s true what they say that the substance and content is way more important than the style – I think style is important in that the content needs to be easy to read to have real value.
I spent a couple of hours previewing all of the WordPress themes that are available and finally settled on one called “Freshly”. I like it because the header image is clean and the menus are crisp and easy to find. I’m not thrilled about the font selection, but since I’m only using the free WordPress service I don’t get a lot of choices. For now I’m quite happy with this theme and the layout – I hope you’ll find it easier to read as well.
Over the next week or so I hope to provide more information / content about the current portfolio holdings as well as how I got where I am and how I plan to move the portfolio forward, as well as a Q&A section. I hope you will come back often – I look forward to hearing from you!
Western Gas Partners, LP (ticker: WES) increased their quarterly dividend today by $.025/share for an increase of 3.8%. Based on today’s closing price of $36.15/share Western Gas Partners pays out a 4.48% dividend yield.
Because WGP is a limited partnership, you will be issued a K-1 tax form each year and will be required to include US Federal Tax Form 1065 when completing your tax return. As I currently hold such small positions in the DDI portfolio I typically avoid adding shares of limited partnership interests to my holdings in an attempt to keep tax reporting as simple as possible.
I would consider making an exception for limited partnership interests that generate monthly income – however, Western Gas Partners currently pays dividends quarterly in August, November, February and May, so for now I won’t be considering adding shares of WGP.