Bought: Investors Real Estate Trust (ticker: IRET)

investors real estate trust daily dividend investor passive income for life cash flow machineLooking for niche plays

In continuing to “top off” many of my existing positions I went ahead and added 75 shares of Investors Real Estate Trust (ticker: IRET) to the DDI portfolio today.

Investors Real Estate Trust is probably one REIT you’ve never heard of because it focuses on a very small niche, owning properties in Minnesota and North Dakota. Because of it’s geographic focus, it may be well situated to benefit from the recent economic boom that has been going on in North Dakota within the oil industry.

Risk / Reward

I tend to favor REITs when looking for companies to add to the DDI portfolio because of the fact that they own hard assets which makes it more difficult (but not impossible) for the book value of the company to fall to $ZERO. To be completely honest, owning this stock is all about yield which is currently right around the 7% mark. Adding these shares will increase the first month quarterly payout by $9.75.

As I’ve mentioned before, because most of my individual positions are less that $1000 in value and since the portfolio is on track to make $500/month (and growing) – I’m comfortable with the risk/reward scenario that investing in these shares offers.

Conservative Plays

conservative investments show long term profit passive cash flow daily dividend investor portfolio nowI’ll look to add on to one of my more conservative holdings for my next investment in an effort to balance the overall risk of the DDI portfolio. Overall the DDI portfolio continues to perform as expected, delivering over $500/month in income in both month 1 and month 3.

With the continued downward pressure on share prices I may begin to add additional outside funds so that I can capitalize on depressed share prices when the market offers them to me. Mostly this will be a function of how well or poorly my other income sources perform in the coming weeks and months. Ideally I would like to build the DDI portfolio up to $250k in base value before leaving it on auto-pilot to become a true unmanned cash flow machine!

man rebuilds stock porfolio daily dividend investor average joe makes free cash flow possible optionsDid you enjoy this post?

If so, you might want to check out some of my other recent buys including:

Gladstone Investment Corp

Century Link

Pfizer Pharmaceuticals
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Bought: Disney (ticker: DIS) & Cherokee (ticker: CHKE)

  • long term positive outlook daily dividend investor passive income blog for everyday joe gold coin alertThink positive Think long-term

On day’s like today when the markets give you a head-fake, it’s sometimes hard to remain positive.

The morning started off on a positive note rising over 70 points but by day’s end there were more sellers than buyers – we would be going into this weekend on a losing day – down almost 180 points.

Fear not, I like to use days like this to look for bargains and I think I found a couple…

Continue reading “Bought: Disney (ticker: DIS) & Cherokee (ticker: CHKE)”

How to remove *RISK* from your portfolio

risk reward seize day venture daily dividend investor income passive cash flow portfolioRISK – it’s such a scary word, especially right now.

We’d all like to remove risk, right? Nobody wants to think of their investments – their “nest egg”, whether they be in stocks, bonds, gold, real estate or fine art, ever going to $ZERO.

But we live with those fears everyday – some days more than others.

Wouldn’t it be fantastic to invest a dollar and know that you are GUARANTEED to not only to get your original dollar back, but also get a  monster return of 12% interest with no chance of  loss what so ever?

Of course there’s no such investment – no matter how large or small the rate of return is, because you can never remove RISK. Remember even CASH has a risk, as inflation eats away at your purchasing power on a daily basis.

A good friend of mine who audits banks for a living often reminds me,  “You can never REMOVE risk, you can only MANAGE it.”

So since you can’t remove risk, how can you manage risk? Read on… Continue reading “How to remove *RISK* from your portfolio”

Monthly Income Update: July 2011

Monthly Income Update: July 2011

monthly dividend cash flow reportSince July is the first month of the quarter it’s a “slow” month for dividends and once again fell a little short of the $500/month target I’ve set for the DDI portfolio.

With that said, the portfolio picked up a bit of steam and brought in $408.74 for the month of July which is about a 2% increase over April’s results.

Continue reading “Monthly Income Update: July 2011”

The 9 positive things about today’s market CRASH

The 9 positive things about today’s market CRASH

poke your eye out stock market crash daily dividend investor income passive cash flowWell, that was fun. About as much fun as a hot needle in the eye – ouch! Today‘s drop of over 500 points on the DOW wasn’t exactly the dead-cat bounce I was looking for after yesterday’s drop – but it *will* come.

The real question now seems to be what is going to help sustain this market from falling further? Well today there were at least nine positive factors, want to know what they were?

Continue reading “The 9 positive things about today’s market CRASH”

Buying stock today! Are you crazy?

I admit it. I bought stock today.guy pulls out hair crazy investor daily dividend income passive cash flow

I know, the markets are going to ZERO, the double dip recession is just around the corner, thousands more employees are getting pink slips and real estate will never get better. We’re all going to HELL!

But I bought anyway…

Continue reading “Buying stock today! Are you crazy?”

While you were out…

Remind me not take any more vacations!

When I left last week the DOW was sitting comfortably at 12,500 and here we are today looking at 11,866 at thewhile you were out daily dividend investor finds new ways passive income today close.  634 points or 5% in less than a week’s time!

The bright side (there’s always a bright side) is that we can start looking for some bargains.

Perhaps I’ll be able to pick up those shares of Caterpillar (ticker: CAT) that I spoke of a month ago. While we wait for the US government to finalize a debt ceiling deal, I’m guessing this is not the end of all the selling in this market – let the bargain hunting begin!

While you were out…

While I was out the DDI portfolio generated another $124.85 in income which brings my cash balance to just over $1000.00. I should be able to pick up 2 or 3 good new positions or possibly add to my existing positions.

New near-term goals

Now that I’m comfortable with the diversification of the portfolio I’m going to focus less on adding new positions and have decided to implement the following two short term goals:

  • Begin “topping off” existing positions to reach even 100 share increments
  • Focus on adding to higher yielding positions (primarily positions with 5% or greater yield)
topping off passive income daily dividend investor portfolioBy “topping off” existing positions I’m  setting up the portfolio to begin implementing a covered-call option strategy to increase monthly returns by selling option contracts.
In addition, by focusing on the higher yielding stocks I’m hoping to pump up the DDI portfolio’s overall return in the shorter term. With talk of a double-dip and possible weakening economy I’m taking a risk that these higher yielding plays may be more susceptible to dividend reductions should their revenues be adversely affected.
My take is that the average investor is still seeking out above average yields by investing in equities – specifically those in the 5-7% range. Why 5-7%? Primarily, because investors typically search for yields above 3% to beat inflation, while trying to maintain some sense of “safety” by staying below a percieved danger zone above 7%.
Do you enjoy following along as I build the Daily Dividend Investor portfolio? Take a moment and subscribe to my email sign up daily dividend investor passive income email list daily portfolionotifications and you’ll get notified as I continue to work the portfolio. Don’t worry, I hate spam as much as you do and won’t sell or give away your info!
And remember, feel free to drop me a line anytime – I’d love to hear about your passive income journey!