Stunted Growth

My net worth grew quite slow this past month, although the highest it has ever been.  I expect this slow pattern to continue until the Q2 earnings are announced (which will be in a few weeks).  I am writing and compiling this data as of July 1st - and the jobs number just came out, and it was very good.  I would like to say we are back to normal economically, but the election is on the horizon, and I fear that the establishment is making inroads in making sure the outsider is not re-elected (yeah, I'm talking to you, Soros).  While the blue outcome could be a bit devastating to the growth of my net worth, as long as regulations aren't reintroduced, it will give me some time to get more deals.

I hit a milestone of $7k a year taxable income, $583 a month.  Not too bad, but I really need to step it up if I want to retire in 5 years.  Whatever I get to, I can figure about x4 that when I retire after moving my 401k over to an IRA I can control for dividends.  That would put me at 28k a year right now, which is not bad.  However, as I am growing my brokerage faster than my 401k (minimal matching contributions and Fidelity's silly restrictions and ETFs), that factor may dwindle.

As far as the riots, I did note them in my "dividend history" as I always do each month on something of significance that may or may not impact the market.  I also noted the 2nd wave.  I think the riots are mostly noise as far as the market is concerned, those people still need to buy goods and services, or at least their handlers do.  The 2nd wave is the troublesome note.  On a good note, Realty Income collected more rent money in June than they did in May, so O is ok!

Dividend Increases & Special Payouts
Realty Income (NYSE:O) declares $0.2335/share monthly dividend, 0.2% increase from prior dividend of $0.2330.

Target (NYSE:TGT) declares $0.68/share quarterly dividend, 3% increase from prior dividend of $0.66.

W. P. Carey (NYSE:WPC) declares $1.042/share quarterly dividend, 0.2% increase from prior dividend of $1.040.

June Purchases:

ABT	3
T	3
IP	6
WPC	18
O	7
ORI	10
SO	6
WSO	4
ADM	4
GIS	3

Tax Harvest Time! NNN out, WPC in

Last month I was sweating a few sectors.  One of them was the REIT sector.  O (Realty Income), had received the majority of their lease payments from tenants.  NNN (National Retail) only received about half their lease payments.  I started looking into my watchlist for a similar dividend paying REIT, and I think I found a better one.  WPC (W. P. Carey) had a good yield, 92% of their tenants paid up, limited retail exposure, 9 years of dividend increases, and many other favorable attributes.  Now I had to do the math - if I completely sell my NNN shares (before they cut their dividend), and use that cash to buy WPC, what will it net me?

- Peace of mind: one less drop of sweat from the real estate sector
- About $10 more a year annually in dividend income: So no loss to my income
- $800 and change loss I can write off on my taxes: harvest time!

So I made the biggest move in my portfolio in years.  NNN, despite how long they have generated dividend income, despite how long I have held them, although they haven't cut their dividend, has left the building.  My "never fall in love with a stock" philosophy was successfully tested, and now my portfolio is more recession proof than ever before.

As far as the other risky sector stocks, there hasn't been much change except slow recovery.  Well, slow is pretty relative, seeing as how we may avoid a depression and just see a recession.  Of course, it is too early to tell anything, but I'm feeling pretty good about the purchases I made during the height of the pandemic.  There still a few great yields out there, and I hope to keep taking advantage of them. "Never let a crisis go to waste", as Churchill said.

Dividend Increases & Special Payouts

Nothing this month.  No cuts, though.

May Purchases:

HRL 5

NNN 9

NNN -112

WPC 58

SO 3

QCOM 5

ORI 26

O 4

ADM 4

MAIN 4

Recession Stocks Weren't Cool... But Now, They Are

Back in my MMO days, there was a web series with Felicia Day called "The Guild".  They had a few song hits, "Do You Want To Date My Avatar" notably, the costume Felicia wore in that video is on display at the Smithsonian, which I recently visited.  Lesser known is their song "I'm the one that's cool" which tells the tale of how the Guild, once a group of nerds, are now the center of our culture.

I look at the recession stocks as the "nerds" of the stock market.  No one thinks they are cool or worth the investment, until something like 911, the housing crisis, or a pandemic hits.  Now they are "burning bright thanks to your rejection fuel" like the song says.  I make sure most of my dividends come from these stocks, because you need your income most during times like this.  The Nerd Stocks are:

Consumer Staples like

• Archer Daniels (ADM) agriculture
• General Mills (GIS) Grocery
• Hormel Foods (HRL) Supermarket
• Kimberley Clark (KMB) TOILET PAPER GOLD
• Proctor & Gamble (PG) Everything else in the store lol!

Utilities like

• Southern Co. (SO) Electric Company working on nuclear power in the south (hot summers)
• Wisconsin Energy (WEC) Electric/Gas company in the north (cold winters)
• Essential Utilities (WTRG) Water Works + Natural Gas
• Excel (XEL) Electric/Gas

Health Care (really shining in a pandemic)

• Abbvie (ABBV) Humira & Allergen
• Abbot Labs (ABT) Covid-19 Testers (cha-ching!)
• Johnson & Johnson (JNJ) everything else!

Now for the stocks in severe trouble.  I am keeping a close eye on them to see who will make it through, and sell off/tax harvest those who cut their dividend.  Thankfully none of them are more than 3-5% of my portfolio, so I can afford to.

Chevron (CVX), while the king of the oil companies, is the closest of my stocks to cut their dividend.  I just glanced at their earnings this morning, and Q1 wasn't as bad as expected.  Q2 may be the real test, however.  CEO assured shareholders the dividend is fine, but everything is always fine... until it isn't.

Okeo (OKE) is the next one.  While they were hit hard by the pin action of the oil stocks, they did report a decent quarter.  They are mostly pipelines and natural gas, so why they haven't bounced back too well is beyond me.  Meanwhile, their dividend payout ratio is high (not as high as Chevrons) and they always had a great yield, now it is scary good - too high!

Realty Income (O) and National Retail (NNN) - these guys are in for a rough ride.  As if brick and mortar wasn't already having issues.  While some of their tenants (Walgreens, 7-11, Dollar General/Tree, Walmart, CVS, Home Depot) are doing well, many may never do well again (AMC, LA Fitness, Chuck E. Cheese).  The problem is, if half your tenants are doing well, you don't get any excess, but if half are not doing well, you don't even get your lease payment.  

Main Street (MAIN) - They dropped their semi-annual bonus dividend, but then they already planned to, and absorb it into the monthly dividend.  They just dropped it sooner, and hopefully will absorb it later.  They appear to be doing fine on paper, but investing in companies is a tricky business during a pandemic where many businesses are failing.  I know they will be investing even smarter from now on.

Otherwise, the pandemic has been good for my wallet.  My employer labelled me "essential" and gave me the documentation to prove it.  They have been providing me with 2 square meals a day, an essential worker bonus, a Q1 bonus, and a secure job.  My family hasn't been going anywhere or spending anything, so we have been working on home project spending only.  The government provided me with a check I don't really need, so I am using it to invest and pay ahead on bills in case another tragedy hits.  Our family has been blessed during this time, and I told my children to try to avoid a job in the entertainment/travel industries, because they are the first to suffer during a crisis.

Net worth took a big hit in February, but has recovered nicely.  I think it is because Vegas is closed, so the gamblers are all playing the market, investing in biotechs and airlines.

IP was taken off tax harvest status on the 16th, so I loaded up a bit.

So glad many of my dividends actually increased during this time!  Honestly, I'm just glad some like Chevron and O maintained their dividend.

Dividend Increases & Special Payouts

Watsco (NYSE:WSO) declares $1.775/share quarterly dividend, 10.9% increase from prior dividend of $1.600.

Johnson & Johnson (NYSE:JNJ) declares $1.01/share quarterly dividend, 6.3% increase from prior dividend of $0.95.

Procter & Gamble (NYSE:PG) declares $0.7907/share quarterly dividend, 6% increase from prior dividend of $0.7459.

Southern Co (NYSE:SO) declares $0.64/share quarterly dividend, 3.2% increase from prior dividend of $0.62.

April Purchases:

ADM	17
IP	17
NNN	10
ORI	4
O	6
SO	4
Stay safe!

The Covid

Just when the market was getting a little boring, this happens.

This is why I refuse to ever pull from my 401k.  When I retire, which will be hopefully soon, I will just move it into an IRA, receive taxable dividends from it, and NEVER pull from it.  If you have to depend on it, the market will fall when you need it, then what will you do?
I have depleted all of my dry powder, and now am waiting for each paycheck as it comes in to buy as much as I can here, or on the way down.  I don't expect my job to be in peril, as it is big tech, and big tech is the clear winner here with everyone at home using it.


I am trying to be careful to pick quality stocks with increased dividends, but since I am middle-aged and prone to a little risk to catch up, I have bought a few riskier stocks (MAIN, OKE).  I did tax harvest IP, but I maybe

KMB Makes Toilet Paper!

should not have since they have a great balance sheet.  I should have harvested OKE, and I may yet still.  If anyone cuts their dividend, I *will* sell them, so that is why I am not harvesting yet, I may be forced to.  I only see OKE cutting at this point, but many stocks are at or slightly above their payout ratio.  I am watching the market more often to see if I can catch the moment the announcement is made.

Many stocks have cancelled buybacks, which I have mixed feelings on.  Buybacks decreased the payout ratio, and during these low prices it seems foolish not to take advantage.  At the same time, it is very bad PR for the company, since everyone wants companies to use that extra money to keep people employed.  If! they use it for that. 

Several CEOs have come around saying the dividends are safe.  Of course they are, until they aren't, right?  Q1 earnings will be the true test.  Still, I was surprised to see O raise theirs, even a little.  QCOM raise should be fine, with the 5G rollout and the home PC use, tech will be fine or better for Q1.

In the past week, the market seems to have found some footing, to slightly the point at the beginning of Trump's presidency, so a nice mulligan for anyone who wants to start jumping in.  However, many stocks are at risk.  The recessionary stocks, as expected, are doing fine, and are floating my portfolio well enough against the rest of them.  I expect them to have a good quarter, if not a great one, and all the others to be affected almost exactly inversely.  It is basic econ, the money flows one way, then the other.  I also expect Home Depot to do well, as people finally get around to doing their home projects if they still have a job.  I'm glad I don't have any stocks in the RED ZONE, such as restaurants, travel, and any consumer discretionary that isn't selling recessionary brands.

I am VERY proud to own ABT and JNJ, as they are leading the charge in this pandemic war.

It is hard not to say anything that hasn't already been said by the stock gurus.  Stay safe out there, and always make sure the main source of your passive income is recessionary stocks!  I need to buy more ADM on Monday!

Dividend Increases & Special Payouts
Qualcomm (NASDAQ:QCOM) announces dividend increase to $0.65/share quarterly dividend, 4.8% increase from prior dividend of $0.62.
Realty Income (NYSE:O) declares $0.233/share monthly dividend, a 0.2% increase from prior dividend of $0.2325.

March Purchases:

MAIN	47
FAST	11
QCOM	6
NNN	20
ADM	30
WTRG	12
SO	22
WEC	16
GIS	22
KMB	17
WSO	9
OKE	60
CVX	17
IP	-30
PG	4
TGT	5
JNJ	5
ABT	5
ABBV	10
ORI	35

Whew!  Most purchases I have made in a month, and I certainly exceeded 30 trades (all of the ones above were split into 2 or more transactions throughout the month).

Keep on buying on the slide down, or the ramp up.  Research your companies.  Receive your dividends.

Corona Fever Finally Hits the Market

*EXHALE*

Breathe, take it easy.  After months of predictable increased prices and dropping yields, the market finally went into correction this last week of February.  And in classic dividend investor style, I bought into the panic.  I still have a *little* cash left on hand for any more stomach twisting drops ahead, but I think the bears (and the algorithms) have had their way.  Looking forward to a good jobs report, and a bullish market for another 4 years...?

My annual income has increased dramatically (almost $500), now that we have had some yield increases, and I thawed a bit of my frozen assets to make it happen.  However, my net worth and my brokerage took a huge hit from the drops.  But that's how the market works, and it has historically recovered every time.  I feel fortunate I was able to have some cash on hand to take advantage of it.  While it felt like being a kid in a candy store picking up all the high yielders, there was the sobering reality of losing about half the profits I've gained over the years.



As of this writing, the virus has not really affected the USA too much, and China has been crippled by it.  It will be interesting to see if the panic in the market is at all justified.  Ok, now on to the data:

Dividend Increases & Special Payouts
Old Republic (NYSE:ORI) declares $0.21/share quarterly dividend, 5% increase from prior dividend of $0.20.
Home Depot (NYSE:HD) declares $1.50/share quarterly dividend, 10.3% increase from prior dividend of $1.36.
Xcel Energy (NASDAQ:XEL) declares $0.43/share quarterly dividend, 6.2% increase from prior dividend of $0.405.

February Purchases:

GIS	13
T	8
MAIN	45
NNN	6
SO	6
ORI	14
ADM	4
CVX	14
O	7
ABBV	9
IP	13
HRL	26
OKE	1
WSO	5

Here's hoping March, coming in like a lion, will come out like a lamb...

December, January, and the Corona Virus

The volatility many of us have been waiting for might actually be here.  As far as the market goes, the Iran dustup was not very effective.  The Corona virus might be responsible for the next correction, and drive the market even lower.  In the meantime I have been shoring up my stocks to be more diverse, and did indeed increase the utilities I had planned to buy.  The only stock under 2.5% weight in my portfolio is Hormel, and I'm not sure how it will perform in this market.  As a recessionary stock, it should increase, and with SPAM impossible to contaminate, it should fare well, however for the "fresher" brands, it may not.  It is already too expensive with a low yield that I may continue to pass it over for now.

Going into Monday morning February, the things I will be watching for will be the retreat of Corona (unlikely).  Which means waiting for the correction to continue, or for Corona cases to stabilize.  In the meantime we have the jobs report on Friday, and if the past 3 years are any indication, it should be a good one.  Couple that with the unusually warm January weather in large metropolis areas, no reason not to go out and look for a job.  Or better yet, move to one (many openings in the Midwest).

December went well, and January for the most part, just at the end did things heat up.  The "impeachment" was another non-event for the market.  The Corona Virus steals the show as the true disruption in growth.  If China can't supply the global economy, the global economy will panic.  This is the best time to buy.  Be ready to catch that bottom when it happens!  Lots of increases these past 2 months, here they are (along with some commentary by me):

Dividend Increases & Special Payouts
Mastercard (NYSE:MA) declares $0.40/share quarterly dividend, 21.2% increase from prior dividend of $0.33.
WEC Energy (NYSE:WEC) declares $0.6325/share quarterly dividend, 7.2% increase from prior dividend of $0.59.
Realty Income (NYSE:O) declares $0.2275/share monthly dividend, 0.2% increase from prior dividend of $0.227. (monthly payer that increases small several times a year, with usually one large increase once a year.  This isn't it!)
AT&T (NYSE:T) declares $0.52/share quarterly dividend, 2% increase from prior dividend of $0.51. (ATT just increases a little in order to keep their aristocrat status - which is fine because of their great yield)
Realty Income (NYSE:O) declares $0.2325/share monthly dividend, 2.2% increase from prior dividend of $0.2275. (Here's the bigger raise)
ONEOK (NYSE:OKE) declares $0.935/share quarterly dividend, 2.2% increase from prior dividend of $0.915. (This is another one that likes to increase several times a year)
Fastenal (NASDAQ:FAST) declares $0.25/share quarterly dividend, 13.6% increase from prior dividend of $0.22. (Nice!)
Kimberly-Clark (NYSE:KMB) declares $1.07/share quarterly dividend, 3.9% increase from prior dividend of $1.03.
Air Products and Chemicals (NYSE:APD) declares $1.34/share quarterly dividend, 15.5% increase from prior dividend of $1.16. (Nicer!)
Chevron (NYSE:CVX) declares $1.29/share quarterly dividend, 8.4% increase from prior dividend of $1.19.
Archer-Daniels-Midland (NYSE:ADM) declares $0.36/share quarterly dividend, 2.9% increase from prior dividend of $0.35.

December Purchases:
XEL         14
WEC 25
ORI          29
ADM        22
WTR 40
ABT            2

January Purchases:
ABT         14
ORI          14
APD         4
FAST 11 
CVX         6
HRL         13
ADM         9

Another Great Month For Net Worth

Today

...not so hot for purchases.

It was hard to find bargains.  While earnings were about even for all my companies (half profit/half loss), most stocks went up in value, regardless.  Our net worth is approaching retirement values, which is good news, but my annual income has hit a snag as I'm having harder times finding stocks on sale.  A relative and friend of mine is thinking of starting dividend investing, and if I were to start today, I would start in 5 diversified stocks:  Abbvie (ABBV), International Paper (IP), Southern (SO), Okeo (OKE), and AT&T (T).  You have medical, industrial, utility, energy, and telecom.  While they may be peaked on value, they have great yields.  So yeah, if you buy them, they may drop in the next crash, but you will still be making some money in the meantime to buy them at better prices.  AT&T was a dog in my portfolio for almost two years, but has recovered nicely, and still has a

great yield.  After those, I would invest in as many consumer staples & utilities as possible, as they will thrive in the next recession.

Two Years Ago

I have been filling out my portfolio buying a few lower yielders to diversify.  However, I really need to start concentrating on the utilities for a few reasons.  1, their profits should do nicely after the winter season, and 2, they also will thrive when a recession hits.  So, XEL, SO, WTR, and WEC, I'll be keeping my eye on you.

Dividend Increases & Special Payouts
Hormel Foods (NYSE:HRL) declares $0.2325/share quarterly dividend, 10.7% increase from prior dividend of $0.21!!!  Gotta love a 10.7% raise!

AbbVie (NYSE:ABBV) declares $1.18/share quarterly dividend, 10.3% increase from prior dividend of $1.07.  Another great raise! Better than my job!


November Purchases:

CVX	2
ORI	25
MCD	3