Sunshine Blogger Award

Thanks to Rich over at Redeemed Finance for the nomination! See his post here.

Here are the Sunshine Blogger Award rules:

• Thank the person who nominated you
• Answer the questions from the person who nominated you
• Nominate a few other bloggers
• Write the same amount of questions for the bloggers you nominated
• Notify the bloggers on their blog

The questions Rich posed to me were:

1. What did you want to be when you were little?

• I feel like I struggled with this as a child. I never had that "calling" or desire to be anything in particular. I guess when I was in about 6th grade, my cousin Fred gave me an Atari 130XE Computer with a million games. It blew my mind.  Previously I had dabbled with the Commodore 64 but never really got into it. I continued to pursue the computer field as I got into building my own PCs and reading up on the latest hardware. That is when I decided I wanted to be an Engineer when I grew up. 

 2. Do you have a hobby that generates income (besides blog)?

• My friend and I wrote a game for iOS called Metal Sky. It is something we did for fun and actually generates a little bit of cash flow each month, even though we haven't updated it for some time now. I also enjoy portrait photography but I don't charge for that. My favorite combo is my Canon 6D and Canon 50mm 1.4. I thought of turning photography into a side business, but its too competitive and time consuming.

3. Name something that annoys you about the economy.

• Without getting too political, what annoys me most about the economy is the government intervention in it. There are many good things the government does, but I don't believe in bail outs or spending money we don't have (we being the great USA).

4. Do you plan on working in your 50’s? 60’s? 70’s?

• Of course not! I am 35 right now, but I would love to retire from corporate America in 5 years, at age 40. I have several side ventures that I would like to pursue but I need some passive income to help support those.

 
5. What is your #1 dream car (that you may actually buy)?

• I am not really a car guy. Growing up, it was the Mitsubishi 3000GT. Something about that car just really interested me. These days, I am more family oriented, and I think my dream car/vehicle is a motorhome of some sort that I could travel around the country with my family in. Exciting, right!!

Who do I nominate? How about (Sorry if you have already done this recently, but hey it is an honor to be nominated multiple times right??):

1. Div4Son
2. Dividend Hawk
3. A Frugal Family's Journey

I follow these 3 blogs very closely as the information they provide is outstanding!

Here are my questions to the above 3 bloggers:

1. What have you read recently that wasn't blog related that caught your attention?
2. What is your favorite part about blogging?
3. What is your least favorite part about blogging?
4. What is something unique that you own or some unique skill that you have?

Thanks for reading!

Summary of Recent Buys - Week of October 4

My weekly summary of buys from around the blogging community for the week of October 4, 2015.

This weeks totals

• 13 Total Purchases(-20 from last week)
• 11 Uniquely Different Stocks Bought (-12 from last week)
• 7 Different Bloggers Posted Buys(-6 from last week)

A total of $9,022 was invested in dividend stocks this week. A huge decrease from last week. Looks like it was a slow week for buys around the community.

Bloggers increased forward yearly dividends by  $235! That's a 2.6% Average Yield on Investment!

Top Purchased Stocks this week:

1. GILD - 2 Buys
2. T - 2 Buys

GILD was the big winner this week as Investment Hunting blog posted a very large purchase of $4,846.


Here is the F.A.S.T Graph for GILD and T.

Here is the summary of stocks, amount invested, and which blogger posted the buy:

Week of September 27
Sector	Ticker	Yield	Amount	Blogger
5	BDX	1.74%	650	Young Dividend
6	CAT	4.32%	300	FabSavings
1	CVX	4.78%	100	Dividend Growth Journey
6	EMR	3.99%	300	FabSavings
5	GILD	1.71%	98	Dividend Lord
5	GILD	1.71%	4846	Investment Hunting
5	JNJ	3.15%	100	Dividend Growth Journey
3	PG	3.56%	143	Dividend Lord
8	T	5.67%	100	Dividend Growth Journey
8	T	5.67%	65	Dividend Lord
8	VZ	5.12%	996	Div4Son
7	WMT	2.94%	1024	Captain Dividend
1	XOM	3.68%	300	FabSavings

Sector Information: 

For the Sector information, I use FinViz.com when possible as it is easy to find a consistent sector list. Here are the Sector codes I use in the chart (# is the number of each stock purchased in that sector):

	Sum of yearly Dividends		235.24
ID	Sector	#	Amount
5	Healthcare	4	5694
8	Technology	3	1161
7	Services	1	1024
6	Industrial Goods	2	600
1	Basic Materials	2	400
3	Consumer Goods	1	143
4	Financials	0	0
9	Utilities	0	0
2	Conglomerates	0	0
	TOTAL	13	9,022

Which of these stocks are you looking to buy next week? Any surprises in this list?



I cross reference my list with A Frugal Family's Journey's list as well, but I do not guarantee the accuracy. If you see any mistakes, please comment or send me an email.


Disclaimer: I am not a licensed investment professional. I am not liable for any losses suffered by any parties. Any information on this site is my opinion only and should not be used for investments of any kind.

Template for Dividend Growth Annualized Returns

I have created a Google Sheets template that calculates the long term annual return of a stock (or portfolio if you wish) based on the expected average dividend growth and the initial dividend yield. I scoured the internet to find such a template and could not. There are calculators all over, but none gave me the information presented in this manner.

It is fairly common knowledge that the average return of the S&P over time is around 7%. If we can expect to get a 7% annualized return, why do we invest in Dividend Growth Stocks? The template I created shows why. The main output is the green line at the bottom "Annual Return Rate" shows the Yield on cost of your stock or portfolio. After 20 years, the yield is a very nice 11.5%.

There are some assumptions for this sheet. The first and most important is that the initial dividend rate that you enter remains the same or close to it every year that you invest more into the stock or portfolio. The next is that the annual growth rate is always climbing and stays steady around the entered value. If a stock has wild up and down years, the end result probably wont look as clean as this sheet. Finally, the annual return rate in green will decrease if you do not invest more every year. This is the power of compounding, but it is also possible to just put 0 in the fields from years 2-20.

Lets take a look at a screenshot of the template:

Inputs:

Annual Growth Rate = This is the average annual dividend growth rate expected over the 20 year period.

Initial Dividend Rate = The current dividend yield of the stock or portfolio

Yr Contrb = Enter in the amount you plan to invest annually into the stock or portfolio


Outputs:

Annual Return Rate = This is the current dividend yield of the combined purchases for each year. This is essentially the Yield On Cost of the stock or portfolio.

Future Dividend Rate = This shows the calculated dividend yield based on the Annual Growth Rate entered for each year since the beginning.







I created a list of random stocks that have relatively high average dividend growth numbers. This shows you that if you put a lower initial dividend rate, but a higher annual growth rate, you will get better results than a high initial yield but poor growth.

An example is if you have an initial dividend rate of just 3% and a growth rate of 15%, you get a 15.4% return after 20 years. Compare that to the screenshot above where you have an initial dividend rate of 4% and a growth rate of just 10%. This yields a return of just 11.5% after 20 years.

Ticker	10 Yr Avg Div Growth
KO	10%
PM	15%
IBM	16%
PEP	10%
JNJ	12%
ADM	17%
AMAT	21%
BBL	18%
CAT	12%
EMR	8%
ABT	7%
OKE	16%
KMI	19%

 

This is just one tool of many to help come up with a long term plan for your portfolio and set some goals. My main goal was to see if its possible to be the 7% annual return of the S&P and if so, how long it would take. Now I have a good hypothesis of what that may be based on my settings.

What do you think of the template? Do you see any errors or bad assumptions? Please let me know so we can discuss.


Link to Template is here:
https://docs.google.com/spreadsheets/d/1E3x8uSPBuvDZUh2nDhueJFDseaiUU6F_5s8t-lAk1Q8/edit?usp=sharing




Disclaimer: I am not a licensed investment professional. I am not liable for any losses suffered by any parties. Any information on this site is my opinion only and should not be used for investments of any kind.

Summary of Recent Buys - Week of September 27

 My weekly summary of buys from around the blogging community for the week of September 27, 2015.

This weeks totals

• 33 Total Purchases(-3 from last week)
• 23 Uniquely Different Stocks Bought (-0 from last week)
• 15 Different Bloggers Posted Buys(-1 from last week)

A total of $28,431 was invested in dividend stocks this week. An Increase of about $4k from last week.

Bloggers increased forward yearly dividends by  $1,368! That's a 4.8% Average Yield on Investment! Nice work bloggers!

Top Purchased Stocks this week:

1. KMI - 6 Buys
2. EMR, ABT, OKE - 2 Buys

KMI easily took the top spot this week with 6 buys all by unique bloggers.

Here is the F.A.S.T Graph for KMI. The stock price hasn't been this low since late 2011. Last week the stock hit a multi year low of just above $25 a share and with a yield over 6%, it is easy to see why it was popular last week.

Here is the summary of stocks, amount invested, and which blogger posted the buy:

Week of September 27
Sector	Ticker	Yield	Amount	Blogger
5	ABT	2.31%	500	Young Dividend
5	ABT	2.31%	1027	Div 4 Son
5	AMGN	2.20%	500	Young Dividend
4	BAC	1.29%	3062	Well Rounded Investor
1	BBL	7.66%	596	Race 2 Retirement
1	BP	7.19%	595	Race 2 Retirement
1	BP	7.19%	2282	Investment Hunting
6	CAT	4.59%	250	Accumulating Assets
7	COP	5.60%	490	Passive Income Mavericks
1	CVX	5.13%	100	Dividend Growth Journey
4	EHI	13.00%	1360	Dividend Quest
6	EMR	4.17%	1069	Dividend Diplomats
6	EMR	4.17%	1099	Investment Hunting
7	FAST	3.08%	5250	Income Surfer
5	GSK	5.80%	400	Passive Income Mavericks
4	HCP	5.96%	370	Race 2 Retirement
5	JNJ	3.18%	100	Dividend Growth Journey
1	KMI	6.45%	250	Accumulating Assets
1	KMI	6.45%	442	Zero to Zeros
1	KMI	6.45%	580	Race 2 Retirement
1	KMI	6.45%	305	Passive Income Mavericks
1	KMI	6.45%	0	Well Rounded Investor
1	KMI	6.45%	405	A Frugal Familys Journey
9	OKE	6.73%	640	Race 2 Retirement
9	OKE	6.73%	700	Race 2 Retirement
3	PG	3.64%	215	Dividend Growth Journey
3	PM	5.05%	159	Dividend Growth Journey
3	PM	5.05%	2754	Div Gro
1	RDS.B	6.86%	644	A Frugal Familys Journey
8	T	5.66%	100	Dividend Growth Journey
1	UTX	2.81%	1314	Financial Freedom
4	WPC	6.54%	577	Race 2 Retirement
1	XOM	3.79%	296	Dividend Growth Journey

Sector Information: 

For the Sector information, I use FinViz.com when possible as it is easy to find a consistent sector list. Here are the Sector codes I use in the chart (# is the number of each stock purchased in that sector):

	Sum of yearly Dividends		1,367.99
ID	Sector	#	Amount
1	Basic Materials	13	7809
7	Services	2	5740
4	Financials	4	5369
3	Consumer Goods	3	3128
5	Healthcare	5	2527
6	Industrial Goods	3	2418
9	Utilities	2	1340
8	Technology	1	100
2	Conglomerates	0	0
	TOTAL	33	28,431

Which of these stocks are you looking to buy next week? Any surprises in this list?



I cross reference my list with A Frugal Family's Journey's list as well, but I do not guarantee the accuracy. If you see any mistakes, please comment or send me an email.


Disclaimer: I am not a licensed investment professional. I am not liable for any losses suffered by any parties. Any information on this site is my opinion only and should not be used for investments of any kind.