Tuesday, April 3, 2012

Dividend Increases - Decreases

The primary objective of the portfolio is to build an income stream that is reliable, predictable, and increasing.

There are two ways to increase the income.

1. Reinvest the dividends.
2. Receive dividend increases.

Here is a list of those who have already increased their dividends/distributions in 2012 and the percentage of the increase or decrease.

ABT - up 6.3%
D - up 7.1%
BP - up 14.2%
FTR - dn <46.7%> ... This position has been sold.
DEO - up 7.0%
KO - up 8.5%
O - Has raised the dividend twice this year, both times by 0.2%
EPD - up 1.2%
MMP - up 1.9%
PEP - up 4.0%
CL - up 6.9%
KMB - up 5.7%
HCN - up 3.5%

Additionally, since the dividends or distributions are being reinvested, EPD and HCN provide a 5% discount on the reinvested share price. Thus, additional income is being created.

The increase in income from the above issues more than offset the loss from FTR.

Monday, April 2, 2012

Project $3 Million - March Results

Project $3 Million - March Results

PRIMARY OBJECTIVE:

Income replacement. The goal is to build an income stream that is reliable, predictable, and increasing. The income goal is $10,000 per month in retirement. A portfolio value of $3 Million with a yield of 4% will accomplish that objective. Hence the title of this portfolio: Project $3 Million.

STRATEGY:

To contribute $500 per month to the portfolio, look to earn 8.25% annually, compounded over 40 years. The beginning value at the time of establishing these goals was $42,205.00.

This link shows the compounding effect:

http://www.planningtips.com/cgi-bin/savings.pl?amt=42%2C205&dep=500&cmp=annually&int=8.25&yrs=40&Calculate.x=0&Calculate.y=0

STATUS:

The portfolio is ahead of schedule! In order to stay on schedule, the year end portfolio value needs to be $74,355.59.

As of March 31, the portfolio value is $74,957.95.

YEAR END PORTFOLIO VALUES:

2009 ... $42,205.42
2010 ... $54,949.87
2011 ... $73,303.61
2012 ... $74,355.59 (End of first quarter)

QUARTERLY INCOME:

1st Quarter 2009 ... $108.00
1st Quarter 2010 ... $264.95
1st Quarter 2011 ... $542.81
1st Quarter 2012 ... $621.20

MARCH RESULTS: ... Dividend received:

Taxable Account: (Dividends Reinvested)

SO .... $20.52 .... Bought 0.46 shares
CVX .. $17.85 ... Bought 0.162 shares
JNJ .... $23.84 ... Bought 0.366 shares
MCD .. $16.24 .. Bought 0.166 shares
LMT .. $33.57 ... Bought 0.37 shares
BP ..... $18.28 ... Bought 0.387 shares
PEP ... $16.61 ... Bought 0.249 shares
FTR ... $1.87 ..... Bought 0.435 shares
===================================
Total ... $148.78

Symbol ... Shares ... Mkt Value ... Gain/Loss

ABT ... 54.704 ... $3,352.81 ... up 25.29%
ADP ... 37.479 ... $2,068.47 ... up 25.21%
BP ...... 61.475 ... $2,766.38 ... dn <10.80%>
CL ...... 24.38 ..... $2,383.88 ... up 23.56%
CVX ... 22.196 ... $2,379.63 ... up 38.37%
DEO ... 28.774 ... $2,776.69 ... up 41.97%
EPD ... 58.717 .... $2,963.45 ... up 32.97%
FTR .... 18.66 ..... $77.81  ....... all profit ... (Shares received in a spinoff from VZ)
GIS ..... 50.283 ... $1,983.66 .... up 16.74%
JNJ ..... 42.19 ...... $2,782.85 ... up 6.39%
KMB ... 33.965 ... $1,883.53 ... up 11.70%
KMP ... 33.965 ... $2,810.60 ... up 14.44%
KO ...... 53.033 ... $3,924.97 ... up 57.40%
LMT .... 33.944 ... $3,050.21 ... up 12.37%
MCD ... 23.359 ... $2,291.52 ... up 37.28%
MMP ... 38.846 ... $2,810.12 ... up 36.04%
MO ...... 99.255 ... $3,064.00 ... up 51.53%
NUE .... 53.594 ... $2,301.86 ... up 5.83%
PEP ..... 32.247 ... $2,139.59 ... up 7.49%
PM ...... 31.673 ... $2,806.54 ... up 23.60%
SO ...... 43.887 ... $1,971.84 ... up 22.08%
SYY .... 69.078 ... $2,062.67 ... dn <3.60%>
Cash .... $240.70
==================================================
Account Value ... $54,893.79

Roth Ira: (Dividends Reinvested)

I sold 250.932 shares of FTR for a loss of <49.90%> Total dollar amount of the loss was $1,095.08. I then took the remaining proceeds and added 21 shares of D

O ...... $11.25 ... Bought 0.297 shares
D ...... $24.42 ... Bought 0.483 shares (The 21 shares above were purchased too late for this dividend.)
=========================================================
Total ... $35.67

Symbols ... Shares ... Mkt Value ... Gain/Loss

D ......... 67.773 shares ... $3,470.66 ... up 9.56%
HCN  .. 40.533 shares ... $2,227.69 ... dn <0.88%>
O ........ 77.602 shares .... $3,005.53 ... up 8.06%
PG ...... 33.56 shares ...... $2,255.57 ... up 6.84%
VZ ...... 111.39 shares .... 4,258.44 ..... up 2.61%
Cash ..... $34.75
================================================
Account Value ... $15,252.63

Thrift Savings Plan (TSP) ... (Federal version of the 401K)

Individual Fund - Value amount in each fund

F Fund (Fixed Income) ... 4.40%
C Fund (S&P 500) ......... 35.48%
S Fund (Small Cap) ........ 32.16%
I Fund (International) ...... 27.96%
=================================================
Account Value ... $4,811.53

Current contributions to each fund:

F Fund ... 10%
C Fund ... 10%
S Fund ... 35%
I Fund ... 45%

Total dividends for March was $184.45.

March 2009 ... $29.06
March 2010 ... $85.79
March 2011 ... $194.47
March 2012 ...$184.45 (The sale of FTR was the reason the dividends were down this month over last March.)