Monday, July 30, 2012

Time To Add

In the coming days, I will be adding to an existing position to help bring the weighting up. The potential candidates are ADP, GIS, KMB, MCD, NUE  and SO.

I have narrowed it down to MCD and GIS. I will make the final decision on Wednesday, August 1. I am leaning toward MCD because the share price of MCD is more volatile than GIS. I may still be able to add GIS two months from now closer to today's price than MCD if the market heads higher.

The amount to be invested will be slightly more than $1,000.

Sunday, July 1, 2012

Project $3 Million - June 2012 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 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=42205.00&dep=500&cmp=annually&int=8.25&yrs=40&Calculate.x=50&Calculate.y=12

STATUS:

To stay on schedule, 2012 year end total must be $74,355.59 ... As of June 30, the account balance is $78,638.98.

YEAR END PORTFOLIO VALUES:

2009 ... $42,205.42
2010 ... $54,949.87
2011 ... $73,303.61
2012 ... $78,638.05 (year to date)

The June 30 close of $78,638.05 is a record high.


JUNE DIVIDENDS RECEIVED:
=========================================

TAXABLE ACCOUNT: (Dividends Reinvested)

Southern Company (SO) ... $21.50 ... Bought 0.454 shares
Chevron Corp (CVX) ... $19.98 ... Bought 0.199 shares
Johnson & Johnson (JNJ) ... $25.74 ... Bought 0.402 shares
McDonald's (MCD) ... $16.35 ... Bought 0.181 shares
Lockheed Martin (LMT) ... $33.94 ... Bought 0.401 shares
BP plc. (BP) ... $29.51 ... Bought 0.746 shares
Frontier Communications (FTR) ... $1.91 ... (To be purchased next week)
Pepsico (PEP) ... $17.47 ... (To be purchased next week)
===============================================
Total ... $166.40

Cash deposited in June ... $500.00

Symbol ... Shares ... Mkt Value ... Gain/Loss ... * Increased Dividend in 2012 ... ~ Decreased Dividend

ABT .... 55.15 ... $3,555.52 ... up 31.50% ... *Abbott Laboratories
ADP ... 37.744 .. $ 2,100.83 .. up 26.04% .. Automatic Data Processing
BP ...... 62.221 .. $2,522.44 ... dn <19.43%> .. *BP, plc
CL ...... 24.529 .. $2,553.47 ... up 31.33% .. *Colgate-Palmolive
CVX ... 22.395 .. $2,362.67 ... up 35.81% .. *Chevron Corp
DEO ... 29.082 .. $2,997.48 ... up 50.92% .. *Diagio, plc
EPD .... 59.464 .. $3,046.94 ... up 34.49% .. *Enterprise Products Partners
FTR .... 19.095 .. $73.13 ... (Shares received in spinoff from VZ) ... ~Frontier Communications
GIS ..... 50.679 .. $1,953.17 ... up 13.92% ... *General Mills, Inc.
JNJ ..... 42.592 .. $2,877.52 ... up 8.94% ... *Johnson & Johnson
KMB .. 25.745 .. $2,156.66 ... up 26.49% .. *Kimberly-Clark Corp
KMP ... 34.47 ... $2,708.65 ... up 8.49% ... *Kinder Morgan Partners
KO ..... 53.399 .. $4,175.27 ... up 65.64% ... *The Coca-Cola Company
LMT ... 34.345 .. $2,990.76 ... up 8.82% ... Lockheed Martin Corp
MCD .. 23.54 .... $2,084.00 ... up 23.64% ... McDonald's Corp
MMP .. 39.313 .. $2,777.07 ... up 32.35% ... *Magellan Midstream Partners
MO ... 100.556 .. $3,474.21 ... up 68.43% ... Altria Group, Inc.
NUE ... 54.129 ... $2,051.49 ... dn <6.53%> ... Nucor Corp
PEP .... 32.496 ... $2,296.17 ... up 14.40% ... *Pepsico, Inc.
PM ..... 31.951 ... $2,788.04 ... up 21.48% ... Philip Morris International, Inc.
SO ..... 44.341 ... $2,052.99 ... up 25.43% ... *Southern Company
SYY .. 109.722 .. $3,270.81 ... dn <0.35%> ... Sysco Corp
Cash ................... $506.72
=============================================================
Account Value: ... 57,376.01


ANNOUNCED DIVIDEND INCREASES:  --- GIS ... 8.2%
No Decreases.
-----------------------------------------------------------------------------------------------------


ROTH IRA: (Dividends Reinvested)


Realty Income (O) ... $11.36 ... Bought 0.284 shares
Dominion Resources (D) ... $35.75 ... Bought 0.658 shares
========================================================
Total ... $47.11


Symbol ... Shares ... Mkt Value ... Gain/Loss ... *Increased Dividend in 2012


D ......... 68.431 ... $3,695.27 ... up 15.35% .... *Dominion Resources
HCN ... 41.084 ... $2,395.20 ... up 5.16% ...... *Health Care REIT, Inc.
O ......... 78.47 ..... $3,277.69 ... up 16.42% .... *Realty Income Corp
PG ....... 33.853 ... $2,073.50 ... dn <2.66%> .. *Procter & Gamble Co.
VZ ...... 112.761 .. $5,011.10 ... up 19.14% ..... Verizon Communications
========================================================
Account Value: ... 16,487.51


Announced Dividend Increases: ... None
Announced Dividend Decreases: ... None
--------------------------------------------------------------------------------------------------------


Total Dividends for June ... $213.51


2nd Quarter 2009 ... $102.00
2nd Quarter 2010 ... $357.17
2nd Quarter 2011 ... $575.40
2nd Quarter 2012 ... $676.54


====================================================


THRIFT SAVINGS PLAN (TSP) - Federal version of the 401K

There is no company match in this account. Only 5% of income is being contributed. Index Funds are the only option other than Life Cycle Funds.

Fund ..... Shares ..... Value ..... Percentage of Portfolio

C Fund (S&P 500) ..... 98.6177 ... $1,678.26 ... 35.15%
F Fund (Fixed Income) ... 14.8284 ... $233.12 ... 4.88%
I Fund (International) ... 72.9005 ... $1,328.23 ... 27.81%
S Fund (Small Cap) ... 68.5119 ... $1,535.85 ... 32.16%
===============================================================
Account Value ... $4,775.46

Contribution Allocations:

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