Another month has passed by and things are on track. My core purchases are complete. My portfolio has had some appreciation, dividends are almost fully coming in.
Here is my Dividends totals for June and so far in July
2014 Running Total - $1,254.93
* July - 115.18
* June - 608.62
* May - 531.13
July 2014 Dividends Paid
32.27 - BAX Baxter
22.50 - CNQ Canadian Nat Resources
32.10 - KO Coca Cola
115.18 - TOTAL
June 2014 Dividends Paid
35.09 - PEP PepsiCo
22.50 - HR.UN H&R Reit
40.43 - TOT Total SA ADR
18.33 - SJR Shaw Communications
27.60 - SU Suncor Energy Inc
28.00 - D.UN Dream Office Reit
22.92 - ENF Enbridge Income Fund
34.43 - MCD McDonalds
46.00 - CPG Crescent Point Energy
22.50 - AX.UN Artis Reit
35.00 - ENB Enbridge
48.00 - FTS Fortis
33.15 - PFE Pfizer
58.75 - REI.UN RioCan Reit
39.16 - CVX Chevron
32.73 - JNJ Johnson & Johnson
22.95 - DD DuPont
41.06 - COP Conocophillips
608.62 -TOTAL
June Dividend Notes -
- Total SA ADR is a France based company and they take 30% in withholding taxes ouch!
- Overall slightly disappointing, Was expecting to hit over $1,000 with my holdings. Missed a few ex dividend dates from my initial purchases in May were to be paid out in July.
- Next month in July my portfolio should be at full dividend paying efficiency and should be generating close to the $1,100 of my monthly average forward dividend projections including withholding tax.
- The totals are actual payouts I have received so they include withholding tax and are currency neutral
Future Buys and Portfolio Readjustment
Going forward I hope to make a new purchase every 1-2 months. I do however wish to do a little bit of portfolio rebalancing. Nothing major but some mild tweaking to increase my income via dividend payouts and also starting to write options.
Options
I have begun to write options on my Apple holdings. Overall I am bullish on Apple in the long term. I have a large 700 share holding roughly equating to $65,000. Or roughly 16% of my overall holdings. Which is overly substantial.
So I have come up with a plan with my holdings to write covered call options against it. I am writing monthly out of the money options at above 5-10% of the share price. This strategy will hedge my earnings if APPL were to gain over 10% in one month so I will miss out on gains beyond that.
The benefits of this strategy is that it would give me a positive exit point in reducing my position, it would give me extra income for writing the calls, it will hedge against losses with the premiums I receive. Overall its an insurance policy for movement in the stock and a way to generate some more income.
Once I finally do get called with the stock, I may look to re-enter my holdings at a smaller position of apple and continue the option writing process for income in the future.
Brewery
As some know I am investing in a brewery start up. I have officially invested $85,000 into it. The brewery was in the funding stage and just last week they have reached their goal of raising over 1.1 million. Several banks are competing for the rest of capital needed and their borrowing rates are surprisingly quite low in the sub 4%. This shows even the banks have quite a bit of faith in the team and project which is assuring for investor such as myself. So the gears are in motion of purchasing the land and building, upgrading the building and ordering the necessary equipment. This process will take a few months but it is quite exciting. The brewery already has a good local buzz around it and will no doubt have some good community support to start.
Blog News
Not much going on, Just starting to get a schedule going on of at least 4-5 posts a month. I have joined the Yakezie challenge where finance bloggers try and improve their Alexa score and get more involved with their finance network.
Thanks to all the fellow bloggers that have dropped by and dropped a comment and added me to their blogroll network.
Going forward
I plan to write a post about 2 different loans I have given and also getting a friend out of debt.
Stay Tuned!
So what do you guys think of my month and how was your month? Also what are your thoughts on options for an added income boost to the dividend investor?
Good Day and Grind On!
this is interesting as we have three new breweries here in my town on top of one that already exists and many in the nearby metropolis, too. I wonder if the market is becoming quenched (ha!). one of them is in a newly not dry town. They must sell 40% of revenue in food to retain their license. Hmmm free beer with hotdog anyone? Good luck, other than the occasional free beer does your investment have any perks?(name a beer after your blog for instance?) I think a tie in is in order. good luck.
ReplyDeleteNo other perks right now other than free beer. LOL and I dont drink. More to give away I guess! I may dabble there in a premium cola or some sort to make,market, and sell on my own.
DeleteAG,
ReplyDeleteAwesome month! I can't wait to see some of the results from your options. That brewery looks pretty nice. Do you serve Shiner Bock up there in Canada? It is a favorite down here in Texas!
MDP
I have no clue if they sell it as I never frequent the liquor store. I can tell you what candy they have up here tho lol.
DeleteThanks guys for droppin by.
Good Day and Grind On!
A-G,
ReplyDeleteGreat month. Over $600 in dividends is nothing to sneeze at, even if you were expecting more. I'll take that every month, if I could. :)
Great looking brewery there. That's such a cool project. I'd love to be involved in a local project like that one day, but that'll have to wait until I'm far, far past FI and have the available capital for something like that. I've actually always had a pipe dream of having a small, local pizzeria for some reason. Probably wouldn't make much of a profit, but I always thought it would be kind of fun. Don't know why.
Keep up the great work!
Best wishes.
Thanks for droppin by Jason. The brewery is a measured gamble. Its about a tenth of my total investable amount. Had a hard time figuring how much I would go in for. My initial thought of between 100-150k after much debate in my own head was too much of a gamble, especially since it will take awhile to receive anything back from it.
DeleteI think u like the pizza idea cause u r an entrepreneur by heart! Maybe u should start something like that on a small scale for fun. Like 2 days out of the month at lil festivals where you dish artisan pizza coupled with financial advice, lol. Pizza Mantra!
Good Day and Grind On!
That's a great month. You've also got an interesting option strategy there. I'm more of an options seller myself so I can collect some premium. I admire your willingness to have your $AAPL options called. Personally, I hate giving up a stock like $AAPL, even if I were overweight.
ReplyDeleteI hear ya AT. Been goin back and forth trying to decide what to do with my over weight position. Yah I like the stock but I want to be more equally weighted. I have years of trading experience but little experience with options. Right now I have a laddered approach in my calls. So even if I were to be called on half my APPL position I would be fine and welcome it. That way, i would enjoy the premium, still hold some of the stock, enjoy the stock run up and finally a real exit point for some of my position.
DeleteAwesome job in June and that's quite an impressive dividend total considering you just recently starting investing your capital. I'm a fan of options strategies although I usually stick to puts because I don't want the companies I own called away. Although if I'm looking to exit a position then I'll go with selling calls. That building looks pretty cool for the brewery. I always liked ivy covered buildings. It looks like things are going really well with the financing. Hopefully I can make it up that direction in a few years once y'all are up and running!
ReplyDeleteI like your idea of puts and will have to do some more thinking in that strategy. Just wrapping my head around so many different option strategies gets me head hurting lol. Come up anytime this way and have a few beers on me!
DeleteI was involved for a number of years back in the '90s in a brewery that went from somewhat small to publicly traded but has since been bought by a private company. I invested in the IPO and that did not go as planned so a taste of bitters in the mouth. Is the plan just to be a local pub that brews its own or is there the plan / hope for distribution to restaurants, pubs and retail?
ReplyDeleteMy net worth month... not so well. I track house values on Zillow and both went down, one by 40K, just because its worth a lot and for whatever reason, the market moved south. Stock and such have been doing fine but not enough to cover the 40K drop. So it was a net loss on net worth for the month but still happy with the overall results for 2014.
The brewery plan is to sell brew in house, Sell to local restaurants and pub accounts and also bottle and sell via liquor stores. Right now they already have enough spoken for accounts to fulfill year ones modest projections which is quite promising.
DeleteHard to factor in home values month to month to a net worth since its such a hard number to nail down. Thats why I will only update mine once a year lol, I cant take that stress. Good job with the 2014 gains!
Thanks for droppin by AD, Good Day and Grind On!
IMO, your house doesn't belong in your Net Worth calc. - You gotta live somewhere!
ReplyDeleteAnd, with taxes (perpetually) rising and upkeep, it's not a money maker unless you can rent part of it out.
So, I'm much more interested in tracking the income generated from investments. That, you can spend to keep up the house!
I disagree. My house is paid for so I must include it in my net worth. Its not an investment and I know that. Thats why I separate my networth in two categories. Investments and then my home. Upkeep on it is fairly minimal as its a newer home. However my commercial property I lease out I have put under investments because it makes me money and the tenants pay for all taxes,maintenance and repairs.
DeleteThanks for dropping by!
I also disagree that the house does not belong in the Net Worth calc. If you believe it does not belong then you must believe that someone with no equity in a house is in the same financial position as that same person if they had substantial equity. I have 2 houses, one a rental that has some equity and rents for about break even. The house I live in was bought in 2010 and has substantial equity, partly because of decent down payment, partly very smart buy, partly market appreciation. If I were to put it on the market today, I would ask more than 200K above what I paid and I have not put in any $ beyond basic upkeep. While my house is not paid for like A-G, well done sir, I could sell it today and with the net proceeds buy another perfectly acceptable house and be mortgage free. At the current rate, I should have it paid off in less than 10 years and at that point should be able to empty nest downsize into a very nice house that is "only" 3000 square feet and pocket at least 500K.
DeleteHow exactly am I not in a better financial position than if I had no equity in my houses?
Hey A-G,
ReplyDeleteI like your investment strategy and congrats on your investment with the brewery. I am a huge fan of craft beer and love to visit breweries. In the future, I would love to try a beer once everything is up and running! I can't wait to be at your level of FI. I continue to learn from you and other bloggers. Good luck and I cant wait to read your future posts.
Thanks for droppin by DM. FI doesnt buy you smarts and even I have lots to learn. Thanks to everyone in the finance blog community all teaching each other so we all can learn more and inspire others along the way!
DeleteGood Day and Grind On!
AG, $600+ is a great dividend passive income and take you closer to FI sooner :)
ReplyDeleteThat's an awesome looking home also and would love to get a glass brewed from there ;)
Keep up the good work,
Best wishes.
You had a great month! If you can hit $1100 for July, that will be incredible. July is typically a slow month for me.
ReplyDeleteThey brewery looks awesome! I've always wanted to get into a brewery business. Here in Austin, these breweries are popping up like weeds. There's been at least 10 pop up in the last 3 years alone.
I'm a big fan of options, although I usually sell puts. I did, however, sell some calls against INTC since I didn't mind losing the position. I think if it's an over-sized position or a position you don't mind getting called away, then it's a smart idea to generate extra income.
Take care.
Thanks PIM, AAI and AD for droppin by. Still trying to figure out the best option strategy which is a hard thing to figure out. Just so many ways you can go about it. Looks like I am going to be called on july 11 for 100 of my shares but I am fine with that. The rest of my 600 Appl shares I think I am going to ladder the covered calls so I do can monitor my position and keep the exact shares I want. So something like this hold 2 options always, and then ladder 4 others.
ReplyDeleteLooks like things are going well for you, congrats. This gave me the kick in the butt I needed to look into dividend income. Thanks.
ReplyDeleteNP I got my kick in the pants from others as well to start dividend investing lol
DeleteThis really is my first time i visit right here for Monthly Dividend updated report June 2014
ReplyDelete