For starters – sorry I have been so quiet on here lately. It’s been three months since I have added a blog post! I should preface by saying I do most of my writing on Seeking Alpha and with a full time family and other endeavors this is the area that tends to be forgotten. In any event, I wanted to give a little update on some activities going on.
Interview on Seeking Alpha
I’m featured on the latest Dividends & Income Digest on Seeking Alpha!
Q: What is the biggest investment risk you’ve taken, and has it paid off?
A: The biggest investment risk I have taken was investing in a “Canroy” called Harvest Energy Trust (ticker was HTE). It was a small oil and gas trust with both upstream and downstream operations.
It was one of the first stocks I purchased when I started working. This would have been in 2008 during the financial meltdown. I had saved up a little bit of money, exclusive of my 401(NYSE:K) money, and put about 50% of the cash I had into it.
The stock had an extraordinary yield at that time in the mid-teens in 2008. Being a novice investor, this was far too much to pass up. The price was rapidly falling on the stock, and I made subsequent purchases to average down my cost basis. That’s how I ended up with this one small oil player taking up so much of my capital.
The company was bought out in 2009 by Korea National Oil Corporation and I managed a very small capital gain. The whole ordeal did not last very long, less than a year – I actually have trouble tracking down the records from that time frame. I’d have to dig through old paper tax records; the broker I used I have not used in several years.
Now, this was risky for several reasons. Firstly, this one company was a large part of my portfolio. This is something I would never do today. Secondly, it was very much a niche player, a specific oil trust not a large company with decades of a proven track record. Thirdly, my financial understanding was nowhere near what it is today. I suspect if they had not been bought out, they probably would have cut their dividend – it was simply too good to be true.
On the plus side, I did receive several quarters of that high dividend yield, which was taxed at qualified rates. Like I mentioned, I already received a small capital gain – in retrospect, this was probably a bailout that I did not recognize until now. What the experience did also instill in me is a love of dividends. It would not be for several years that I would find my way back into the dividend realm, but the seed was planted. Eight years later, I have a substantially larger and well diversified portfolio of quality dividend payers. In small part, I have to thank Harvest Energy Trust for that.
I’m quite honored that I was asked to do the interview for Seeking Alpha. I love writing, documenting my progress and then sharing that with the community. I hope to be able to do more of these interviews in the future.
Here is my January portfolio update article as seen on Seeking Alpha. In it, I introduce Custom Stock Alerts formally to the world. Come check it out if you haven’t seen it.
Income highlight: Dividends received in January totaled $236, solid increase over last January.
I am extremely proud to finally announce the project I have been diligently working on the past several months. It is the prime reason I have not written nearly as much as I would have otherwise hoped.
Custom Stock Alerts is a tool I created to help management my portfolio. I feel there is a lack of good alerting capabilities in the stock market today. There are some fringe tools but I feel they are either too hard to use, too slow or don’t have enough features.
This tool spun out from my own personal need to management my portfolio while staying on top of every company I am interested in. There is not nearly enough time in the day to potentially watch 100 companies price changes. I can set my alert for a given company at a level I may be comfortable buying or even selling and then go about my day.
What the tool allows one to do is keep track of all the companies they are interested in by setting custom stock alerts. For example, you can set an alert on price, dividend yield, PE ratio, relation to 52 week high or low and daily percent price change. More alert types and additional alerting tools are in the works.
Here is an example of alerts I setup for Verizon, again this works for any company. Some values won’t be populated for all ticker types but the vast majority are.
As you can see I have many types of alerts setup for this one company. You may notice that my dividend yield limit hit, at the time of the screenshot the real value was 4.77% while I had set my limit at 4.5%.
When the data point hits, I can receive either an email or a text notification giving me some details about what happened. Talk about convenience!
So please give the tool a shot, it comes with a free 14 day trial, no credit card required. Even if you say I love it, I want to subscribe right away, you will still run the full two week free trial before any charges happen. Also, if you hate it and want to cancel, there is no nonsense about not getting a refund. I hope that isn’t the case but you’ll get a prorated refund, i.e., any unused time is refunded.
I hope you get in there, try it out because I think you’ll love the tool as much as I do. Please feel free to contact me with any questions, comments or other feedback.
Sorry it’s been a while since I have posted, between all sorts of seasonal events with friends and family, I’ve been pretty heads down working on the project I am almost ready to formally announce. In the meantime, here is my year end 2016 wrap up that I wrote on Seeking Alpha (link).
Some of the excerpts:
2016: $3901 in dividends received
December: $756 in dividends and a personal monthly record
2017: Targeting $5,000 in dividends received and $5,800 in forward looking income. Here’s the math behind it.
|5% Organic Dividend Growth||$250|
|Maxing 401k New Money||$540|
|End of 2017 Income||$5,790|
I also made a few trades during the month, I went on a mini-Santa spree and bought some shares on December 22nd. Here’s a summary of those transactions.
Sorry to be brief but more will become clear in due time.
Quick Look At Earnings
There was a huge early drop for generic healthcare companies. It took down McKesson (MCK), Cardinal Health (CAH) and AmerisourceBergen (ABC).
I will keep an eye on this, I own Cardinal Health and they are due to report on Monday. All three rank very highly on Simple Safe Dividends, here are Cardinal’s stats:
Top notch safety and growth, the dividend is a very small portion of free cash flow.
The stock was already undervalued per Fast Graphs, this doesn’t even capture what today’s drop will due to the multiple. Looks like a solid opportunity for holders of any of the three companies.