November 2014 Report

I received $204.67 in dividends in November.

PSEC $24.43
MAIN $12.43
FSC $21.05
FSIC $19.26
ARCP $127.50
Total $204.67

 

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First month with over $200 in dividend income! Wow!

My long-term plan is to use the dividends to pay for my living expenses. This is quite a distant goal but I will reach it step by step with monthly investing and saving the maximum amount I can afford. To keep me motivated, I will list my Income/Expense, Contributions, Purchases and Dividend Income every month. As blogging is something very new for me, I don’t know which is the best way to do this. I will follow the FI blogging community consensus and separate each post – hopefully I will stick to it every month 🙂

Last month was a turning point in many ways. First time I used margin to buy. And first time I realized, that my endless average-down strategy will not work. First time a company (actually 2) are suspending the dividend. Obviously it was a mistake to buy Seadrill and North Atlantic Drilling and to listen to “the dividend is save until 2016” from the responsible CEO. I think these are the lessons I need to accomplish this long journey and lead it to a success rather than a big mistake.

In October 2014 I jumped in ARCP as soon as the accountant mistake was published. I was waiting since I started with investing in June to get a good entry point. But my hasty trigger finger was a mistake too, as I should have waited and not starting to buy at 9.94. As you can see the “average-down-rally” which followed since the first purchase in October led to a big overweight in my portfolio. This is why people are setting rules to themselves and limit the weighting of their positions. But in the meantime I’ll keep receiving $127.50 every month which is not bad either.

What will I do with SDRL and NADL? I will hold and maybe – when all seems lost and bankruptcy posts are all over Seeking Alpha, I may even add to these positions. I really believe in a rebounding oil price, but I don’t know when this will be the case and if both companies will endure the time in between. With the saved dividend payout and the nearly full backlog until 2016 chances are good.

Purchase made in November

Stock Units Price Date Cost
ARCP 100 $ 7.40 2014-11-03 $ 740.00
ARCP 100 $ 7.30 2014-11-03 $ 730.00
ARCP 100 $ 7.50 2014-11-03 $ 750.00
ARCP 100 $ 7.84 2014-11-03 $ 784.00
SDRL 50 $ 21.21 2014-11-04 $ 1060.50
NADL 200 $ 5.50 2014-11-04 $ 1100.00
NADL 100 $ 5.60 2014-11-04 $ 560.00
NADL 100 $ 4.66 2014-11-04 $ 466.00
SDRL 50 $ 20.25 2014-11-04 $ 1012.50
NADL 100 $ 3.14 2014-11-19 $ 314.00
NADL 100 $ 3.14 2014-11-19 $ 314.00
SDRL 50 $ 16.01 2014-11-26 $ 800.50

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