Monthly Update April 2015

april-header

April was another good and busy month. The tax situation is still some kind of unclear, but at least I could limit it to a tangible range. Every three month I have to pay ca. $3144 in advance. So I will deduct $1050 every month from my paycheck income. And even this sum will be not enough because I will get another paycheck raise in july and the currency exchange rate is about 20% higher this year than which was originally assumed by the tax office. I will keep my 13th paycheck/Christmas money end of year as an emergency fund for this reason. Hopefully I’ll reach my contribution goal this year without it. Maybe I’ll find some additional freelance jobs – that would be great!

(assuming €:$ 1:1.1 currency exchange rate )

Income

Day Job Paycheck $3712
Dividend Income $205

Total Income $3917

Expense

Home Expenses $612
Transportation $260
Insurance $407
Gifts $44
Obligations $1813
Business Expense $5
Entertainment $26
Miscellaneous $5

Total Expense $3172

Saved Net Income 19%

I contributed ca. $4400 to my broker account.

Again I had a big tax payment of $1813 – the tax consultant “forgot” to forward me the notice of a near doubled quarter prepayment tax sum for this year from last December. πŸ™
Needless to say, she is fired – which puts me in the situation of making the tax declaration for last year all by my own. This will be interesting!
Another big payment was a car repair of $260. Hopefully the old Toyota will keep it up!

When I subtract the one time payment of the tax and deduct the one third of the next tax prepayment, I’ll get $1366 expenses and a saving rate of 65% which is very nice. Tracking my costs is not only for seeing where the money is gone but also to see how low I could put my running expenses and how far I have to push the dividend income to break even. Right now it’s already 15% of $1366! This is really motivating for me!

Nevertheless the biggest chunk of the dividends came from high yielding BDCs which is not something I want to rely on. So I keep pushing forward aiming more on DGI stocks, some more low yielder/growth stocks and I will continue to reduce my BDCs. This means a decreasing portfolio yield but hopefully a more reliable dividend income stream in the future.
Unfortunately, I missed the last crude oil low in march and didn’t bought more oil stocks and didn’t averaged down some of my offshore drillers. Now I feel regret, but I think this will be a constant state of mind while investing in the market. It will take time to mute these feelings and just keep going. Reading financial community blogs helps me a lot, because everybody feels a little regret to bought to early, to late etc. – it’s all part of the game.
And maybe the oil price comes down again for whatever reason and I can load up again – I still miss some big US oil stocks in my portfolio.

 

Purchases

Stock Units Price Date Cost
GILD 20 $96.85 2015-04-01 $1937
T 61 $32.44 2015-04-17 $1979
TIS 90 22.40 2015-04-27 $2016
GILD 20 102.35 2015-04-27 $2045
OHI 50 37.64 2015-04-27 $1882
AAPL 15 129.70 2015-04-29 $1945

 

Sells

400 shares of FSIC
 

I sold another BDC and was on a little shopping frenzy! I looked into growth stocks and couldn’t take my eyes from Gilead(GILD) a biotech company with massive cash flow – very low P/E and a big pipeline with new drugs. It reminds me a little bit of apple. Big cash flow and a very high “one product risk”. Gilead is relying mostly on his Hepatitis C drug – Harvoni. I read a lot of articles and analysis on seeking alpha and I’m really convinced about Gilead! Just now they reported and more than doubled(!) the already high EPS from last quarter. This is insane. Speaking about regret I don’t want to miss the boat again, like I did on Apple.

And … I bought Apple too πŸ™‚ – they reported another great quarter – again – and this time I thought it’s time to leave the hesitation behind and buy it! I just love the forecast, the dividend growth and the cash flow. Unfortunately the price isn’t that great, it’s more about fair value (scroll down to AAPL).

I also loaded up on another healthcare REIT – Omega Healthcare Investors(OHI). Together with HCP, I have covered this sector very well. Maybe NHI looks also very good, but I’d wait for a better price.

I also used a little bit of margin to buy AT&T at a good price. Hopefully the DTV merger will give this company some long awaited growth boost.

Additionally I added a more riskier dividend paying micro cap stock: TIS – Orchids Paper Product. Inspired by a purchase from Dividend Pipeline – I took a quick look and really like the growth ambition of this company. Let’s wait and see.

 

Dividends

PSEC $42.48
MAIN $12.43
FSIC $75.75
BLT $74.40
Total $205.43

I earned $205.43 in dividends this month! Wow nearly as much as last month! But as you can see, with a very high BDC exposure.

 

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8 thoughts on “Monthly Update April 2015

  • May 1, 2015 at 9:34 am
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    DR,

    Great April summary and zoo are doing great, imagine when your tax issues is behind…. Nice cash will pile up.

    Regarding your bad feeling about low March oil price. This is the first thing, you need to remove from your mind. You buy share, and the next day they drop by 5%, the only positive option we must take, if you believe in this company, buy more (if cash available), or just, well this time, I missed the train. Similarly when selling, the stock can increase by 5% the next day and what, you sold for a reason and with a profit, you will do better next time.

    So in summary, take out the feeling from stock market, otherwise you will not sleep.

    Enjoy the learning and keep going.

    Cheers,

    RA50

    Reply
    • May 3, 2015 at 1:41 pm
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      RA50,
      thanks for your valuable feedback! Yes, you’re absolutely right, but this will take some time for me. The process itself – transforming into a rational investor with a rock solid strategy in mind is most enjoyable. I must admit I’m not there yet, but I’m still making some progress!

      Reply
  • May 2, 2015 at 6:58 pm
    Permalink

    Good stocks and nice income. I like to see PSEC in your portfolio although they recently slashed their dividends so this stock shouldn’t be considered a DGI stock. I own it too as a dividend generator to reinvest into a true DGI stocks. Good job!

    Reply
    • May 3, 2015 at 1:47 pm
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      Martin, thanks for your comment! This was exactly my basic idea of it. At the moment it is generating about one quarter of my projected forward dividend income. Over time this naturally will be reduced by adding new positions. And at one point I will close the position and redeploy the cash into DGI stocks.

      Reply
  • May 6, 2015 at 10:27 pm
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    Great month. Congratulations~! You did a lot of purchases in April. Nice!

    I currently look intensely at GILD as well. Hopefully it will pull back a little more and I’ll add some shares in my portfolio.

    AAPL also looks interesting. I’ll have to do some due diligence on it.

    Thanks for sharing!

    Reply
    • May 11, 2015 at 1:06 am
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      MU,
      thanks for your visit!
      GILD is really interesting – I think in the future, I will put more emphasis on momentum growth stocks with an already instantiated dividend.
      I’m looking forward to your Apple analysis!

      Reply
  • May 9, 2015 at 3:14 pm
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    DivRider,

    Too bad about the tax payment as you’d otherwise have had an excellent month!

    The massive purchases you’re making are sure to quickly build your portfolio value and your future dividend income. I like almost every name in your recent purchases list.

    Keep it up,
    NMW

    Reply
    • May 11, 2015 at 1:11 am
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      NMW,
      thanks for your comment – master of all saving rates πŸ™‚
      Nice to see, you’re approving my purchase list – I think this is another good indicator that I bought quality!
      Cheers,
      DivRider

      Reply

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