Friday, November 1, 2013

Monthly Update: October 2013

I was talking with some other investors and started a joke list of "You know you are a finance geek when..." Its just a list of the ways one can geek out on finance as much as comic books, movies, video games, card games, etc

You know you are a finance geek when you get excited that its the end of the month because you get to update your numbers and dividends!

Portfolio Activities
     Bought 12 shares of KO @ $37.20
     $500 deposits into investing

Portfolio Income
Monthly Dividends
     BLV: $0.88
     JNK: $1.45
     NDRO: $3.95
     ARCP: $2.59
     PSEC: $7.50
     PCY: $1.74
Quarterly Dividends
     SPLS: $2.43
     MDT: $1.49
Rental Income
     Townhouse 1: $855

Portfolio Review
Only $500 made it into the account deposit wise. While that is my minimum... I'm not going to hit my goals by doing the minimum work and minimum contribution. I'll have to refocus my effort on reducing my expenses in November.

I received only $22.03 in dividends where as I should be averaging $46.43. That seemed too low so I ran an average of the past three months. It turned out that was $41.46 so fairly close. I made some purchases in the past three months so my forward yield should be higher.
Why look at a three month time frame? Quarterly dividends. Over three months all of my positions will have paid me. What i find is that I have one bad month of $20, an ok month of $40 and a great month of $60. Its just a matter of when the quarterly dividends get paid.

NDRO had a secondary offering and sold 20% more share. They are a royalty land trust so they cannot expand and buy more land or get more oil reserves. The owner of the land needed the money to pay down their debt. They are a separate company so this does not improve NDRO's numbers. So lets call this what it is... I got screwed.
Unit price went down by 20%. I thought the S-1 form they file when creating the land trust states how many total shares and I didn't even know this was possible.
I'm considering selling it for this fact. I run the risk the owners will just keep selling more units. On the other hand this land trust has a very rare quality I want. It has no expiration date on total production or time frame. The trust expires when the wells run dry. That's hard to find in land trusts and the wells are set to go for at least 20 years. November's dividend has been announced. Its has staid the same / unit so there is no drop in my payment. I will have to find out why and look at their next quarterly. Production might have increased.
Right now my yield on cost is 9.19% If the wells run for 20 years x 9.19% annual yield.... you can see now why I bought them in the first place. I have a margin of safety to counteract the drop in unit price that all land trusts suffer from.


Disclaimer: The investments and trades discussed are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

4 comments:

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    1. Thanks for stopping by DSF. I'm still watching your videos man keep em up.

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  2. Yes great choice with Coca Cola at $37! Excellent work saving that $500, I'm positive your future self will be glad you chose to delay gratification last month. Looking forward to seeing where your November deposits clock in.

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    Replies
    1. Thanks CI. I had better do more then $500 if I am going to hit my goals.

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