Thursday, December 5, 2013

Monthly Update: November 2013

Today is December 5th and I already feel behind. Everyone else is knocking out their monthly numbers. You people move fast!

Portfolio Activities
     $750 deposits into investing account
     $250 extra paid towards rental mortgage
     Bought 5.9647 shares of BLV @ $83.16

Portfolio Income
     POT: $2.87
     BLV: $0.87
     JNK: $1.42
     AAPL: $3.05
     ARCP: $2.59
     NDRO: $4.70
     HAS: $2.72
     OHI: $3.91
     PSEC: $7.50
     STX: $8.31
     PCY: $1.90
     WHZ: $40.37
Rental Income
     Townhouse 1: $855

Portfolio Review
I had a record month for dividends: $80.14. Over half came from WHZ which is to be expected. Its my front end loaded land trust that I'll only be keeping for a few years and its a large position. Its large payment will help buy the dividend growth companies and in the long run they will pay more over time.

I was able to pay extra from the rental account towards my mortgage. I end up having an extra $100 or so a month from what my property manager sends me after taking their fees. I pay the HOA fees out of my regular paycheck account so even though my rental gives me a net loss for the month, I have excess cash. Going forward I should be able to put $100-$150 extra a month to getting it paid off quicker.

Last month I mentioned that NDRO had a secondary public offering for 20% more shares. I was wrong. The owner of the land Enduro LLC sold their shares to the open market. There was no increase in share count. When a trust is created the owner of the land gets all the shares then they sell them off to the market where we can buy them. The way the news releases where phrased made it sound like this was extra shares. I think the price dropped for the wrong reason. However, NDRO was at to above its fair value so I do not expect it to rise much.

I have been stalking Realty Income Corp (O) for several months now. I have been holding out for a 6% yield and its almost there. Long time readers may recall I owned it before. I had sold it back at the beginning of March @ $45.40 believing it was overvalued on a P/FFO bases. O is a wonderful company with one of the best management teams I have seen for a REIT and I always planned to return to it when things settled down. There was a time when everyone seemed to be buying O because it was going up. Classic Mr Market jumping on the bandwagon in April and May of 2013.

I have already begun looking at my 2014 goals and I have set the bar quite high. To do so I will need to increase my funding and make cutbacks elsewhere in my life and budget. Nothing drastic but it comes down to a choice. Do I want to cut back on lifestyle now for a better one in the future or live a better one now and cut back later? Right now I am fit and able to work. Who knows what the future will bring. Incidentally that is also why I am a fan of Roth IRAs over Traditional IRAs. I can take on the tax burden now. No need to push that expense on Future Pully when I want to relax with life and minimize my concerns.

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.


  1. POU,
    Nice looking month. This was the first I've heard of WHZ and that is an interesting situation. I've been meaning to read your two part series on Bitcoins and did this morning. That is probably the best read I've found explaining it. I am very skeptical on the whole thing and I think an epic crash is inevitable too. It will be fun to watch. The guy making out the most is the Scandinavian who makes the specialized computers. That is the best business to be in!

  2. Oh is that where Butterfly labs is from? Yeah its like the old gold rush days. You don't get rich striking gold, you get rich selling tools to the miners.

  3. Nice month. almost 1k in passive income. that's great.

  4. Yea Pulling its tough to do monthly updates on schedule which is why I scaled back a bit. I have been paying 200 extra on one of my mortgages for about a year now and I can definitely see the interest portion of the payment diminish! Its a great feeling.

  5. I have to wait a little to post my update as I DRIP a stock that pays the dividend on the last day of each month. Sometimes I don't see what the dividend deposit and reinvested until a couple days after. This is my main reason for a couple of days after the month end to post my update.

  6. Congrats on a new record. I've also noticed the drop in O, that's one I'll have to think about purchasing next month. I'm glad to see a blogger interested in fixed income, seems to be pretty rare. Have you thought about fixed term bond ETFs that have a maturity date? They aren't perpetual and mature like individual bonds. The iShares line are pretty cheap with only a 0.10% expense ratio. IBDD is one the tickers. Take care!

    1. Yeah everyone does seem to be about the divies and 0 fixed income.
      I havent even heard of maturity date bond funds. Do you get your original capital back that you put in or how exactly do they work?