Saturday, September 24, 2011

Time to get in?

Anyone not living under a rock this week knows that the stock market took a big dive.  Not the end of the world for a dividend investor, so long as the price decrease doesn't coincide with a dividend cut.  That being said, I have about 40K on the sidelines in money market accounts.  I sort of consider this my emergency fund, although I'm not sure what kind of forty-thousand dollar emergency I might ever encounter.  So is now the right time to take some/all of that money and invest in stocks?  If so, which ones?  I'm leaning towards holding off for now, and see where things are in a month.  What would you do?

Sunday, September 18, 2011

Life After Debt: The Next Phase

After paying off my car this week, I can't help but spend some time thinking about how I want to invest what used to be my monthly car payment.  Also on the horizon is my big dividend check, which comes around the 16th of October.

I feel like my first order of business is to straighten out my Roth IRA.  I started a Roth in 2002 without really knowing what I was doing.  I went into the bank I was using at the time and sat with one of those financial planners at "the desks" and set the thing up.  It was in in B shares of what is now the oppenhiemer main street fund (I had no clue what I was doing at the time).  The exit penalty should have expired by now, so here's the plan as I see it:

Next month, go to scottrade and with the dividend check I'm getting, open a new roth IRA there.  Once the account is established, roll over the oppenhiemer funds into this account.  This will give me approximately $7500 dollars in the account.  As I can, I will continue to put money into this account until the end of the year until I have reached my 5k contribution limit.  Then, in subsequent years, do the same thing, until I get wildly rich and can no longer contribute to a roth because my MAGI is too high (I know, really wishful thinking).

As far as investing goes, my thought is to set up a ladder-like effect, first investing in extremely high yielding (and much riskier) dividend stocks, then stepping it down to lower yields (and also lower risks).  I was thinking for the first investment, maybe an mREIT first (ARR has piqued my interest recently), followed by one of the telecoms, and then finally, utilities and consumer staples (think PG, JNJ).

Any thoughts?  This plan is by no means set in stone.


Saturday, September 17, 2011

Paid off the car!

A big moment for me happened this week, I finally paid of my car, a 2010 Subaru Impreza.  I'm hoping that I won't have a car payment for a long time now!  Next (and last) on the list is paying off my TV, which I hope to do by the end of the year.  Then my investing can kick into high gear!

Thursday, September 8, 2011

Recent Purchase

I got the dip I had been waiting for today, and I picked up 58 shares of CLMT.  The stock (MLP) took a pretty hefty haircut today, closing at 18.00 per share.  This is due to the company selling 11 million units (shares) to finance some debt that was generated in the purchase of an oil refinery.  I'm confident that this is a good entry point for this stock.  At its current price its distribution (dividend) is yielding 11%.  My purchase means an additional $28.71 per quarter at the current distribution.  I'm not concerned with the possibility of a distribution cut at this point, as they recently raised it from 0.475 to 0.495 per share per quarter.  Anyway, I'm happy with this one; I've had my eye on CLMT for a while.  Time will tell how good of an investment it is, what do you think?

Saturday, September 3, 2011

August Dividend Income

Well, August was another good month for me, my total portfolio jumped in value by about 3k, and my dividend income was up slightly from the previous quarter.  Since most of my dividends pay by the quarter, to do monthly comparisons, I typically compare August with May, February and November.  While these months yield good dividends for me, they aren't as good as January, April, July, and October, but I'm working on that.  Without further ado:

O - $10.14
ERH - $42.38
LINE - $414.00
CLMT - $247.50

I'm looking to take this money and add to my position in CLMT, as I feel it is slightly undervalued right now.  What do you think?