Well, another month has come and gone, so its time to take a look back at April to review my dividend income. I must say, this was far and away my best month ever! It would be great if I could do this every month! Anyway, without further ado, my April dividends:
Taxable Account:
ERH - $63.30
O - $10.21
GE - $17.00
NM - $18.00
CIM - $165.00
Bank stock - $3798.00
Total in taxable account - $4,071.31
Roth IRA:
ARR - $111.00
STB - $18.50
Total in Roth IRA - $129.50
TOTAL: $4,201.01
Wow. The next few months won't be anywhere near as good, but I'm working on it!
Saturday, May 5, 2012
Saturday, April 28, 2012
Recent Purchase
Well, it took me a few months, but I finally decided to make a purchase:
I added to my position in Linn energy by purchasing 160 shares on Friday at 39.70. Its a little more than I would have liked to pay, but a few things on that to keep in mind:
1. I plan on keeping these shares for the long haul. That being said, the dividends that an MLP pays out are not taxed, instead, they go against your cost basis, such that when you sell them, you pay taxes on the capital gains plus the distributions you received from owning them. Since is pays a distribution in the next few weeks, my new cost basis will be 38.975.
2. This is a stock I feel pretty comfortable with. They're a natural gas exploration company that has natural gas prices hedged through the next few years, meaning that the business' success hinges upon the ability to find natural gas rather than demand. I'll take my chances with that.
So what does this purchase mean for my portfolio? Well, this purchase will provide $464 of dividend income a year, which actually brings my dividend income for the next 12 months to $20,531! This purchase and some recent dividend increases, I've surpassed the 20K mark, which was actually my goal for this year! I guess my modified goal for the year is to try and get to 22K by december, but that might be a bit out of reach. Soon enough though!
I added to my position in Linn energy by purchasing 160 shares on Friday at 39.70. Its a little more than I would have liked to pay, but a few things on that to keep in mind:
1. I plan on keeping these shares for the long haul. That being said, the dividends that an MLP pays out are not taxed, instead, they go against your cost basis, such that when you sell them, you pay taxes on the capital gains plus the distributions you received from owning them. Since is pays a distribution in the next few weeks, my new cost basis will be 38.975.
2. This is a stock I feel pretty comfortable with. They're a natural gas exploration company that has natural gas prices hedged through the next few years, meaning that the business' success hinges upon the ability to find natural gas rather than demand. I'll take my chances with that.
So what does this purchase mean for my portfolio? Well, this purchase will provide $464 of dividend income a year, which actually brings my dividend income for the next 12 months to $20,531! This purchase and some recent dividend increases, I've surpassed the 20K mark, which was actually my goal for this year! I guess my modified goal for the year is to try and get to 22K by december, but that might be a bit out of reach. Soon enough though!
Saturday, April 14, 2012
New Plans with the old 401k
Haven't been posting much, partly because I've been pretty busy, but also due to the markets running wild, and I'm waiting for a bigger pullback than we've seen recently. I'm sitting on a lot of cash right now though, so I'm hoping to make a purchase within the next week or so.
After much thought, I've decided to roll the old 401k into the new one. The new plan has more choices (and better choices) than the old one, so that's good. I changed my mind though from my initial plan, which was to just roll it into an IRA. I've decided against this due to tax implications. I currently do not have a non-roth IRA. Not having one is actually an advantage if your adjusted gross income (AGI) is too high to regularly contribute to a roth. As it stands without one, next year when my AGI is too high to contribute directly to a roth, I can open a non-deductible IRA, and then immediately convert it to a roth, since there is no cap on the conversion. Since I don't get an initial tax break on opening the non-deductible IRA, there will be no tax bill on the conversion. If I were to do this already having an IRA, then there would be a taxable event, as the government would consider the total of all of my IRAs (the non-deductible and the rolled over 401k) when determining my tax bill, and I have obviously received a tax advantage from the 401k, so I would have to pay taxes on a portion of the conversion. Does all of this make sense? More importantly, am I right? Hope to be back to more exciting stuff in the future.
After much thought, I've decided to roll the old 401k into the new one. The new plan has more choices (and better choices) than the old one, so that's good. I changed my mind though from my initial plan, which was to just roll it into an IRA. I've decided against this due to tax implications. I currently do not have a non-roth IRA. Not having one is actually an advantage if your adjusted gross income (AGI) is too high to regularly contribute to a roth. As it stands without one, next year when my AGI is too high to contribute directly to a roth, I can open a non-deductible IRA, and then immediately convert it to a roth, since there is no cap on the conversion. Since I don't get an initial tax break on opening the non-deductible IRA, there will be no tax bill on the conversion. If I were to do this already having an IRA, then there would be a taxable event, as the government would consider the total of all of my IRAs (the non-deductible and the rolled over 401k) when determining my tax bill, and I have obviously received a tax advantage from the 401k, so I would have to pay taxes on a portion of the conversion. Does all of this make sense? More importantly, am I right? Hope to be back to more exciting stuff in the future.
Sunday, April 1, 2012
March Dividend Update
Another month has come and gone, and now its time to give an update on my dividend progress. March is typically a small month for me, although I did manage to collect more dividends than I did in December, a quarter ago. Without further ado:
Taxable account:
O - 10.19
ERH - 53.63
DUK - 21.25
Total from Tax account - $85.07
Roth IRA:
ARR - 122.10
STB - 18.66
Total from Roth IRA - $140.76
Dividend Total - $225.83
Not bad! However I really don't like to count the dividend total from the roth IRA since if something really went wrong, I couldn't rely on it for cash flow. This total should go up some next quarter, but not a lot, since none of the stocks on my current watch list pay quarterly dividends in Jone. April though is looking like its going to be another banner month for me, so stay tuned!
Taxable account:
O - 10.19
ERH - 53.63
DUK - 21.25
Total from Tax account - $85.07
Roth IRA:
ARR - 122.10
STB - 18.66
Total from Roth IRA - $140.76
Dividend Total - $225.83
Not bad! However I really don't like to count the dividend total from the roth IRA since if something really went wrong, I couldn't rely on it for cash flow. This total should go up some next quarter, but not a lot, since none of the stocks on my current watch list pay quarterly dividends in Jone. April though is looking like its going to be another banner month for me, so stay tuned!
Saturday, March 31, 2012
Update
Its been a while since I've posted, I've been pretty busy lately. I moved last weekend; so far I really like the place (better than the last one). Financially speaking, the rent is cheaper here, its smaller so heat and electric should be less, and its also much closer to work, meaning that I'll spend less on gas. Also, the new job is going great so far, I'm starting to get into the groove there. Also, the new paycheck is nice.
Its been a while since I've made a stock purchase. I'm waiting for my April 15th dividend check from the bank, then I plan on combining that with some savings to make some purchases next month. Should be exciting! I plan on posting my March update within the next few days.
Its been a while since I've made a stock purchase. I'm waiting for my April 15th dividend check from the bank, then I plan on combining that with some savings to make some purchases next month. Should be exciting! I plan on posting my March update within the next few days.
Saturday, March 10, 2012
Bank Stock Splits 3:2
Just a quick update to say that my bank stock split 3:2 as of March 1. I received my new shares earlier this week, and have updated my portfolio page accordingly. This happened once before, and it worked out pretty well for me then, as the share price gradually rose to where it was before the split.
Other than that, the new job is going well so far; I was able to reconnect with a colleague at the new job with whom I worked with at a previous position, which was nice.
No purchases yet this month, I'm thinking of holding off until next month for a pullback and to build up some capital.
Other than that, the new job is going well so far; I was able to reconnect with a colleague at the new job with whom I worked with at a previous position, which was nice.
No purchases yet this month, I'm thinking of holding off until next month for a pullback and to build up some capital.
Saturday, March 3, 2012
February Dividend Income
Well, another month has passed, its time to see how I did this month with dividend income. All in all, its been a pretty good month; I started a new job that' going well so far, and I made a good purchase as well. The markets are so far up right now, I'm not sure that I'm going to make a purchase in March, we'll have to see. Without further ado, February's Dividend income:
ERH - $53.63
LINE - $442.29
CLMT - $295.74
O - $10.19
Total in taxable account = $801.85
In Roth IRA
ARR - $122.10
Total Dividends Received = $923.95
Wow, what a great month! Much better than last February, or last November even. March will be a bit of a down month, but hopefully in time, they'll all be good!
ERH - $53.63
LINE - $442.29
CLMT - $295.74
O - $10.19
Total in taxable account = $801.85
In Roth IRA
ARR - $122.10
Total Dividends Received = $923.95
Wow, what a great month! Much better than last February, or last November even. March will be a bit of a down month, but hopefully in time, they'll all be good!
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