Hello lovely people, im back with yet another dividend update. We had our fun last month but lets get straight to business because theres alot of work to done with this portfolio. The income is looking good BUT...........take a look at the dates, what do you see thats wrong. I have a cluster of payments on one day which isn't bad at all (that actually gives me a cool idea which ill explain in a bit) but i see a 17 day gap from being paid on the 14th to being paid on the 31st. Hmmm i dont think the 45 year old Michael Johnson would appreciate that, what if he needed to buy some groceries during those days lol. Its true, i always think about the future me when it comes to my investments lol. This is why i said that i was going to focus on monthly paying dividend stocks for the rest of the year, but i might want to scale up on 2 of my current positions before the end of the year as well. Before i tell you about the really cool idea lets go over the payments shall we.
Total is $24.02.........beautiful as ever
Purchases: 18 shares of OHI
Now let me be straight up with you guys on OHI, yes it pays a 8.2% dividend yield and as you guys know i dont like messing with crazy yields but i did my due diligence and research and the REIT can actually afford to pay its investors this yield. Im seeing a 76% payout ratio which is not bad for a REIT, this stock is by far the highest paying dividend stock i own and i dont ever see myself going any higher lol. I also read tons and tons of articles on this stock on Seeking Alpha which i recommend anyone to sign up and create an account. If it can handle the payout then im fine but i usually like to stick to the good old 4.5% to 5.5% payers which for me is the sweet spot..Btw theres this cool idea that popped into my head when i got paid $18.26 in one day....like wow just mind blown. What if i start scaling up on the stocks that pay together on the same day (usually the ones that pay on the 14th or 15th) and just create this income that obviously comes in non-stop almost every day but gives me a gigantic pay day once a month. Which ideally would be dead smack in the middle of the month, like image if i scale it up to where i get payed $100 in a day, like i would just pass out lol (talk about warm and fuzzy, it be warm enough to make me pass out lol). I think that would be cool, and lets say in 2018 the first 6 months i do nothing but scale up on my current holdings (which would grow the income much faster) and then the last 6 months explore for new stocks that can help me make the income more rapid or i can just go back in forth between scaling up on a position and then buying something new. but seriously we need to fix that pay gap my OCD went through the roof when i saw that on the dividend predictor app, its usually the second half of the month that needs work which in the next paragraph ill get into more detail on future plans.
Future plans
So like i said the second half of the months needs work and ive studied and did hours of research on monthly stocks (btw i use Dividend.com for my research). But honestly i think that the quarterly dividend payers do a better job at hitting those dates im trying to hit, but what makes a monthly payer so appealing is that you only have to buy one but with quarterly you have to buy 3 which isnt all that bad because it adds diversification =).So last month i said the next buy would be GOOD.....but im having second thoughts because maybe there could be a better, much safer REIT i can add instead. Ive gone over about 200 different monthly payers over the last 2 weeks and i only have a few on my mind, LTC and CDLT. LTC pays at the end of the month at a range of 28th to the 31st of the month. CDLT is a little similar paying around 24th to 31st of the month, im probably going to pick only one. The stocks that i plan to scale up on before the end of the year will be PG and KO, i want KO to be my biggest holding because i just love Coca-cola i have pride in being a KO fan boy lol.
Story time
Now i saved the best for last lol so me and my mom talked again on investing and when i came to talk to her she hand her laptop laying on the bed. So i thought it would be a good idea to show her what i would think would be a good investment for her to get started with. So im going to do a play by play just like last time so here we go =)
(ill start it off when i grabbed the laptop)
Me: so mom i think i have a better idea than to be messing with single stocks
Mom: ok
Me: do you know what the S&P 500 is?
Mom: is it the best 500 companies?
Me: YES! good job, its the top best performing stocks in the U.S. and i think you should start with a fund like stock that tracks the overall average of the market, so basically you get a little bit of everything.
Mom:ok
Me: so do you know which investment broker you want to be with?
Mom: (shrug's shoulders lol)
Me: ok ill have be with Vanguard which is who im with and theres this stock that tracks the S&P 500, now im just going to warn you that when investing there could be commission cost.
Mom: COMMISSION?? oh no
Me: but hear me out, i can get you into an investment thats commission FREE and you can just dump some extra cash into it at the end of every month and you can watch it grow, and you get that sweet dividend as a present every 3 months.
(so i start typing in the Ticker symbol (VOO) so i can show her the graph and price)
Mom: $26?
Me: (started laughing) take a closer look
Mom: TWO-HUNDRED AND TWENTY SIX DOLLARS?!?
Me: (giggling) trust me mom this is a really good start, take a look at the overall growth and the chart. you see how it slowly overtime grows in value.
Mom: oh ok well ill let you know, ill save the $200
Me: Then the next step will be to create your brokerage account, im trying to make this very simple for you.
Mom: alright
The End
Well guys thats all i got for this one, i got alot of work to do but hey its only year 2 for my investing but still im gonna keep pushing even harder to hit that first $100 month. Hope you guys enjoyed the blog and as always people.........keep on cashing in them dividends and ill see you guys next time =)
