Heyooo friends! I haven’t posted much on the blog lately, but fear not! I am still alive and well. I simply haven’t had the time and mental energy to think about writing because I am currently undergoing a career change, to which I’ve been giving 100% of my focus these last few weeks. More details to come soon in that regard.
In the meantime, though, I did want to give you guys a quick overview of the state of my portfolio. So let’s dive in!
First up we have Facebook (FB), in which I initiated a position back in April. Specifically, I purchased 9 shares of the social media behemoth at a price of $110.96/share in my 401(k). This happened shortly before they posted their strong Q1 earnings report, which caused the share price to soar by 7% or so. Long live unintentional but successful market timing! 😛
Then, in early May, I initiated a position in Wal-Mart (WMT) with 16 shares at $67.63/share. Retail isn’t exactly the safest industry to invest in, especially in this digital age we live in where Amazon poses a looming threat to the brick-and-mortar sales model. With that said, I still believe that there are a handful of retailers worthy of inclusion in a dividend-focused portfolio, one of which is the hypermarket leviathan that is Wal-Mart. With an uninterrupted streak of dividend growth spanning more than 40 years, a low payout ratio, and the necessary resources required to develop an online presence that can actually compete with Amazon, Wal-Mart makes for a solid SWAN stock, in my opinion.
Lastly, I added a small amount to my position in Scotiabank (BNS) last Tuesday. I’m somewhat enamored with the big Canadian banks, as they can bring a nice tinge of diversification to my otherwise heavily USA-centric portfolio (they also get brownie points for not needing bailing out during the Great Recession). I nabbed 6 shares of BNS at a price point of $48.41/share, thus bringing my position to a total of 20 shares.
As of today, my projected annual dividend income clocks in at $1,224, yay!!! I have thus effectively accomplished my goal of averaging $100/month in dividend income, a goal which I originally hoped to achieve by the end of 2016.
In all fairness, the only reason I was able to accomplish this goal so early in the year is because I recently purchased a bunch of high-yielding REITs and BDCs , which gave my portfolio’s dividend-churning power a big boost. I definitely don’t want to be “that guy” who only owns high-yielding investments though, so I plan on balancing out my portfolio by venturing heavily into the lower-yielding, but more stable consumer goods sector for most of the remainder of 2016.
Nonetheless, it still feels good to hit that first big milestone of $100/month in passive income. What a great feeling! 😀
Well folks, that pretty much sums up what I’ve been up to these last few weeks. As mentioned earlier, I’m currently exploring a career transition that will see me move from my position as a web developer into more of an operations role, which is super exciting. I will definitely be expanding on this in the near future.
I also turned 25 this month (May babies FTW!), which coincided nicely with the big dividend milestone I accomplished. Talk about a great birthday gift, haha! I feel on-track financially, and I am a happy chap. Life is good.
Disclosure: long BNS, FB, WMT