Friday, March 1, 2013

Monthly Update - February 2013

The new year is off to a good start.  I have earned $332.22 in dividends and $1030 in options income so far in 2013.

Below is a summary of my activity for the month:

New Purchases:

65 shares of GIS
23 shares of LMT
$500 worth of JNJ
$950 worth of KO
$2200 worth of RDS.B
$950 worth of TEVA
$200 worth of WFC
$200 worth of TD
$1000 worth of MO

Sells:
42 HNZ (due to buyout, replaced immediately with GIS)

Posts about new purchases can all be found by following the "Buys" label here.

Options Trades:

I sold puts in KO, DRI, CAT and LO.  I closed or had expired puts in TGH, PM and SWY.  I earned $517 in profits from puts that I closed out or that expired this month giving me a total so far of $1030.  I've updated all of these trades on my Options tab.

Dividends:

I earned $252.17 in dividends for February.  My total year-to-date dividend income is now $332.22. I've updated my dividend income on my Dividends tab.  I've also switched my dividend page to Google Docs.

Forward 12-month Dividends:

 My expected future 12-months of dividend income has increased to $4491.40 from $4087.47, an increase of 9.9% in one month.

Goals:

I have set some new and more aggressive goals for 2013.  I've already met one of these goals of paying off my second lien.  That post can be found here.  All of my goals can be found on the Goals tab.

Real Estate:

My 2nd lien is paid off saving me over $380/month.  My next real estate goal is to refinance my first mortgage into a lower interest rate and then decide if I should pay off the condo rental.

Looking Ahead:


I expect to have a big month for dividends in March.  My projections are around $700 so we shall see.  Although my options income is way ahead of my dividend income I don't think it can keep pace all year but I will sure try!   

I've set some aggressive goals for my dividend growth.  In order to meet my goal of $6500 of forward dividends then I will need to contribute at least another $50k to my portfolio this year at an average yield of 3.75%.  I'm currently averaging over $1500/week in contributions so I am ahead of schedule.

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15 comments:

  1. My Financial Independence Journey3/01/2013

    You had an amazing February. That is some solid dividend growth. Keep up the good work.

    ReplyDelete
    Replies
    1. All About Interest3/03/2013

      Hi Journey,

      I can't complain, I just hope I can continue this pace for a while.

      Thanks for stopping by.

      Delete
  2. Dividend Mantra3/01/2013

    AAI,

    Great job man. You're killing it. Your option income is awesome. That HNZ deal worked out really well for you and you now have a very solid position in GIS.

    " I'm currently averaging over $1500/week in contributions so I am ahead of schedule."

    That's fantastic. I only wish I could contribute fresh capital at that rate. Keep up the great work!!!

    ReplyDelete
    Replies
    1. All About Interest3/03/2013

      Hey DM,

      Thanks! I started the year with a bang in regards to options income. I don't think it can keep pace though as I have a huge month for dividend income in March.

      The HNZ deal did work out well. I completely replaced the income lost with another company in the same sector that has better growth.

      I actually expect the $1500 number to go up as soon as I take care of my taxes.

      Thanks again for the encouragement!

      Delete
  3. Martin3/02/2013

    AAI, your option income is great. My goal was to reach 100 monthly in option income. So far I am at 300 monthly mark, but I wish to get to your levels. Congrats to your achievements. I think with this option boost you will reach your goals very quickly.

    ReplyDelete
    Replies
    1. All About Interest3/03/2013

      Hey Martin,

      The options income is definitely a nice supplement to my dividend income as will help me reach FI that much sooner.

      You've been really busy yourself with options trading. You have a different approach and it seems to be working well. I currently don't sell a lot of calls because I don't want to lose my shares. I'm still aggressively building so I mainly stick to selling puts. However, I'll have a speculative options play every once in a while.

      Thanks for stopping by!

      Delete
    2. Martin3/03/2013

      AAI, I only sell calls against stocks I am OK to be called away, so I do buy-write. But i see the power of selling puts and get into a stock thru the put selling. I definitely will be going for it as well. Thanks for visiting my blog.

      Delete
  4. RoseRelish3/02/2013

    Wow. Good job owning HNZ at the right time. It looks like we are both shooting for $5k of dividend income this year, though you've got a pretty solid head start. And I notice your budget does not include food. Any reason for that?

    Cheers.

    ReplyDelete
    Replies
    1. All About Interest3/03/2013

      Headed Home,

      Thanks! The HNZ buyout worked out nicely.

      $5k may be tough to hit but I set the goal so it would be a challenge.

      I'm still working out the budget. I do need to add food as well as gas on my goals tab. That tab is still fairly new so I was waiting until I have a better average to add a few more items. I do make occasional changes so It should be more accurate soon.

      You are doing great yourself. I look forward to the updates.

      Thanks for dropping by!

      Delete
  5. writing2reality3/02/2013

    What a great start to the year AAI!

    As DM mentioned above, $1,500 per week is incredible! At that rate you will definitely met your 50k goal for the rest of the year.

    ReplyDelete
    Replies
    1. All About Interest3/03/2013

      writing2reality,

      Thanks, the 50k goal shouldn't be too difficult for me to hit. I plan to add as much as I can to my DG portfolio this year so that it's more in line with the amount I have invested in real estate. It will be fun to document the journey!

      Good luck with your goals as well.

      Take care!

      Delete
  6. Passive Income Pursuit3/02/2013

    Over $1,300 in the first 2 months from investment income! That's just awesome. Feel free to send some of that option income this way. I hope to be able to get some more options in. I guess some longer dated options are better because there's more time value that will evaporate giving better chances to close out early on big moves up.

    Congrats on a great month!

    ReplyDelete
    Replies
    1. All About Interest3/03/2013

      Hey PIP,

      Yeah $1300 is a lot for just 2 months and surprised even myself. I don't have any options expiring in the next few months so my dividend income will be the majority of my investment income.

      I do a variety of dated put options, some as long as 9-12 months. I don't mind waiting that long if the premium I get justifies it. After a year of selling the longer-dated puts then you'll start having more and more expiring with larger premiums. This also helps cut down on commissions eating up a lot of my profits. I still have a lot to learn though.

      Thanks again!

      Delete
  7. Dividend Growth Machine3/03/2013

    Good purchases, good dividends... keep 'em coming! It is great that you're able to put so much new capital to work -- it really accelerates the growth of your dividend income.

    ReplyDelete
    Replies
    1. All About Interest3/03/2013

      Hi DGM,

      Thanks! You had a great month as well I see.

      I plan to grow the DG portfolio as aggressively as possible this year. It will be fun to see more and more dividends start rolling in.

      Thanks for stopping by!

      Delete

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