Monday, April 17, 2017

Wealth: Debt Optimization

Living with debt can be hard. No, really. Ever hear Dave Ramsey’s show? Hear his guest’s “debt-free screams” when they come on the show to publicly announce that they have eliminated all of their debt? Crushing all of your debt is a big deal and it’s not an unreasonable thing to do when you’ve annihilated a lot of debt. However, one thing that I feel gets missed in all the hustle bustle about identifying and paying down debt is that sometimes investing in other items can be more beneficial than paying down your debt. Please allow me to explain.

Everyone knows that debt is huge in the USA but just how huge? In 2015, studies conducted found that the average American has $15,609 in credit card debt. That’s not including student loans, car loans, home loans, or other much larger loans that are generally expected. That’s just the amount that was currently sitting on credit cards. If you do the math at the staggering 25% interest rate that some credit cards are subject to, you’ve got an amount of credit card debt that is by all intents and purposes insurmountable by a lot of households. For this type of debt, the Dave Ramsey, “attack the debt with a sledgehammer” is probably the best approach. However, once that type of debt is gone and one if left with only other lesser interest rate debt, there could be a much better direction to take.

Sunday, April 2, 2017

Wealth: Stock Alert - TGT


Target Corporation is a general merchandise store that distinguishes itself apart from others by offering great deals without sacrificing service or options. While Walmart can be seen as the corner store for deals and therefore a staple for many American homes, Target seems to aim for a more middle class clientele. Their brands are recognizable, their selection isn't lacking, and their service always seems to be a cut above other general merchandise stores. They offer clothing, groceries, and much more.

Their merchandise comes from a network of forty distribution centers and are then carrier through multiple channels to their intended Target locations that are primarily located across the United States. They also offer digital services through their Target website with added perks for Target RED card customers. The company's risk factors seem to revolve around the same risk factors that can affect all general merchandise stores. Most notably is whether or not they will be able to maintain a good reputation. While this would seem simple for some stores, Target itself can be an easy target as they already walk a tight line as they have been called the store that is "Not Walmart". In addition, if Target cannot stay ahead of the trends, they themselves will be given the boot in lieu of another general merchandise store that can stock items faster or offer more competitive prices. Lastly, items like the data breach that occurred some time ago can adversely affect business as they know it.

Saturday, April 1, 2017

Wealth: March Dividend Income

March 2017 Dividend Income

GME - $30.40
ARII - $6.80
QCOM - $15.37
STAG - $1.75
TGT - $9.00
EMR - $7.68
LB - $4.80
WFC - $8.36

Total March 2017 Dividend Income: $84.16
Total March 2016 Dividend Income: $20.40
Percent Increase: 312% increase

Now that March has come and gone, it's evident that the Dividend Scythe has been hard at work. If we're only looking at the change from the previous year to the current year, the percent increase has been phenomenal! It's enough for me to even wish for a positive increase year over year but an over 300% increase from last year is exactly what I want to see and more! Moving forward, I'm sure that I probably won't see these high percentages as it will be harder to see huge jumps as the portfolio grows but it's incredibly pleasing on the eyes as I get to look at it now. 

Thursday, March 23, 2017

Wealth: Stock Purchase

March comes in like a lion and what a month it has been. While I haven't had a chance to do much of any writing at all for the blog, I've still been moving forward with the dividend scythe mission. For this month's purchase, I decided that instead of moving outwards with new acquisitions, I'd rather add more into an existing position while the pot was cold. 

After a quick look through the portfolio for deals to see what was down and priced to buy, I found that Target (TGT) was in the best position to grow outwards. That being said, I added a few more shares to try to buffer the loss of GNC's dividend cut while I wait for what I expect to be a rebound. And even though from what I read, there may never be a rebound for GNC, I believe that it is positioned to do so and I'm willing to bet what I have left in the company to ride it out.

And really, that's what it's all about when it comes to investing. With any company, there comes risk of failure of that company. Every time we bet on a winner, that bet could also be a big loser. You can't win if you never play the game. Only time will tell whether I'm right with GNC. I just hope it's sooner rather than later so that I can sell higher than I bought in and reinvest the earnings into a better dividend paying company.

Purchase Summary

BUY: 25 TGT @ 53.36/share
Total Purchase: $1,341.07
Additional Annual Dividends: $60

Thursday, March 2, 2017

Wealth: February Dividend Income

Moving forward from February to March, life marches on and so do the dividends! This was a very good month for me - in health, in stocks, and in life. That is no lie.

February was most prominently a great month for my health. I've taken major steps forward with the weight that I've been able to lift in the gym. I've moved from doing three sets of ten on moderately decent weights to lifting four sets of fifteen on high weights and the results are really showing. Where it might just be through my clothing, I know that it is a positive sign for the future if I continue on the path that I am going.

As for stocks, February was also a great month. I feel like I grabbed one of the best companies that I could with the acquisition of QCOM. It's a great company with a strong moat, a long history of dividend payments, and a strong brand name. It's also a name that I am very familiar with since I grew up in San Diego where the company calls home. There were also other potentials that were fairly priced but only QCOM grabbed the monthly funds.

Thursday, February 23, 2017

Wealth: Stock Purchase

Hello again, dividend reapers. Today I wanted to go over the purchase of my newest acquisition into the dividend scythe: Qualcomm Inc (QCOM). I've detailed a description of the company, where it currently stands, and where I was able to make my entrance in the video above. If however you want to read instead of watch, the following is a quick breakdown of the company.

Tuesday, February 21, 2017

Wealth: Stock Alert

Hello again loyal followers and guests. Today I want to talk about one of my potential buys - Tupperware! I have reviewed this company in the past but recent times have changed my outlook on where it stands. This leaves me at a new opinion of the company as a whole and it also left me wanting to share my thoughts.

Tupperware (TUP) is a manufacturer and distributor of multiple Tupperware brands such as the ever so recognizable containers and other not so recognizable lines that follow cosmetics and personal care products. While the company itself has shown little to no real motion other than hills and dips over the last year, the company as a whole still has a lot of buying potential.

One of the key items that has always seemed to stick with me is the product's inability to become irrelevant regardless what portion control items try to do. While our waist lines seem to get bigger and bigger, our ability to make more and more food continues to astound. This leaves the product itself with an ever increasing market. Pair this with the potential for a recession (which will inevitably come) and one has a recipe for a great buy. This is why I intend to purchase shares in the near future.