Thursday, June 1, 2017

May Dividend Income

I won’t pull any punches. May has not been a great month for dividend income. It is the first time since I’ve started down this road of dividend investment that I’ve made less than the previous year’s results. While this may on the surface sound like a pretty big deal, I want to instead approach it as an opportunity to face my portfolio’s time of adversity. Instead of sitting here and talking about what went wrong, I instead want to talk about what went right and what will be going right with these results having come to fruition. Let’s start with what I was paid for the month of May.

Thursday, May 25, 2017

The Ups and Downs

A great example of market ups and downs happened today. GameStop (GME) shared their Q1 reports today with lots of things to be happy about. They saw new hardware sales up by 25%, new software sales up 8%, digital sales up 3%, collectibles up 39%, and posted that they expect full-year EPS of 3.10-3.32 points. One would think with all of these positive earning results that they would see a massive price increase but instead Mr. Market decided to rear its ugly head and slam the stock in after hours for a total of -6.3%.

It's time like these that remind me that as much as one may try to predict the market, they can only do so much. And when that happens it's incredibly important for each investor to return to the books, blogs, and teachings that can reassure us that we are still moving forward with whatever certainty we can obtain through financial reports, investor sentiment, and general good-luck guessing. After all, we all have had or will have a day on Wall Street where this kind of shenanigans hits.

It's not for lack of trying to time or beat the market. It's just that investing is hard. There is a science to picking stocks but there is also a lot of luck and for those that believe in the efficient market theory, days like today prove that you really can't predict everything. The market will do what it wants to do and in the fashion that it wishes to do it. That being said, Bloomberg machine or not, we are all a little more humbled when we get taken for a brain-melting and head spinning trading day like GameStop (GME) saw today.

Wednesday, May 24, 2017

Self-Tax Budget

Imagine if at 5PM today the government came up to you and tapped you on the shoulder. Imagine that when you turned around to address them, they advised you that starting tomorrow morning they would start taxing you an additional 10% on everything you decided to buy. What would you do? Would you riot in the streets? Would you cry and moan about how unfair it is? Would you be willing to go to jail for not paying it?

Odds are you would be mad or sad but ultimately you would pay it. You would pay it because you would seemingly have no choice but to do so. Your life would be tough for a while and you would have to change a lot of your habits to reflect the new tax but eventually you would adjust to this new way of life. Eventually you would be so used to it that you wouldn’t even notice that tax being taken out.

Monday, May 22, 2017

New Acquisition: LB

New Acquisition: L Brands (LB)

Purchase: 50 shares of LB @ 49.19/share
Total Purchase Price: $2,466.45

Previous Projected Annual Dividends: $868.99
New Projected Annual Dividends: $988.99

Previous Projected Monthly Dividends: $72.41
New Projected Monthly Dividends: $82.46