Thursday, December 29, 2016

Recent Buy: GNC

You want to talk about a stock that is down and not yet out? Let's talk about the newest addition to the dividend scythe - GNC. GNC if you don't know is a supplement store that is primarily based in the US. While it has taken a massive hit in the last couple years, the stock is not yet done for. The stores themselves are profitable, the brands they carry work (first hand experience), and they have a customer base that won't be filled by online shopping until the kinks of online shopping can be worked out.

For the typical body builder, online is the way to buy supplements. Unfortunately, bodybuilders are also huge procrastinators. That means when it comes time to buy, they usually find themselves trucking down the neighborhood GNC and buying a quick fix to get them to their next online order. While this isn't primary, it does serve a much needed purpose. I myself have been caught in this same trap and I'm not even a body builder! That being said, there are numerous other types of customers that they market to. Specifically, I'm talking about those who are overweight who are looking for an entrance into the world of supplements with the help of a friendly shop keeper.

While their recent past shows continuous decline in sales, the stores just got a much needed change. An internum CEO has been assigned that turned around Petsmart and I have every bit of confidence that he can do the same thing with GNC. Most notably, a full revamp of their stores has just been completed with a 24 closure of all stores. Even though it's a bet, I'll take the bet while I cash in the heavy dividend payment.

Bring. It. On!

Saturday, December 3, 2016

Dividend Income: November

It's beginning to look a lot like Christmas. With the arrival of December comes the monthly honor and duty of counting up the dividends received over the past month and recapping the movement that got us here. That being said, overall, the month was a pretty decent month in relation to others. Here's a quick recap of our payers.

  • AT&T - T - $14.88
  • YUM Brands - YUM - $3.57
  • Abbvie - ABBV - $5.70
  • STAG Industrial - STAG - $1.74
    • Total: $25.89
      • Total Dividends for 2016: $269.08
I know it doesn't look like much in the grand scheme of the portfolio but it looks like a lot to me because it shows the building block style of investing. Only a year ago I was looking at less than $100 total dividends for the entire year (it was actually only barely over $50. That means that this year alone has already completely shattered last year's results. If I can continue that trend, the additional investment income that dividends provide start to become a snowball that rolls itself. 

With kids on the horizon, it's important for me and my wife to put away as much as possible right now so it's locked in during the months/years that it will be even harder to find the additional income to invest. Although we have yet to be successful in having kids, it's an almost certainty in the near future and I would be an idiot to not prepare ahead of time for that life adjustment. Anyway, that's all I've got for today.