Category Archives: Dividend

June 2018 – Portfolios & Mortgage Update!

401K – Update

Its been a long time since my last post (almost a year) as I had a very busy personal and work life. I’ve been busy at work advancing in my career and most importantly, I am a new father of a baby boy! Even after all that, it has not kept me from my focus of consistently building our dividend portfolios!

The 401K stock has grown quite a bit since July of 2017. I don’t have the exact records to show the difference but the 401K has grown to almost the size of the taxable account that I sold in just under 1 year! However I do have a snapshot of my 401K from January 2017 for comparison. You can find the screen shots below (January 2017 vs June 2018). It’s all thanks to increasing my 401K allocation to 11% up from 6% and with a 6% company match of 100%. Some stocks that I’ve added to the 401K since last July 2017 were: INTC, KMI. Other than those two, I’ve been adding to my positions, which I will continue to do so before adding new stocks going forward.


January 2017

401k may 2018

June 2018

Tranditional IRA – New Portfolio

We’ve also added a new portfolio for our retirement! The traditional IRA was created after my wife had quit her job and moved out of her 401K. She decided to stick to dividend investing so we’ve added a whole slew of new stocks! This definitely helps our retirement by replacing the taxable that we sold last year! Some of these stocks dropped in price since adding them but its OK since we are in it for the long haul. This will be an interesting portfolio to watch as we will not be adding new capital to it but let it compound on its own.

Traditional IRA may 2018

June 2018

Roth IRA – Update

We have been modestly adding to the Roth IRA but not as much as we hoped since we started to ramp down on our Mortgage. Below I have a comparison from January 2017 vs June 2018. We were not able to max out the IRA for 2017 ($2000 shy of it) but our goal is to max it out every year going forward.


January 2017

Roth IRA May 2018

June 2018


The biggest activity that occurred in the last year was in our mortgage. I personally do not have any regrets in selling the taxable account to pay down our mortgage except for maybe that I should have sold later than sooner due to the appreciated value. In hindsight selling at a later date seems to be the better plan but no one really knows what the stock market will do. I really did not want to drive myself crazy and go back to calculate how much more I could have paid off the mortgage by selling now as to last July, but the peace of mind of our the mortgage going down from $218,325.20 to the current balance of $124,637.57 is priceless! Especially the amount of interest that we saved from $702.43 to $402.48. Its like a monthly payment for a Mercedes versus a Honda accord (my 2015 Honda Accord was actually $416.22 a month, which is now fully paid off).

Below is our current journey of our mortgage:

Mortgage- May 2018

As you can see from the chart above, our journey began in July 2017 when we sold the taxable account to pay off a significant amount. We’ve also paid down a lot by gathering any extra money lying around, outside of our emergency fund and a generous yearly bonus from work. I know that some people will not agree with our decision and would rather invest in the stock market but we chose to pay off the mortgage early now and ramp up our portfolios after. To us the peace of mind is more important than the volatile stock market, especially after having a baby! It is our dream of paying off the mortgage early and dramatically decrease our living expense. In a strange way, I feel that financial freedom can be achieved sooner than later by doing this, at least mentally! Imagine paying $650 (property tax + home owners insurance) a month! This would mean that we could potentially only need to earn roughly $8,000 a year just to live in our own house! Of course this is not counting utilities, gas for driving, internet, cell phone, misc, and food.

Dividend investing is our ultimate goal but for the near term, paying off the mortgage is the first step in achieving that ultimate goal. I’ll try to blog more often now that I’ve settled down, until then I’m curious on what everyone thinks?

January 2017 Update!


Its been a long time since my last update as I was busy with work and personal life. The 2016 year has come and gone and my portfolio as grown quite a bit since then.

The biggest decision that I’ve made in 2016 was to sell my gold mining stocks for a profit. After the peak prices at the end of 2016, there was a sharp drop which inclined me to unload my gold and silver miners for a hefty profit. I used those profits to take new positions in three companies in the taxable account. Those companies include, SJM (Smuckers), MKC (McCormick), and CHD (Church & Dwight).

I decided that I could not stomach the volatility of the precious metal price fluctuations anymore, so I decided to stick with my goal of slowly accumulating shares of high quality companies that pay dividends. I am usually an impatient person but dividend growth investing has the best strategy for someone like me. Below is the list of the three new companies in my taxable account!


Not only has my taxable account grown since my last blog update in July of 2016 but my 401k has grown as well.

The 401k account has grown from $7,525.52 to $11,928.66! This is a brokerage link account from Fidelity that my employer offers. My company matches 100% up to 6% of my salary, so I contribute the full 6% to my 401k. The match from my company is the amount that I transfer into my brokerage link to build my dividend portfolio. The other half I keep in an index fund.

I’ve also added many companies that I already own in the taxable account in the 401k. I try to find new companies and differentiate them but these companies are so solid that I don’t mind having them in a tax advantage account. My plan is to have no more than 15-20 companies in the 401k account. The taxable account will be limited to no more than 30-35. It would be fun to compare the progress of each portfolio based on the number of companies. I say this because some people believe that concentrating on less number of companies will have the highest return overall, but only if you choose the right companies. It could however backfire if you choose the wrong companies since you have less in the portfolio to be well diversified. But that is another debate, perhaps for another time. Only thing I can do is test this theory out myself.


There is another portfolio addition to this blog and it is my fiance’s IRA portfolio. She started her portfolio just around the time I made my last blog update in July 2016. She contributes a few hundred dollars into this account and maxes it out at the end of the year ($5,500) and her portfolio has already amassed $8,932.79! It is fun watching the three portfolios accumulate dividends every month, especially knowing that we will use these three accounts to retire in the future.


Its already the end of January of 2017 and I’m already ahead in dividends compared to last year. To be fair the 401k and Suzie’s IRA did not receive any dividends but the taxable account as already grown more than 53%! It will be an exciting year and I already cannot wait until 2018.


There you have it for the first month of 2017! It will be an exciting and interesting year as I can compare against 2016.I will have to set new goals as well.




June & July 2016 Buys!



June has already come and gone and I’ve made some new purchases! I’ve also made changes to my 401k plan to start a brokerage link account to buy individual stocks.

I purchased 14 shares of MO (Altria) @ $67.47 for a total of $944.58. I’ve always wanted to own some Altria and I’ve finally done it! From my research, I don’t see a reason for me to wait until this stock has gone down in price because in viewing the history, this stock almost always never go down in price! Well except for the 2008 crash of course but then every stock went down during that time. I myself is not a smoker but even if I don’t believe in the product itself, it doesn’t mean that it will not do well in the future. I have friends who tried quitting and it is nearly impossible!

My second purchase (actually, July 11th) was in BF.B (Brown Forman). I bought 5 shares of BF.B @ 98.11 for a total of $490.55. I wanted to add more consumer staples and since I’ve already have beverage companies such as PEP (PepsiCo) and KO (Coca Cola), I wanted to buy an alcohol beverage company. Strong brand recognition such as Jack Daniels is all I needed to hear to invest in such a company. I think that the United States will have some hardships coming in the future and I’m trying to build my strength with consumer staples. People will want more alcohol during the next recession, possibly a depression! BF.B is also a dividend aristocrat with a low yield of 1.38%. With the low payout ratio of 26.82%, I think BF.B is a great growth stock.

Now the next two stocks that I bought is inside my 401k account. I recently started a new job back in the middle of March of this year and I found out that my company offers a brokerage link account from Fidelity. So I sold off a lot of my index fund and transferred over to buy some more dividend stocks! I decided to mimic my taxable account but added a couple of new stocks. I bought 8 shares of CLX (Clorox) @ $137.20 for a total of $1097.63. I really wanted to initiate a position in CLX for the longest and finally did it in my retirement account. One advantage is that I will not have to pay tax on the dividends received!

The second stock that I bought was HRL (Hormel Foods). I bought 19 shares of HRL @ $35.81 for a total of $680.39. Again this stock has a low yield but the payout ratio of 40% will allow this stock to have great growth in the future! The rest of the stocks in this portfolio is very similar to my taxable account, which is shown below:

Screen Shot 2016-07-12 at 8.14.38 PM

I started my 401k brokerage link account with a couple of gold and silver mining stocks, ABX (Barrick Gold) and SLW (Silver Wheaton). Well SLW is technically not a miner but they work with silver miners. I already have positions in my taxable account with EMR (Emerson Electric) and WMT (Walmart) but I’ve decided to add them because I find that these two companies are currently under valued. JNJ (Johnson & Johnson) is a bit over priced but I wanted to initiate a position and just because it has reached the 52 week high does not mean that it will not go any higher! I wanted to buy a position in T (AT&T) but I decided early on to chase growth rather than high yield with this account.

I hope to add more in the later half of July and in August. Every day I’m tempted to sell my Gold Miners and to add different dividend stocks from its profits but I will try to hold off a little bit longer before doing so!

Verizon & PepsiCo Buys

First Stocks Buys in 2016:

I’ve finally added some new stocks! I’m very excited since its been over 6 months since my last buy! I started out this early afternoon and bought 4 shares of PepsiCo @ 103.3794.

The reason why I bought PepsiCo is due to the international exposure and the health brands. I just love what Pepsi manufactures. I see some of their brands every day and I know that they make great products.  Products such as Quaker, 7Up, Mountain Dew, Brisk, Gatorade, Ruffles, Fritos, Lays, Cheetos, Lipton just to name a few.

After adding PepsiCo, I took a look at my portfolio and POT (Potash Corporation of Saskatchewan Inc.) caught my eye again. I decided to do some research on how Potash was doing and found articles about its revenues and their dividend cuts. This was old news because the article was written back earlier this January. I decided to sell the shares and instead bought Verizon (15 shares @ 51.162). I should have done this from the very beginning.

I know that Verizon is not considered a dividend aristocrat but it has been raising dividends for nearly a decade now. I believe that it will be one by the time I’m near retirement. Hopefully I will be able to add more stocks each month for the rest of the year. Please check back for more updates!