I still pinch myself that we are in August already, this year seems to have flown by particularly quickly. Probably due to the ridiculous amount of work that is going on right now. On the plus side, the dividend reports appear to come through quicker and this one i am particularly proud of.
I started this dividend journey 2 years ago having read several inspiring blogs ( Dividend Mantra, RoadMap2Retire, MyOwnAdvisor and so on ), i guess half of the reason i pulled my finger out was that i was rapidly approaching 40 back then and i needed to get my act together, too much partying and not enough planning – not a good recipe in the long-term.
It was time to grow up. Life throws many curveballs at you but when the going is good, you just have to take advantage of it. For me, i was concerned at my financial situation, i was on a good wage but i really was just spinning my wheels, i didn’t care before then but middle age sure does change one’s perspective quickly.
Around 2007 or so, i was frustrated, i was simply not doing great from trading, i felt dividend stocks were never for me, slow, boring – i kept at trading, i kept asking myself why is that so many other people seem to be better than me? I realized then my weakness was my attitude and emotion to money. I had little patience. What i embarked on next changed my attitude to trading and then to investing big time. I basically had to put myself through the ringer and hit rock bottom, throwing good money after bad and i just kept losing, eventually the penny dropped -for some, this happens quickly but for me, it took a long time. I had a great mentor in FuturesTrader71, you can find his link above and subsequent links to other amazing mentors like Dr Brett Steenbarger who completely changed my attitude on trading. This gave me a massive confidence boost. It was a lot of work but just like learning to play the piano, once you ‘get it’, there is no looking back and the feeling of empowerment is unbelievable.
I totally dedicated myself to futures trading ( which for the record, is a stupidly stressful career path ) – once i got my act together, trading became easier but it was incredibly time-consuming. I wanted more free time aswell so i took a step back, did less trading and did a bit more investing. i simply take good quality stocks, i buy as much as i can when the market hates them and the value is appealing and then i accelerate the compounding by trading options and futures, rolling the profits back into these assets and just keep making them bigger and bigger.
Anyway, i’ll go into more detailed trading of options and futures at some point but this post is meant to be about dividends.
So this month, for doing absolutely nothing, a nice tally of $1451.91. Not only is this my best month ever but it is also 2x what i made for the same period last year. A good chunk of this came from VOD and their semi-annual dividend payment. At 7% and a huge glut of cash, i’m fine with holding onto this guy for now. The compounding on other stocks like ARCP is really starting to kick in aswell and every month, the tally just goes up and up.
Next month, i’ll be reverting back to a round $600 – $700 but i continue to feed the portfolio. I’m well on my way of exceeding my $8000 goal in dividends this year.
I’ll cover the market in more detail in the next post and it is as always, at an interesting point. I’m loving the action in AIG and PBR aswell.
AIG – i feel is going to retest the highs from 3 years ago around $60-$61. It is still way undervalued. Great long term hold.
PBR – i took a position in last year when everyone hated it, i bought leap 2016 options for $13 while it was floundering in the $11-$12 range with the anticipation of brazil elections, reversion to the mean and time. Those have paid off handsomely. This is the cornerstone of what is helping my portfolio accelerate. I did the same approach to AAPL, remember last year everyone was wailing on the stock at $400 and look at where it is now – $710-$714 equivalent. i succumbed to media BS and sold out my last options around $620, i regret exiting too early but nobody gets it right all the time. Sometimes you just gotta stick to the plan and move on. There are >always< other opportunities out there.
If i just took my pay cheque each month, it works ok but i feel i can do even better. I can take say 5% of my portfolio and make a 10x return in 8 months outweighs any dividend performance by a huge margin. That said, i take 80% of those profits, buy the ‘slow boring dividend stocks’, the rest, i look to find another opportunity when the market shows me one. Having that backstop of solid bluechip dividends combined with trading is allowing me to relax and pick my spots rather than chase all the time.
Good luck out there.