My Investing Journey with Passive Income and Stock Market investing

Month: September 2019

Investment Book Review-Retirement Investing for Income only!

I will start by saying this is one of the best books I’ve ever read on investing. It’s written by Bruce Miller, who is a Certified Financial Planner.

Unlike many investment books, he never gets wordy or uses overly technical jargon. His manner of writing is extremely clear and the order of the layout is well thought out.

The book is geared towards those nearing retirement and perhaps less at the 20 somethings. At the same time, anyone will gain a lot from this book regardless of age, especially if you are a new dividend investor. I consider this book a GREAT INVESTMENT.

The big premise is investing not for total return, but for reliable income. This approach releases the investor from the day to day changes in the stock market. Capital gains are no longer the major concern, whether a company can continue to pay its dividend is.

This book teaches you what to look for when picking dividend stocks and income vehicles. The primary consideration when picking stocks is to investigate the companies CASH FLOW, making sure they’ll be able to continue paying their dividend. That is the main concern and not whether the stock appreciated 30% last year or this year.

He teaches you the parameters to use to find the right dividend-paying stocks for your portfolio. I’ll let you read the book to discover all of that for yourself.

It’s great because it takes away a lot of the headaches of learning so much about stocks, trading, jargon, unnecessary metrics. You don’t concern yourself with beta, risk adjusted returns and some optimized allocation.

I found the sections of REIT’s and Closed-End Funds particularly useful. I had personally never even heard of a ClosedEnd Fund before reading this book. It later led to me purchasing my first CEF.

REIT’s are complicated, at least to me. He devotes a chapter on evaluating REIT’s ability to pay their dividends; it’s not as simple as cash flow or earnings!

By the time you are done with this book you’ll know about all sorts of income producing stocks, bonds, funds; some of which you may have never heard of. Another major plus of the book is he shows you to get information off of sites like Yahoo Finance and download the data into a spreadsheet. Here you can evaluate the companies for yourself, whether they have grown their dividend and so forth. All valuable information, as the old saying goes, He teaches you how to fish instead of giving you fish.

I can see myself returning to this book over and over throughout my lifetime, my copy is already marked considerably with pencil marks, where I’ve made notes about the topics.

Here is the video about the Book as well as the Amazon link. Yes, I am an Amazon Affiliate and do earn a commission on anything purchased using this link.

Using Fidelity Stock Screener

In the video below I go through how to use Fidelity’s Stock Screener. I get A LOT of the resources on their nicely done website. It helps me reduce the amount of stocks to research and zero in on particular strategies I’m looking for.

First, I take you through a Dividend Stock screen, looking at a medium range yield and higher dividend growth. As always, it’s important to look for stocks that are growing their dividends, not only ones with a high yield.

Next, I add in metrics like Price to Book. This is used by many investors for a basic screen. I then add a Price to Cash ratio to my screen. Now we have stocks with nice dividends, dividend growth and decent metrics.

One of my favorite tools in the Fidelity Stock screener is being able to search above 52 week lows. That way you can find stocks that MIGHT be undervalued, that might be trading at lower multiples.

Perhaps you want a stock with lots of growth and good Return on Equity? Low Beta? High Profit Margins?

You can find these specific targets using Fidelity’s Stock Screener. The more metrics you use, the less stocks there are to weed through.

As always, numbers can only tell you so much. They don’t tell you about what’s going on in the economy day to day necessarily or particular challenges the company is facing. So a stock screener is not enough research but it’s a good start.

Swing Trade-TLT Bond ETF

I bought TLT multiple times throughout May and and starting selling in July. This was a swing trade I made.

I missed the very top; however, I am happy with my trades. I try not to get greedy and simply desire to make over a 6% profit on these types of shorter-term trades. I am primarily a dividend or buy and hold Index investor. At the same time, sometimes I think values exist that allow an investor to turn a quicker profit as well. A profit that one can use to reinvest.

TLT has had an incredible year, over 20% YTD return. My trades were a gain of 6%, 14% and 12%. This is not counting distributions I received from TLT (So not total return), it’s simply a guesstimate of how much I made. I usually think about those numbers at the end of the year!

I expect that interest rates will continue to drop and there MAY be a reentry point on TLT for me before the year is over. However, I am not counting on it. TLT could very well make a new all time high in the next month depending on what Jerome Powell and the FED reserve do here.

I do still have about $600 in TLT for risk management purposes. It’s not a position I wanted to close out completely as I think Bond Funds should always hold a place in a portfolio, unless something terrible occurs. Let’s hope not!

As always, I am NOT a professional financial advisor. I recommend seeking professional help before making any investment and doing your own research. This blog is for my own archive and entertainment purposes.

September Dividend Report

Here are my Dividends for September. You will notice a decrease in this months dividends compared to August and July. I own fewer companies that report in September. I did recently open up a position in Cummins to increase my September Dividends.

Brokerage account

Putnam Municipal Closed End Fund-$7.36

Cummins-$3.93

Current Total is $11.29

I still have a few more positions that will give me dividends in September; Hooker Furniture Company and TLT

Traditional IRA

Kroger $12.00

Here is the corresponding Youtube Video with my report

As always, I’m am NOT a professional financial advisor, I am simply sharing my passive income journey. Nothing on this page should be taken as a recommendation to buy, please do your own research.

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