Weekend Reading – January 24, 2014

We’re already coming up on the last week here in January. I don’t know if it’s just me, but it almost seems as if time continues to pass me by at a faster rate the older I get. I remember being in high school and sitting in science class and that hour seemed like it took a week to go by. Now I can barely find the time to fit my life into my life. I’m so anxious for financial freedom I can almost taste it!

And so in that regard I made some changes to my Freedom Fund this morning, which I’ll be discussing over the coming days. I made some changes that I think will provide me a better opportunity for more income now and a greater chance for growth of that income tomorrow.

In the meantime I put together a great list of articles that I’ve read over the last week or so. I hope everyone out there enjoys their weekend. Slow time down and enjoy each moment.

Below, you’ll find a short list of articles I’ve recently read and enjoyed. I hope you enjoy them as well.

How to retire early – 35 years early
One of the best and most complete interviews I’ve ever read. Pete from Mr. Money Mustache answered some great questions with even better answers, and I think you could learn more from this one interview alone than from most personal finance books. A highly recommended read.

Chevron (CVX) Dividend Stock Analysis 
Passive Income Pursuit published a detailed analysis of Chevron Corporation (CVX) and concluded that it’s a good value at today’s prices. I’m inclined to agree. I’m already heavily invested in Chevron, and energy as a whole, or else I’d be interested in buying shares here.

Reader Case Study – Work 5 More Years to Collect Full Pension?
Joe provided a great case study here and I read the entire article twice over. What I can’t believe is that this couple is even thinking about staying miserable for five more years to earn a full pension they don’t even need. This seems like a case of “moreitis” where someone wants more even when they don’t need more. I commented at the bottom of this article and stated that I think the decision is easy – quit, and enjoy life. Money can always be made, but time cannot.

What I Learned From Hawaii
FI Fighter took a vacation to Hawaii and got a taste of freedom and all the beauty it comes with. Now he’s more motivated than ever. I feel the same. I feel invigorated right now, and I’m inspired to retire even before 40. I feel like big things are still in store for me and I’m going to take every opportunity I can.

Should You Dollar Cost Average With Coca-Cola Stock?
Tim has been beating me over the head lately: invest in The Coca-Cola Company (KO), dummy! I mean that in the best way possible, and maybe it’s about time I listen to my fellow blogger/dividend growth investor. I hear you, Tim! I’ll be discussing Coca-Cola very soon.

Coca-Cola: A wide-moat dividend growth stock to buy and hold
Now Dividend Growth Investor, too? It seems like a sign from above. My 80 shares in Coca-Cola is just not enough. Note to self: rectify this and buy shares in Coca-Cola.

These 16 Dividend Growth Stocks Go Ex-Dividend Next Week
I’m regularly writing a column for Daily Trade Alert, and this particular article was published just earlier today. I highlighted sixteen stocks that go ex-dividend next week and discuss one company in-depth that I think is attractively priced with a 6% yield.

Another Purchase in My Portfolio
The Dividend Guy picked Lockheed Martin Corporation (LMT) for a recent purchase. I really missed the boat with this company last year, but I do hope it finds a way in my portfolio at some point in time.

Full Disclosure: Long CVX, KO

Thanks for reading.

Photo Credit: Benoit Mahe

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18 Comments

  1. Nice list of posts Jason! Big fan of the diversification of your writing by adding a weekly column. Looking forward to seeing your input over at DTA. I agree with your assessment that OHI is a pretty solid pick right now out of that list of 16 soon to be ex-dividend stocks. Looking forward to also seeing what Freedom Fund moves you’ve made. I happened to strike while the iron was hot with ARCP earlier this month before the big jump in price and latest dividend increase.

  2. w2r,

    Thanks! I’m a bit behind on the emails, so I’m sorry I didn’t get right back to you in regards to some of your questions…but this post probably answers a couple of them. 🙂

    Nice job on buying up more ARCP! I got in at a pretty good price, but I think I probably should have doubled down on another 100 shares. The future looks bright, but I was just a bit concerned about how fast the growth was occurring and how all of the acquisitions were going to pan out. It’s still unproven, but so far I’m a very happy shareholder! That dividend increase, while expected, was still very nice.

    Have a great weekend!

    Best wishes.

  3. Thanks for the mention.

    What really gets me about how fast time goes is just earlier this week I was thinking back to things that happened in high school or college and it seemed like it was just a year or two ago. Then just a few minutes later I realized that it’s actually been 10-12 years ago. What the hell? Really?

    Glad to see the DTA and I hope that works out well for you. I had my first post over on SA and I’m thinking of creating some exclusive content to see what kind of side hustle income that could generate. It never hurts to get a bit more income to invest. Have a great weekend!

  4. you are right the older you get the faster time appears to pass. you are still just a pup. Think how that science teacher feels. That teacher feels he had Jason in his class just yesterday.

  5. Hi DM,

    I am stopping by from Europe. Am a regular visitor of your site and I am curious what changes to your Freedom Fund you will discuss in due course.

    Just want to share that I also made a significant change to my portfolio recently by `downsizing` the number of holdings to just 6 (7-8 max. once I add the two positions I am considering). I have been playing around with this idea for some time and tracked some sample portfolios & read through many pieces of research on risk.

    Why? I am a strong believer that I am not able to significantly reduce risk by adding further positions + that would come at the cost of yield + I am confinced that the companies I am investing in are kind of mini funds in itself & will still be around and successful in the next few decades. Imagine a world where a company like Coca Cola or Nestel would go bust – at that point we have bigger things to worry about than our dividend investments.

    My portfolio now consist of (each with similar weighting) P&G, KO, Nestle, Royal Dutch Shell, PM and MCD. I will add a healthcare stock at some point and that`s it. My holding period is forever and I want to enjoy at least 30 years of dividends. I am adding to these positions on a regular basis.

    Currently the average dividend yield of that portfolio is 3.9% delivering c. USD 2,000 on a USD 50,000 investment (or appr. USD 6,000 p.a. on a portfolio of your size).

    I am not saying one approach is better than the other, this is just my take on things and others may wish to have at least 20-30 or even more positions to sleep well at night.

    Looking forward to following your journey further.

    All the best,
    D

  6. I sense two upcoming posts…
    One titled “recent buy” featuring Coke and the other reflecting on 2 million page views!!

    Awesome work, keep it up!

  7. ARCP sounds like a pretty nice REIT with that annual dividend of $1/share. Even if it is flat forever, you will get your money back in 12 – 14 years ( depending on entry price), still own the asset, and still have claims to its future distributable cash flows.

    As for KO, I sold the puts back in the Summer of 2013, so January 2014 and Jan 2015 were the farthest months for me that provided good premiums as well.. I have a much lower position in KO vs PEP, as I liked PEP more than KO over the past few years.. Now I am rectifying it.

    Thanks for including me so much btw! Have a nice weekend, and I am looking forward to reading about your changes next week !

    DGI

  8. DGI,

    I agree with you on ARCP. I didn’t want to buy a big position right away, but I’m happy to scale in if they continue doing the right things. So far, so good!

    I’m with you on KO. I also bought a lot more PEP because the valuation and yield made more sense, but I do also want to make KO a bigger position within my portfolio. It’s near a 3% yield right now which historically bodes well. The upcoming dividend raise should push the yield over 3% if the price stays static.

    You have a great weekend as well!

    Cheers.

  9. Pursuit,

    I noticed your Chevron analysis over at SA. Congrats on that! I hope they continue to republish your stuff. Very nice, man!

    I hear you on time. Right now, I have the patio door open and the beautiful Florida warmth and sunshine is creeping into the living room while I write. It’s moments like this that make life worth living, right?

    Best regards.

  10. Anonymous,

    Great point there. I didn’t think of it like that. Time moves for all of us, but I think the key is to figure out a way to slow it way down. Some people crave the hustle and bustle and like to be moving all the time, but I really like relaxation and downtime. For me, slowing time means I need to buy it – and that’s exactly what I’m trying to do.

    Best wishes!

  11. D,

    Thanks for stopping by! I really appreciate the comment and your perspective.

    That sounds like a great portfolio, and I don’t begrudge anyone for concentration like that. For total return purposes you might be better off, I don’t really know. For me, the whole reason for diversifying across multiple sectors and 50 or so companies is for income growth security. While it may seem unfathomable now that KO or PG could ever reduce their dividend or have operational problems, it is possible. And it’s that possibility that motivates me to diversify my income sources as much as possible. I’ll be living off this dividend income one day, and I want to minimize the risk of income cuts as much as possible. Besides, while those are all fantastic companies, and I own a piece of all but Nestle, I think the universe of great companies with excellent dividend growth prospects extends out to more than just those.

    At any rate, it sounds like you’re doing very well. A 3.9% yield on the portfolio is very nice, and higher than what I’ve been able to acheive because of my holdings in certain lower yielding securities like IBM, ITW, EMR and the like.

    Best of luck to you, and I hope you stay in touch!

    Take care.

  12. SWAN,

    I’m pretty meticulous, but I’ve never actually paid attention to the time the dividends roll in. However, I do notice that ADR dividends are sometimes a day or two late. It doesn’t really bother me, but if it was like a week or something I might get a little antsy.

    Hope you’re having a great weekend. Thanks for stopping by!

    Cheers.

  13. DM,

    Thanks for the list of great articles to read while the makrtes are close and us DG investors do some research. I have a question for you: Do you notice what time your dividends usually roll in. For example most of mine are either midnight or a few hours after on the payable date. I notice when it does not come on time and I expect it to, haha 🙂

  14. Wow the comments on Market Watch – How to retire early — 35 years early are just mind boggeling, I’d suggest to read those if you want some laughs 🙂

    Some people clearly don’t understand how important your life is! I also feel that when I’m FI = I’m retired. Some people have the notion that if you make any money while being “retired” = you’re not retired….just…wow

    This was a recent comment about MMM on the website:

    “This guy will be working at the Fast-Stop and his wife will be slinging hash before all is said and done……..or they’ll be on welfare (which they probably are now…….you didn’t mention healthcare???). Was this entire story for amusement???”

    Arguing with an idiot is a fools game but seriously…Keep on trucking Dividend Investors!

  15. DM,

    Thanks for the inclusion, always feel honored and appreciate being mentioned in your weekly reading list.

    Hope you had a great weekend!

  16. FI Fighter,

    No problem at all! I hope you had a great weekend as well.

    Looking forward to seeing you close a property or two this year and seeing you become financially independent. Keep it up!

    Best regards.

  17. Life In Center,

    I was the target of many comments like that when I was in the national media early last year. I completely ignored most of it. Most of the commentary from the peanut gallery was really just comical, and a lot of it didn’t even really make sense. It’s way easier to point fingers and criticize than it is to actually put in the hard work necessary to radically change your life.

    Best wishes!

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