Freedom Fund Update – May 2014

piggybank1Well, the time has come to update theΒ Freedom FundΒ once again as we start another month. The Freedom Fund is my portfolio, and I think it’s aptly named. My portfolio is my way to freedom; freedom from a job I don’t desire to purchase goods I don’t need to impress neighbors I don’t care about. This journey is all about freedom and flexibility. One day theΒ dividend incomeΒ this portfolio generates will fully replace my day job’s income andΒ my timeΒ will be completely my own. What could you possibly want to own more than your time?

I feel extremely fortunate and thankful that I’m able to post these updates every single month which shows the power of monthly contributions to investments because of the high savings rate I maintain. It shows how a relatively large sum of money can be built through the power of time, patience andΒ perseverance.

It’s important to keep in mind that while updating the overall value of my portfolio is important for historical reference and for purposes of keeping track of total return, my main focus is on the rising dividend income stream the Fund provides.

April was another fantastic month for the Fund, albeit rather dull and boring. Which is exactly how I like it. I did very little during the month,Β with most of my time spent tracking dividend increases from a handfulΒ of the myriad of companies I own a piece of; April was fun indeed if you like receiving more money! Of course, I also received another fantastic month of dividend income, which I’ll be going over in the coming days. The snowball is definitely rolling downhill faster these days.

Other than that, there was just one transaction during the previous month. I added to my small position in American Realty Capital Properties Inc. (ARCP) late in the month, which was a rather small purchase for me since my capital is currently a bit constrained. I’m very excited to now own a slightly larger piece of the world’s largest net lease real estate investment trust, at what I consider a rather attractive price point. With a P/AFFO ratio of 15.44 and a yield of 7.53%, this should serve as a strong value investment and provide bountiful monthly dividend income for years to come.

The current market value of the Fund stands at $160,634.85. This is an increase of 2.84% over last month’s published value of $156,195.12. I’m rather happy with this kind of performance, and the broader stock market’s continued advancement no doubt helped. However, the value investor in me does worry when you see the charts pointing north month after month. But all I can do is continue to allocate fresh capital as intelligently as I possibly can, while I combine it with reinvested dividend income along the way.

Looking forward, I still see some selective opportunities which I hope to review very soon. Specifically, I still see some pockets of value in certain blue chip tech companies and a few companies in finance, including insurance and banking. In addition, while the U.S. stock market has been on a tear, this isn’t necessarily the case around the rest of the world.

I’m currently invested in 46 companies. This is unchanged since last month, since my only stock purchase was an addition to an existing position. As I continue to near 50 positions, I remain selective about taking on new investments.

These updates are mainly designed to show the increase or decrease in the value of the underlying equities I’m invested in, but the main purpose of investing in dividend growth stocks is for the rising stream of dividends over time. So with that said I don’t put too much emphasis on these monthly updates on the value of my portfolio. I think it is a good idea, however, to keep track of the rising (or falling) value of one’s securities and be aware of where they are in terms of the marketplace and whether or not certain stocks are attractively priced. It proves to be a useful exercise, for me at least, to update the values monthly. It gives me fresh perspective on which equities are performing well and which aren’t, and from there I can make educated decisions (based on further due diligence) on which stocks I’d like to add fresh capital to (while considering portfolio weight as well).

Full Disclosure: Long ARCP

How was April for you? Is your portfolio reaching new heights?Β 

Thanks for reading.

Photo Credit:Β Stuart Miles/FreeDigitalPhotos.net

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79 Comments

  1. Nice raise in your freedom fund! These boring months must be wonderful to a guy with your strategy. Keep going!

  2. Great work Jason! I hadn’t paid attention to your balance in a while, but I’m glad to see it is still marching higher. I’m also looking forward to your big news…..in June, right?

    April was good for my portfolio. A few of my purchases in February and March really bore fruit. I only made one value investment purchase last month, but I have a few more planned for this month. Have a great weekend!
    -Bryan

  3. DM,

    Great looking month! I initiated a position in ARCP shortly after reading your article. My IBM, DLR, TGT, BP and now ARCP purchases have come directly after reading your stock analyses. I came really close to buying some TIS, but it was just a wee bit out of my comfort zone. Your hard work and thorough research efforts are definitely appreciated. Thanks for all you do in this blog.

    MDP

  4. DM,
    Approaching 50 stocks and 200k. Nice. Last month I was having trouble finding stocks I wanted to buy. I missed a dip or two on some stocks as well. Still dripping, but need to pick up some other purchases. I keep waiting for that big dip that isn’t coming πŸ™‚
    -RBD

  5. Thanks for all the helpful topics, Jason. Great job accumulating high quality stocks.

    And thanks to you and DGI, I added 2 REITs to my portfolio this month, ARCP and O. πŸ™‚

  6. Hi! Thanks for a good blog and congratulation to another great month! I wonder if your coworkers are ever talking to you about this project (sometimes you also dicsuss job related issues)? Do they follow your blog?

  7. Nice monthly gain DM! Your portfolio is growly quite nicely. Our family also initiate a small position in ARCP this past month as we found it to be fairly priced. The growth potential and YOC was really hard to ignore.

  8. Hey Jason, great month as always. Keep it going! I’ve been super busy so haven’t managed to update the blog for the last 2 weeks but will do later this weekend, things ticking along great. Keeping an eye on AIG, reports next week.

  9. You’re making solid progress. Slow and steady wins the race, as they say, except you’re making more than slow progress =). The two century mark seems right around the corner, but of course that’s not as important as the dividend income progress.

    I don’t know if it’s just me, but I get the impression that you’re progress is accelerating. You’ll get from 100K to 200K faster than from 0K to 100K. That first 100K is certainly the hardest!

    As always, keep on trucking!

  10. Great work! Your discipline, consistency, and progress are inspiring. April was a good month as I finally “got it” about DGI. The shift in mindset was more valuable than the value of my portfolio. But, the value of that should rise as I shift capital aligned to this new philosophy. Your blog was one of those that catalyzed the new mindset; so, I am very grateful. I look forward to following you and continuing my education.

  11. Great work! Maybe it would be interesting to create a spreadsheet of historical dividends for each of your holdings? It might make it clearer how you’re progressing on your most important factor, the income!

    Plus, then you can make fancy charts with it in excel which just excites the inner nerd in me.

    I’ve also had a strong month as well, but I like the idea of consistently investing and picking out good values at the time. Remember when we thought the Dow was expensive at 12,000 in summer 2012?

    I’d like to be a bit more liquid so I’m holding off on investing outside my regular 15% contributions to my 401k. I think when I am able to not even think about whether I’ll have enough cash on hand to pay for a big car repair, condo repair, and job loss, and survive for a few months. Maybe I’m just a worrier by nature, but think I’d take the opportunity cost on a $20k cash fund over running a “tight” ship.

    Any thoughts on increasing the risk in your overall portfolio? I noticed that of late you started picking up somewhat riskier names such as TIS and a little more real estate holdings.

  12. Trader,

    Thanks!

    And I definitely enjoy my boring months. They say successful investing is a lot like watching paint dry. I tend to agree with that! πŸ™‚

    Hope all is well with your portfolio as well.

    Best regards.

  13. Bryan,

    Thanks, man. Marching along steadily now. A little nervous to see the Fund reach new heights so fast, but I just continue to stick to the plan.

    And big news is indeed coming very soon. I’ll be announcing some big changes in the next few weeks. I’m really excited because I think these changes will allow me to possibly reach FI even sooner, while also spending even more time with many of the people I love in life. But there are benefits and drawbacks to anything in life, and some of these changes are no different.

    Glad to hear you had a wonderful April as well. It was a fantastic month in terms of dividend raises, that’s for sure. Keep up the great work!

    Best wishes.

  14. My Dividend Pipeline,

    Thanks for following along. And that means a lot to me that you appreciate my analyses and follow in kind. I put my money where my mouth is, so obviously I believe in what I’m writing. It’s really fantastic to me that other people find value in that. So thank you! πŸ™‚

    And you’re really doing great over there. You had an amazing April with serious dividend income and investments. I think you invested as much in April as I’ve invested all year. πŸ™‚

    And I’d comment over at your site, but it doesn’t allow a url signature.

    Keep it up!

    Cheers.

  15. RBD,

    Thanks so much. The snowball is taking on a life of its own. Which is just the way I want it. πŸ™‚

    And I hear you on the lack of value. If I’m mentioning tech stocks you know I’m scraping the bottom of the barrel. But it is what it is. I don’t think stocks in general are obscenely priced, but at the same time I’m not seeing any values that get me ultra excited. I think ARCP makes sense here, and their portfolio of properties is just insane. However, I’m not buying anything with both barrels right now.

    And I’m quite sure we’ll see a major dip. The question is when.

    Take care!

  16. KeithX,

    Nice job with the REITs there. I think if I were to buy only two REITs, those two would be tough to pass up. O is about as blue chip as they come, in my opinion.

    Thanks for stopping by!

    Best wishes.

  17. A,

    Thanks for the support! Much appreciated.

    And I’m not sure if my co-workers ever stop by the blog. Many are aware of what I’m doing and that I blog about it. But I’m quite sure they have better things to do in their free time than check up on me. And it very rarely comes up at work at all. We stay quite busy running around most of the day at the dealership, so maybe the lack of down time is a reason it doesn’t get brought up often. Of course, I’m always more than happy to assist others.

    Stay in touch!

    Best regards.

  18. Investing Pursuits,

    $200k. Wouldn’t that be something? To be honest, I’m still amazed I’m sitting over $100k. For a kid from a rough part of Detroit, that’s a lot of money. I’m just really blessed to be able to work hard, save, invest, and inspire others. And I never forget that.

    Hope all is well with your journey as well!

    Take care.

  19. Dina,

    Thanks so much! It was another solid month. However, the big numbers come at the expense of pricey stocks. All we can do is stay focused on the long term. πŸ™‚

    Thanks for stopping by!

    Cheers.

  20. AFFJ,

    Nice job there with ARCP! Glad to have you as a fellow shareholder. And I agree that the value and potential is hard to ignore. Of course, that yield sure makes the risk easy to swallow as well. πŸ™‚

    Appreciate you stopping by. And congrats on getting that mortgage balance down.

    Take care.

  21. Tales,

    I hear you on being busy, my friend. I’m the king of busy. But I know it won’t always be this way, so I’m chugging along. πŸ™‚

    Looking forward to an update! Thanks for the support.

    Cheers.

  22. Spoonman,

    The march from $0 to $100k was indeed a long road. And going from $100k to where I’m at now happened quite fast. Solid dividend income has definitely helped propel the snowball further down the hill. I’m grateful for that!

    But like you mention, it’s the dividend income that counts the most. And I know you’re killing it there. Keep it up!!

    Best wishes.

  23. Greg,

    Thanks so much for the kind words. I’m glad you found some of the inspiration behind your epiphany here. That’s incredible. And congrats on having your eyes opened up a bit to a really powerful strategy. The tangible and rising nature of dividends really helps one become more and more successful. It definitely helps with the psychology of investing, especially when the market eventually corrects. Receiving rising income even while Mr. Market’s mood sours sure makes riding out the storm a bit easier.

    I wish you nothing but success. And I hope you continue to stay in touch! πŸ™‚

    Best regards.

  24. Looking good DM! I know you didn’t invest $160,000 of your own money, so the plan is obviously working. Here’s to a prosperous 2014 and beyond! Cheers!

  25. Ravi,

    Yeah, that spreadsheet idea is a good idea. I’ve always tried to keep the charts and graphs away from the site to keep things clean and easy to understand, and also to focus on the raw numbers. Whiz-bang charts look awesome, but sometimes it’s information overload. At least for me. But I should look into something like that!

    And I do remember back when the DOW crossed 12,000. I remember thinking how crazy that was. Now I WISH we could see that level again. Funny how times change, huh?

    As far as risk goes, perhaps that’s just me recognizing where the values still are. For the most part, the shift to equities has long taken place as people have sought out income in a world where the Fed has made it difficult to acquire. So you see the low-hanging fruit no longer hanging so low (PG, KO, PEP, GIS, etc.). So I guess I’ve climbed a bit higher up the tree. However, I think the risk isn’t really as high as it seems. TIS is going to make a lot of money over the long haul. They sell a product that is recession-proof to a market that will continue to buy, buy, buy. It would take a mammoth failure of epic human proportions to screw that company up. And ARCP has this massive real estate portfolio. They are the largest in the world at what they do. And when you look at the rest of my portfolio, you see a lot of the 800 lb. gorillas in other industries: WMT, KO, JNJ, etc. When the low-hanging fruit hangs low again I’ll be right back to snatching it up by the bushel (depending on capital availability).

    Best wishes!

  26. CI,

    Thanks, bud. And you’re doing fantastic over there as well!

    And I’m quite sure with the base we’re coming off of that 2014 is going to be a wonderful year. I’ve had a tough go of it in terms of expenses thus far, but the dividend income is rolling, and the raises are coming fast and furious. πŸ™‚

    Best wishes!

  27. Nice update DM. I like reading your monthly updates. It’s a nice reminder to focused on the long-term play. My problem (if you want to call it that) is that I still love making money from capital gains just as much as dividend income. So I’m always attracted to low/speculative stocks. I guess it somewhat limits the effectiveness of my dividend machine. However, at the end of the day money is money.

  28. Awesome job DM! I too added to ARCP. I had been pondering it for a while and my allocations allowed me another REIT purchase.

    Great to see you portfolio is moving up happily!

  29. “Plus, then you can make fancy charts with it in excel”
    +1

    Fancy charts can capture some of those results in a single image.
    If I didn’t have a full time job already I would love to program an app for dividend growth investors. It’s cool to develop your own spreadsheets, but if you think about what Personal Capital has done for the smaller investor, think what the potential could be for a great dividend growth app.

    Linking in information about your portfolio with, the ccc list, with historical dividend data, with forward projections, with backward and forward graphs on your income, comparisons against the s&p, analysis between reinvested dividends and not reinvested, diversification graphs by sector or by market cap, by yield, yield on cost, dividend growth,… Perhaps even some of that FAST graphs goodness. Man, this thing could be sweet :). Sigfig is not a bad start, but could use a bit more love for dividend analysis.

    DM, great month indeed in terms of dividend increases. Half of my holdings have increased their dividend so far this year! Such a great thing to see that happen! I’ve almost finished my first full year as a dividend growth investor and I have learnt a lot from you and your blog. So a big thank you!
    The other half of my holdings seem to raise their dividend around August/September (based on their historical increases). This made me think about the ‘go away in May’ from a dividend point of view — after May there are seemingly a lot less dividend increases. I don’t plan on selling anything, quite the opposite, but I found it a curious thought.

  30. Sunny,

    Thanks! Glad you dig these monthly updates. πŸ™‚

    And nothing wrong with capital gains if you can play the game correctly. I personally cannot, and would rather stick to a more sure thing in collecting rising passive dividend income. But to each their own. More power to you! πŸ™‚

    And you’re right: Money is money. It’s all good!

    Cheers.

  31. ILG,

    It looks like ARCP was popular this month. I’m glad to see I’m on the same page as many other investors. Great minds think alike! πŸ™‚

    Congrats on receiving almost $250 in dividend income this past month. That’s phenomenal. You had almost as much dividend income as I did. Keep it up!!

    Best regards.

  32. AlphaTarget,

    It’s been a wonderful start to the year in terms of dividend raises, that’s for sure. And it looks like you’re going to have a really exciting fall as well. Apple cider, donuts, and dividend raises. Sounds like the trifecta! πŸ™‚

    And that’s an interesting point about dividend increases coming after May. I’ve honestly never thought about it. However, I certainly have always hoped for the ‘sell in May’ theory to hold true because it allows us to reinvest dividend income back into cheaper stocks. We’ll see what we get this year.

    Cheers!

  33. First, “freedom from a job I don’t desire to purchase goods I don’t need to impress neighbors I don’t care about.” is classic! I should make it my bumper sticker. Second, I have noticed many online blogs hold ARCP in their portfolio. While I like the yield I just can’t get excited about commercial, retail and office real estate for the long term. I have my reasons… too much to type here. I just see that whole industry shrinking. I’m not against REITS as I happen to like healthcare REITS and to a lesser extent storage REITS. Just my 2 cents.

  34. Mantra, you kick rear ends. Here is my favorite quote!! ‘We buy things we don’t need with money we don’t have to impress people we don’t like.

  35. RE: Your TIS purchase. Buffett famously said he likes to buy companies that even an idiot could run (me, paraphrasing), because eventually an idiot *will* run it. I would say toilet paper is a good place for such an investment. Cheers

  36. Solid progress Jason! I am amazed how fast you are accelerating and set quite a benchmark.

    My portfolio made some enhancement of about $5K, some due to new purchases as I mentioned in my blog.

    Keep it up!

  37. IΒ΄m just beginning to build my (American stocks) portfolio. Regarding REITs, whatΒ΄s your opinion on them? Fantastic dividend yield, but is there something fishy in them? IΒ΄m considering HCP, but it seems there are lots of other options as well, like OHI which you have.
    Furthermore, why have you purchased KMI and not KMP?
    Thanks!

  38. Great update Dividend Mantra!

    You are moving right along much faster these days then the first $100K for sure. Either way even if we get a big selloff your income and overall goal of receiving more in the form of dividends will continue to hold true for the foreseeable future.

  39. DivHut,

    Haha. That would make a really good bumper sticker, wouldn’t it? πŸ™‚

    I hear you on REITs. I don’t plan on having a lot of exposure to them – maybe 5-7% of my overall portfolio over the long haul. However, I think real estate is always going to have value, even if the purpose changes over time. But I hear you.

    And I know I’m going to invest in some duds over time. That’s why I try to maintain the broad diversification I have. Not every investment is going to pan out, and that’s perfectly okay as long as we are still able to reach our long-term goals.

    Best regards!

  40. Mark,

    Thanks so much. I’ve had incredible success in the last four years, and no doubt the support here has helped immensely.

    And you’re doing fantastic over there as well. πŸ™‚

    Cheers!

  41. Cliff,

    Thanks! I’m definitely giving this journey everything I’ve got!

    And the rat race is full of tired victims trying to keep up by buying things they don’t need to impress people that they really don’t care about. It’s a shame, but to each their own. We all must live our life the best way we know how. I simply try to provide inspiration for those that seek a different way. I happen to find a lot of joy in a simpler life. Just being alive is something to treasure.

    Take care!

  42. Bruce D.,

    I remember that quote very well. And I try to keep it in mind anytime I’m investing capital with a company. I’ve certainly made investments over the years that are much more complicated, but, overall, I try to invest in easily understood businesses. If you can’t explain it to me in five minutes or a couple of paragraphs in an annual report then I’m probably lost. If management can’t explain what they’re doing then we’re all in trouble, I say.

    Best regards!

  43. PIM,

    Thanks so much. I’ve been really blessed to be in this position where I’m able to save and invest regularly. I’ve worked incredibly hard, and the fruits of my labor are now starting to show. But that’s what’s so great about this investment strategy. The results are tangible and easy to see.

    And congrats to you on an incredible month. $5k in one month is phenomenal. That’s more than what the majority of people earn in an entire month, and you just increased your portfolio value by that much. Keep it up! πŸ™‚

    Cheers.

  44. Ville,

    REITs are simply a way to gain exposure to real estate without having to go out and buy property yourself. You’re able to buy into a trust that buys properties for specific purposes and collects income from those properties. And by investing in REITs you’re also able to gain broad diversification across a number of properties, instead of just one or two you might be able to go out and get on your own. In exchange for this, you’re likely to give up some returns as you might be able to see better returns on properties you go buy and manage yourself. As I’ve stated many times, I’m perfectly okay with this. With REITs you typically see a higher yield, but lower growth. There’s just not the same kind of growth in owning and managing property as there is in, say, selling food or oil across the globe. As such, I plan to keep my exposure to REITs to around 5-7% of my portfolio. They give the current dividend income a nice boost, but with the downside of lower growth in that income.

    As far as KMI over KMP, I invest in KMI because it should see much faster growth in income due to the IDR (Incentive Distribution Rights), which ensures that it will receive a growing share of the cash flow the underlying partnerships are able to generate. Furthermore, you have exposure to KMP through KMI because KMI owns limited partner units (around 11% last I looked).

    I hope that helps!

    Cheers.

  45. SWAN,

    Thanks! And congrats to you on your $150 in dividend income for April. That’s $150 you didn’t have to work for, and can further reinvest to keep the snowball moving along. πŸ™‚

    And the second $100k is definitely coming faster. Of course, a larger base ensures this because more income speeds the compounding process along. And that’s really what we’re all after. A falling market will actually only allow my dividend income growth to accelerate because cheaper shares provide higher yield. That’s one thing that’s really fantastic about this strategy. How many people actually look forward to a bear market?

    Keep up the great work!

    Best wishes.

  46. I love certain REITS. I like healthcare and storage but prefer healthcare. HCP, VTR, NHI, OHI, LTC. I’m looking at the 2 big ones, HCP and VTR. I think these will be great longer term plays on the graying of America.

  47. Do you think this is a good time to re-invest dividends or should we take something out for living expenses? I am not fully invested at this time because the market has been so high….waiting for the drop when it comes. What is your opinion I am somewhat retired…small earned income, but this does not meet my monthly needs. I will be using cash on hand until my house sells (about a year from now.)

  48. Dodie,

    I think it’s always a good time to reinvest dividends in selective, attractively priced equities that will generate rising income for you. I neither practice nor preach market timing.

    However, that being said if you need the money to live off of then absolutely take it and use it to support yourself. I would never recommend investing if you have no excess capital left over. I one day hope to live off of my dividend income as well, and the whole point of accumulating assets is to eventually use them to cash flow your life. Don’t be afraid to cash flow your life.

    Best wishes!

  49. Hi DM!

    I just found your site a few days ago and I am very impressed with your attitude and progress. So many things you say here I think ‘Man – I could have said that, or I say that all the time!’.

    I have lots of questions, but rather than blast them all at once I will just go with this..
    Walmart (WMT) has only raised the dividend 2% this year. And last year they had their first declining earnings quarter (ever?). I see WMT in your portfolio. I have not dug through all the blogs and posts you may have made related to WMT, so let me just ask – Why is WMT still in your portfolio? Maybe you have a ‘You are on shaky ground’ status for your holdings that is just not part of the published portfolio.

    Anyway, I saw you dumped INTC after no dividend growth in two steps, so it appears you do keep your eye on the ‘growth’ part of your holdings.

    Keep up the great work! I have shown this site to two of my family members who (I feel) could benefit from a more frugal lifestyle.

    All the Best
    Ray

  50. Ray,

    Thanks so much! I appreciate the support and you spreading the message to your family members. I hope they stop by and find some value in what I’m writing about. πŸ™‚

    As far as WMT goes, I’m not willing to sell over a rough year. They still gave us a raise, albeit rather small. But a raise is a raise, and it shows that they still value shareholders and the commitment they’ve made to the dividend. The business model is easy to understand, the financials still look fine, and I see nothing that is particularly concerning. Another really small raise, on the other hand, will give me some serious pause. But as long as the valuation remains sound and they’re raising that dividend I’m likely to continue holding. WMT has treated me very well as an investment and I enjoy shopping there.

    Please stay in touch!

    Best wishes.

  51. DM!

    Thanks for the update and congrats on another fine month of progress! Keep it going! I’m excited to hear your thoughts on opportunities that are out there.

  52. Hi DM,

    Congratulations on another successful month!

    I just love dull and boring months. There’s an underrated beauty in consistent performance increases. Just like adding adding 1.5kg to your Back Squat each week or running an additional 2 miles every week. Theses small improvements multiplied by time produce some outstanding results…… and long may they continue! πŸ™‚

    Thanks again for keeping us all updated and bring on that $200k mark!

    Cheers
    Huw

  53. Hello Dividend Mantra,

    I have been reading your blog since March. I like your approach to your freedom plan. I am from Hong Kong and has some dividend stocks for about 5 years. For the last two years, I didn’t do any to improve this income. They maintain pretty much the same. After I read your blog, I have bought 3 stocks to improve the dividend income so far. After April’s payroll, I have deposited some money to my securities account for next move. My full-time job doesn’t allow me to check out the stock market and I can only do it on Monday as this is my day off.

    Thank you for this inspiring blog!

    Mildred

  54. Ryan,

    I appreciate the support! Looks like everything is well with your portfolio too! πŸ™‚

    I’m excited to go over some potential opportunities. Certainly tough to spot right now, but I don’t think it’s impossible.

    Cheers.

  55. Huw,

    Dull and boring is music to my ears. πŸ™‚

    Little bits of progress definitely add up over time and start to compound nicely. Consistency is a key aspect to this strategy, in my view.

    And congrats on your success so early in your journey. You’re doing great!

    Take care.

  56. Mildred,

    Thanks for stopping by all the way from Hong Kong. I definitely appreciate your readership. πŸ™‚

    Glad to hear you’ve made some changes to improve your situation. Little steps go a long way, trust me.

    I hope you stay in touch. And best of luck moving forward!

    Best wishes.

  57. Hi Dividend Mantra,

    Nice work. 2.84% return last month sounds really great. I have been investing in the growth area but started shifting my investment pattern into value and dividend stocks as I am planning my retirement.

    I have already owned some dividend stocks like AT&T, Altria Group, Coca Cola, AbbVie, etc. and am waiting for a market pullback before I add some dividend stocks to my portfolio. I am planning to add Vodafone (VOD), OneBeacon (OB), Total (TOT), Old Republic International (ORI), etc. to my portfolio.

  58. ORI and TOT are on my watch list too. It is certainly a challenge finding picks these days as PE’s are so high.

  59. Since I’ve started with my investmentadventure, I’m also enjoying the monthly growth and pay-outs. But I have to say, I’m still finding it quite hard to “ignore the noise”, as Jason Zweig puts it. Whenever I read something like “Stock poised to triple!” on SeekingAlpha or other discussion platforms, I can’t help clicking and going “Mm… I wonder…”.

    Haven’t made an impulse buy yet though, so I’d like to thing I’m staying strong. Actually, what I DO enjoy doing is taking that suggestion and putting it into my broker’s “shadow portfolio”. I’ve added a few such “hot tips” over the months, and it’s kind of soothing to see that not even 1 suggestion has generated positive income, let alone triple in value.

  60. Hi MT,

    You have to filter all that out. Just stay laser focused on dividend growth investing. I always tell myself not to care if a stock doubles or triples in a few months just focus in increasing my monthly dividend income. That’s it. There is a lot of noise out there to be sure.

  61. Looks like another solid month for you. I’m looking forward to your dividend update for April and I’m sure you had another banner month. I would love to put some more capital to work but the markets just haven’t really cooperated. That’s awesome to see your FF up over $160k. Keep up the good work and keep on motivating.

  62. April has never been a good month for me when it comes to investment income as most of my income goes to paying the taxes. So, investment especially for making money takes a back seat and the investments for saving taxes take the priority seat. Though I didn’t increase my exposure to what I’m already invested in this April, I did some prudent saving though and I’m content with that. But I do learn a lot of finance ways from this blog. Thanks for guiding on the dividend income, which I seriously think should learn from you. Keep up the good work.

  63. I have understood that one of many things you are going to enjoy when reaching FI is to travel. How do you reason about traveling already during your path to your goal? I totally agree with you on avoiding materialistic luxury but what about travels (and I’m not thinking about St. Tropez, rather south east asia or bolivia)?

  64. IWRN,

    I’ve never looked at OB or ORI before. Interesting picks in insurance there. Certainly love that yield, although the dividend growth leaves a little to be desired. I was actually an investor in TOT quite a while ago, but sold due to the lackluster dividend growth.

    I wish you the best of luck with your next buys! Hopefully we get a pullback at some point here. πŸ™‚

    Best wishes.

  65. MT,

    Ignoring the noise is indeed difficult. I try to limit my intake of news in general, and this makes it easy. Less input (news) means less output (activity that I’d be better off without). I don’t have cable television, so maybe it’s easy for me. πŸ™‚

    I’d recommend forming a plan and sticking with it. It’s easy to find yourself off the track when you don’t have a track to speak of. For me, I’ve had incredible focus because I know exactly what I want, and I’ve mapped out a track to get there.

    Cheers!

  66. JC,

    Thanks for the ongoing support! Much appreciated.

    And I hear you on markets not cooperating. In a way I’m glad the markets are so high right now because I don’t have a lot of capital to invest anyway. However, when capital becomes a bit more plentiful for me I hope we have some cheaper stocks! πŸ™‚

    Keep up the great work on your end, too.

    Best wishes.

  67. Fionna Merciollis,

    Sorry to hear April is a bit rough for you. I feel your pain in regards to taxes, as I had a rough tax season myself. I’m now paying quarterly estimated taxes this year to lessen the pain in 2015. πŸ™‚

    And I’m glad you’ve found some value in the blog. I’m here to inspire, educate, entertain, and learn. And I try to make this a place where we can all pull up a chair and chat. I learn as much from readers as they do me, so the benefits are indeed mutual!

    Please stay in touch.

    Take care.

  68. K,

    That’s a great question there.

    The reason I haven’t traveled yet is actually quite simple. I live 1,200 miles away from family, as I moved away from Michigan to Florida back in 2009. As such, the limited vacation time I get every year (two weeks!) is used to fly home to Michigan and see family. I’m contemplating moving back so that I can see family much more, and if I were to move back I’d have more time to explore.

    I’m definitely interested in SE Asia and parts of South America. I don’t know if it’s in my near future, but certainly some time in the next few years.

    However, even with more time to travel there are still costs. And the biggest cost to traveling to somewhere far away is airfare. Due to this, my plan would be to eventually live in another country for at least six months to mitigate this cost. And that’s why traveling to SE Asia isn’t in my immediate future. But I definitely want to explore the region at some point as a potential early retirement location. We’ll see! πŸ™‚

    Thanks for asking that.

    Best regards.

  69. Thanks for the response. I’ll also try out the quarterly taxes to lessen the burdenof payment at a time. Good advice again and I’m really becoming your fan. πŸ™‚

  70. You’re defying generally accepted investing practices by not having a good chunk of bonds in your portfolio. If you had started your Freedom Fund in January 2008, it’s value would have really plummeted over the next year or so starting in October 2008. Do you think you have the stomach to stick with your when the next market tank comes, as it invariably will? Having bonds in your portfolio is certainly not a perfect solution either, but historically they might insulate the Freedom Fund from a tank than dividends alone would. I love what you are doing with the Freedom Fund, but I’m worried that it hasn’t truly been tested by the live fire of the stock market if it was started after October 2008.

  71. Chris,

    Thanks for adding that! Great comment there.

    I am defying generally accepted investing practices, and I plan to continue doing so. I believe bonds are overrated for an intelligent investor, and I would never recommend someone buy an asset that is likely going to provide subpar returns going forward simply to meet some kind of asset allocation model. Furthermore, Social Security is the ultimate form of fixed income, and that’s something I’ll access in my later years.

    However, if bonds become much more attractive (after rising rates) I wouldn’t be opposed to holding them.

    We’ll see how I do. If a major market crash occurs in the next few years you’ll get to stop by here and see exactly what happens when someone holds almost 100% equities (other than cash on hand for spending and emergencies). πŸ™‚

    Cheers.

  72. I am 57, and my wife and I have never owned bonds. At today’s low interest rates, it makes little sense to invest in bonds. I will admit that we should have bought bonds when long term treasuries yielded 15%, and a friend of mine bought a condo in Hawaii after doing just that back in the ’80s (he and his wife made huge capital gains when yields dropped and prices soared). If bond yields get back above 5 or 6%, then it might be time to look at them.

  73. KeithX,

    Thanks for adding that. Couldn’t agree more.

    To invest in an asset class simply because it meets the qualification of some predetermined allocation model seems silly and simpleminded to me. I invest in 100% stocks, so how well that serves me will be well documented here.

    As far as bonds when they were yielding that high, inflation was quite high as well back then. However, I remember Treasuries coming up quite a bit in “Your Money or Your Life”, which was the recommended investment in that book because the yields were so attractive back then.

    Best wishes!

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