Freedom Fund Update – May 2015

piggyfundWell, the time has come to update the Freedom Fund 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, the dividend income this portfolio generates will fully cover my expenses and my time will be completely my own. What could you possibly want to own more than your time?

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It’s important to keep in mind that while updating the overall value of my portfolio is important for historical reference and for purposes of keeping track of total return, my main focus is on the rising dividend income stream the Fund provides.

What a month it’s been!

I’ve been busy on the investment side, even while getting married and attending the 2015 Berkshire Hathaway Inc. (BRK.B) annual shareholder meeting. The meeting is the culprit behind me getting this update published so late in the month. Blame Buffett!

I started the month of April off lightly – initiating a very small position in Apple Inc. (AAPL) with some accumulated dividend income and by use of a free trade in my Scottrade account. Just after my purchase, AAPL announced a blockbuster second quarter and a 10.6% dividend increase. I’m currently thinking of increasing my rather small stake here.

But it didn’t stop there. I quickly followed that up by buying shares in W.P. Carey Inc. (WPC), which is also a new position for the Fund. I found the yield, quality, and valuation all compelling across the board. It’s quite tough to find a stock yielding near 6% with a dividend growth rate over 7%. That kind of combination is exceedingly rare, especially across high-quality stocks. I loved that purchase so much that I decided to add to my stake already in early May after the stock took a slight dip.

I finished April off with the initiation of a position in another blue-chip tech firm, Microsoft Corporation (MSFT). MSFT also reported great results just after my purchase, shooting the stock up some 15% shortly after I purchased. I was hoping to quickly add to this stock, but it zoomed past what I’m comfortable paying.

You’ll notice I stayed pretty true to my watch list for last month, which is typically how I operate. I like to find a small basket of stocks in my wheelhouse and pull the trigger opportunistically.

The current market value of the Freedom Fund stands at $196,596.75, which is an increase of 4.1% since last month’s published value of $188,845.55. Overall, the portfolio performed well. I had opportunities where I wanted them, while positions Philip Morris International Inc. (PM), National Oilwell Varco, Inc. (NOV), and Microsoft all had particularly strong runs over the last 30 days or so.

FFUpdateMay2015

I couldn’t be happier with the performance here. The Fund is performing as expected while I continue to pick my spots in the broader market. I stillΒ see value, as I recently pointed out when I released my watch list for the month of May. In addition, REITs continue to slide, which could offer additional opportunities for capital deployment over the coming weeks. It’s crazy as I sit here nearing $200,000. I started out with $5,000 in early 2010 with nothing but a dream of changing my life around. And a dream it has been.

I’ve already started putting capital to work this month with the aforementioned purchase of additional shares in WPC. I expect to be able to make at least one more purchase over the course of the month, with perhaps a third purchase possibly in the cards as well. I see no reason to take my foot off the pedal, so I won’t. Financial independence won’t materialize for me out of thin air. That mountain won’t climb itself. And that’s why I continue to aggressively save and invest every single month.

The Fund now has positions in 56 companies. This is an increase since last month since the three purchases in April were all new positions.

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. Thus, I don’t put too much emphasis on these monthly updates. 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 find it a helpful exercise 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 AAPL, WPC, MSFT, PM, and NOV.

Did you have a great month of April? Your portfolio performing as expected?Β 

Thanks for reading.

Photo Credit: BimXD/FreeDigitalPhotos.net

Note: Affiliate link included.

Edit: Corrected spelling mistake.Β 

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118 Comments

  1. Good to see your portfolio start to snowball by itself ! Must be a pretty cool feeling knowing that if you somehow decided not to touch it that it will keep growing by itself!

  2. How many positions do you think is “enough”? Do you have a number in mind? Or will you keep spreading your capital across new stocks?

    April was a normal month for me, but May will me much better as it is a 3 paycheck month πŸ™‚

  3. Almost hitting the 200k! congratulations jason.

    i’am watching the omega healthcare ivestors, but cant find anything about their divident payouts?
    did they change to montly payout?

    Greets from holland!

  4. Congratulations with all the great work and dedication of keeping to your plans the last 5 years! It’s not easy to do as an investor but having a stringent plan to follow is detrimental to find financial independence. Keeping emotions at bay is a must. I was wondering though, if I’m correct you don’t hold any kind of IRA? Your accounts are taxable brokerage accounts, correct? If so, don’t you think it would be beneficial tax wise to hold those REITS in an IRA?

  5. That’s really exciting Jason just 4 to 5 short years and you’re nearing the 200k mark. Congrats on being diligent and pushing forward, I hope your book is the first of many and will help the freedom fund roar higher and higher.

  6. So close to $200,000!

    I’m not sure if you post it or not, but I’d be curious on what your weighted average yield is on your entire portfolio.

    I received my first dividends last month of ~$25! I’m a few years out of college so It’s nice to finally generate some passive income while also paying down student loans.

    Take care!

  7. You’re so close to $200,00! Do you have a number in mind about the total number of companies you want to be invested in? 56 is quite a lot of companies to keep track of, does it take a lot of your time? It’s amazing how far you have come in a relatively short time, it really is inspiring πŸ™‚

  8. 5k to 200k in 5 years. That’s beyond awesome! I’d be happy to achieve even half that kind of growth in the same time frame!

    Thanks again for having shared your journey with us and inspiring many of us, myself included, to get started on the road to FI.

    You’re a beast Jason! πŸ˜€

    Cheers

  9. Congrats Jason always love reading your updates. Keeps me motivated to add shares when I can to my own meager fund!

    Ryan V

  10. Very nice gain! Just staying the course and reinvesting and adding a bit of capital will get you annual increases of 40k+ per year. More importantly, organic growth + reinvesting will add probably 7% or more each year in the income figures.

    For 2015, it looks like 5k in forward dividends by year end is within reach. I won’t stretch by getting into stocks which aren’t good values, which is certainly the hardest part of it all. I’m at ~4.3k in fwd div today, so still quite some distance to go.

    Looking forward to seeing you reach your 7k income target for 2015! If it were easy, everyone would do it!

  11. Slow and steady wins the race! Roughly $8000 in gains in one month.. thats more than i get paid by my employer in 2.5 months combined! pretty crazy how much the portfolio can fluctuate month to month

    Keep up the great work!

  12. Congrats on the growth! So now that you are married will that affect the freedom fund? Will you strive for more to cover the both of you? or are you finances separate? Just curious if marriage will change anything for you πŸ™‚

  13. glad you had a pleasent time in omaha. great to follow up on the freedom fund. finished your book, great job. as always….inspiring as a whole. keep up the great work.

    april i made my first dividend, a meager $72. so far for may i made $47, but i am investing each month. again, this is my seed year, so i dont expect much. it will be fun to start the new year and watch the progress, cant wait for 2016.

  14. I’v been wondering the same thing, it seems like they split their latest payout between two months. OHI is on my watchlist but I have been hesitant to pull the trigger considering recent changes in dividend payouts.

  15. CG,

    It’s really wonderful. I’m basically guaranteed financial independence at this stage, though I’m still pushing quite aggressively and enthusiastically so as to get there as soon as possible πŸ™‚

    Cheers!

  16. Hi DM

    Wow, you’ll probably see it hits the milestone of $200k either this month or next month, if market allows. But I’m pretty sure those are numbers you don’t mind a bit dropping, as long as the cashflow you are getting keep increasing.

  17. FF,

    That’s a good question. I don’t really have a specific number in mind. It’ll depend a lot on when I feel like I’ve spread myself across all the businesses I’d like to. There’s really no difference for me in terms of managing 70 stocks or 80 stocks… so I probably won’t artificially limit myself somehow. We’ll see where it lands. I kind of doubt I’ll exceed 100 because I just don’t know if there’s that many high-quality businesses I’d like to invest in, but you never know.

    Nice! I used to love those months with the extra paycheck. A little extra capital here and there goes a long way over the long haul. πŸ™‚

    Best regards.

  18. jeffrey,

    Thanks for stopping by from Holland. Much appreciated!

    Yeah, the portfolio is growing into a monster. $200k is near. I’d prefer the value drop so as to offer better opportunities for fresh capital, though only if that didn’t come at the expense of fundamentals and quality. I wish for too much sometimes. πŸ™‚

    OHI hasn’t changed their dividend payout, but they did prorate a recent dividend because of an acquisition:

    http://www.omegahealthcare.com/Mobile/file.aspx?IID=103065&FID=28241140

    Take care!

  19. RF,

    Thanks so much. It sometimes feels like it’s been a long road to this point, but in all honesty it’s flown by. Time is gone before we know it, which is why it’s so important to take ownership of said time. And also why it’s important to take control of your finances. Before you know it, you’re in a spot you don’t want to be in.

    Appreciate the support very much. I hope the book does well as that means it’s reaching more eyeballs and potentially positively affecting more people. We’ll see. πŸ™‚

    Hope you had a great April as well!

    Best wishes!

  20. Jason,

    4.1% increase on that amount is huge, even though it is just protecting the value of your dollars. I like the increase in WPC and the new positions. The growth in priced value of the account is starting to show why DGI investing is so good; that along with dividends you have quality companies increasing your bottom line and showing you why they are quality companies. No worrying about will the market ride your company up the ladder, like an FB or TSLA. That an the market is being very kind of late to your positions.

    I bet the dividends are excellent,
    Gremlin

  21. RTR,

    Congrats on your first dividends. The first of many, I’m sure! πŸ™‚

    The average yield of the portfolio was about 3.45% last I looked. It has generally oscillated the 3.5% mark for most of the last five years. I may end up trying to increase that down the stretch a bit, but I won’t sacrifice quality to do so. Overall, that’s a pretty good number.

    Thanks for stopping by.

    Cheers!

  22. Tyler,

    It’ll be fun to cross that $200k mark, though it might possibly come at the expense of opportunities for fresh capital. We’ll see. I still see value out there right now, so I’m happy. πŸ™‚

    Thanks for all the support. If the market doesn’t drop substantially, then it’s likely that I’ll cross that mark by July.

    Best wishes.

  23. Nicola,

    That’s a good question. I answered it above, but I don’t really have a specific number in mind. I don’t think investors should just come up with an arbitrary number and then steadfastly stick by it. I don’t see a reason. For me, it’s no more difficult or time consuming to manage, say, 30 companies or 50 companies. I can say that from experience. As such, I don’t see why it’ll make much a difference between 50 and 80. I really can’t see crossing the 100 mark only because I don’t know if there’s that many more high-quality companies I want to invest in, but you never know. πŸ™‚

    As far as it taking up a lot of my time, it really doesn’t:

    https://www.dividendmantra.com/2014/11/is-managing-a-large-dividend-growth-stock-portfolio-time-consuming/

    Thanks for stopping by. So glad this is inspiring. I do my best when it comes to inspiring/motivating others. And this was all done on a pretty modest income. Almost anyone else living in a first world country should be able to achieve financial independence if they really want it and are willing to do what’s necessary to achieve it.

    Best regards.

  24. ZTZ,

    I’m sure you’ll see similar results. You’re going at it pretty aggressively over there, which is awesome. Even better, however, is that you’re starting way earlier than I did. By the time you’re my age, you’ll be way ahead of where I am. πŸ™‚

    Keep it up!

    Best wishes.

  25. Ravi,

    $5k in forward dividends is fantastic. It wasn’t all that long ago I hit that number myself, so you’re not far behind at all.

    I’m really hoping I can hit my dividend income goal this year. It’ll really depend on how aggressively I’m able to save and invest over the next few months. Once September hits, my capital becomes less effective because of when stocks go ex-dividend and pay dividends. Gotta keep the pedal to them metal over the summer. πŸ™‚

    Cheers.

  26. ADD,

    Yeah, the portfolio can really start to gyrate once it gets to this level. I started noticing the monthly oscillations were larger in terms of dollar figures than monthly contributions maybe about a year or so ago. That’s when you really have to have a strong stomach. πŸ™‚

    You’re doing great over there as well. Keep it up!!

    Take care.

  27. klinel01,

    That’s a good question!

    I did my best to answer it with a post late last year:

    https://www.dividendmantra.com/2014/12/marrying-budgets-when-you-marry/

    It’ll really depend on how much she’s working at that point in time, or how much she wants to work. There’s a chance I may need to cover a few hundred per month for her, but I’m ahead of pace right now for my own goals. And then there’s always the likelihood of active income on my part. I think we’ll be okay.

    Cheers!

  28. grezmOnkey,

    Thanks so much. It was a crazy April. I’m at it 100% right now. πŸ™‚

    $72 for your first month of dividends? That’s pretty outstanding. I’m guessing you have started out of the gate pretty aggressively with a lot of capital. I can’t remember what my first month was, but I know it was nowhere near that. My entire first year was under $300, but I also started late in the year. Nice job! Keep it up. That’ll likely be the start of something truly wonderful. You’ll see.

    Best wishes.

  29. B,

    Exactly. The focus for me is really on the growing dividend income. Cheaper equities means higher yields, which means I’ll achieve my goals faster. Rising stock prices are the enemy of the long-term accumulator, but we do what we can. πŸ™‚

    Thanks for dropping in!

    Cheers.

  30. Gremlin,

    Definitely. I don’t worry about the market prices of any of these stocks. I worry about operating performance. And, generally, speaking the performance there is great as is the prospects when looking out over the long term.

    The dividend income is great thus far this year. Looking forward to posting April’s result. πŸ™‚

    Hope you had a great month over there as well!!

    Take care.

  31. wowwwww Jason,

    Your are almost at another milestone 200,000 USD!!!! what a jump from 5000 USD and only in 5 years. You are really a mentor for all of us and hopefully for all the young people that are starting now and still have 30-40 years before retiring and therefore make a ton of cash!

    With all my respect, I take out my hat for Jason!

    Cheers,

    RA50

  32. It’s amazing how far you’ve come in 5 short years. This shows that anyone can do it if they put their mind to it. We’re a bit short on fund right now, but hope to accumulate and invest more in the second half of 2015.

  33. You’re rolling this snowball faster and faster now Jason. Were all happy for you as you can see with all the love you always get. Slow and steady will win this journey so keep it up. I’m with you on this awesome ride bud. Cheers.

  34. early on you said you would try to put in 1k a month, more or less, Im curious what your out of pocket and dividend ratio is now? are you still 1k and add dividends on top or is the 1k, your dividends and pocket cash to cover remainder? whats your plan when this snowballs at 1k a month, will you still flip 1k on your own?

  35. DE,

    And it begins! πŸ™‚

    You’ll quickly find it addicting, which will likely lead to more dividends and more success. Keep at it!

    Take care.

  36. RA50,

    Thanks so much. Appreciate that!

    I know many have done it faster, but I think this proves that you don’t need to make a lot of money in order to achieve financial success and, eventually, independence. To go from $5k to almost $200k in about five years on a modest income just goes to show the power of living below your means and investing that excess capital intelligently. I always say that if I can do this, anyone can. And I really mean that. πŸ™‚

    Just hope I can continue to inspire and motivate through these real-life results. Doing all I can!

    Best wishes.

  37. Joe,

    Indeed. This shows what’s possible, even with a modest income. With the right mindset and plenty of motivation, anything is possible. πŸ™‚

    You guys are doing great over there. I’m sure taking a break won’t even really matter at this point. Great job once again on the online income in April!

    Cheers.

  38. Tyler,

    Thanks so much. The support is incredible. I get as much or more than I give, that’s for sure. I’m blessed and fortunate to have such an amazing readership. Doing all I can to earn the love via the high-quality content. πŸ™‚

    Thanks for dropping by. Keep up the great work over there. That dividend income is incredible!

    Best wishes.

  39. grezmOnkey,

    Hmm, I’m not sure what you’re referring to? My goal has never really been a specific dollar amount, but rather high savings rates. Maybe I mentioned at least $1k way back in the beginning when that was all I could muster at the time. I’m not sure. But I’ve always aimed to save at least 50% of my net income. As the income oscillates, so does my available investment capital.

    I plan to invest as much as I possibly can all the way until the point I switch to living off of the dividend income. I’m hoping I can invest even more aggressively toward the last year or two, but we’ll see what the income looks like at that point.

    Cheers!

  40. It’s “take my foot off the PEDAL”. You wrote “petal”. We’re all very disappointed in you. Just kidding.

    I’d say congrats on nearing the $200k mark, but I actually hope your portfolio goes DOWN. Mine too. Because that would likely mean that stock prices are going down, with more opportunities to buy great companies at a discount. Although I do hope it goes up over time due to dividends.

    Here’s hoping you (and I) reach financial freedom long before 40! I’m aiming for 35 myself, and I started at the same age as you (28). Lofty, I know.

    Good luck!

    Sincerely,
    ARB–Angry Retail Banker

  41. Well done Jason, great update – and a fascinating and successful month all round on the DM blog πŸ™‚ Been really great to read about your exploits, I’m so pleased for you.

    I’m waiting for the May dividends to roll in over here before buying some WPC, looks like a great stock and it’s tough to know as much about the US market from over here in the UK, so thank you for the analysis and recommendation. We’re planning on spending some FI time in the US and the Caribbean once that time comes, so having some dollar-based income stocks in the portfolio is going to help us smooth out any currency issues later down the track.

  42. That’s an awesome month of month increase DM! Nearly $8,000!!! Have you considered/thought much into taking gains in shares which have shot up in value? Say, if one jumped up 8% in a day or two, sell off some of the position then wait for it come back down?

  43. ARB,

    Ha! Thanks for catching that. I’ve seen that get other people in the past countless times, and sure enough I get caught by that one. Not sure why there’s a tendency to spell it incorrectly. I edited that. Thanks again. πŸ™‚

    I’m with you on the portfolio value. I’d rather see it go down as well, as long as that means available opportunities for fresh capital increase as well. A portfolio full of high-quality companies will naturally increase in value over time as earnings power increases and will increase even faster with continued investment, but one simply has to take advantage of opportunities as they come. However, I certainly wouldn’t mind seeing the value drop to $180k or so if the available values on the market were proportionate.

    Reaching FI by 35 would be fantastic. I’d imagine you’d have to have a savings rate north of 70% to achieve that and/or be a bit aggressive in terms of what kind of investments you take on, but that’s certainly possible. Jacob from ERE hit it in five years, but I think his savings rate was as high as 90% for a while. Best of luck. Can’t wait to see how that turns out for you. πŸ™‚

    Cheers.

  44. Squodgy,

    Thank you. It’s been very, very exciting. 2015 is really turning out to be a banner year in all regards. πŸ™‚

    I can imagine that currency would be a bit of a concern for you if you’re going to be spending any significant time over here. I’ve never thought of it from that angle, but it makes sense to have some US-domiciled assets in that case to smooth out fluctuations. The Caribbean sounds like a great idea. I’ve looked into it and it wouldn’t be that difficult/expensive for a US citizen to spend substantial time in the US Virgin Islands. One could even live there permanently and not be too bad off, surprisingly. However, I find Florida offers me a lot of the pros of living down there without a lot of the cons.

    Best wishes!

  45. DW,

    I actually don’t look at stocks like that at all. Maybe I’m just weird. But I look at operational results and value almost exclusively. Price only really comes into play when I’m deploying capital or when operational results are poor. Otherwise, I really don’t worry about it. Now, if Mr. Market comes around offering me some kind of ridiculously high price – especially if operations have been poor over a long period – then I’ll probably take him up on that. That’s what I did with SYY last year. But those kind of situations – poor operational results over a long period combined with a very high price relative to value – are somewhat rare. And I didn’t sell after a pop. I just sold after a long period of disappointment.

    Worrying about buying and selling based off of market action is a good way to get sucked into what I try to avoid, which is market timing and trading stocks. It will also likely increase your commission costs and possibly taxes. Buffett once mentioned that those trading stocks are really just making their “handlers” rich, and I tend to agree. I’ve also heard that a portfolio is like a bar of soap – the more you handle it, the less you’ll have in the end. I also agree with that.

    Cheers!

  46. This is very impressive. I like seeing your Freedom Fund grow. I am sure it will hit 200 000 by the summer because you are oh so close. I am guessing your dividends must be near the $1000 a month mark now.

  47. Seems like REITs keeps on presenting value there, I say this is a good time to start accumulating shares of REITs we like.

    Congratulations on hitting another all time high, very close on hitting the 200K mark, but of course the dividends that comes with it is sweeter.

  48. Laura,

    Thanks so much! I’m giving it 100% and then some! πŸ™‚

    I’m hoping to hit $7,200 in dividend income this year, which would average out to $600 per month. We’ll see how it goes, but I think I’ll get close.

    Appreciate you dropping by!

    Best regards.

  49. FFF,

    I hear you there on the REITs. I decided to average down on another one just a few moments ago. When opportunity knocks I figure I should open the door. πŸ™‚

    The dividends are indeed sweeter. Hope to get the dividend report for April out pretty soon here. Can’t wait.

    Congrats on passing $115k over there. Great work. Looks like April was quite kind to you as well. Keep it up!

    Best wishes.

  50. Very close to that magical $200k mark. I’m sure you’ll hit that mark before end of this year Jason. The snowball is definitely getting bigger.

  51. Tawcan,

    It’s rolling downhill. Can’t stop it now. πŸ™‚

    We’ll see about $200k. I’d rather see it take a little longer, but I suspect I’ll hit it over the summer. Exciting times ahead either way!

    Thanks for dropping by.

    Best regards.

  52. Hi DM,

    Great portfolio performance. My portfolio is also doing wel it went down a little, which means I can finally average down on some of my recent acquisitions. I hope that Greece will come with some nasty suprises so the european markets go down a little more which means more stocks for the same money( and may is a biggest dividend month for me).

    Keep on pushing that snowball.

    Cheers,
    G

  53. Geblin,

    I’m with you. I’d be very happy with some kind of major European (or any other) calamity which might cause the US stock market to pullback rather significantly. I’ll take what I can get in the meanwhile, but I wouldn’t mid a little help. πŸ™‚

    Let’s keep pushing!

    Best wishes.

  54. Jason,

    Wow. Over $196K, my friend. You are killing it. I know this is not the metric you worry about since you are focused on the income generated from the portfolio, but it still has to be rewarding to see the portfolio at these levels.

    Keep up the great work. We look forward to hearing about that next purchase to keep that snowball accelerating downhill at breakneck speed. We are hoping you get to your goals soon so we can read book 2. πŸ˜‰

    All the best.

    FD

  55. Way to go, Jason. You continue to crush it. For some reason, the song “Don’t stop me now” by Queen came to mind when I was reading this post. Seems appropriate πŸ™‚ Keep up the good work.

  56. FD,

    Thanks so much. Incredibly kind of you. I’d love to be able to put that book out tomorrow! Wouldn’t that be nice. πŸ™‚

    Yeah, the portfolio value is a distant second place compared to dividend income in terms of importance, but it is psychologically nice to see the value rise over time. It’s just a byproduct of investing in great companies.

    Looks like you guys are off to a great start over there as well. That recent PM dividend really helped. Keep it up!

    Best wishes.

  57. TBD,

    Thank you!

    I’m not stopping anytime soon. I can be like a machine when I go after something, and financial independence has my attention. πŸ™‚

    I just hope these reports continue to inspire, as it really does show that you don’t need to earn a high income to achieve FI.

    Best wishes!

  58. Adam,

    Thanks so much. Doing my best to keep on it 100%. πŸ™‚

    I highly recommend the BRK meeting. Truly memorable in every sense of the word.

    Cheers!

  59. Dividend Mantra,

    Congrats on the portfolio value going up in way. It is a mixed blessing but it makes it easier to sleep at night. You will surpass the $200000 soon and be onto the next portfolio goal.

    I am just over $100000 for total networth now, although my investment portfolio is around $82000.

  60. You can pull out funds from retirement accounts at any age, if you game the rules. With a ROTH, you can pull out contributions after 5 years. So you can buy REITs in ROTH, then pull out the contributions if you need to live off the money, and then let the gains ride, and continue to compound tax free.

    IF it is a pre-tax account, then you can convert it to ROTH, and then pull it out tax free after 5 years.

  61. IP,

    Congrats on passing $100k in net worth. Awesome work over there!

    It’s definitely a mixed blessing to see the portfolio grow like this, but I’ll take what I can get. When times are good, I’ll enjoy the balance. When times are bad, I’ll enjoy putting capital to work more advantageously. It’s a win-win. πŸ™‚

    Best regards.

  62. Ben,

    Yeah, I think you have to like the idea of bureaucracy and extra paperwork if your aim is to game the rules. It’s possible, but I find it completely unnecessary.

    “With a ROTH, you can pull out contributions after 5 years.”

    The Roth is definitely the easiest way to go about it, but you’re incorrect there. You can actually pull out contributions at any time. That’s really a major advantage to the Roth, in my view.

    Best wishes.

  63. Dividend Mantra,
    Thanks for sharing! Wow….You’re not far from 200K! Your portfolio is growing quickly and I’m sure the 200K mark is right around the corner! Great Job and keep it up!
    -LOMD

  64. Well done on your purchases in April! These are great companies to own. It is clear that regular and consistent buying of quality dividend paying stocks at good valuation is the key to success, and you have shown lots to it.

  65. Added very little WPC and OHI today. I will be adding very little to VTR and O tomorrow if it goes down a little. I will also be adding to DEO if it goes down tomorrow. I am also hoping for HSY to go down in next few days so I can add more and more. I love chocolates and their park. I don’t see anything else compelling other then couple of transport stocks.

  66. That is a really beautiful chart. There’s ups and downs, but in general a nice upward trend.

    I think WPC is really nice pickup. Right now I’m thiking of dropping some more (HSA) money on DLR because it has good growth and good current yield.

    I was invited to the Berkshire annual meeting by a friend, but we were too busy getting ourselves to Canada. It sounds like you had a blast out there! Thanks for sharing your experience!

  67. Jason,
    I would l recommend looking at HOG, Harley-Davidson. With a P/E of 14.40 and a iconic brand, it may be a good be on sale. The dividend looks nice as well.

  68. Great job Jason! It’s hard to believe how close you are to scratching off $200k! I finished up April with purchases of JNJ and BDX which are two absolutely excellent companies. I wouldn’t mind adding another higher yielding company to the portfolio to balance out some of the lower yielding higher growth companies that I had purchased so I need to look at WPC. I’m working on a few stock analyses right now and hope to get those out soon. I’m looking at a railroad and would love to add another to my collection since I only own NSC. There’s so many great companies and nowhere near enough capital. If I had more free cash flow right now I also would have added some shares of ROST because that’s a really compelling company. But capital is tight so stricter investment decisions have to be made. You ended up timing the MSFT purchase quite nicely even though I know you aren’t after the short term gain. I missed out on adding some more PM because my exposure there was a bit high but I knew the value was there. That was a mistake on my part. Keep up the good work and hopefully you’ll be announcing a cross over into $200k next month.

  69. LOMD,

    We’ll see. I’m excited to post that $200k update, but I’m also kind of hoping we’ll see better deals in the market. I guess it’s a win-win either way. πŸ™‚

    Thanks for the support. And keep up the great work over there!

    Best regards.

  70. AJ,

    I’m right there with you on the REITs. Didn’t plan to go too heavy there, but the recent weakness has me singing a different tune. Gotta always be ready to adjust to the current. πŸ™‚

    Cheers!

  71. Spoonman,

    We’re on the same page there regarding the REIT action. They’ve long been expensive as a group, but I see many are down 15% to 20% over the last few months. My interest is piqued. πŸ™‚

    Just read your update over at ERE. Hope you’re having a great time over there in Montreal. Should be an amazing summer for you and Spoongirl.

    Best wishes.

  72. JC,

    I hear you, my friend. Far more stocks than capital. First world problems are the best kind to have. πŸ™‚

    JNJ and BDX are a couple of the best. Looking forward to seeing how the spin-off for BDX plays out, particularly as it relates to the total dividend payout and growth moving forward. We’ll see.

    Keep up the great work over there.

    Best regards!

  73. This is so awesome especially for only 5 years! Is there a way to see how much you’ve contributed from your own income vs dividend income? I think that would be a cool chart.

  74. So close to that $200k milestone!

    It’s incredible (and very inspirational) to read about how far you have come in just 5 years!

  75. Congrats for your wedding again and I hope you enjoy your trip. Saving as much money over a 5 years period is incredible Jason.

    I hope to be able to reach 100-120k within that time frame while paying off my mortgage. When my mortgage will be fully paid (it should be done by 2020), I should be able to double my investing efforts. Being able to live there for “free” will already make me feel financially free. Debts are the worst prison.

    I now firmly believe that anyone with a plan and who is dedicated to it can achieve success. The thoughest part here is to stay dedicated as it requires a lot of discipline… It’s very though for me to be disciplined… πŸ™‚ But it’s for a good cause : My future freedom!

    Can’t wait to see you cross the 200k milestone. My portfolio just crossed 40k in Canadian dollars. It took me a year and a half. Not bad given where my finances were.

    Cheers

  76. Congrats on nearing the $200k mark! I also picked up some shares of Apple last month. Then the price dropped so I picked up some more yesterday! Gotta love it when shares of great companies go on sale :-).

  77. Great progress on the freedom fund! I really like the way your investing goals are very specific and strategic. I have been investing since the financial crisis of 2008 and do it because I absolutely love it (I am sure you can relate to the passion) and have been very successful at it but I never really outlined any specific “goals”. I think just recently I came to my ‘aha’ moment in terms of the real reason why I am investing and maybe I should write that down and keep track of it like you are. Always enjoy your posts. Have a great day!!

  78. Hey DM,
    You used to often speak of a goal composition of 50ish stocks, how high has your number went up, what’s the new goal? I think it’s right not to limit but if you truly trust your methods for purchase, shouldn’t you be able to somewhat narrow in on the most profitable options and move more into those?

  79. Do you pay that much attention to ex-div dates when your investing? I’ve always sort of ignored them and focused more on the valuation at the time. Im cognizant of the ex-div date but usually its such a minuscule (1/4th of ~3.5%) amount that i don’t factor it into a buy decision. I don’t have too many ‘yearly’ div companies.

  80. Fantastic that you’re almost at $200k — congratulations and I look forward to your crossing that mark. With 56 stocks, you have your own little mutual fund there, without paying anybody a maintenance fee!

    Take care!

  81. Kimmoy,

    I don’t have a chart or anything like that because that’s delving into total returns, which is something I really don’t focus on or care much about. But I keep a separate spreadsheet that tracks all of my cash inflows from my bank account to my brokerage accounts and that stood at about $125k as of April. So the difference between that and the value of the Fund is capital gains and dividend income. πŸ™‚

    Cheers!

  82. weenie,

    Thank you!

    It’s been an amazing ride thus far. I’m so proud, fortunate, and excited. Like I recently wrote, I used to think the only way I could achieve this kind of wealth was by winning the lottery. But it’s just not like that. Hard work, persistence, and a little luck along the way can lead to really amazing results.

    Best regards.

  83. Allan,

    You’re well on your way, my friend. I’m sure your finances will really be unleashed once that mortgage is off your back. Not only will you be able to save a lot more via spending less on housing, but you’ll be able to invest the difference and see that passive income increase exponentially. πŸ™‚

    Thanks for the support. It’ll be interesting to see the portfolio cross $200k and compare that to the first $100k – especially since I went through a lot of changes over the past year which kind of limited my ability to invest at times.

    Keep it up over there.

    Cheers!

  84. Dee,

    Absolutely. Who doesn’t love to shop when merchandise is on sale? πŸ™‚

    I’ve been eyeing Apple. My only issue is that I valued the stock using 15% dividend growth for the first ten years and this most recent raise wasn’t even close. Nonetheless, that huge buyback and the continued organic growth should lead to impressive returns and the ability to continue raising that dividend at an attractive rate.

    Cheers!

  85. Mabel,

    I share the passion. πŸ™‚

    Goals are instrumental to success, though. I’d highly recommend you really start visualizing where you want to be tomorrow, the next year, five years from now, and ten years from now. I basically imagine a future me and then reverse engineer my way to that person.

    I think you’ll find that setting and achieving goals makes everything that much more fun and worthwhile in the sense that you can actually track your progress.

    Take care!

  86. anti1b,

    Well, I answered this a couple times above. So I won’t repeat that.

    As far as “narrow in on the most profitable positions”, those positions change over time. Companies go through stretches where business just isn’t that great for whatever reason. You can see that with PG right now, for instance. And other companies go through amazing stretches where they might be the best opportunity on the market at any given time. I also don’t really agree with the whole idea of your 30th best idea not being as good as your 1st best idea. Sometimes your best ideas don’t pan out. Sometimes you just don’t get around to an amazing investment until down the line. I don’t think Microsoft – my 56th pick – is any worse than one of my very first investments – WMT.

    But this is really one of those individualistic things. Some people feel very comfortable going with 20 or 30 stocks or whatever. I feel comfortable with a lot more, especially in terms of being partners with many great businesses and somewhat protecting the integrity of my passive dividend income.

    Best regards.

  87. Zol,

    That’s a good question.

    All else being equal, I would always buy a stock that’s going ex-dividend over one that’s not. But rarely (never?) are all things equal like that. I pay attention to the date within the context of already being interested in a particular stock and buying in before the ex-dividend date to collect the next payout, rather than waiting for no good reason. This is especially true of large special dividends (like TROW recently). But I would never let the ex-dividend date force my hand into buying a stock I wasn’t already going to buy. I don’t let the tail wag the dog like that.

    Best wishes.

  88. Ferdi,

    Exactly! My own fund that’s not only fee-free on an ongoing basis, but also hand picked by moi. People seem to think index funds or mutual funds or whatever are magical, but they’re just a large collection of investments (usually stocks) picked by someone else with an ongoing fee attached. The power of most index funds like those tracking the S&P 500 are in the power of large diversification and low fees, which I’m recreating here. Except I’m only buying profitable enterprises that produce so much cash flow that they can’t even use it all. πŸ™‚

    Thanks for dropping by.

    Cheers.

  89. Congrats on the awesome growth over the past 5 years! Very inspiring. I added shares of O back in April, which was my first REIT ever. Also added EMR as a new holding to my porftolio.

    Looking forward to your May updates!

  90. John,

    Glad to be a fellow shareholder there with you in O and EMR. A couple of the best companies around, that’s for sure. πŸ™‚

    Good luck with the portfolio. I hope you see even more long-term success than I have!

    Best wishes.

  91. Nice work, looks like the portfolio is growing month by month. 56 positions is a lot to keep track of! I currently own around 15 but will be adding more in the future. Do you plan to buy even more to diversify or add to your existing positions?

  92. Dan,

    You’d think it’d be time consuming to track so many stocks, but it’s really not. Investing in great businesses doesn’t require a lot of babysitting. It’s funny because I’ll sometimes have index investors email me and say that they don’t understand how I can track so many stocks. Umm… are they tracking dozens or hundreds of stocks all the time as well? I find it too funny. “I’d rather just invest in 500 stocks because tracking 50 is too much.”

    I always look for the best opportunity for my capital while keeping my overall exposure and weighting in mind. Sometimes the best opportunity is already in the portfolio. Sometimes it’s not. With that said, I’ll continue to add new positions as opportunities allow.

    Cheers!

  93. I love your blog; keep it up! When I was working my way toward my first financial milestone, there were lots of naysayers and critics of my frugal ways and the time that I spent studying investing instead of partying. But, just like you, I set a specific, measurable goal and a timeframe (7 years), and I achieved it just a few months later than planned. Now I’m working toward the second financial goal (targeting 2019), and like you, I am on track… but I also have that feeling that time flies along with the feeling that the finish line is a bit further than I would prefer. This goal will leave me free from the need for full-time employment by the age of 43 (not extremely early retirement, but still pretty good). Here is a famous quote from Leo Tolstoy that I am sure will be right up your alley; I repeat it to myself sometimes when the finish line seems a bit too distant:

    “The strongest of all warriors are these twoβ€”Time and Patience.”

    Kudos again on your achievements, and please do keep up the regular blog postings!

  94. Aaron,

    Thank you very much. Really appreciate it. I really enjoy writing, so I hope I can keep this up all the way up until and through financial independence. πŸ™‚

    Sounds like you’re doing really, really well over there. I don’t know who sets the definition/benchmark of “extreme” early retirement (Jacob?), but I’d say 43 is still extremely early. That’s probably in the top 1% for retirement age.

    But I definitely agree with you on setting SMART goals and sticking to them. I visualize this future version of me who’s already everything I want to be and I simply reverse engineer my way to that person. I already know I’m financially independent. I’m just basically making the right moves now to bridge the gap between the here and now where I’m not financially independent and the future version of me where I am. Sounds like you do the same.

    Keep at it!

    Best wishes.

  95. As always, I am truly inspired by your posting. Your freedom fund is getting really close to 200K mark. Keep up the great work Dividend Mantra.

    Cheers!

    BeSmartRich

  96. Sensim,

    Thank you so much. That really means the world to me! πŸ™‚

    At this point in time, my main goal with the blog is to simply inspire others. If I can do that – for even one person – then I consider it a success.

    Take care.

  97. BSR,

    Thank you. Like I was saying in another comment, inspiring others is really my big goal with the blog moving forward. I’ve always aimed to do that, but I also always thought of the blog as a great way to keep myself on track. But my intentions are now really just 100% inspiration. As such, it means a lot to me when that works out. πŸ™‚

    Thanks for dropping by!

    Best regards.

  98. Congrats on itching ever closer to $200k! Very inspiring to see your story and thank you for sharing it with all of us. It’s amazing what a dream, hard work, dedication, and persistence can get you in life.

    You’ve made tremendous progress in only a few years time, no doubt, but I’m even more confident that the best is yet to come for you.

    Keep dreaming!

  99. Is your “Freedom Fund” all post-tax? If not, what do you do with your money that’s in a 401(k), IRA, etc?

  100. DM:

    You mention that you are basically guaranteed financial independence at this stage. Can you elaborate on this a bit? 200k would seems rather low to me (to sustain someone from the age of 40) even for someone who lives WAY below their means…

  101. FI Fighter,

    Thanks so much, man. I’m giving it 100%, that’s for sure. πŸ™‚

    You’re doing fantastic over there as well. An empire of real estate and now building a stock portfolio. Life is good!

    Keep up the great work.

    Cheers!

  102. I see where you are coming from. Totally agree with the linked article you provided. Boils down to knowing what you must do (planning) and simply executing. Seeing where you want to be and putting the wheels in motion today to make sure you get there. I initially though you were saying $200k was a magic number of sorts that you could retire off of today and sustain yourself for life..

  103. Hey Jason!

    I saw you have 56 positions. Maybe you’ve mentioned it before, but was curious to know if you have any “maximum” in terms of number of positions you’d like to have in your portfolio?

    Good month once again!

    Cheers!

    Mike

  104. Mike,

    I don’t have a maximum number. When I run out of great ideas, then I’ll stop buying great ideas. Really just comes down to that. I don’t find it any more time consuming to manage 56 stocks than it was to run 26. As such, I don’t see why it’ll be particularly different to manage 86 over 56. Blue-chip stocks don’t require babysitting. If I wanted to babysit, I’d find a job babysitting… or I’d invest in low-quality stocks that required that. πŸ™‚

    Cheers!

  105. Jason,

    I sure do like NOV going forward. Nice job picking that one up. By the way, your FF is doing quite well. Nice job, all around. Good luck with the book.

    Keep cranking,

    Robert the DividendDreamer
    AKA — Seeking Dividends

    Follow me on Twitter– Seeking Dividends@DividendDreamer

  106. Robert,

    NOV is on incredibly solid financial footing. Investors seem to be discounting its quality, which is fine by me. I don’t plan on adding anymore, but I might if the stock became stupid cheap. We’ll see.

    Thanks for the support. Slow and steady is the name of the game here. πŸ™‚

    Cheers!

  107. It was interesting to find Diageo Plc ADR trading at 23x.Over here it trades at 67x (majority shareholder in United Spirits Ltd)
    I guess it has to do with the opportunity premium.Alcohol consumtion is still pretty low here.
    Imagine what would happen if 1.2 billion people start guzzling regularly ! πŸ™‚ πŸ™‚

  108. harsh,

    “Imagine what would happen if 1.2 billion people start guzzling regularly!”

    I’d be backing up the truck on DEO in that case. And I’d be selling anything I could get my hands on for more money to buy even more stock. Ha! πŸ™‚

    Have a great weekend.

    Cheers!

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