Wednesday, March 12, 2014
GIS announced yesterday a dividend increase from $0.38 to $0.41 , an 8% increase. The dividend is payable May 1, 2014 to shareholders of record April 10, 2014.
This is their 11th consecutive yearly dividend increase and they have consistently paid out dividends for 115 years! Dividend payments for fiscal 2014 are up 17% over the prior year.
Since I own 65 shares, this will increase my yearly dividends by $7.80. This is the 11th stock in my portfolio to increase their dividend already this year.
Monday, March 10, 2014
I decided to sell off a portion of my shares of Lorillard (LO). There's a few reasons I decided to do this.
- First, I previously mentioned that I'm buying a third rental property and I'll need some extra funds for that closing that should happen on 04/04.
- I also took advantage of the recent pop that shares of LO have seen due to the buyout rumors from RAI.
- Finally, since my LO shares are planned to be a half position with MO, they were overweight anyways. Part of my reason for having them as a half position happens to be their dependence on one blockbuster brand, Newport. There's still uncertainty about a possible menthol ban.
I sold off my initial purchase of 78 LO (26 shares that had a 3:1 split) late last week for $52.58. My cost basis on the original purchase was $2999.69 back on 10/11/12 and my proceeds were $4091.17 for a profit of $1091.48 that will be taxed as long-term capital gains.
I also received dividends this entire time and will still receive the dividend payment today since I held shares on the ex-dividend date of 02/26/14.
These 78 shares will reduce my forward dividend income by $191.88. I still own 52 shares valued at about $2750.
Friday, March 7, 2014
My current tenants were having a little bit of a tough time the last few months. The husband lost his job and they couldn't afford an increase in their rent. I decided to allow them to keep the rent the same if they would sign another year lease. They have been good about paying rent on time and I've had no issues at all with them. The only item I really had to fix last year was a broken dishwasher, I ended up just replacing it.
I already had a renewal form from my agent last time which is just an amendment of the contract. It was really simple to fill this out and email to the tenants. They just emailed it back this week and have extended until April 2015.
Here's what it looks like:
So I'll continue collecting $1700/month for another full year without having to worry about any vacancy issues. The rental market in Austin is strong, I probably could have put the house back on the market for lease and charged $1800. However, I'd risk having to find tenants to start at the beginning of May and also have to pay 40% of the first month's rent to my agent. I don't think it's worth the hassle.
You can continue to find all of my real estate posts by following my real estate label.
Thursday, March 6, 2014
I'm reporting my automatic purchases for this week (03/04):
$500 of KMI
I used $500 in new capital and added $25.70/year to my dividend income. This is an average yield of 5.1%.
My forward 12-month dividend income increased to $9792.24
KMI has had some negative press lately and I see this is just short-term weakness and an opportunity to pick up more shares of the company on the cheap. I already have a sizable weight with KMI but I don't mind going higher at these prices.
Just for some fun and to add some color I will be posting pictures of places I've been to. It's also motivation to reach FI so I can travel and do what I want to when I want to.
This is another picture from the Boulder, CO area while hiking a couple weeks ago on my latest trip