Recent news of KMI decreased it’s dividend by 75% put a damper on a lot of financial bloggers. I myself have 70 shares. While it worthy 1% of my portfolio, but it’s still a decrease that I don’t like to see, nonetheless, I’ll keep the shares as long as it continue to pay dividends. If it drops to the single digit price, I’ll definitely buy some more. Who would have thought GE went from $40 to $6? It did. Look at GE now, $30 and with $90 billions in cash ready to buy back stocks and return to shareholders!
With that aside, roadmap2retire posted about Realty (O) increased its dividend again. It was a small increase, but it seem the rental market are doing great!
AT&T also raised dividend by 2.1%. You can read the full report from dividend hawk.
The big increase is from Dominion Resource (8.1%), $2.80/shares, I have 100 shares, so I’m looking at $280 up from $259/year.
Bank of America has finally got FED approval from the stress test, the new huddle would $20. Once it passes that, we might looking for the next huddle of $22-25/share by March if their financial plan go well with the FED. (Base on the past history, Bank of America might be lagging in planning. I’m hoping for a dividend increase from them, but we will see if it’s going to happen. Bank of America won’t fully recover until 2021 per my prediction, in the meanwhile, if shares fall below $15 again, I’ll definitely pick some more up.
Now that the first interest rate increase is settled, my vision for the next coming months or year on what I’ll be buying is becoming more clear – material, energy, manufacturing, even some defense stocks, and precious metal. The USD is worth a lot more so, it will drive the gold price and other comodities down. It seems silly to jump on it, but no one knows where is the bottom, average down is the key.
I’m made a tons of investment in financial stock this past year, so hopefully hey will perform well in the rising interest rate environment. As I continue to use dividend payouts to reinvest in above mentioned sectors.
This coming months:
- Track my expense for at least 6 months, to test out my financial independent status.
- I will only spend purely on passive income –
- rental property,
- dividend income,
- side hustles:
- credit car bonus perks (I might use credit card to pay for my student loan, and get some bonus point. I only have $47k left, if I do this, paying off student loan and get free vacations paying off fully by credit card is awesome). I’m going to see if I can join that million points club. 🙂
- I also sell some of my veggies from my garden for $10-20 here and there.
- I have some persimmon and lemon trees that I can propagate and can sell for $60/tree. 🙂 will see of every will pans out. I got one for my sister, she loved it. 🙂
Thanks for the mention, Vivianne. Thats a nice bump in D’s dividend. Congrats on the raise.
R2R
Hi Vivianne
Ive been keeping a tab on KMI dividend cut as well and it’s a pity because they look like they are on the verge of a very enticing yield should dividends remain the same. Having said that, i think its just prudent of them to do so and to also cut down on capex.
Ive also initiated more financials given that the y are direct beneficiary of rate increases. Hopefully, we wont see an oil crisis spillover to the other sector.
I read some where oil debt is a $200 billion deal vs $2 billion deal financial crisis. It’s not the same crisis or at least it’s not as deep.
Low oil prices probably propel transportation especially oil, and car (car guzzlers will be popular again?!)
But for now, I’m building up a sizable cash position and will pace my buys on energy when things go wild. 🙂