During the Balanced Dividends Shopping stint in February, we explored 4 considerations for selecting a single-name security, or individual holding, for our taxable portfolio:
- (1) Distribution Frequency
- (2) Account Allocation
- (3) Price
- (4) Value
At the time of that post, we emphasized our objectives to increase passive income derived from non-retirement accounts and to diversify the frequency and source of our passive income. Not much as changed since then. Except our progress.
Related: FTW! Is it Possible to Invest for Today AND Tomorrow?
Summary of T Purchases Since February
In February, we shared we had originally acquired 40 shares of AT&T (T) toward the end of 2017. In early February, we purchased an additional 25 shares, bringing us up to a position of 65 shares.
With a current dividend of 50 cents a share each quarter, we found the annual $2.00 of income per share very appealing for our respective investment objectives. We also mentioned we intended to continue to add to our position in the weeks following. And we did.
After adding nearly $800 in annual forward passive income to our non-retirement accounts, I find myself in an overall satisfied position with our progress over the last few months. However, here are a few things on my mind despite the nice progress we’ve made.
(1) We’ve “Lost” Over $1,200
Well, not really. The market value of our position has declined by approximately $1,200 – as of close of business Friday, 18-May-2018. And it might slightly higher or lower tomorrow. Or the day after.
While I do like seeing our overall position increase in value, it’s a mental game to not check the price of T throughout the day and everyday. It will drive you insane.
Overall, this is just our unrealized gain at this time. And until we decide to sell, we won’t realize a gain or loss. Part of this is also already offset by the $150 dividend we received in May (more to come soon).
Related: Passive Income & Portfolio
(2) Our Cost Basis Continues to Decline
Reviewing the prior shared table above, you’ll see we purchased the bulk of our positions when T’s cost per share was a few dollars higher. This sucks!
But no one knows what the price of an asset will be on any given day. It’s impossible. So instead of worrying that we purchased the larger portions of our current position when the price was higher, I’m now focusing on the present opportunity: acquiring additional shares at more favorable prices.
Over the last 2 months, we’ve been able to gradually add to our holding while slowly lowering our average cost per share. Remember – it’s important to focus on what you can control – not what you can’t control.
Related: How We Got To Averaging +$1,000 a Month In Passive Income
(3) I’m Thinking Long-Term While Acting Now
I admit. I’m an action junkie. I like to take action and put things to work. Whether it’s getting cash to a savings account for a short-term goal, paying a bill, or purchasing additional shares of an investment, I like to see action.
But that doesn’t mean I don’t consider the long-term potential implications of my actions today. One area we’ve attempted to improve on is our deployment of newly acquired capital. We do have a long-term plan, and we follow it as much as possible. But if an opportunity presents itself or the plan is not working effectively, I need to remind myself to not follow the plan like an automated idiot.
I used to be so uptight with following schedules, sticking to hard allocation percentages, and automating the hell out of everything that I sometimes didn’t think clearly. It’s important to take a moment to reflect and slow down every once in a while.
Related: Post-March Madness: 5 (Plus) Ways To Find Balance
Four (F) Updates and Other Happenings
Aside from T and looking to get it up to a nice, even 400 shares very soon, here is what else is on the horizon for us:
(F)amily
We’ll be traveling to O.H.I.O! yet again for a family member’s wedding in June; we’ll be in Austin for another family member’s wedding Memorial Day as well.
(F)un
I just returned alive yesterday from Dark Lord Day at 3 Flyods Brewery in Indiana; I think this warrants a post both for the entertainment and the lessons learned in economics.
(F)undrise
I’ve received a number of queries on Fundrise after our initial review recently; we continued to add to our holdings, so I’ll look to provide an update soon.
(F)itness
As shared, I’m into finding balance (although, it’s never end-ending; a bit like learning…). I’ve received numerous queries about Orangetheory Fitness after two surprisingly very popular posts on my experience. I’ll look to revisit soon.
Related: Orangetheory Fitness: Why I Spend $2,148 A Year On Orange(s)
Wrapping It Up
Overall, I’m trying to continue to stick with a consistent writing schedule as much as possible (roughly once a week). To also offer readers additional value, I’m attempting to increase collaboration with many of the great people in our various communities. A part of this is the new Balanced Dividends Blogroll spotlight series. Be sure to checkout our inaugural post.
Thanks for reading and for your continued support.
Readers, do you have any recent updates? What areas have you been focusing on? Is there any particular topic you’re interested in seeing more or less?
Post-Specific Disclaimer: We’re currently long AT&T (T) as of this writing.
Related:
Orangetheory Fitness: How to Win (Your Personal) Dri-Tri
(Money) Muscles Checkpoint: Six Week Spending/Saving Status
2018 Goals Overview: What Do You Want To Do This Year?
Our favorite free financial tool is Personal Capital. We use it to track our net worth, manage our spending & savings, and to monitor our investments. It’s simple and free to use.
Mike, I like your summary and progress report on T. Good job averaging into the position. It’s is tough when a stock you like goes on the decline after initial purchases. My T holding has suffered along with yours. I have been tempted to add, but have chosen to pursue some other stocks in sectors I have less exposure (KMB, CLX and O) come to mind.
As you start to add more dividend paying individual securities to your holdings in different industry’s the short term ups and down of each stock becomes less a focus than the overall long term uptrend of the portfolio as a whole. At least that has been my experience. Looking forward to what ever dividend stock you will add next????? Tom
Thanks, Tom. Good point on the additional exposure to other securities and industries. I am tempted to continue to buy T even beyond 400 shares (especially if the price continues to dip). But I will likely diversify another single name on my radar. More to come soon 🙂 . Mike
i just bought 21 shared of OLED today. i got them from a watch list i keep of profitable companies with rising dividends or recently initiated and rising dividends. i only look in on these once a month or so and recently turned dividend reinvestment off for most of my names in order to have some dry powder for bargain hunting. i saw some aristocrat types on sale like BUD, MMM, PG, and HAS but am willing to wait on these. I saw the same thing with estee lauder at about 78 bucks a few years ago and it has come back nicely. it sucks when your position goes underwater, even just on paper. most of my preferred shares are down but we’re in those for the long haul income.
Hey Freddie – thanks for your comments. I haven’t followed OLED closely, but I see it’s down good ways from its 52-week high.
Interesting use of your DRIP to build up some cash as well for buying opportunities. I don’t have that feature at the moment for Robinhood (DRIP is not offered), so I kind of get the same effect. All our dividends just get thrown into our cash bucket in our account. This is good and bad really.
Thanks again – Mike
Its nice to see the long term planning aspect of your financial and personal efforts, balanced with the important personal elements too. How many hours per month do you invest to your financial planning and executing it?
Thanks for the comment. It can vary, but probably 6 to 8 hours a month on average. Most of that is in increments of only a few minutes at a time. The far fewer larger blocks of time involve generating ideas, researching, and building a plan to execute over the month or even beyond. – Mike
Looking to add T to my portfolio this month. Would be a new position for me (was on my radar and I’ve been looking for the yield to be up above 6%, which it is now). Just weighing it against a couple others on my watchlist to see what the best value is at this time. But I have a feeling it will.
Hi Divs – thanks for your comment.
I just briefly reviewed your current portfolio list as well on your site. You have a few names that are also on my watch list as we consider to add a second individual name to our taxable portfolio soon.
Also, what plug-in are you using for the Table of your current holdings? I like it.
Thanks again for reading. – Mike
I also added on T this month. This buy marks my third T buy, started my original position at 41$+ (ouch).
So far at 31 shares and looking to add more 🙂 Although I’m looking elsewhere for my June buy.
Hi Mr. Robot – thanks for your comment. I hear you on the initial purchase price – it can feel painful regardless of the stock or security. Congrats on your additional purchase and good luck with the next. Mike
I just made a big purchase of T I am going to add tpo it but also build up other positions.
Hi Doug – thanks for you comment.
Congrats on your purchase! Hope you continue to be successful with your future buys as well. Thanks again for stopping by to read. – Mike