Wednesday, 30 November 2016

50. Portfolio update #3 November

The November update for my Portfolio buildup!
Weighing is measured by subtotal value in the portfolio.

Firstly, the chart for US Dollar portfolio:

All in all, this portfolio is quite spread with the high dividend paying Chimera and Etracs MORL shares being heavy weights.

Secondly, the chart for EUR portfolio:

Clear from the above chart is that this portfolio is completely out of balance. The aim is to iron this one out within not too long of a time. RDS might deviate from their current strategy of “No dividend cuts”. For now, that’s it, but it’s very likely this update will change again!

Tuesday, 29 November 2016

49. Cash-or-Trash #2 VNR

AKA, NASDAQ:VNR, Only mid 2014 the company share reached a 30 USD, directly followed by an all time low in december 2015 - january 2016. Looking at the company’s chart including dividend payouts (thanks again Google!) the share price drop and dividends paid look related. Whattup?

According to their webpage, the company is “Growing reserves via acquisitions”, “Focused on long term unitholder value“ and “Expanding our possibilities”. Where at the moment the Google finance page gives a 65.41 Dividend yield (Too good t0 be true right?) this demands

The corporate strategy reads: Maintain existing production, Ensure flexibility and Reduce commodity price risk.

According to the newswire fool.com the major headache of the company is cash. Translated into lower-financial grade language, the company has borrowed too much. Too soon. Before the oil and gas prices took a dive that is. Easy calculation:

At the start of this year the company held a 1.8 Billion USD credit;
During the year a 1.325 Bilion USD was borrowed on available credit;
During the year the credit worthiness was reduced to 1.1 Billion.

I believe it’s clear this causes some stir in the management team.

A rapidly approaching deadline is a 2.6 Million USD interest payment due February 15, 2017. On itself this seems feasible, however, their banks require a 50 Million USD security on the accounts.  

There’s more but to be honest I’ve lost my appetite after reading this already. Going for this share seems plain gambling where chances for win - loss are out of balance. Instead of kissing our money goodbye, make a more educated bet.

Kind regards,

DLH





Monday, 28 November 2016

48. Another breaktthrough - positive thoughts!

Sparked by a thought:

Scrolling down the Google results for side hustle for the umpteenth time: In order to make a living whilst doing what you love, ask yourself at least:

  1. “What is it that I own;
  2. “What is it that I know;
  3. “What is my special skill;
  4. “Who do I know;

directly followed by: that makes me different from average?”

Free photo: Bullseye, Darts, ...

“These all count for everyone but me, I really cannot think of anything out-of-ordinary”.

That might just be the first thing that pops in. But, come on. Really?

To show off, I will answer these questions for myself:

  1. Our small lake house holds free access to water that is stuffed with life. Fish, frogs, all sizes shapes and colours. A wide range of birds flies in and out, and occasionally there’s some rats too. On itself, this might not be the very first thing to give dollar signs in someone’s eyes. But still, it’s access to a niche. A selection of people are interested in nature.
  2. My interest goes out to Renewable energy, stock market developments,
  3. In real life, next to being a dedicated employee in a fascinating branch I know how to play the trumpet and am currently practicing to play trombone. Further skills that I assume to be above average are: Native Dutch speaking and writing, English language, Excel skills, French and German Language (albeit the basics), keeping my weight the same without diets. Also do I have experience in monetized broadcasting on youtube.
  4. Well, here it is going to get difficult. The only one (for now) who knows about my quest to passive income is  my wife. I’m not interested in involving my personal profile to this, making the whole exercise a bit more difficult.

Note, that while taking the full 5 minutes to sum these up for yourself: You don’t have to know how to commercialise or exploit the skill on itself.

The second step I would propose to take is to find an interesting mix that you can employ without the use of too much investment at first. Just to try out whether you’re on the right track. Same as this blog really, as soon as it attracts sufficient people on a regular basis it will make sense to get a plus-subscription somewhere (where you pay for extra functionalities and options).

To give you an impression, these first few months have certainly been a great learning curve for myself. Besides that, I learned to use blogger in a basic sense. And the best thing? I even got paid for all of this, where I also could have spent these minutes Netflixing How I met your mother.

Have a great day!

DLH


Saturday, 26 November 2016

47. Thoughts on paper -

Reading articles about blogging, adsense, affiliate partnership (and some) are far from inspiring when initiating another post for your blog. Especially for people who tend to see only darker colours (predominantly grey-black) in life. Like me. Although I am living a dream each day being supported by my sweet loving family. But this also puts all feelings back in perspective: One day only has 24 hours.
Clock, Clock Face, Time, ...
Time is expensive, every minute lived is a minute we’re never able to buy back. For no money in the world.

Reason for me to write this down is NOT because I have been struck by illness or misfortune in any particular sense. It’s not an indication for me quitting this blog. Why I start about time is because it takes too long to populate my dividends and stock performance sheet!  Having to invent the wheel all over is a pain. Where I’m quite skilled with excel I can find a reasonable amount of opportunities when looking at free-to-download examples. That helps.

The investment programme I currently use is capable of exporting excel lists, but. What it actually exports is only very marginal: A follow up number, 2 dates, the amount of shares and share name (in the same cell, but hey, no problem) and the nett. dividends paid out. I could have done with some more details.

My plan is to summarize some key items, formalize a nice letter to the Company and explain my request. Hopefully they’re open for discussion and even value the feedback of a frequent user. Frequent as being: in the 3 years I work with this trading package I have a 1000+ excel rows filled with trade actions.

I’ll keep you updated on that!

Next to this one, there’s more innovations that have crossed my thoughts recently. The only thing is, in order to file these with the respective companies it’s not just a matter of sending an email. In order to be considered as innovator, the idea has to be assessed positively by the patent bureaus. This being an investment on itself, but more to follow on that later!

Have a great day!

DLH


Friday, 25 November 2016

46. Starting up multiple income streams - Dream BIG!

Having successfully (well.. not really since the first purchase is yet to be made) taken the first hurdle: initiated a Affiliate marketing account with Amazon. This actually means that the first step into passive income is taken. One small thought to keep in mind here: the Amazon.COM version of affiliate links requires some actual sales before the 6th (am I right?) month of affiliate partnership. In case no links were successful an automated un-subscription will follow..
Other resolutions: 320 × 139 ...
Having no marketing orientated background whatsoever, it proves to be quite time-consuming to get the hang of all tricks. For now, I’ll just continue the path I’m following.

I’m on the lookout for the installation of the next level of passive income.

The second best searched feature (first will most likely still be porn?) of the internet must be passive income or earning easy money. I have no idea how to describe the amount of different websites, blogs, twitter pages and so on promising to describe ways to earn money whilst sitting still.

Well, obviously these websites (that I’m not even going to list here.. a quick google search will bring you there, and yes I’m talking about the number 2 most searched although my guess for number 1 will also be available through google) are built also with the aim to generate revenue. Looking from the perspective that the total amount of money is in sort of an equilibrium (not taking into account forgery and governmental (virtual) printing of money): for me personally it is pretty hard to believe any of those tips will result in a constant stream of income. Guaranteed income. Say, there are no specific guidelines on how-to, otherwise the world would be swarmed with millionaires. WIth as a result money being worth jack sniz.

Passive income, it doesn’t mean getting rich quick for me. The aim is to invest and generate a steady income off it. Almost like the good old bank savings that brought in about 5% interest (Yes, that’s the best I have ever seen! I’m that young).

Where I started this post with the intention to describe how I am looking into purchasing real estate for rental purposes, this turned out to follow its own path. Sometimes that’s just the way.

Have a great day!

DLH

Thursday, 24 November 2016

45. Stock screening #7 HAL

That’s it! As already prepared for in an earlier post called Sale!
Just as the Oil and Gas world seems to have recovere… Well, I should probably put some more drama in this. At the moment the very first dust particles seem to settle down. After the last tunes of the heavy bombastic orchestra have faded and the hero of our story has been left for dead. Well, it may be that’s too much but I figured a respectable pillar of global economics deserved a some extra words to describe it recovering from a nasty smack-on-the-forehead.

Back to my story; Just as it makes the very first move to sit upright and glaze at the spinning stars around it’s head (I’ll cut the Looney Tunes stuff short). Well, right at that moment: I sold it.

Not entirely sure whether we’re living in a bubble seeing that markets go up, but besides that: Halliburton does not really fit in my portfolio with only a 18ct’s of dividends per share. Making a quick calculation for myself: Dividend yield is the factor to use here. Now we want to have this number through the roof, (theoretically, I know: High yield shares are usually High Risk shares).

But for Halliburton this number is (much like a few others in my portfolio, I’ll get to them later) all but covered with rainbows. This is particularly interesting since the share price has taken a rollercoaster ride being swung to a full 40USD per share difference over approximate 1 year!

The yield being total dividend per year divided by share price, I want to see what the large difference in share price has meant for the yield.

So, the amount of payments per year: 4
Dividend per share; 0.18 USD
Give a total of 0.72 USD a share per year.

Now, let’s compare this with HAL’s volatility of the past few years;

Share price:
Yield:
30
2,40%
40
1,80%
50
1,44%
60
1,20%
70
1,03%

Where the shares price is currently climbing again, the yield will drop even further (having heard no signs of increase of dividends). Hence, my wish to get rid of the share. A quick summary of nett profit for my portfolio of this trade:

ticker
name
date
Purchase
purchase rate USD
date sell
sell USD
difference USD
Difference in %
HAL
Halliburton
17-03-2015
816
25-11-2016
988
172
21%

Having shared this, I wish you again an awesome day!

Kind regards


DLH

Monday, 21 November 2016

44. What should have been the very first post of this blog: Dividends!

Displaying the portfolio I currently own should encourage me to go for highest yield achievable. However, I have chosen not to give away all of me. 

-Please note: I am not a professional. This website does not give advice. This website, my blog or any comments that are posted by me do not imply, insinuate, suggest nor hint any actions from readers-

Firstly, I would like to give an impression of overall dividend income from the moment I started till date. Please note these schematics were drawn up making use of Google spreadsheets. Awesome programme, but takes some getting used to when coming from a full  Microsoft Office package.

I'm not entirely sure whether I mentioned this before, but I started sticking my nose in stocks when I was not yet at the legal age for owning my personal account. It took me about 7 years to gain (and lose) as much to find out what and what not to get myself into.

Where I stand now is a pretty diversified portfolio that has a track record dating back from 2014 (first full year with more or less similar contents). As you will understand these contents have switched every now and again, moving along with age, time and growing insights.

Still, what I am quite proud of, to stay a bit in the vague, (and to build tension towards what will follow next..) I have made (after taxes) a staggering minimum of $1,798.57 on a yearly basis. I kid you not. Counting from January 2016 till August 2016 subtotals have progressed as far as $1,287.10 (again, after taxes).
The following image indicates dividend progress in what I will call from now: my Dividend Tree. Exact contents of this porftolio will be treated separately in my blog (please keep reading and sharing!). It is safe to say that the total investment value for meeting this rate does not exceed a $20,000.00. Exact figures will follow somewhere soon on my blog.

As to be seen here, in the year 2013 I only just got the smell of dividend investment. After that, an immediate surge came followed by a year of remorse of some decisions. All part of the game. This year, I had a better strategy. It is at this moment, that I hope to gain some additional encouragement from making this blog and push for higher yields here.

For me it is also still a journey into the unknown. For now, think of the good things in life when thumbs are up, remember those moments when it all goes pear-shaped.

Please leave a comment! 

Kind regards, 

The Dutch lake house