Monday, November 29, 2010

As the Market Crumbles...

Hey Everyone! As we have seen, the market has been stumbling, crumbling, falling, well - you know the rest. This is due to the European Bailout of Ireland and other talks across the world regarding different issues happening. What does that mean for an investor? Well - Bargains! This has been great for investors to pick up discounted stocks that produce even higher yields than before due to the decline. Who do I have my eyes on?

LMT: Lockheed Martin: Currently Trading at $68.20, it just boosted its dividend this quarter, and has done so for the last 10 years Plus! The dividend per share is at $3.00, giving it a 4.40% dividend yield. They are near their 52 week low and are actually a few dollars away from their 5year+ Low! Price to Earnings (P/E) is only 9.63 (I like something below 15 or the average of the S&P 500 Index) with an incredible earnings per share of $7.08. With a $3.00 dividend divided by a $7.08 earnings per share, this gives LMT a payout ratio of 42.4% (I like somewhere between a 40 an 60% range). This shows that they retain earnings for growth opportunities, but also love to give back to their shareholders. Lockheed Martin is in the aeronautics, defense, security sector, with its biggest competitor (according to Google Finance) being Boeing. Now why don't I talk about Boeing? I have nothing against them, but as a dividend investor, Lockheed provides a greater dividend yield and does have proof of incredible dividend growth over the longterm.

I will continue to keep my eye on Lockheed Martin Corporation (LMT) and also a few other companies such as Nokia (NOK) and Banco Santander (STD - Bank in Madrid Spain, has been hit hard due to the fact it is apart of the European Union countries, etc).

Disclosure: I do not make recommendations. This is simply full analysis of Companies. However, Lockheed Martin Corporation is priced right for me and I would consider placing a large investment into them, holding a Long Position. All information is from Google Finance as of 6:00 PM on 11/29/2010.  Thank you.

Saturday, November 27, 2010

My Dividend Portfolio as of November 27, 2010

Today I will display my holdings for individual stocks, their yields and annualized incomes from the stock. (The annualized portion is based on the amount of shares I own X the annual dividend per share.)
I will be displaying this on a frequent basis to show growth in my portfolio from DRIP and other purchases and analysis' that I make.  I am using this as a tool, also, for myself to see how my portfolio is growing.

Symbol Yield Current ShP Annual Income
PFE 4.37% $16.49 38.04
CIM 17.73% $4.06 32.51
NGG 7.84% $45.24 62.93
V 0.79% $75.48 3.35
HRB 4.70% $12.77 9.48
ANH 14.08% $6.96 7.84
HIMX 11.57% $2.16 8.25
PRGN 4.26% $3.52 1.50
SHMR 5.83% $13.78 8.04
TOTAL 6.19% 171.93

As you can see, I have a mix of stocks, some speculative some very sound, but it is getting diverse.  I have been choosing individual stocks for about 6 months now and am seeing dramatic results in terms of share price return as well as dividend income growth.  I currently stand at $171.93 in dividend income per year and will post again in December to see if that number has grown - to which I will describe the growth: Dividend Reinvestment or New Funding from my own pocket for growth.

From seeing this simple chart, I see that Visa is a relatively low yield, to which I am not happy.  I purchased them in the mid-upper $60 range and will wait to see what the price does.  They did raise their dividend by 20% for this recent quarter from 12.5 cents to 15 cents per share.  I know it doesn't seem like a lot, but a 20% growth rate is phenomenal.  The reason why I hold on to them is because I feel there is more price appreciation that is there and I want to see if they will continue to make this growth pattern.

Pfizer: PFE, will be paying me dividends this December, as well as Visa (V), and Paragon Shipping (PRGN).  Thus, with dividend reinvestment, this should automatically raise my annualized dividend income, just as long as they continue to make at least the same dividend payment next quarter; this is due to the fact through Dividend Reinvestment I will be owning more shares.

I will report back on another analysis, enjoy the rest of Thanksgiving Break everyone!

-Lanny B.

Disclosure: I do not recommend any particular company. I am therefore Long on all stocks above, but do not provide this chart as a recommendation of any sort. Do your due diligence and find what is suitable for you. Thank You : )