Even though the Stock Market has good days and bad days over the last month the Dow was up over 700 points and our Net Worth had a good Increase also.
Our Stocks are coming back slowly which is nice but we still have a ways to go. Even though some companies are reducing their dividends or stopping them we feel they will come back after we get back to normal someday. It could take a few years and we are prepared for it.
This month we did sell our Digital Currency this month since it came back some and we decided on building a new shed for our Dad. We are hoping they will move to Arizona full time someday or at least for four to six months to get out of those Midwest Winters. No shoveling Snow here in Arizona. LOL
We did restructure some of our Dividend Stocks also this month and sold them for a loss. These ugly months are not fun to talk about but I need to talk about the ugly months along with the good months to show we are all human.
Everyone has different situations and investments but hopefully this blog gives you ideas on ways to improve your situation. Even though it is for entertainment purposes only. I know we are so thankful that we live Debt Free and have one steady income right now since our Investments could be paying out less for a while till our economy recovers from this.
If you know people that are going through a tough times with their finances maybe suggest they buy a copy of my Book called “MONEY $ECRET$ TO MAKE YOU RICH”.
When it comes to our Stock Market monthly thoughts, I like to read a lot of information from many different sources. I have narrowed down my readings to trusted advisors. You can get confused and lost if you try listening to everyone out there. There is a lot of noise for sure. This blog is in no way giving you any financial advice or legal advice or health advise. You need to see a professional for that. That is my disclaimer for all my blogs and this one also.
Some of the sources we like to read info from Fidelity Investments, Charles Schwab, Bob Brinker Report, Zach’s, Fisher Investments, American Association of Individual Investors (aaii), The Independent Advisor for Vanguard, My brother, A few friends and my Dad. Below are my January Stock Market thoughts and where we are invested;
Mills Family is currently at;
– 29.71% in Real Estate
– 23.68% in Dividend Stocks for Income to live on
– 46.43% in Stocks and Stock Funds for Retirement
– 0.00% in Digital Currency
– 0.18% in Cash Currently. I would like to keep around 5% in Cash as a goal
Last month our Dividend stocks were up $3,309 or up 1.75% and our 401k accounts were up $21,965 or up 6.15%. Our Net Worth for the last twelve months was down $36,563 or down 4.28%. I am not excited about being down for the for the last twelve months but I like being up last month. Remember it is a roller coaster and enjoy the ride. Always a risk in any investments.
Our Dividend Income and Stock Profits and Losses for the month vs July 2019 was down $8,382 or down 273.39%. But yet if you remember we restructured some stocks in 2019 and this year so our monthly payouts will be a little different for 2020 but at the end of the year hopefully we will be the same total or show an increase in dividends received. We own 18 different Dividend Stocks currently. Plus, this month we sold some stocks for a loss.
We have the following % of stocks in the below Sectors;
REITs – 16.71%
Business Loans – 2.41%
Energy – 5.01%
Tech – 9.63%
Industries – 19.37%
Business Development – 15.58%
Tele Communications – 10.95%
Auto – 2.92%
US Equites EFT – 17.43%
Analysts seem to like the Dividend stocks that pay 1% to 4% the best. I like to have a Diversified portfolio. We have 8 stocks out of 18 stocks that we hold over 5% of our total portfolio. I do like Dividend stocks; the market can be down in value but your dividends can keep rolling in. Good living.
We are in 13 different Angel Investments which we hope some of them will be the next Facebook. LOL Another dream of mine. Some are really being hurt by the Coronavirus shutdowns and restrictions.
We started investing in a private Real Estate Fund in March. We only have $1,000 invested so far. I want to test the waters before investing more money with them. We got paid a $4.18 dividend last month. Woopie. LOL
I am happy though that our Net Worth is still holding strong and up $281,467 or 52.55% since we moved to Arizona. Even though we are down for this year so far $53,917 or 6.19% down. Let’s get back open so our stocks can go back up and start growing again.
July Crystal Ball thoughts (LOL) from some sources are;
I like reading the Brinker Report and aaii.com the most. I feel good reading a lot of information but I still believe in riding out the roller coaster for our situation. There is a wide range of choices and it seems like more companies are getting into the Robo Advisers game. I feel this is the future and I can see us going this route with some of our Investments someday.
AAii Journal July 2020 article by Derek J Hagemen
“Dividend-paying stocks can satisfy investors’ need for current income and capital growth, especially during volatile markets. One area of consideration is for investors to turn to the greater stability of rising dividend-paying stocks. While much remains uncertain, the highest-quality companies have proven their ability to grow their dividends over time, demonstrating an ability to survive through a range of market environments.
Rising dividend-paying stocks have historically provided higher cumulative returns with lower levels of volatility versus non-dividend-paying stocks over long-term holding periods. Cash dividends directly contribute to the total return and help to limit downside price risk, provided the market feels that the dividend is secure.
Dividends are a straightforward and effective tool to identify high-quality, well-run companies. Dividends have the potential to increase corporate accountability and can signal management’s confidence in current and future growth prospects.
This month’s First Cut shows 20 rising dividend-paying companies with the highest 12-month dividend growth rates. The First Cut universe was limited to exchange-listed stocks with a share price above $3. The initial First Cut table was dominated by banks, so financials were excluded (with the exception of insurance companies) to provide a more diverse list of passing companies from different industries. Foreign stocks were excluded because of the uniqueness of their financial statements.
A filter requiring annual dividend increases over the last five years was specified. The five-year historical dividend growth rates provide a sense of dividend sustainability. Positive current earnings for the current fiscal year was also specified as a minor financial strength screen. The payout ratio (dividends per share divided by earnings per share) shows the percentage of earnings paid out in dividends. The current dividend yield must be greater than 1.5% to be comparable to the market yield of 2.0%.”
Kiplinger’s Personal Finance July 2020 magazine said;
“How to Spot Dividends at Risk. Many companies in hard-hit industries, such as travel, lodging, dining, energy and brick-and-mortar retail, have slashed or suspended their payouts. Real estate investment trusts (particularly those that lease space to restaurants and stores) and financial firms may come under pressure as well, says Will Hunter, of the investment firm Neuberger Berman,
Be most wary of heavily indebted firms with deteriorating earnings. They may have to tap money earmarked for dividends to meet short-term obligations. A sky-high yield can tip you off to a vulnerable dividend, says Brian Bollinger, of Simply Safe Dividends, a dividend research firm. “investors may be temped to reach for high yields, but if you’re investing in firms with high yields, high debt and high payout ratios, you could be picking up pennies in front of a steamroller,” he says.
I sure hope this is a temporary thing and the markets bounce back. It is no fun when the market seems to be sliding downward everyday and in some big numbers.
There will be months and years down and months and years up. I still feel the long run will be positive and we will have a comfortable retirement in Arizona. I just hope it is the normal rollercoaster of the stock market and nothing more. I try my best to check my accounts once a month so I don’t drive my nerves crazy by daily ups and downs. Another reason I like Dividend stocks. Even though a few of my Dividend stocks canceled paying Dividends till there stock prices and profits come back.
I don’t think we will ever see Fake News end. We may always hear some of the truth and some fake stuff in the news. Hopefully people won’t react and just leave the money in stocks. Remember stocks is a long-term vision for most. But I see a lot of volatility the next few years.
For sure it isn’t fun when stock values are down, but remember that the stock market in the past has been like a roller coaster of going up and down but over time it has gone up more than down.
I look at all the people out driving cars, spending money, going to work and those are all good signs of a good economy. Not to mention down here in Arizona there is major growth of Office Buildings, Job openings and houses being built. That means to me a strong economy.
My stocks in my Brokerage Account are all dividend stocks and I am in it for the long run. I am hoping to live off the dividend in to my 70’s. Even though a Financial Adviser tried talking me out of taking Social Security till age 70, I am still planning on waiting till age 70. I have done up a new projection for our family plans taking us to age 95. If you want to see it let me know. What are your plans?
Dow Jones Industrial Average (DJIA) 26,428.32 on 8/1/20, 25,827.36 on 7/2/20, then was 26,583.42 on 8/1/19. It wasn’t down much over a year ago, just 151.10 or up 0.58%. Ouch… If you see the chart of the last 12 months it looks like a wild roller coaster ride.
I know there are many different sources of investment opinions out there. They all say they are the best. You can find some that say dooms day is coming and some say buy now the market is going high. Who knows, I like aaii, Bob Brinker, Fidelity, Charles Schwab, Angels and Entrepreneurs network and Zach’s for my blended info on the market. I feel if I take any more info in it can get even more confusing.
My kids I would love that they grow up debt free and invest in companies that seem safe and long term. If I could only go back in time and invest all my money I made as a kid into Microsoft. Another dream of mine. I could be living quite well just off the dividends.
At my age I am getting less risky and more into conserving our money to last us during our retirement years. It could be the wrong strategy but that is what we are doing currently. Things could always change in the future or once the boys move out.
People want to make more money each year so the companies need to make more money each year and to keep growing. So, I am positive for the outlook in United States companies. What are your thoughts?
We pray that Coronavirus will be come to a end and they find a cure and vaccine for it. We don’t want to see any more people get sick or die from it. Keep thinking positive thoughts.
Here is a positive quote I like; “Remind yourself daily that there is no way to happiness; rather, happiness is the way.” ― Wayne W. Dyer, Change Your Thoughts – Change Your Life: Living the Wisdom of the Tao
Don’t give up on your dreams; don’t let others talk you out of your dreams. Make your dreams happen. Make it happen today.
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