First Sale of 2015 – Kinder Morgan

As you know that I’m on a race towards earning $3000 Per Month in 3000 Days and my sole goal has been to collect fantastic companies over that time frame to grow the passive income and becoming financially free by covering all my expenses. In pursuit of this, I’ve been buying positions in blue chip companies in my Portfolio, never wanting to sell them. However, I evaluated the current trends in market especially energy segment and found that my portfolio has become heavily weighted towards energy sector as I’d averaged down on some of these companies: Kinder Morgan (KMI), ONEOK Inc (OKE) and BHP Billiton (BBL) besides other super-majors.

I was led to believe that Kinder Morgan (KMI) will keep its faith with its shareholders but, 75% cut in dividends was a real bombshell to me and I’m sure the rest of DGI community and other investors. With the slide in oil prices and the probability of extended duration of low prices, I believe that energy companies have much more slide remaining and possibility of dividend cuts in other energy related companies remain high, though, sudden events could reverse the direction on a dime as well.

In order to protect the capital from further deterioration & reduce impact on passive income, I’ve decided to trim positions in some of these energy companies, not completely sell them. This will better align my portfolio. I sold 100 positions in KMI at $17.00 on 12/11. It was a tough decision for me to push that sale button, to say the least. I’ll deploy this capital in other shareholder friendly companies.

Full Disclosure: Long on above mentioned companies.

Thanks for reading.

What do think about my decision to sell KMI, wise move or committed a classical mistake of selling low?

Recent Stock Purchase I – December 2015

I invested in 2 companies: Abbott Laboratories (ABT) and Exxon Mobil Corp (XOM) in first week of Dec month and plan to use these dividend growth stocks to grow my passive dividend income in the coming weeks and months. Portfolio shows all my latest positions.

Below are the companies that I put my capital on towards my race for earning $3000 per month in 3000 days. Last month, I completed 210 days of my freedom race and it was exciting to have crossed $400 in passive income for the first time. Without further ado:

1) Abbott Laboratories (ABT): 20 positions at 45.00 on 11/30
2) Exxon Mobil Corp. (XOM): 10 positions at $80.00 on 12/03

Last few months, I’ve been buying several energy companies and it is no secret the pain DGI community and investors are enduring for holding them, with oil touching new lows. However, these companies will bounce back hard as soon as oil reverses course and start accelerating in up direction; patient investors will be richly rewarded, while they collect dividends in the meantime.

After addition of 2 new companies: Archer Daniels Midland Co. (ADM) and Vector Group Ltd. (VGR) last month, I’ve 55 wonderful companies in my portfolio. I’m getting closer to desired diversification across various sectors and not putting all eggs in one basket.

Full Disclosure: Long on above mentioned stocks.

Thanks for reading.