Recent Stock Sale II – March 2017

Last week, I mentioned about the reasons why I think market looks fully or over-valued in my opinion. There was a small pullback of few percent points due to the failure of American Health act passage and myriad of other reasons like fed rate hike, geopolitical risks in south china sea, likely OPEC non-compliance of oil quotas, etc. Due to these reasons and others, I think that market is facing some head winds.

I kept steady in implementing my strategy to trim or eliminate positions in companies and raise some cash in hand so that whenever pull back does eventually happen, I’m ready to deploy the cash. I’ve completely sold following companies: AMGN, AXP, BAC, BUD, CAT, CNP, CVS, DIS, DOW, DPS, FLO, GD, JNJ, JPM, KO, MCD, MO, MSFT, OKE, PEP, PM, POT, RAI, SYY, USB, UTX, and WMT.

Over last few weeks, I’ve sold 47 companies in my portfolio, trimming down almost 50%. I feel more comfortable with this size of portfolio at this point of time. However, I’ll be at look out for buying opportunities whenever they arise, currently, I’m seeing fewer. I still have 50 companies and that’s a decent size and fairly diversified by many measures.

What do you think about market valuation, have you considered selling some companies also?

Recent Stock Sale – March 2017

Over last several months and years, I’ve been adding companies to build a diversified portfolio to generate passive income of $3K in 3K days and become FI. It has been a fantastic and challenging journey so far. With each passing day, market is either setting all time high or close to it and many companies are at all time high. Market recently celebrated its 8th anniversary on March 9th and now, it is entering 9th year of its bullish innings. It is already 2nd longest running bull market and its possible that it can keep running for another couple of years before correction or bearish sentiments sets in.

Why do I think market is fully or over valued. It is due to many facts that have been well-documented by many experts. Some of them are as below:

  1. P/E ratio higher than historical average.
  2. Schiller PE ratio almost in nose bleed territory
  3. Market/GDP ratio over 150%

At this point, I feel prudent to trim positions or sell companies. I’m not predicting a bear market, far from it, I’m in it for long but want to keep some cash on hand so that when corrections do finally occur, I’ll have some dry powder. As a result, I’ve completely sold positions in companies: ABT, ADM, AFL, AVA, BA, BAX, CCI, CMI, DLR, EMR, IBM, KHC, LMT, NKE, QCOM, and SBUX. Last month, I’d already sold QCP, FCX, XME and YUMC.

It was a very tough decision for me to sell above companies as I’ve patiently added in my portfolio. As a result of these sales, my passive income will be down over coming months, though, I’m expecting March to be all-time record for me.

What do you think whether my decision to sell above companies a wise move?

Recent Stock Purchase – March 2017

I added positions in 3 existing companies in March. I plan to keep adding these dividend growth stocks to grow my passive income to a point where all my expenses are covered by the income generated by them. However, I also made some sell this month as these companies did not suite my long term objectives.

Below are the companies where I put my capital on towards my race for earning $3000 per month in 3000 days. Last month, I completed 66days of my freedom race and it was fantastic to have come close to $2000 in passive income, although not quite hitting it. Without further ado:

1) Chatham Lodging Trust (CLDT): 50 positions at $19.67 on 3/06
2) HCP, Inc. (HCP): 30 positions at $31.90 on 3/06
3) Verizon Communications (VZ): 25 positions at $50.05 on 3/06

As mentioned earlier, I completely sold 1 company: NOV and trimmed positions in MO. Due to addition of new companies over last several months and sale of some, total number of companies has gone down to 92 in my portfolio.

Full Disclosure: Long on above mentioned stocks.

Dividend Income Update – February 2017

I’ve completed 660 days of freedom race and it has been awesome with all the support. I’m truly blessed to be posting it from the country where Statue of Liberty stands. It stands for freedom and I hope to achieve my own financial freedom in 3000 days when I complete my race.

I crossed a figure of $1500 in passive income, though less than last month. I’m excited to write about my passive dividends received in month of Feb. as they flowed into my account even without me lifting any fingers. So far, I’ve got 93 fantastic companies in my Portfolio.

I hope that this passive income report provides inspiration to all the readers out there that even when you are starting out fresh, you can still do it, like my journey just short time back. Although, it is a long race: slow and steady, we can win it on our terms and time. Without further ado, here are dividends received:

Abbvie Inc. (ABBV): $32.00
Abbott Laboratories (ABT): $21.20
AES Corp. (AES): $15.00
American Express (AXP): $1.60
Caterpillar Inc. (CAT): $23.10
Chatham Lodging Trust (CLDT): $60.50
CVS Health Corp. (CVS): $10.00
EPR Properties (EPR): $34.00
Eaton-Vance In. (EXG): $24.39
General Dynamics Inc. (GD): $3.80
Gov. Properties Income Trust (GOV): $32.25
Hospital Properties Trust (HPT): $91.80
Kinder Morgan, Inc. (KMI): $75.00
Main Street Capital Corp. (MAIN): $83.25
Realty Income Corp. (O): $32.62
Omega Healthcare Inv., Inc. (OHI): $310.00
ONEOK Inc. (OKE): $307.50
Proctor & Gamble Company (PG): $33.47
Potash Corp. of Saskatchewan (POT): $20.00
Royal Bank of Canada (RY) : $19.02
Starbucks Inc. (SBUX): $2.50
Sr. Housing Properties Trust (SNH): $195.00
STAG Industrial, Inc. (STAG): $46.67
AT&T, Inc. (T): $156.80
Verizon Communications. Inc. (VZ): $155.93

Total passive income for Feb: $1,787.40.

Instead of getting a single salary once a month, I got paid by above companies throughout the month, simply by owning a tiny sliver of a slice. Imagine that there are thousands of people hired by those companies and that they are working for you, rather than, you working for them. This feeling of achieving financial freedom over 3000 days, is what drives me to keep racing and I’m sure readers alike!

Full Disclosure: Long on above mentioned stocks.

How did your passive dividend income come along in February?