NRZ: a yield worth chasing


My investment strategy promotes constant progress.

It’s why I call my investing journey, and this blog, my march toward $1,000,000. Eventually, I want to earn $1,000,000 in dividend income. I’m only at $143.19, so still a long way to go (OK, a loooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooonnnng way to go) but I’ve found small steps in the right direction work best for me. Right now, I buy small and get paid small, meaning I usually purchase a single share of a given company at any given time. With that being the case, when it comes time for said company to shell out its dividend, that payment is usually pretty small.

Frequency wise, though, I get paid a lot … between 40 and 50 times a month. I got to this point by scooping up a crap ton of companies that pay in varying quarterly schedules. Most are solid growers with yields between 2-4%. My portfolio’s average yield is just over 3%, which is something I’m looking to inch a bit higher before I move into the next phase of my plan: adding to my 100-plus positions.

I took a step toward doing just that today with a purchase of New Residential Investment Corp. (NRZ) for $15.34. The mortgage investment company is literally a dividend machine. It recently boosted its payout by 4.2% … the second divi hike in 2017. It has strong dividend coverage and a low valuation, too. The P/E ratio is parked at around 8 and the yield is 12.48%. It pays $0.50 quarterly, meaning each share, which costs about as much as dinner from Chipotle, will earn you $2 every year.

That ain’t bad, folks. It’s not the type of stock I usually invest in, but you only live once, right?

I’ll let you know how it works out for me.

I also earned a pair of dividends today: $0.47 from MRK and $0.61 from MO. Today’s $1.08 brought my July total to $8.47 and my 2017 total to the $143.19 I mentioned above.

That’s all for today. As always, thanks for following along.

 

  • Justin Michael Bellear

    Whoa! When we spoke the first time you had a goal of $1,000,000 in shares, but dividend payouts of that amount will be quite amazing to see. I’m excited for you man!!!

    • Yeah, figured might as well shoot for the sky!