Let’s hope the 3rd time’s the charm
It’s been awhile since I’ve done this.
I’m not sure what I’m trying to get out of saying that other than, well, it gives me a bit of an out if this post totally blows. That said, if this post sucks, I’m blaming it on rust.
Regardless of the quality, though, this is a super-important one. It’s a relaunch of sorts. I’m marching toward a $1,000,000 portfolio and, this time, nothing’s stopping me. I’m starting small, as I did way back when I started the first time, and I’m adding consistently. Habit is a powerful, powerful, powerful thing, and consistency is key when it comes to creating wealth. I hope my march will demonstrate that.
So, why am I starting over?
A lot has happened since my last post – a post you won’t be able to find anywhere. Awkward, I know, but it is what it is.
My site expired … and yes, it really is pretty much as simple as that. The host tried to automatically renew everything for me, but the credit card I had on file was closed. Remember when I sold all my shares to pay down debt? Yeah … I closed the cards after ditching the debt and my site turned out to be a casualty of circumstance. It’s pretty much the only negative that came out of it, though, so I can live with it.
The host tried to email me to update my payment method, too, but I never check the address I used to register it so that turned out to be a bust as well. All that said, if you checked my site and saw a message saying it was suspended, you found out exactly the same way I did.
Truth be told, I wasn’t doing a very good job of documenting my march in recent months anyway. This, in a weird sort of way, gives me a chance to start over. I plan on tracking absolutely everything this time around and I know it’ll be worth it. I know dividend growth investing works. I’ve seen it … and the purpose of this site, and starting over, is to let you see it, too.
The first step
OK, now that that’s out of the way, let’s get right to it. I’m back to using Robinhood – the brokerage I started with back in the day – so I can make regular additions without commission fees eating away at my returns. Free trades aside, I’m also a big fan of the company. I’ve had an account pretty much since the start and have seen it grow … and I like the direction its going.
I started my march with a $500 deposit earlier this week and the plan is to add $20 each day the market is open ($100 a week) and see how that goes for a bit.
So, what does $500 get you these days. Well, it could get you a lot of things. I decided to buy three. Actually, probably more like 15 – 5 shares of Fifth Third Bank, 5 shares of AT&T and 5 shares of General Motors.
Why FITB, T and GM?
So, why start with those three companies, anyway? Well, everyone knows Fifth Third Bank is the best regional back on the planet, GM has incredible pricing power and AT&T has content rights to some of the most amazing stuff on TV. Laying it on too thick? Yeah, I’m only kidding … but I do like all three for several reasons.
For starters, they all pay dividends in different months. For anyone who followed my previous march, my journey is as much about building a consistent income stream as it is about ballooning my portfolio from $0 to $1,000,000. To do that, I want to get paid several times each month. Not twice a year, not once a quarter … multiple times every month. FITB pays quarterly in January, April, July and October, T pays in February, May, August and November and GM pays in March, June, September and December.
They all pay solid dividends as well – FITB has a yield of 3.26%, T is up over 6% and GM is around 4.2% – and, finally, all three seem undervalued. T has the highest P/E ratio of the bunch at 12.05. FITB and GM both have ratios under 10. Somebody has to give them some love, right? Might as well be me.
With T’s $2.04 annualized payment, FITB’s $0.96 and GM’s $1.52, I’m already looking at a cool $22.60 ($2.55 a quarter from T, $1.20 from FITB and $1.90 from GM) a year.
What’s the next step?
The next step is simple. Instead of buying a ton of other companies right off the bat, like I did in the past (I had over 100 at one point), I’m going to build my positions up a bit. I’m thinking getting to the point where they all pay me $20 a quarter is a good start. That translates to $20 a month in dividend income. I’ll reevaluate things then, but for now that’s the roadmap, people.
If you’ve been with me since the beginning, thanks for sticking around. If you’re new here, thanks for checking out the blog.
March with me
Looking to get started? Start with Robinhood: http://share.robinhood.com/benjams352
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