The stock market has been performing surprisingly well since
the Sequester first kicked in a few weeks ago.
I have had a cynical view of this success. I’m sure there are numerous Wall Street types
who are left-leaning Democrats, but I imagine most are staunch
Republicans. Now that government funding
for public works and support programs are starting to dry up, I envision these
One Percenters are exacting their revenge, as if to say, “since my tax dollars
aren’t going to help others, I can finally put my money back to work for
me.” Fortunately, this solidly
middle-class, part-time blogger has a decent cache of cash in the stock market
to also reap the benefits. I can’t say all
my profits will be used to support Democratic causes, but I will donate to them
as resources allow; a personal “screw you” to the Koch brothers.
I made one change to
my portfolio since the last SitRep. Out
of 267 trading days of owning TECO Energy (TE), I was in the black for nine of
them; and the highest profit I saw was $26.64.
I received almost $90 in dividend income from the stock, and if I don’t
consider these funds as an out-of-pocket investment, I did make some money when
I sold the stock. As a replacement, I
purchased shares of NutriSystem (NTRI).
The price was about half of TE, but offered a Dividend Yield three
percentage points better. I purchased
enough shares to receive over 16 more shares over the course of a year in
dividend reinvestment and increase my dividend income by $15 every quarter.
I will be making one more replacement after the market opens
again on April 1. My stake in H&R
Block (HRB) has been steadily increasing over the last few months, to the point
where my investment will not pay me a full reinvested share every quarter. This is my goal with every stock purchase I
make. On Monday, HRB will pay a
dividend, which will be reinvested in the stock. My plan is to sell HRB and invest in Pitney
Bowes (PBI). The stock is much cheaper
and has a 10% dividend yield. I will be
able to purchase enough shares to get 2 reinvested shares from the dividend and
increase my dividend revenue another $11 every quarter. Plus, I will have enough money to invest in
another stock. I could go back to TECO,
but I will do some research to find a good paying stock that pays in the first
month of the quarter.
Here is an update to how my current portfolio is performing:
First Month of Quarter
B&G Foods (BGS) – Small staple
foods manufacturer
Profit/Loss Per Share: +$9.03
Annual Reinvested Shares Pace: 5.25
H&R Block (HRB) – Chain
store tax preparers
Profit/Loss Per Share: +$13.29
Annual Reinvested Shares Pace: 3.5
- Reached new 52-week high
Xcel Energy (XEL) – Local
power company
Profit/Loss Per Share: +$5.47
Annual Reinvested Shares Pace: 4.25
- Achieved highest profit level on investment
Crown Crafts, Inc. (CRWS) –
Baby cribs and accessories manufacturer
Profit/Loss Per Share: +$0.14
Annual Reinvested Shares Pace: 13.25
Second Month of Quarter
Paychex (PAYX) – Small
paycheck processing company
Profit/Loss Per Share: +$8.28
Annual Reinvested Shares Pace: 4.25
- Reached new 52-week high and achieved highest profit on investment
NutriSystem (NTRI) – Weight loss
company
Profit/Loss Per Share: -$0.10
Annual Reinvested Shares Pace: 17.25
Bristol Myers Squibb (BMY) –
Large pharmaceutical manufacturer
Profit/Loss Per Share: +$12.30
Annual Reinvested Shares Pace: 3.50
- Reached new 52-week high and achieved highest profit on investment
Third Month of Quarter
Hershey Company (HSY) –
Large chocolate manufacturer
Profit/Loss Per Share: +$37.54
Annual Reinvested Shares Pace: 2.25
- Reached new 52-week high and achieved highest profit on investment
Mattel (MAT) – Large toy
manufacturer
Profit/Loss Per Share: +$18.10
Annual Reinvested Shares Pace: 4.25
- Achieved highest profit on investment
Waste Management (WM) –
Large recycling and waste removal company
Profit/Loss Per Share: +$6.65
Annual Reinvested Shares Pace: 4.25
- Reached new 52-week high and achieved
highest profit on investment
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