Portfolio Update 4/28/2020

Today I sold Energy Transfer (ET) and used the proceeds to open a position in Exxon Mobil (XOM).

Reasons why I sold Energy (ET):

The initial reason was that I found out ET is setup as an MLP.  The thing about MLPs is that they send you a form K-1 as opposed to the traditional 1099-DIV that most of us are accustomed to.  I simply don't want to wait on and deal with their K-1 next year.

The next reason is that I realized I don't know much about the oil market.  We're living in very strange times and the oil market is doing things it has never done before.  I got tired of feeling uncertain about holding this one.

The last reason is that I bought my shares at $5.00 each and sold them for $7.34.  This resulted in a capital gain of roughly 47%.  Not bad for only holding the stock for about a month.  I also sold before the dividend ex date which means I won't be receiving a form K-1 next year.

Reasons why I bought Exxon Mobil (XOM):

Exxon Mobil is a well established Dividend Aristocrat and one of the largest companies in the world by revenue.  XOM has roots dating back to 1870 and has weathered many storms in the years since.  I also understand their both their market and how they make money as a business.  Buying into ET on a whim made me realize that I don't like owning a stock without knowing how it makes money from normal operations.

Current market conditions allowed me to buy XOM and just shy of $45.00 a share.  Not long ago this stock was in the high $60's and even into the $70's.  My primary goal is to increase income from dividends but I also like the possibility of capital gains in the future.

The nearly 8% dividend yield at my purchase price doesn't hurt either.

This is what my portfolio looks like after the changes:

SeekingDividends.com
Portfolio as of 4/28/2020
Stock	Shares Held	Annual Dividend	Yield %	Annual Income
O	40.69	$2.80	5.26%	$113.93
ARCC	10	$1.60	13.01%	$16.00
MAIN	10.08	$2.46	9.76%	$24.80
EPR	10.17	$4.59	16.27%	$46.68
AMC	10	$0.63	15.22%	$6.30
XOM	3	$3.48	7.74%	$10.44
Total				$218.15

In summary I was able to get out of ET while I was ahead and get into XOM at a good price.

Thank you for reading I and hope you found this update useful and/or entertaining.  I welcome any questions or feedback.

Getting Started - Brokerage Account

So you want to start investing and making dividend income?

You've come to the right place and I have a very simple guide for you.  There may be other ways to get started, but the following steps are based on own experiences:

(My standard disclaimer applies.  This guide is based solely on my own experiences.  If you questions about your personal financial situation it is advisable to contact your bank, broker, and/or finance professional.)

Step 1.  Have a checking account that you can link to your new brokerage account.  This allows you to fund your new account without having to mail in a check.

Step 2.  Open up an investment account with a broker.  Most brokerages will also offer banking services.  You will probably end up with an investment account, a savings account, and an additional checking account by the time you are done.  The additional checking account is nice as it can take 2 business days or more to transfer money from your investment account back to your original checking account.  This checking account with your broker should give you quicker access to dividend payments and proceeds from stock sales.

Step  3.  Confirm that all your accounts are properly linked and that you understand both how to access your money and also how long it takes to transfer your money back and forth between your accounts.

Step 4.  Now the hard part, picking your stocks.  Also make sure you understand what taxable events are and how may affect you and your personal financial situation.

Step 5.  Keep track of your transactions, dividend payments, and gains/losses for stocks you buy and sell.

I realize that this guide is a bit vague, but hopefully you will find it helpful.

Good luck with your investments!

Portfolio Update 4/23/2020

As a starting point for this blog the above is my portfolio held my brokerage account.  My goal is passive income and you will notice that Realty Income Corp (O) is my largest holding.  I like O due to their monthly dividend payments, dividend history, and as an easy way to gain exposure to real estate.  Most of us don't have the extra cash to get into the rental market game and for me this is a good alternative.

Within the past month I added EPR, MAIN, ARCC when their prices dropped along with the rest of the market.  EPR is another REIT and MAIN and ARCC are both highly regarded BDCs (Business Development Companies).

I added ET as a short term hold that I hope to sell before their dividend ex date.  The reason being that I don't really want to deal with the form K-1 at tax time next year.  I also picked these shares up at $5.00.

AMC was added as a gamble.  At $3.00 a share it was worth it to roll the dice and see if it rebounds later this year.

I plan to update this from time to time and as new acquisitions are made.