As of the end of November our Net Worth decreased to $805,017 from $827,436. The breakout is as follows:
Retirement Accounts $406,219
Taxable Accounts $106,827
Cash $67,471
Home $205,000
Cars $16,000
Personal Property $3,500
My net worth post seems to be one of my most popular posts, so here is a summary for the month:
The stock markets decreased for the month, resulting in a decrease of our overall net worth. I made additional purchases of bank and REIT stocks this month. I love buying stocks on sale and I don't mind it when the markets go down for this month or the next few months. Since I made some additional purchases from cash into the taxable accounts I was not down much for the month on those accounts. We paid $3,400 in cash for an underground sprinkler system to be installed in our front and back yard. We had been planning to get the sprinkler system done for the past two years but finally did it. I am keeping a high level of cash that I will use to fully fund our Roth IRAs for 2008 and 2009. I also started an account to fund the replacement of my wife's care in four years. Again, we have no debt at this time.
The Dividend Income increased to $6,994 from $6,570 . The increase was from additional stock purchases as well as dividend increases from some of my stocks. The great part of buying stocks at a lower price means I get a higher dividend rate. Our dividends have increase over $1,000 from the end of July to the end of November. The dividends are reinvested but I am keeping track of the amount of income I could receive.
Net Worth and Dividend Income Update
Posted by Div Guy | Monday, December 03, 2007 | Net Worth | 7 comments »
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It is all in how you view it! I too don't mind buying dividend stocks at bargain basement prices. As you noted, this will quickly increase overall yield and absolute dollars of dividend income.
Best Wishes,
Dividends4Life
D4L,
Good to see some other people are taking advantage of the lower prices.
Hi Div Guy,
It is always great to see your monthly summary; especially when it goes up. I know you have explained it before, but I still don't feel I have a handle on your dividend strategy. Can you please explain in detailed steps your analysis of a stock in terms of current stock price and the P/E ratio and dividend yield. I really want to buy some good stocks with great dividend payments but I am having a hard time knowing which ones to buy. I am having trouble understanding the benefits of buying a stock with a dividend vs. investing in a CD at 5%. Thank you for your help.
en,
I don't think I can help you. You need to decide what types investments are best for you and your risk tolerance. If you are deciding between a CD and stock, I would say you should probably stick with the CD. There is quite a differce in the degree of risk.
Div Guy,
What I mean to ask is that I understand stock is a higher risk and I am willing to take a higher risk on some of my money but I would expect there to be a higher payoff with the higher risk. What I cant understand is how to determine a stock dividend payout to correspond to a percentage point. In a CD I understand that you put in the money and you receive a set rate of interest per year; how would I calculate that rate of return in dividends? Say, if I want to make 6% a year on my invested money in dividend income, what would I look at in the cost of the stock and the dividend payout? Do you know of any solid stocks, i.e. blue chip stocks, that pays 6% or more returns per year?
I have definitely taken advantage of the cheap prices. My brother-in-law is a financial adviser. He swear I am crazy to buy into the financial stocks right now. I just told him I consider myself a contrarian investor.
en,
Most blue chips yield between 2 and 4%. Some financials are yielding a little higher. Usually the higher the yield the more risk you are taking.
Jake,
I think now is a great time to buy financials. Look at Warren Buffett's holdings, he has been buying financials.