Seeking Alpha

HackFab's  Instablog

HackFab
Send Message
Survivor of many lost decades. I'm a non-professional investor that trades stocks and options. I like good cigars, smooth bourbons, rare steaks, and dry martini's.
  • The Grandson Project, Part IV 0 comments
    Mar 6, 2013 11:50 AM

    Selecting companies....

    I'm not smart enough to look at a balance sheet, and let's face it, ENRON's or Worldcom's, balance sheets probably looked good at one time. Heck, GE (and the 'too big to fail' banks), probably all had GREAT balance sheets before the financial pandemic hit.

    Hey... The Wizard of Oz even looks a bit like Jack Welch...

    After all, as Inspector 'Dirty' Harry Callahan said:

    Instead, I look for companies that provide goods and/or services that I understand. Since The Grandson Project is a DRiP portfolio, the companies MUST pay dividends. Slow growth isn't an issue. Remember the Aesop's Fable, 'The Tortoise and the Hare'?

    (click to enlarge)

    I prefer the classic Disney version over the Looney Tunes. No slight to Bugs Bunny though.

    It's difficult to sell the idea of 'slow and steady', when trying to hold back the 'I want it NOW' generation, that are looking for exponential growth over slow compounding. Dividends? "We don't need no stinking dividends!"

    (click to enlarge)

    (Heddy Lamar is my all time favorite Harvey Korman role.)

    Looks a bit like David Fish without the tinted glasses???

    Here's the first three holdings in alphabetical order:

    Conoco Phillips (COP) -- NYSE

    Industry: Oil refining, chemicals

    Number of shares needed to join the DRIP: 1 Share(s)

    Note: This is when purchase through Temper of the Times Investor Services, Inc. And Temper charges a $30 fee for DRIP Club Members or $60 for members of the general public. If account is established directly with the transfer agent: www.computershare.com, the initial investment is $250, and there is no additional fee to set up the account.

    Minimum amount accepted by the plan for subsequent investments: $25.00

    Maximum amount accepted by the plan for subsequent investments: $120,000/year

    Fees charged by plan for subsequent investments: Co. pays fee

    Fees charged by plan for dividend reinvestment: $0!

    Recent Price: $57.66

    COP is a dividend contender, having raised it's dividend 12 consecutive years The stock is yielding 4.58%, for a quarterly dividend of $.66. The portfolio currently holds 6.321912 shares. The reoccurring monthly investment I've added is $70.00. More than enough to purchase 1 additional share per month.

    Dr Pepper Snapple Group, Inc. (DPS) -- NYSE

    Industry: Beverages-Non-alcoholic

    Number of shares needed to join the DRIP: 1 Share(s)

    Note: This is when purchase through Temper of the Times Investor Services, Inc. And Temper charges a $30 fee for DRIP Club Members or $60 for members of the general public. If account is established directly with the transfer agent: www.computershare.com, the initial investment is $250, and there is a $15 additional fee to set up the account.

    Minimum amount accepted by the plan for subsequent investments: $50.00

    Maximum amount accepted by the plan for subsequent investments: $100,000/year

    Fees charged by plan for subsequent investments: $0.00

    Fees charged by plan for dividend re-investments: $0.00

    Recent Price: $44.28

    DPS hasn't made it on the CCC list yet, it started paying dividends in 2009 and has raised it's dividends every year since then. It should become a dividend challenger next year. DPS is a recent addition to the portfolio, replacing HNZ (which is still held pending acquisition). The stock is yielding 3.45%, for a quarterly dividend of $.38. The portfolio currently holds 5.786656 shares. The reoccurring monthly investment I've added is $60.00. More than enough to purchase 1 additional share per month.

    General Electric Company (GE) -- NYSE

    Industry: Elec. equip., broadcasting & fin'l serv.

    Number of shares needed to join the DRIP: 1 Share(s)

    Note: This is when purchase through Temper of the Times Investor Services, Inc. And Temper charges a $30 fee for DRIP Club Members or $60 for members of the general public. If account is established directly with the transfer agent: www.cpushareownerservices.com, the initial investment is $250, and there is a $7.50 registration fee to set up the account.

    Minimum amount accepted by the plan for subsequent investments: $10.00

    Maximum amount accepted by the plan for subsequent investments: 10,000/week

    Fees charged by plan for subsequent investments: $3.00

    Note: This is a transaction fee, only if you mail in the funds using a check. There is a $1.00 ACH fee, per transaction, that is made online or monthly.

    Fees charged by plan for dividend reinvestment's: Co. pays fee

    Recent Price: $23.59

    GE is a fallen angel. Although it has a 100 year history of paying quarterly dividends, it cut that quarterly dividend in June 2009 from $.31 all the way down to $.01. Since then, the quarterly dividend has recovered to $.19. And will probably increase that sometime this year. The stock is yielding 3.2%, for a quarterly dividend of $.19. The portfolio currently holds 9.8735 shares. The reoccurring monthly investment I've added is $50.00. More than enough to purchase 1 additional share per month.

    Next installment: HAS, HNZ, JNJ, K, NSC, and SNH

    Disclosure: I am long COP, DPS, GE, HAS, HNZ, JNJ, K, NSC, SNH.

Back To HackFab's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • $KMI increases quarterly dividend to $.42 from $.41. Long $KMI in my IRA
    about 14 hours ago
  • Sold 150 shares $LEG. Added 150 shares $KMI to my existing position.
    Apr 1, 2014
  • $KMI short squeeze???
    Mar 27, 2014
More »

Latest Comments


Most Commented
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.