Monthly Archive: May 2015

I think it’s important to celebrate wins on the path to your ultimate goal, no matter how small. Sharing my dividend income results with you readers gives you some insight to what is possible as you begin your journey.

My ultimate goal is to be able to live off of the passive dividend income from my investments, so I can just stay at home and play video games. Here is the money I made in April 2015 without lifting a finger.

KO – $8.25
WMT – $5.88

Total: $14.13

Compared to the dividends I earned in January ($0), it’s an obvious improvement.

This morning, I’m feeling like Old Snake from Metal Gear Solid 4. “The market has changed,” it follows illogical rules. I remember when I first started out, there were technical traders and fundamental traders. Those that identified opportunities based on price trends, and those that identify opportunities by the quality of the company compared to the current price.

If these were the only people trading, their actions would influence the price in a self-balancing way. Instead, it seems that the majority of the price movement is driven by what celebrity investor is buying what, or short term news with little long term implications to the business.

It can be a blessing when these market mood swings allow you to pick up a quality company at a discounted price, but it’s also frustrating to observe an irrational world in chaos.

For instance, I own YUM in my personal account. I think it’s a solid company, but my main reason is I love me some Taco Bell. Today, YUM’s stock price has jumped up 5% after Third Point announced that they bought a position in the company. This brings their PE Ratio up to 40, which is insane.

It aggravates me because this great company has had such a drastic price reaction to one opinion about the company’s future.

Perhaps I’m ranting over nothing, but as a logical person, these illogical swings shake my faith in the system being steady.