A Well Overdue Dividend and Stock-Split Update

On June 9, 2014, Apple (AAPL) did a 7:1 stock split. This made the stock a little more affordable to buy at $100/share ($99.76 as of 9:42am PST 10/03/14) compared to $592.74 on 05/15/2014.  Since the split, Apple announced and released their new iPhone 6 and iPhone 6 Plus phone models to compete in the "phablet" market. On pre-order weekend, Apple said that they took 4 million units for pre-order. This is a high number considering their Apple Store website failed to open and take orders on time. This failure added to the stress the carrier websites experience as they also struggled to take in pre-orders. On launch weekend, Apple said they sold 10 million phones and that is not even including China (Which they are about to sell on  Oct 17).

I expect Apple to sell maybe another 5-10 million phones if Fortune.com's article is accurate. Nevertheless, these new iPhone models are hits and we'll find out in Apple's next earnings call just how much of a hit these new phones are.

Apple also announced new products and services.  The Apple Watch which will come out early 2015 is meant to be a fashionable companion to the iPhone. Since no one outside of the few media outlets have seen the watch in real life, I would have to reserve judgment on whether it would be a success. Personally, I'll have to wait for version 2 or at least a price cut. A watch that starts at $349 is a huge gamble and I expect an increase on watch thefts so I hope Apple also includes a "kill switch" on these new watches. 

The Apple Pay service is the true product I am excited for. Apple is now positioned to make money on every Visa/Mastercard transaction (both brick & mortar and online) each Apple Pay user makes. This is huge. With over half a billion accounts on file and partnerships with Visa/Mastercard, Whole Foods, McDonald's to name a few, Apple is about to make NFC transactions mainstream.  Sure, Google Wallet may have done it first but Apple's "It Just Works" philosophy is going to ease in the non-techie consumer. I will keep an eye on Apple Pay.

As usual, I received dividend payouts from April 2014 thru today:  

Upcoming Dividend Payouts:

I am so sorry for being absent these past few months. School and vacations took up majority of my time and I don't see it getting easier in the near future. Nevertheless, I'll try my best to update this blog and keep track of my portfolio. I have a few ideas that I'm researching on and hopefully on my next post, I can share these new positions I'm looking into. 

Automatic Investment Plan Transaction for 03/25/2014

Just a quick update on my automatic investment plan transaction:

Ticker Symbol	Date	Purchase Amount	Shares bought	Price per share
LULU	03/25/2014	$300	6.1450	$48.82
WM	03/25/2014	$304 ($4 fee)	7.3750	$40.69

Dividends, Annual Returns, Lululemon's Future and 2014

Hello again.

 

(Photo credit: http://sistersgrimm.wikia.com/wiki/File:Miss_me.gif)

Did you miss me?

It has been a while (again) since my last post.  I have school, travel and many essays to blame for that.  Safe to say I am a busy person but what matters now is that I have a few hours free to right this simple and short update.  I have an upcoming buy. I have a free credit from my broker that allows me to get a free automatic investment plan transaction. So, without further ado, here is my dividend update:

Ticker Symbol	Date	Dividend payout	Dividend per share	Shares bought	Price per share
MO	01/10/2014	$9.41	$0.48	0.2526	$37.25
MDLZ	01/14/2014	$3.72	$0.14	0.1057	$35.19
AAPL	02/13/2014	$6.77	$3.05	0.0126	$537.30
ETP	02/14/2014	$11.18	$0.92	0.2065	$54.14
XLNX	02/27/2014	$2.33	$0.25	0.0447	$52.13
WM	03/21/2014	$4.69	$0.38	0.1142	$41.07
KRFT	01/17/2014	$2.14	$0.53	0.0391	$54.73

 

Here's the ex-dividend update:

 

Ticker Symbol	Ex-dividend date	Dividend per share	Payout date
KRFT	04/09/2014	$0.53	04/25/2014
MDLZ	03/27/2014	$0.14	04/14/2014
XLNX	05/12/2014	$0.29	06/04/2014

And for other news:

I still believe in Lululemon (LULU). LULU just had a horrible 2013. The sheer yoga pants issue. The departure of CEO Christine Day. The founder's controversial comments that hurt the sentiments of its core customers.  LULU is down 50% from its 52-week high and the yoga apparel competition continues to heat up.  The weather and the polar vortex did not help either.  But with this long list of troubles, why would I be bullish on LULU?  First, the stock is now cheap.  It's PEG ratio is at a low of 1.42 (with 1.0 being the magical "under valued" ratio). Besides, I think the stock is or close to bottoming out and that the initial fear and loathing of LULU is subsiding.  LULU is also launching a new apparel collection called &Go.  The new line includes sun dress, pants and tank tops that should resonate well with LULU's target market.  As expected, this new line would have premium prices which should help with profit margins. 

I am cautiously optimistic on LULU.  I hope to buy a few shares at close to $47/share when the automatic investment transaction executes on Tuesday. 

I am also planning to buy more Waste Management (WM).  I need to balance out the portfolio. I also expect the spring season's that would bring out more trash and by products that would need WM's services.  I am a bit disappointed that I just missed the Ex-dividend date (Dividend payout is today). I could sleep at night knowing that WM is one of my more "productive" positions.  The PEG ratio is a bit more than LULU (making LULU the "cheaper" stock) at 2.54. The dividend and the stock's strong performance give me the confidence that our money is not wasted in WM.  I hope, we'll get a slight pull back so I can get WM at around $40/share.

2014 so far has been a bullish time for the Market.  Yes, we've had some pullbacks and down days but in general, it does seem that the bull market is still alive and well.  Am I concerned.  A little. I have been hearing whispers that say we're due for some market correction.  Yet, with the recent IPO fever. The Market has been experiencing in recent months, I think the Market still has enough juice to carry us through 2014.  Ending on a slightly related note, I might look into Disney and Netflix for 2015. 

Well, my friends, that would be it for now.  I wish I can promise more regular scheduled posts. But I will update whenever I have the time and any notable news and opinions.