Archive for November 2014

Update On Moving Accounts

I have moved my checking and savings accounts away from JP Morgan Chase.

Granted, in the big picture it is not that big of a deal. Until rich people and large corporations start using credit unions or there is more regulations on banks not much will change.

I think we should go back to Glass-Steagall. Things were fine with Glass-Steagall for decades. It gets repealed, and everything falls apart in about eight years. I know a lot of people love to say that correlation is not causation. But sometimes it is a reason to pay attention.

I think other countries should also look at how Canada regulates its banking sector. Canada is the only country that did not have to give its banks any money. No Canadian banks failed during the Great Recession, and I do not think any big Canadian banks merged.

I still have two credit cards with JPM. I might keep one of them. One I have had for twenty years. It might hurt my credit score to get rid of it.

When I started my current job, I had a lot of money in savings, and about $4K in checking. When I made this move, I had about $30K in checking. I have had my paychecks go into my new checking account. I moved my old checking account into a second savings account. I may try living off of that. I will see what I spend each month, and transfer that amount to my new checking account. I think it would be interesting to see how long my smaller savings account would last.

I don’t know if I will be in Texas for the rest of  my life. If I ever move back north, I think I will go with a Canadian bank. Some of them have branches up north.

Image from Wikipedia, assumed allowed under Fair Use.

This site has a disclaimer.

2014-10 Dividend Income Report

Here is the dividend income report for October, 2014.

The monthly dividend income came out to $243.87. The yearly income total for 2014 through the end of the month was $3,236.89.

The income for October, 2013 was $184.81, and the yearly income total up through that month was $2,811.61. I made $198.43 in July, 2014 and $196.43 in April, 2014. I bought more Chubb; I now own just over 100 shares of CB. I think that going forward I will make at least $200 in January/April/July/October going forward. I might make less in January since Coke (KO) pulls its January dividend forward into December.

I have started keeping track of the three-month and twelve-month moving average of my income. I did this for a few reasons. Some stocks do not stick rigidly to a schedule of paying out every three months. I think ETN changed its schedule a while back, and VOD only pays twice a year. I also make a lot more in March, June, September and December than they do in January, April, July and October. I think that comparing moving averages will give a better idea how my income is changing over time given all these differences.

I have also decided that I will not try to get more balance in my monthly income. I wanted to buy more stocks that pay in January, April, July and October to make those months closer to the other months. I have a spreadsheet that I use to keep track of dividend announcements and payout amounts; it includes the stocks that I own and many I am looking at. I have noticed that a lot more stocks pay out in March, June, September and December than in January, April, July and October. Why fight the trend? Why not just go with it? I think keeping track of moving averages will smooth out these differences.

Which is the whole point of moving averages.

The 3-month moving average for October, 2014 was 368.19, and the 12-month MA for October, 2014 was 340.32. For September, 2014, the 3-month MA was $353.04, and the 12-month MA was $335.39. For Ocotber, 2013, the 3 month MA was $295.19, and the 12-month MA was $291.08.

Here are the stocks and the income amounts for October, 2014:

  • Automatic Data Processing: $27.69
  • Coca-Cola Co: $33.23
  • MDU Resources Group Inc.: $9.87
  • Kimberly-Clark: $46.79
  • Chubb Corp: $50.47
  • Illinois Tool Works: $26.00
  • Piedmont Natural Gas Inc: $19.14
  • Sysco Corp: $16.18
  • RPM International Inc.: $14.50

Image from Wikimedia, assumed allowed under Fair Use.

This site has a disclaimer.