At the beginning of every month I like to take a look at what occurred in the previous month; it keeps me motivated, interested and accountable.

My Equity Activity in July 2016

I don’t want to sell positions, I am hoping to have every purchase for years and years to come.  However, I couldn’t ignore the metrics of Chevron (CVX), so on July 8, 2016 I sold my shares.  At the time of sale CVX had a:

  • P/E – 150
  • Operating Margin of .2 vs an industry average of 2;.1
  • P/B was in line (1.3 vs 1.2)
  • Payout Ratio of 620% – I am usually topping out at 60%

I ended up selling for approximately $104.59/share for a few dollar loss.  The stock has been down since I sold, but it doesn’t matter in 30 days, but rather 3 years.  Since I sold about $1,000 worth of stock I had some extra capital to deploy.

I purchased two lots this month:

  • 10 Shares of Target at $72.56 and
  • 22 Shares of Franklin Resources at $34.53

Interestingly, I didn’t receive any dividends this month.  I am not sure its because of my holdings or if it is because there was an issue with me moving from Fidelity to TD Ameritrade.

My Options Activity in July 2016

In June I was taught by a buddy about selling short puts to create an immediate investment income stream.  It took a few weeks but I finally got approved and sold some naked puts!

  • On July 15, 2016 I sold my first short put in ADM for .21($21)
  • On July 17, 2016 I sold my second short put in EMR for .25 ($25)
  • On July 25, 2016 I bought to close that first short put in ADM for $.12 ($12) = $9.00 clear of any responsibility in ADM
  • On July 25, 2016 I sold to open a short put on HOG for $.18 ($8);
  • On July 28, 2016 I bought to close that contract on HOG for .9 ($9) and sold another one $.27 ($27).

So in July I cleared $9 from ADM and $9 from HOG.  Currently I have open, $25 and $27 so while I’ll reinvest the entire lot $70 when I buy my August lot, I’ll take off close costs when/if I get out of the contracts.

My Current Holdings and Ratios

Company Ticker Shares Price Value Cost Basis Current Dividend Payout Current Expected Annual Income Yield on Cost
CATERPILLAR INC CAT 22 $81.95 $1,802.90 $75.04 $3.08 $67.76 4.10%
Community Trust Bankcorp CTBI 15 $34.68 $520.20 $34.07 $1.24 $18.60 3.64%
CULLEN FROST BANKERS INC CFR 10 $66.51 $665.10 $65.19 $2.16 $21.60 3.31%
Franklin Resources BEN 22 $36.03 $792.66 $34.53 $0.72 $15.84 2.09%
EMERSON ELECTRIC CO EMR 26 $55.78 $1,450.28 $48.39 $1.90 $49.40 3.93%
SONOCO PRODS CO SON 22 $50.73 $1,116.06 $36.81 $1.48 $32.56 4.02%
TARGET CORP COM ISIN #US87612E1064 SEDOL #2259101 TGT 28 $75.51 $2,114.28 $70.97 $2.24 $62.72 3.16%
PRICE T ROWE GROUP INC COM ISIN #US74144T1088 SEDOL #2702337 TROW 22 $69.84 $1,536.48 $69.31 $2.16 $47.52 3.12%
UNITED TECHNOLOGIES CORP UTX 20 $106.94 $2,138.80 $87.48 $2.64 $52.80 3.02%
187 $12,136.76 $368.80

How was your Month?

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