IRA Portfolio Update for Jan 2015

By | February 11, 2015

Image credit: TaxCredits

This post is a monthly update to track the performance of my IRA portfolio. The goal of this portfolio is to build wealth and generate income for retirement. The strategy is to buy companies with strong growth prospects and a high dividend yield. All the dividends are automatically re-invested in the stocks. Dividends help grow income by buying more shares of the company and having more shares of the company help generate more income.

 

Account Balance

Account Balance at start of month: $20,145.75
Account Balance at end of month:  $19,878.27
Net Gain/Loss for month: -$267.48 (-1%)

 

IRA Portfolio Holdings:

ARCP – 747.61 shares
LNCO – 824.50 shares
SDRL – 401.92 shares

 

Dividend Payouts This Month:

ARCP $0
LNCO $85.04
SDRL $0

Total: $85.04

 

Summary

Oil prices continued its descend in the first month of 2015. Since my portfolio is heavily affected by oil prices, the stocks performance is still in the negative zone. Many oil drilling companies had started to cut oil-related projects and hopefully that will help reduce the oil supply enough to bring back a balance to the supply/demand curve.  One thought is to sell SDRL and replace it with another safe dividend-paying company. However, I’m reluctant to sell SDRL because a rebound in oil-prices should help recover some of the losses. I will continue to monitor the oil prices and see how things  progress from here. Stay tuned for more updates.

ARCP had suspended its dividends until their full year 2014 financial statements are completed. I expect their financials to have no more new surprises and if the financials are now good, then the stock should start to recover. Their main business, real estate, is still a solid revenue generating business.

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