The quarter was a mixed bag. The fund did not see the price appreciation that was expected. But the fund has been able to continue its dividend growth at a steady pace. The fund also has identified two new securities or more shares of Ford to purchase by the end of the year which should not only continue dividend growth, but continue to diversify the portfolio. Capital funding for the fund will see an increase during the Oct-Dec quarter, resulting in larger or more frequent purchases.
The prices of the securities were flat at best for the quarter. Realty Income has gone down by about ten percent in September. Ford got hit hard with a forecast warning that brought shares down to the fund's original purchase price. AT&T, Sysco, and BAB have stayed relatively quiet. The fund plans to continue to hold onto shares throughout the Oct-Dec quarter.
Dividends were received from Realty Income, Ford, AT&T, Sysco, and Powershares Build America Bond ETF. The fund received 76% more dividends this quarter (July-Sep) in comparison to the last quarter (April-June). Dividend growth had a higher level of compounding (aka re-investend dividends making the fund more dividends) during the quarter. Dividends are expected to increase by about 50-60% from the July-Sep quarter. Please take note that this level of growth is mainly due to the fund being less than 1 year old and should level off in the next year or so.
The fund is expected to make two purchases this quarter. The first security the fund is looking to invest in the coming quarter is the Nuveen Long/Short Commodity fund (symbol CTF). It focuses on commodity futures and pays a monthly dividend of $0.135 per share. It would fit nicely into the portfolio. The second is the Powershares Clean Energy ETF (symbol PBW). This ETF would help provide some coverage of the energy sector. It also has a quarterly dividend (given in the third month) of between $0.02-$0.05 per share. Shares of Ford may also be purchased as they seem to be undervalued right now.
Overall, the July-Sep quarter was productive. The goal of creating more everlasting wealth during the quarter was successful. Fine tuning the purchase plan and security selection will continue to improve. The fund looks forward to the Oct-Dec quarter. Good luck to all investors and traders
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