5th position - Wisconsin Energy Corporation

I want to diversify my portfolio to various sectors so now its time for energy. This utilities sector one of my favorites because of stability it has to offer. My pick - Wisconsin Energy Corporation (WEC). This company principal business is providing electric and natural gas service to customers in areas of Wisconsin and the Upper Peninsula of Michigan. Company show great earning grow rate years after years, EPS for last 4 years looks quite impressive for utility company:
2009 - 1.59
2010 - 1.92
2011 - 2.18
2012 - 2.35

Their dividend payout looks healthy at ratio around 50%. Last 5 years dividends increase rate around 21% per year! Here is dividends since 2009:

2009 - 0.68
2010 - 0.80
2011 - 1.04
2012 - 1.20

Company is paying increasing dividends since 1987 and in 2013 they already increased them by 26% .

Bought 77 shares of this company for 42.40$ with yield of 3.63%

Bought two REITs

REITs are one way you can invest in real estate and enjoy a good level of liquidity.

I pick two of them to have some diversity. One of them is Ventas Inc (VTR) - It is a real estate investment trust with a geographically diverse portfolio of seniors housing and health care properties throughout the United States and Canada. Company owns 1,378 properties located in 46 states, the District of Columbia and two Canadian provinces, consisting of 678 seniors housing communities; 396 skilled nursing facilities; 47 hospitals; 249 medical office buildings.

My second choice is Realty Income Corp (O) - This company is engaged in acquiring and owning freestanding retail and other properties that generate rental revenue under long-term lease agreements (primarily 10 to 20 years).They owns a diversified portfolio of 2,634 properties with an occupancy rate of 96.7%, or 2,547 properties leased and only 87 properties available for lease. It leased properties to 136 different retail and other commercial enterprises doing business in 38 separate industries. It properties are located in 49 states. This company paying dividends monthly !

Bought 30 shares of VTR - dividend yield 4.1% & 56 shares of O - dividend yield 5.4%

3% dividend yield with 10% grow or 5% with 5% grow Which one would you go for?

Just out of curiosity I made a table with results to see how such investments looks.  Lets say company "A" with yield - 3% and 10% dividend grow rate per year vs company "B" with dividend yield 5% and 5% dividend grow rate per year.Depreciation or appreciation are excluded and all dividends being reinvested.Yields are based at yield on cost.
Lets see what happens:

Company "A" value   Yield        Year      Yield     Company "B" value
          1000$               3%            0         5%             1000$
          1030$               3.3%         1         5.25%        1050$
          1063$               3.63%       2         5.51%        1105$
          1102$               3.99%       3         5.78%        1166$
          1146$               4.39%       4         6.07%        1233$
          1196$               4.83%       5         6.38%        1308$
          1254$               5.31%       6         6.7%          1391$
          1321$               5.84%       7         7.03%        1484$
          1398$               6.43%       8         7.38%        1589$
          1488$               7.07%       9         7.75%        1706$
          1593$               7.78%       10       8.14%        1838$
          1717$               8.55%       11       8.55%        1988$
          1864$               9.41%       12       8.97%        2158$
          2040$              10.35%      13       9.42%        2352$
          2251$              11.39%      14       9.89%        2579$
          2507$              12.53%      15       10.39%      2828$
          2821$              13.78%      16       10.91%      3122$
          3209$              15.16%      17       11.46%      3462$
          3696$              16.67%      18       12.03%      3859$
          4312$              18.34%      19       12.63%      4324$
          5103$              20.17%      20       13.26%      4870$

As you can see it took 20 years for Company "A" to reach the higher value than company "B".
What are  your thoughts about this? where would you invest? is it worth to wait 20 years and invest in Company "A"?.

Interesting fact: Yields became the same after 11 years

No 3 - Procter & Gamble

Procter & Gamble -  one of the biggest consumer packaged goods provider and has a diverse geographical revenue from 180 countries


This stock is what most of the dividends investors looking for:

Has a healthy finances
Pays dividends over 50 years
Dividends grow rate 8-9% per year
Has a more room to grow (from emerging markets)

Bought 40 shares for 79.04
Dividend yield - 3.1%

Just some interesting fact: PG began (at 1837) as a  family-operated soap and candle company 

Share No2 - Wells Fargo

The  second share which goes into fund is Wells Fargo (WFC).

I was looking at this company for a while and decided to go ahead with purchase. Its quite conservative bank mainly focusing on traditional banking like: loans,mortgages, day to day banking. Exactly what I was looking for ...the bank which is not much involved into trading

Here is company description from finance page:

Wells Fargo & Company is an American multinational banking and financial services holding company with operations around the world. Wells Fargo is the fourth largest bank in the U.S. by assets and the largest bank by market capitalization. Wells Fargo is the second largest bank in deposits, home mortgage servicing, and debit cards. In 2011, Wells Fargo was the 23rd largest company in the United States. In 2012, Wells Fargo had more than 9,000 retail branches and over 12,000 automated teller machines in 39 states and the District of Columbia. A "Big Four bank", it has over 270,000 employees and over 70 million customers.As of July 12, 2013, Wells Fargo became the world's biggest bank by market capitalization, worth $236 billion, ousting ICBC as World's Biggest Bank.

I just want to add that they made great expansion during recent time. Wells Fargo bought Wachovia during the hard times recently so they expanded their operating area from west side to east side where Wachovia had retail banking network.

Interesting fact: In 2007 it was the only bank in the United States to be rated AAA by S&P !

Bought 50 shares, dividends yield 2.9%

First shares to my pension fund

The first stock which I add to my fund is "McDonalds" (MCD)

No need much introduction about this company. Its well known fast food brand all over world also one of my daughter favorite place for ice creams and happy meals, she just love it. I usualy take a coffe with a pie and my wife likes their salads so seems they have something for everyone

Some information about it from Reuters page:
McDonald’s Corporation franchises and operates McDonald’s restaurants in the global restaurant industry. These restaurants serve menu at various price points providing value in 119 countries globally. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchise arrangements, and developmental licensees and foreign affiliated markets under license agreements. Under the conventional franchise arrangement, franchisees provide a portion of the capital required by initially investing in the equipment, signs, seating and decor of their restaurant businesses, and by reinvesting in the business over time. As of December 31, 2012, 34,480 restaurants in 119 countries at year-end 2012, 27,882 were franchised or licensed (including 19,869 franchised to conventional franchisees, 4,350 licensed to developmental licensees and 3,663 licensed to foreign affiliates (primarily Japan) and 6,598 were operated by the Company.


I just can add that they are paying dividends more than one decade and they constantly increasing. At the moment I purchased this stock the dividend yield is 3.42% and they pay them quarterly.


Bought 33 shares of MCD for price 94,16$ per share



Just interesting fact: McDonalds is the larges toy distrubutor in the word. They distributes 1.5 billion toys annually around the world. That is more than Toys R’ Us. Obviously, the reason is that each happy meal comes with a toy. In the U.S. nine out of ten kids between the ages of 3 and 9 eat at McDonalds once a month.

What's your opinion about my first stock?

Starting point

Here I'll share my way to financial target which is to build my personal future pension fund.

Main targets



I. Build a pension fund worth - 100000 $



II. Receive 500$ per month dividends from my fund to cover some of  living expenses


I'm starting with amount of 20000$ which I managed to save
after tight saving period and will try to add some spare cash time to time

Hopefully to reach these targets somewhere in 10-15 years time.

Wish me luck !