MY DIVIDEND REPORT – Q3 IN 2019

Welcome to My 3rd Quarter 2019 Dividend Report. This Report is dedicated to tracking my quarterly dividend income. Many of you already know I love Growth and Income stocks as a great way to beat inflation while companies pay you to wait while they execute there growth plans. My Goal is to average $5,000/month or $15,000/quarter in dividend income.

3rd Quarter 2019 Dividend Income

Dividend Income by Year
Dividend Income by Year

Behind the scenes graph data

3rd Qtr 2019 Dividend Income
My 3rd Qtr 2019 Dividend Income

Money Sense With Kyle Quarterly Dividend Income By Year

My dividend income is devised of investments in Altria (MO) in the Tobacco Industry and Blackstone Group (BX) in the Asset Management Industry. Blackstone Group current stock price $50.95 and dividend yield 3.91 % (.48/share $1.92/year) pays a fluctuating dividend based on company results. Altria’s current stock price $46.40 and dividend yield 7.25 % (.84/share $3.36/year) pays a consistent dividend and has raised the dividend 54 times the past 50 years.

3nd Quarter 2019 Blackstone Group paid .49 / share or $2,970.97 vs .48 / share $2,880 the 2nd Quarter 2019 based on 6,063.205 shares owned. Blackstone Group Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “In the third quarter Blackstone again generated strong results for our investors, who in today's challenging environment look to our firm as a critical solutions provider. Our ability to execute on scale investment opportunities across a broad array of strategies is highly differentiated, as demonstrated by $16 billion of deployments in the quarter and a record $62 billion over the last twelve months. Our investors continue to entrust us with capital for both new and existing strategies, including nearly $150 billion of inflows during the last year – culminating in industry-record Total Assets Under Management of $554 billion, up 21% year- over-year.”

3rd Quarter 2019 Altria Group paid .84 / share or $8,672.02 based on 10,526.275 shares owned. Altria Group Inc. MO said Thursday 8/22/19 it will raise its quarterly dividend by 5%, to 84 cents a share from 80 cents. The cigarette and smokeless tobacco products seller said the new dividend will be payable Oct. 10 to shareholders of record on Sept. 16. It has now reached the 50-year dividend increase milestone, as the latest increase marks the 54th time it has raised its dividend over the past half century. The new annualized dividend rate is $3.36 per common share.

The 3rd Qtr 2019 I reinvested my dividends $8,672.02 and purchased 202.4370 shares at $42.84 stock price on 10/10/19. I now have 10,526.275 shares of Altria.

This is why Growth and Dividend stocks make good Money Sense. I will see you next quarter and report news and distribution.

MY DIVIDEND REPORT – Q2 IN 2019

Welcome to My 2nd Quarter 2019 Dividend Report. This Report is dedicated to tracking my quarterly dividend income. Many of you already know I love Growth and Income stocks as a great way to beat inflation while companies pay you to wait while they execute there growth plans. My Goal is to average $5,000/month or $15,000/quarter in dividend income.

2nd Quarter 2019 Dividend Income

Dividend Income by Year

Behind the scenes graph data

Money Sense With Kyle Quarterly Dividend Income By Year

My dividend income is devised of investments in Altria (MO) in the Tobacco Industry and Blackstone Group (BX) in the Asset Management Industry. Blackstone Group current stock price $45.65 and dividend yield 5.0 % (.57/share $2.28/year) pays a fluctuating dividend based on company results. Altria’s current stock price $50.53 and dividend yield 6.33 % (.80/share $3.20/year) pays a consistent dividend and has raised the dividend 53 times the past 49 years.

2nd Quarter 2019 Blackstone Group paid .48 / share or $2,880 vs .58 / share $3,480 the 1st Quarter 2019 based on 6,000 shares owned. Blackstone Group announced that it has held the final close of its inaugural fundraising phase for Blackstone Infrastructure Partners (BIP).  Together with previously announced commitments, this closing brings total commitments for BIP to $14 billion. BIP is a permanent capital vehicle focused on investing across all infrastructure sectors, including transportation, energy (utilities, midstream and renewables), communications and water and waste. BIP was formed in 2017 with a $20 billion long-term matching anchor commitment from the Public Investment Fund of Saudi Arabia.

2nd Quarter 2019 Altria Group paid .80 / share or $8,259.07 based on 10,323.838 shares owned. With legislation signed this week in both New York and Ohio, today more than 50 percent of the U.S. population lives in states that have raised the legal age of purchase for all tobacco products to 21.

In response, Howard Willard, chairman and chief executive officer of Altria Group, Inc. said: “Now is the time to move to 21, which is by far the best way to stop the rise in underage e-vapor use and is supported by an overwhelming majority of Americans. Taking this step will reduce underage access to these products. It will also pave the way for e-vapor products to realize their enormous harm reduction potential for millions of adult smokers 21 and older.”

Also, Altria Group announces that it has entered into definitive agreements with the shareholders of Burger Söhne Holding AG (the “Burger Group”), based in Switzerland, to acquire 80% ownership of certain companies of the Burger Group that will commercialize on! products worldwide. on! is an oral tobacco-derived nicotine (TDN) pouch product.

This is why Growth and Dividend stocks make good Money Sense. I will see you next quarter and report news and distribution.

INVEST IN YOUR LAND | TREE FARMIMG

Growing up in South Arkansas I always enjoyed visiting my grandparents. We would get up early in the morning eat a hearty breakfast and work outside and in the garden. We would come inside by noon eat a hearty lunch and Fishing in the evening. As we trekked down in the bottom land, we would cross Family Forest land that had a natural stand of Pine Trees and Hardwoods. My Grandfather would tell me how it provided them an income stream for a comfortable retirement. He told me he always wanted to manage the forest but wanted to leave it for generations to provide them extra income to live life more comfortably. I never forgot what he said and years later it made Money Sense.

After my grandparents passed away my mother who was an only child inherited the family property, they sold off 240 acres and cut timber on 120 acres and then in 1997 passed on the 120 acres to myself, brother and sister. My brother and I bought my sister out, and years later I bought my brother out and now own the 120-acre Family Forest. In the year 2000 we had a serious ice storm and a lot of the young pine trees were damaged. Wondering what to do next, I remembered what my grandfather always wanted was to manage the land. So, my Tree Farming experience started.

I contacted my District Forester, I was in District 4 in South Arkansas, a Forestry Consultant and myself and we assessed the property what best to do next. Their recommendation was to cut the remaining Timber clear the property and reinvest the proceeds. They also recommended I sign up through the Arkansas Forestry Commission Stewardship Program and they would create me a management plan with Technical advice to manage my property. This at no cost to the landowner. I cut the remaining Timber about $27,648 and reinvested about $19,167 back into 46 acres that was damaged. After harvesting the remaining Timber, I hired a contractor to shear, and rake, the 46 acres to prepare it for planting. They left the remaining tops and debris in wind rows to be burned. We were unable to burn due it being in the winter wet season. The remaining 74 acres was left to grow as is. After my management plan was completed in 2001, I began to follow it per the Technical expertise of Forestry experts. The Forestry Stewardship Management Plan was written by the Arkansas Forestry Commission District Forester with assistance from Consulting Forester, Natural Resources Conservation Service, and Arkansas Game and Fish Commission. The Management Plan specified I clear and replant the damaged 46 acres and leave the remaining 74 as is but recommended I spray by helicopter an Herbaceous spray to control understory competition and release of Pine production. Then hand plant 29,250 1st or 2nd generation improved Loblolly Pine at 7 x 10 foot spacing (622 trees per acre). Planting to be done in the months December through March. Here’s my journey and costs:

Tree Farm Practices
 

As you can see from the chart above, I received $27,648 from the harvest and clear cut of the 46-acre ice storm damaged acres. Paid consultant $2,211 8% commission, Ordered 29,250 2nd Generation improved Loblolly Pine seedlings $1,404 (.048 cents/1000), hired contractor to single pass site prep by Helicopter 15 GPA, 36 oz chopper, 4 oz Oust Extra, 8 oz Sunset for competition control and pine release, completed heavy mechanical site prep $8,100 $105/ac Shear, 85/ac Rake, and hired contractor to hand plant 29,250 2nd Gen Pine seedlings $1,932. My total costs were $19,167 but it made Money Sense.

The $8,100 spent was costly but as I look back today, it was well worth the money since the 46-acre tract is in shape to be efficiently managed for years to come. It enabled me to have a high 90+ % survival rate as reported by my County Forester after the 1st year of growth and maximized the maximum number of Loblolly Pine trees to grow on the tract. My management plan recommended I sign up with the Natural Resources Conservation Service (NRCS) for potential cost share practices. I recommend you do this because I received a 50 % cost share reimbursement of $2,760 for the Single Pass Site Prep competition control and pine release. When you sign up with NRCS they will rank you based on completed qualified practices with other landowners and Federal money available as an incentive for landowners to be good stewards.

Based on the soil sample of my management plan the soil has good potential for Loblolly Pine (Site Index 96). I plan to predominately plant Loblolly Pine on the 120-acre Tree Farm.

After completing planting 29,250 seedlings on the 46-acre tract in January 2004 and spraying for competition control and pine release the survival rate was high 90+ %. I then went away and let it grow only doing a yearly walk of the land to monitor growth. After completing the practices in my management plan, I was audited and received Forest Stewardship Certification and a sign to post on my Property.

 

My District Forester forwarded my information to the American Tree Farm System (ATFS). I was 3rd party audited for completing my practices per the ATFS Standards of Sustainability and received ATFS Tree Farm Certification and sign in 2013.

I stayed in contact with my Forestry Consultant in January 2019 and after 15 years decided it was time to thin the 46-acre planted tract and clear cut the remaining 74 acres. The problem you run into is pulpwood and saw log prices have been depressed for years but I received $9.00 per ton for the pulpwood and $27.00 per ton for the saw logs. You hope that markets and prices will be there when time to cut but you still have to manage the land no matter the price. I am hoping for a better market in the years to come since I will have utility poles on the 46-acre tract at final cut which bring a premium price. It does payoff to be certified since it opens you up to more markets for certified wood and they usually pay a better price for your wood.

As of February 2019, I have thinned my 46-acre tract and the logger is about to complete clearcutting my 74-acre tract. I generated a nice income stream and will replant the 74-acre tract. I plan to plant the 74-acre tract with 3rd Gen improved Loblolly Pine and compare to the 2nd Gen planted on the 46 acres for cost comparisons. You must continually assess, manage, and improve your land.

If you have 10 acres or more of Forest land do you have what it takes to create a Family Legacy Tree Farm and leave an income stream to your heirs.