March 19, 2019: APLE

Dividend Portfolio

In my post-tax investing account, APLE paid their March dividend. I received $235.52. I used the Dividend Reinvestment Program, or DRIP, to automatically purchase 14.3348 shares at $16.43.

Monthly Update for February 20, 2019

By owning shares of APLE in February, my shares bought me $1.43 of additional dividend per month. This table represents how my monthly payment has been impacted by using the DRIP:

APLE table.JPG

APLE continues to perplex me. After about 5 years of bottoming at $16 and topping at $20, it looks like even $18 may be a stretch for this equity. Within the past 12 months, APLE hit $13.81 during the bearish December of 2018. For the first time in years, I have toggled the DRIP back on because the yield is so good. This stock has been testing new lows the past few months and I believe it is a great time to lock in that yield. I believe this stock is a good buy at $20, so I will certainly continue at $16.

From a capital gains standpoint, I am way down on the stock. As I write this, I am down 14.32%, or $6,409. However, this stock has paid me $5,404, some of which has been reinvested into APLE, but mostly into GAIN, which has a higher dividend yield and has appreciated 33%. I hold this stock because it is consistent and feels safe. It represents 243 hotels throughout 34 states. I truly feel if this REIT fails, I won’t be worried about my portfolio, I’ll be worried about a nuclear war.

The way APLE is playing out currently is perfect for my financial hypothesis. As the price of this equity falls, I continue to DRIP the consistent dividend resulting in increased ownership and monthly income. The further the price falls, the higher the yield. However, for my master plan to work, the stock needs to break $20 again. I am setting a $21.74 sell price for this equity. That will represent a 15% appreciation from my average cost of $18.90. I am currently WAY over my #2 rule of investing, but I don’t think this a strong sell until it reaches $21.74. I also started buying this stock before I even invented rule #2, so it is sort of grandfathered in.