Welcome back to Dividend Dollars! I hope you’re doing well and had a great week of investing. Every week I plan on writing one of these posts to give an update on the portfolio that we are building. I will give an overview of the portfolio and its value, the dividends received, trades made, and any news or business announcements made that may be of interest to our positions. Let’s dive in!
To date, I have invested $1,400 into the account, the total value of all positions plus any cash on hand is $1,407.95. That’s a gain of $7.95 for a 0.57% return. This is lower than the reported gain of 1.66% last week. If you want to see last week’s portfolio review click here
Gains went down but we are not discouraged! We are in the thick of earnings season which tends to lead to volatility and great buying opportunities (which we took advantage of). As we continue to invest regularly and reinvest dividends, more substantial gains will come. The path to stable and reliable passive income through dividends is a long one, but by starting and investing heavily in the early stages we are working our way up the exponential curve towards financial freedom.
Below is a table of everything we are invested in so far. The tickers in blue are the stocks that were the picks of the month. The tickers in green are positions we added to this week. Every week I add $25 to the account.
I will throw that $25 at a stock that pays monthly dividends that I believe is in both a good fundamental and technical standpoint for short term gains, usually those stocks will be called out in this sheet, but I sold all those temporary holding vehicles this week to free up that capital for other purchases (this is touched on again in the “Trades” section below).
I generally leave that money in those stocks till it has compiled to an amount large enough to sell and reinvest the funds into a more expensive/substantial stock pick. That way my investments are never idle, and every dollar is put to work even while it sits and waits for a stronger long term position within the portfolio.
As you see with the portfolio this week, I don’t restrict myself to only $25 per week. If there is a good buy opportunity, I will add funds to my account through my personal finances in additional to selling temporary positions to make sure I have capital to take advantage of the discount!
We received no dividends this week, but we are set to receive a dividend from AT&T on 11/1/2021. I have four shares of T, but at the ex-date I only had one, so it is just the one dividend for me next week.
Dividends received for the week of October 25th: $0
Dividends received for October 2021: $0.64
Year-To-Date Dividends: $0.64
Here’s the breakdown of the trades I made this week:
On the 25th, I bought two shares of WSR at $9.88 to use as a temporary position to hold capital.
On the 26th, LMT dipped by 8% after Q3 earnings report was released which I saw as a great buying opportunity (to read more about why I think LMT is good, continue to the “Noteworthy News” section below). In order to buy LMT at $327.61, I sold my temporary holding positions of PBA and SJR for a small loss of $0.88 and deposited funds into my account.
On the 27th, AQN dipped nearly 5% following news I bought one at $14.50.
On the 28th, I also bought INTC for $47.96.
On the 29th, I sold temporary holding positions in WSR and SLG for a total loss of $3.00 in order to have capital for a purchase of O at $72.25 and a purchase of AQN at 14.66.
I sold all my temporary positions in order to buy other substantial positions. Each time I did that I took a small loss and never held long enough to even be rewarded with a dividend. I’m beginning to think that strategy isn’t a constructive one and will trade differently next week.
This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio.
LMT Q3 2021 Earnings
On Tuesday, LMT shares went down nearly 12% following the release of their Q3 quarterly earnings report. Within the report, Lockheed’s sales and revenues fell and the company stated that they would be reassessing their 5-year plan. Earnings were low this quarter following a $1.7 billion pension settlement. Regardless of that bad news, Lockheed reflects strong cash flow generation with a slight reduction in revenue for the next year. Not great news, but also not worthy of a 12% drop! I took advantage of this drop. LMT will be a long-term hold for me. They have a good dividend yield and as the national supply chain heals their business should improve.
INTC Q3 2021 Earnings
Last week, on 10/21/2021, Intel released their Q3 earnings and it was not received well. The stock dropped nearly 15% at the lowest price this week. I wrote an article here, click to read more. The summary of the article is that I believe INTC’s recent drop was an overreaction which has provided us with another good buying opportunity. Intel’s financials are healthy and they are poised for success in a fast-growing high-demand market.
AQN Acquiring Kentucky Power Company
American Electric Power entered into an agreement to sell their Kentucky operations Kentucky Power Company to Liberty, the utility business of parent company Algonquin Power & Utilities Corp. for $2.846 billion enterprise value. The sale is expected to close Q2 of 2022. AQN provides electricity, natural gas, water, and wastewater services to 13 US states and Canada. AQN will be purchasing all the stock of Kentucky Power at $18.15 per share. This purchase will significantly grow AQNs electric utility operations and will contribute to growing their net earnings per share over the long-term. To me, that deal sounds great and provided a great buying opportunity to add some cheap energy shares to the portfolio.
That is it for the update this week. Let’s kill it next week and keep our eyes open for more good buying opportunities! Let me know what you think of the progress so far, share with me your progress and questions, interact with me on twitter and Instagram using the links below!
Thank you for reading and take care!