Welcome back to Dividend Dollars! Whew what a week!
The market seemed to whip up and down following the myriad of data releases this week that showed a mixture of good and bad numbers. We had a rough start to the week which was followed by a couple days of strength just to hit a down trend for the end of the week. The S&P 500 ended almost flat, NASDAQ ended almost flat, and the DOW ended down nearly 1%.
Every week I write an update on the dividend portfolio as we build it so that we can track its progress. I will give an overview of what the portfolio is invested in, its value, the dividends received, trades made, and any news or business announcements that may be of interest to our positions.
Portfolio Value
To date, I have invested $5,405 into the account, the total value of all positions plus any cash on hand is $5,837.65. That’s a gain of $432.65 for a total return of 8%. The account is up $98.43 for the week which is a 1.72% gain.
Love seeing these gains! We started building this portfolio on 9/27/2021 and are starting to get close to a 10% gain! I think we should hit it in our first 6 months. Fingers crossed. Within that same time frame the S&P 500 has only experienced a 7.02% gain. We’re beating the S&P by almost a whole percent! Let’s hope we can keep up this great progress as we continue to add to our portfolio.
We added $240 to the account this week. A significant chunk of that money added was put towards starting a positions in Aflac and Allstate as you will see further down.
Portfolio
Above is a dashboard of the portfolio as tracked through simplysafedividends.com I use that for tracking forecasted dividend income, yield, annual income, beta, dividend growth, and more.
Below is a table of everything we are invested in so far. There you can see my number of shares, shares bought through dividend reinvestments, average cost, gains, and more. The tickers in green are positions that I bought shares in this week. Usually, a chunk of my buys throughout the week are buys from my monthly stock picks. You can ready about January’s stock picks here. I use a stock screener to find potentially undervalued stocks with safe and growing dividends. All stock picks (for this month and previous months) are highlighted in blue.
This week our buys added $9 to our annual dividend income. Our dividend yield decreased by 0.07% and our beta went up by 0.01. Neither of those are particularly a bad or good thing. My portfolio’s dividend yield may be just slightly higher than you will see elsewhere, however that is strategic per my time horizon. I am in my 20s and just starting off this investment journey, so a higher dividend yield gives me greater cash flow now to reinvest which help me realize the benefits of compounding sooner.
Dividends
This week we received 4 dividends. $2.70 from MO, $0.37 from MKC, $0.43 from AQN, and $0.99 from O.
Dividends received for the week of December 20th: $4.49
Dividends received for January 2022: $15.13
Year-To-Date Dividends: $44.20
Trades
Here’s the breakdown of the trades I made this week:
- January 10th
- ALL – bought 1 share at $124.65 (new position)
- UWMC – added 3 shares at $5.71
- AFL – bought 1 share at 62.37 (new position)
- MO – $2.70 dividend reinvested for 0.053512 shares
- MKC – $0.37 dividend reinvested for 0.003902 shares
- January 12th
- SCHD – added $10 at $81.75 per share (weekly investment)
- XYLD – added $10 at $50.70 per share (weekly investment)
Noteworthy News
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.
- Cardinal Health Says Supply-Chain Issues and Inflation to Ding Medical Segment Profit
- In this article we see that CAH expects supply chain issues and inflation to cut off $150-$175 million off of their profit in 2022. This comes out to about 40-45 cents less of earnings per share. In order to combat this, CAH says that they are simplyfing their operating model, evolving their commercial contracting strategies, and investing in growth business. When this news came out Monday, shares were down over 8%. I personally think all companies are at risk of loss due to inflation and supply chain issues, so this really is non-news and was already baked into the stock price. Closing the week, a good chunk of that dip has been regained, was a good buying opportunity if you caught it!
- Canadian Natural Resources expects higher spending, production in 2022
- This article details that CNQ is forecasting a 25% higher capital expenditure in 2022 as a bet on sustained recoveries of oil and gas prices from the pandemic-driven historical lows. This increase in expenditures should result in an increase in total production. The president of the company said in conference call that they have balanced approach with this to bring production growth while also increasing shareholder returns and lowering debt. CNQ already has a healthy balance sheet and this increase in spending should be good for the company in long term.
- Warburg-backed Navitas agrees to sale to Enterprise Products Partners
- EPD will be acquiring Navitas Midstream Partners Holdings LLC in a $3.25 billion dollar cash deal. Navitas added 750 miles of new pipeline last year which was a very difficult time in the energy industry. Similar to the CNQ headline, this is strategic move to promote growth in a market that will prove to be very lucrative for oil and gas companies.
- Intel Names Micron Executive David Zinsner As CFO — Analyst Terms The Move As Positive For The Chipmaker
- Intel has hired David Zinser from Micron as their CFO and internally promoted Michelle Johnston Holthaus, a 25 year company veteran, to lead the client computing group. The CCG group accounts for over half of Intel’s revenues. Both moves appear to be smart moves per Zinser’s success at Micron and Holthaus’ performance through their career.
Summary
That is it for the update this week. Love seeing all of the news for our oil and energy positions, that sector has been on fire recently! 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! Enjoy your three day weekend!