Welcome back to Dividend Dollars! Whew what a week!
The market had a rough time with all three major indexes posting a losing week, with the S&P down by 5%. The NASDAQ posted its worst week since October of 2020. While weeks like this scare people about our economic future, these are the weeks where wealth is made! I am sitting on some cash and held back on my purchases with week with the hopes that we see more downside soon. You will see more substantial purchases from me then. But for now, lets get into the portfolio update.
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 $5,520 into the account, the total value of all positions plus any cash on hand is $5,739.21. That’s a gain of $219.21 for a total return of 3.97%. The account is down $193.96 for the week which is a 3.27% loss. We are not down as bad as the rest of the indexes!
We started building this portfolio on 9/27/2021 and have already built a significant amount of diversity that has kept our portfolio from experiencing losses as large as the indexes have for the past two weeks. Fingers crossed we keep this up!
We added $115 to the account this week. A significant chunk of that money added was put towards adding to 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 site 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 read 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 $5 to our annual dividend income. Our dividend yield increased by 0.15% and our beta went down by 0.04. The increase in dividend yield is more so a result of loses this week, which raise the yield, it is not because of my purchases. However, my portfolio’s dividend yield may be just slightly higher than you will see in other portfolios, 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. As for the decrease in beta, I like seeing that. Especially in times of uneasiness. It means my portfolio won’t dip as much as the rest of the market on red days, however, it does go the other way around and I won’t have as much green on the good days. Therefore, it is good to watch your beta in terms of cyclicity.
Dividends
This week we received 1 dividend from CAH for $0.98.
Dividends received for January 2022: $16.11
Year-To-Date Dividends: $39.04
Trades
Here’s the breakdown of the trades I made this week:
- January 18th
- BBY – added 0.2 shares at $97.45
- CAH – dividend reinvested for 0.018676 shares
- January 19th
- SCHD – added 0.124339 shares at $80.43 (weekly add)
- XYLD – added 0.199557 shares at $50.11 (weekly add)
- January 20th
- ALL – added 0.5 shares at $121.04
- UWMC – Sold 2/11 $6 covered call for $12 premium
- UWMC – added 5 shares at $5.53
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.
Other than just the general state of the market I only have one news update for us.
It is the $69 billion dollar deal that Microsoft is executing to acquire Activision. Activision is a huge video game developer known for extremely popular brands such as Diablo, Overwatch, Candy Crush, Call of Duty, and more. Microsoft has done a great job of acquiring studios to fill out their gamepass content and it has paid off. They are steps and steps above the competition. Their gamepass market expands outside of just their Xbox player base but also to computer users with a total of 25 million subscribers. Add to that Activision’s 400 million monthly active players and Microsoft’s gamepass will be a bursting with users. Microsoft will acquire Activision at about $95 per share in the all cash deal. The deal will close in 2023. In the dark cloud of the misconduct and sexual allegations currently surrounding Activision’s CEO, I believe the deal pays a decent premium to Activision given their current state and gives a perfect platform for the CEO to step down and allow Microsoft to run with Activision and turn it around. Seems like great timing and offers some awesome potential for return on investment.
Investor mindset aside, I am extremely excited about this deal, I love Diablo!
Summary
That is it for the update this week. Let’s kill it next week. Stay patient and stable. Don’t let this market scare. Be ready to buy income producing assets at a discount!
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! See you next week!