Welcome back to Dividend Dollars!
The market ended red this week after finding itself unable to climb out of the whole that high oil prices had put it in, despite the fact that oil prices eventually cooled off after flirting with $130 per barrel. The initial spike to $130 was in anticipation of bans on Russian energy imports. The US banned it and the UK and EU said they would phase out of Russian energy imports this year. WTI futures ended the week at $109.
Even though oil is dropping, our economic environment is still one of high inflation. Total CPI for the year is up 7.9%
The Russia-Ukraine situation continues to keep markets volatile. Ceasefire talks continue to make no progress. Treasury yields spiked, Nickel soared, AMZN announced a stock split, and the S&P ended fell 2.9% for an overall eventful week! Let’s see how we fared.
Portfolio Value
Last week our portfolio soared while the S&P lost more than 1% due to our positions in oil and defense. This week was another red week for the market, and this time our portfolio was not immune to those actions.
To date, I have invested $7,190 into the account, the total value of all positions plus any cash on hand is $7,399.46 . That’s a gain of $209.46 for a total return of 2.91%. The account is down $177.44 for the week which is a 2.34% loss.
We started building this portfolio on 9/24/2021 and when compared to the S&P 500 we are outperforming the market so far! Within that same timeframe, the S&P 500 is down 5.64% whereas our portfolio has an overall return of 2.91%! Let’s keep up this good progress with smart adds to the portfolio.
We added $170 to the account this week. My buys are detailed below.
Portfolio
Above is a dashboard of the portfolio that tracks annual dividend income, yield, 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.
This week our activity raised our annual dividend income by $5. Our dividend yield increased by 0.08% and our beta stayed flat. My portfolio’s dividend yield may be just slightly higher than what you will see in other portfolios, however that is strategic per my time horizon. I am in my 20s and am just starting off this investment journey, so a higher dividend yield gives me greater cash flow now to reinvest which helps me realize the benefits of compounding sooner.
Our beta usually hovers right around the mid 0.6s which I like, 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. View the chart above to see the performance of my portfolio versus the S&P 500, notice how my portfolio’s green days are not as substantial as the S&P’s but neither are my red days, that is beta at work. My beta so far has led to better returns than the market since beginning this portfolio.
Dividends
This week we received dividends from 3 positions: $3.90 from AMGN, $0.62 from MSFT, and $1.42 from CVX. All dividends were reinvested. We are expecting another dividend from WBA for $0.96 to hit our account on Monday.
Dividends received for 2022: $51.36
Portfolio’s Lifetime Dividends: $74.28
Trades
This week I did some portfolio reorganizing. I liquidated my position on my Canadian companies (CNQ and TD) because I decided that extra tax wasn’t worth it in the long run for me. Selling those positions allowed me a realize some decent gains on CNQ and put that money elsewere.
Here’s the breakdown of the trades I made this week:
- March 7th
- SBUX – added 0.2 shares at $87.85
- APD – added 0.1 shares at $224.00
- O – added 0.5 shares at $65.32
- CNQ – sold position at $59.71 per share for a 40% gain
- TD – sold position at $76.39 per share for a 6% gain
- PB – bought 2 shares at $71.62 (new position from the CNQ & TD proceeds)
- CMI – added 0.2 shares at $191.80
- March 8th
- APD – added 0.2 shares at $218.35
- AMGN – dividend of $3.90 reinvested
- March 9th
- XYLD – added 0.209556 shares at $47.72 (recurring investment)
- SCHD – added 0.130074 shares at $76.88 (recurring investment)
- March 10th
- BBY – added 0.5 shares at $98.20
- MSFT – dividend of $0.62 reinvested
- CVX – dividend of $1.42 reinvested
- March 11th
- BBY – added 0.1 shares at $97.30
Summary
That is it for the update this week. Let’s kill it next week. Stay patient and 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!