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Dividend Portfolio: 4/1/2022 Week in Review

Weekly update on the dividend portfolio! To date it is up 6.91%

Welcome back to Dividend Dollars and our weekly review!

We saw a whipsaw week in the market with gains made on Monday and Tuesday that were later wiped out leaving the S&P at a 0.1% gain for the week. From a sector perspective, cyclical financials, energy, and industrials were the worst performers while real estate, utilities, and consumer staple stocks outperformed.

The week started with good momentum while supposed cease fire talks were taking place. Stocks rallied even as the treasury yield 2-10 spread inverted on Tuesday which is historically a signal of a coming recession. Those gains were removed through the end of the week as Russia refused progress in cease fire talks, inflationary measures hit high levels, March employment numbers reported well but support additional expected hawkishness form the Fed, and investors balances and took profits for quarter-end.

If you want to read more about the state of the market, check out my monthly market recap here.

Now let’s move on to reviewing our portfolio’s performance for the week.

Portfolio Value

To date, I have invested $7,780 into the account, the total value of all positions plus any cash on hand is $8,317.33. That’s a gain of $537.33 for a total return of 6.91%. The account is up $17.89 for the week which is a 0.22% gain.

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 up 2.01% whereas our portfolio has an overall return of 6.91%! Let’s keep up this good progress with smart adds to the portfolio.

We added $240 in cash to the account this week. The stock purchases made with this will be broken out 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 annual dividend income increased by $10. Our dividend yield and 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 is good, 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, however, on rally weeks I underperform. In order to combat that, I have started adding to a levered position to raise my beta. I would like to see it in the 0.8s.

Dividends

This week we received $9.77 in dividends from six tickers. $1.64 from SCHD, $1.86 from XYLD, $3.09 from EOG, $1.70 from ALL, $1.04 from PB, and $0.44 from KO.

In my portfolio, all positions have dividend reinvestment enabled. I don’t hold onto the dividend, I don’t try to time the reinvestment, I just let my broker do it automatically. All dividends were reinvested (except for KO, that will be reinvested on Monday).

Dividends received for 2022: $73.25

Portfolio’s Lifetime Dividends: $96.17

Trades

Here’s the breakdown of the trades I made this week:

  • March 28th
    • T – added 2 shares at $23.98
    • UWMC – sold 4/1 $5 cover call for $1 premium (expired worthless for a $1 gain)
    • SCHD – dividend reinvested $1.64 at $79.73 per share
  • March 29th
    • SNDL – covered my put position from last week ($1 loss)
    • XYLD – dividend reinvested $1.86 at $46.69 per share
    • EOG – dividend reinvested $3.09 at $121.84 per share
  • March 30th
    • SCHD – added 0.125447 shares at $79.71 (recurring investment)
    • XYLD – added 0.201523 shares at $49.62 (recurring investment)
    • O – added 0.5 shares at $70.32
  • March 31st
    • BBY – added 1 share at $91.67
    • CMCSA – added 1 share at $47.11
  • April 1st
    • UWMC – added 1 share at $4.44
    • ALL – dividend received $1.70 (not reinvested closed position)
    • PB – dividend received $1.04 (not reinvested closed position)

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!

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