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Welcome back to the weekly Dividend Dollars portfolio review! Here at Dividend Dollars, our investing approach is a dividend growth strategy with aspects of value investing and fundamental analysis. I am a young investor in my 20’s and by sticking to this strategy over the long term, the magical powers of compounding are on my side. This allows me to more easily build substantial positions in dividend paying stocks over time, which will one day help me reach the ultimate goal of being financially free through the sources of passive income they provide. You can read more about the strategy here. Let’s dive into the portfolio review!
To date, I have invested $10,740 into the account the total value of all positions plus any cash on hand is $11,187.16. That’s a total gain of 4.16%. The account is up $267.93 for the week which is a 2.45% gain.
We started building this portfolio on 9/24/2021 and, even with this rough last week, when compared to the S&P 500 we are outperforming the market so far! Within that same timeframe, the S&P 500 is down -3.94% whereas our portfolio is up 4.16%! I love tracking my portfolio against a benchmark like the S&P. The above chart comes from Sharesight which makes portfolio and dividend management a breeze!
We added $60 in cash to the account this week. As noted last week, I am starting to slow down my investing on account of lots of travel and expenses coming up through the end of this year. The trades made this week will be broken out below
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 and the blue ones are positions that I reinvested dividends into. The moves that we made this week actually decreased our annual dividend income by $3 at a yield of 4.15%.
This week we received only one dividend: $1.63 from Air Products and Chemicals ($APD)
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.
Dividends received for 2022: $214.93
Portfolio’s Lifetime Dividends: $237.86
This week marks the first week that I have slowed down deposits into my investment account. As discussed last week and above, I am cutting my investing activity back by about half for the rest of the year. I am doing this for a couple of reasons. First is that I have a lot of expensive travel plans coming up for the rest of year that are affecting my personal budget. I need to cut back on investing and other things to help balance that out in the short term. Another reason is that when I started this journey, I wanted to invest 10% of my gross annual income per year. I haven’t been investing for a year yet and I’ve already almost doubled that goal, so I don’t feel too bad about slowing down because of how hard I beat it!
So having said that, this week’s trades a tad different from what you’re used to seeing. First thing I did was liquidate my S&P 500 covered call ETF $XYLD. I did this because the fund writes covered calls on 100% of the position, which leaves no growth for the subject position during a period of rising asset prices, causing the calls to be exercised. I found that Global X offered a 50% covered call ETF which leaves the other half of the asset exposed to potential growth. This comes at the cost of a lower premium which is why my annual dividend income dropped this week. So, we sold $XYLD and bought $XYLG with those funds plus all of the cash I had deposited into the account this week. The other trades with $BBY and $MSFT were just to get the little amount of cash left over deployed.
Below is a breakdown of my trades this week!
- August 8th
- Global X S&P 500 Covered Call ETF ($XYLD) – sold position of 10.4525 shares at $43.96 ($459.44 position)
- Global X S&P 500 Covered Call & Growth ETF ($XYLG) – started new position of 21 shares at $27.66 ($580.92 total in new position)
- $SCHD – added 0.134 shares at $74.63 ($10 recurring investment)
- $SPY – added 0.024191 shares at $413.38 ($10 recurring investment)
- Air Products and Chemicals ($APD) – dividend reinvested
- August 9th
- Best Buy ($BBY) – added 0.05 shares at $75.60
- Microsoft ($MSFT) – added 0.01 shares at $280.00
- Global X S&P Covered Call & Growth ETF ($XYLG) – added 0.363241 shares at $27.53 ($10 recurring investment)
Next week I will continue to add $10 into each ETF ($SPY, $XYLG, and $SCHD) and will look at deploying the rest of the money either into $MSFT or $BAC for the upcoming ex-div-date. Progress will be slower moving forward, but luckily for me this is a long term game.
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!
Read the weekly market review to get a recap of the week and what economic events are coming in order to help arm yourself with a strategy for your future buys!
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 and stay safe!