It came to my attention that I missed alerting some moves in this portfolio update! I apologize about that. This post is mostly a repost, but it does contain edits to include items that I missed. You can find these in the bolded and italicized font.
Welcome back to the weekly Dividend Dollars portfolio review! This portfolio update is brought to you by Sharesight, a portfolio tracking tool that I am happy to partner with. Their platform makes tracking trading and dividend history, understanding your performance, and saving time a breeze. I wrote a review of the product that you can read here if you’re interested in learning more! Click the link above or the picture below to get a special offer only for Dividend Dollar readers!
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!
Portfolio Value
To date, I have invested $13,130 into the account the total value of all positions plus any cash on hand is $13,332.90. That’s a total gain of 1.55%. The account is down $233.43 for the week which is a 1.72% 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 -10.84% which puts us 12.39% higher than the market! 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 $120 in cash to the account this week, trades made 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, the blue ones are positions that I reinvested dividends into, the yellow ones are positions that announced a dividend increase this week, and the red are positions that I trimmed. Our PADI this week decreased from $500 to $505. This is mainly because of a drop in the yearly payout from $XYLG following their most recent dividend declaration.
Dividends
This week I received no dividend, bummer!
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 2023: $14.88
Portfolio’s Lifetime Dividends: $425.28
Trades
This was quite a busy week with a large mid-week dip that I took advantage of followed by a sweet two-day rally to leave the market and my portfolio significantly higher.
I made lots of buys in the portfolio on the down-day Wednesday and then a little more on Thursday. Firstly, we initiated a new position in Orsted (which I wrote a brief article on how they are poised to be a huge renewable power player in the North Sea, you can read that here), added to my favorite DCA’s of ALLY, INTC, and BAC, and also executed our weekly $10 adds in SPY, XYLG, & SCHD.
The buys on Wednesday were partially funded by sales in $JNJ and $MDT. Those positions were my only healthcare positions at the time. Though many would argue that both are strong companies and great holds, I personally don’t feel too confident in my knowledge of the sector.
I could go on and on listing the items I am not well-read on, but the main ones are: there are lots of moving parts with regulators, R&D into new drugs and technologies can be risky, patents and their expirations create frequently shifting product portfolios that need to be monitored, and increased political focus on cheaper healthcare. All of these things put the sector above my head. Now this isn’t to say that I won’t ever invest in the sector, I just simply to need to do a bit of research and familiarizing myself before committing to it.
Always invest in what your comfortable with. Take $INTC or $T for example. I’ve been following their business plans for quite some time. I am very familiar with where they’re at and where they’re going as companies. This familiarity gives me conviction and comfort. Because healthcare is pretty foreign to me, I don’t have that and am stepping back from it with these sales.
Lastly, my first covered call on AT&T expired worthless this week giving me a 100% gain on that premium. I will be watching their earnings call next week and will be looking for a spot to write another.
Below is a breakdown of the trades I made this week:
- January 17th, 2023
- Orsted ($DNNGY) – added 3 shares at $34.17
- January 18th, 2023
- Microsoft ($MSFT) – added 0.14 shares at $240.79
- Ally Financial ($ALLY) – added 3 shares at 26.84
- Johnson & Johnson ($JNJ) – sold position of 1 share at $170.63. Loss of $7.85.
- Medtronic ($MDT) – sold position of 2.016938 shares at $78.87. Gain of $4.26.
- Bank of America ($BAC) – added 2 shares at $33.72
- Intel ($INTC) – added 2 shares at $28.77
- SPDR S&P 500 ETF ($SPY) – added $10 at $394.45 per share (weekly buy)
- Global X S&P 500 Covered Call & Growth ETF ($XYLG) – added $10 at $25.88 per share (weekly buy)
- Schwab US Dividend Equity ETF ($SCHD) – added $10 at $76.39 per share (weekly buy)
- January 19th, 2023
- Ally Financial ($ALLY) – added 1 share at $25.70
- Intel ($INTC) – added 1 share at $28.34
- 3M ($MMM) – added 0.5 shares at $120.20
- January 20th, 2023
- Orsted ($SNNGY) – added 1 share at $29.73
- AT&T ($T) – $20 Covered Call expired, 100% on $3 premium
Next week I will continue to add $10 into each ETF ($SPY, $XYLG, and $SCHD) and will continue to hold onto the rest of my cash if the market gets lower. I have started to slowly deploy that cash in case a bottom has already been hit, but only time will tell. I really want to deploy this cash position into $CMCSA, and $INTC to build 100 share positions in them for covered call activities.
Summary
That is it for the update this week. The market recap and outlook for this wild week will be posted on Saturday, so make sure to have the site bookmarked or subscribe via email on the homepage!
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!
Regards,
Dividend Dollars