Welcome back to the weekly Dividend Dollars portfolio review which 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 $16,090 into the account. The total value of all positions plus any cash on hand is $15,829.98. That’s a total loss of 2.34%. The account is down $161.26 for the week, which is a 1.01% loss. We added $120 in cash to the account last week, trades made will be broken out below.
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 -5.61% which puts us 3.27% higher than the market!
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 grew $20 to $577.
Dividends
This week we received two dividends: $3.67 from $SMHB and $2.71 from $SBUX. The $SBUX dividend hasn’t hit my account yet and will most likely be invested on Tuesday.
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. The $SPY dividend hit afterhours on Friday, so that will be invested automatically on Monday.
Dividends received for 2023: $205.62
Portfolio’s Lifetime Dividends: $616.02
Trades
This week we continued to use the turtle trend trade strategy on a few ETFs. The cotton futures ETN $BAL did not play out, we exited that on a loss this week and used the funds to open a new position in $VTWV. There are some takeaway lessons for me here, one is keep an eye on the big ask spread. The $BAL and $MEXX trade before that was difficult to exit cleanly due to the spread. Second lesson is to be mindful of sector rotations.
The second lesson is more specifically about my un-timely exit of $MGK last week and entry into $VTWV this week. $MGK was cut in order to have capital for an $XLC add. Ideally, I should have done that the other way around and that should have been obvious to me as $XLC is a mix of defensive and growth tech companies whereas $MGK consists of only bigger and better growth tech names. $MGK outperformed $XLC by over 1% this week. Then, to add insult to injury, I initiated a trade in $VTWV, a value small cap ETF, without thinking of the sectors. Mega-cap growths have been more in favor this year than anything else, and small cap value stocks are the most out of favor. So why am I fighting the market with this? I have no good answer, other than $VTWV hit a 20 day high and I entered per the Turtle Trade Plan. Can’t be mad at myself for that, but clearly there is room for me to improve by thinking about the context of the overall market before initiating. See the chart below that shows segments like $MGK have vastly outperformed segments like $VTWV year to date, these are things I will keep a better finger on going forward.
Overall, $XLC is still moving forward bringing me a $40 gain so far, but the total Turtle performance is lacking. You can see a summary of all the trades so far below. We are still working out the kinks and refining skills, but I’m hopeful for how it will play out time. I have published a full article on the turtle trend strategy which you can read here.
Aside from Turtle trades, we added to our $JKHY and $BAC positions leading up to the next ex-dividend date. We also did some adding to $T which has just gotten wrecked in the past few weeks. At this point, I really am adding down into this one so that my cost basis is low enough to allow me a decent exit sooner rather than later, but we will see if the market plays ball on that. I am fine with holding for some time, as the yield is good, but as my portfolio starts to shift to high quality stocks, this is one I will want to scale out of.
Full details for my trades are below:
- May 22nd, 2023
- ETRACS 2x Monthly Pay Levered US Small Cap ($SMHB) – dividend reinvested
- May 23rd, 2023
- Bank of America ($BAC) – added 2 shares at $28.84
- iPath Series B Bloomberg Cotton Subindex ETN ($BAL) – sold 9 share position at $60.33, trend trade exit for a 3.8% loss
- Vanguard Russell 2000 Value Index Fund ($VTWV) – added 5 shares at $118.81, trend trade entry
- May 24th, 2023
- Jack Henry & Associates ($JKHY) – added 0.25 shares at $146.20
- May 25th, 2023
- AT&T ($T) – added 5 shares at $15.12
Next week, I’ll be keeping my eyes on $BAC, $BBY, and $CMCSA for opportunistic DCA adds leading into their next ex-dividend date. Also am interested in adding to $APD, $NVO, and $JKHY to grow those smaller positions.
Summary
That is it for the update this week. The market recap/outlook is also live and provides tons of information on what macro statistics I look at to keep a temperature gauge on the market and inform my portfolio movements. Read this week’s here!
I will also work on finishing my write up on the trend following strategy to share with you, so stay tuned for that.
Let me know what you think of the progress so far, share with me your progress and questions, interact with me on Twitter and CommonStock and other socials using the links below!
Thank you for reading! See you next week and stay safe!
Regards,
Dividend Dollars