Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 12/2/2022 Week in Review

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 $12,340 into the account the total value of all positions plus any cash on hand is $12,639.84. That’s a total gain of 2.43%. The account is up $82.60 for the week which is a 0.66% 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 down -8.61% which puts us 11% 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 $60 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 moves this week decreased my PADI by $9 to $467.

Dividends

This week I received a $9.52 dividend from Intel, a $3.51 dividend from $XYLG, and a $3.72 dividend from Cummins

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: $349.91

Portfolio’s Lifetime Dividends: $372.83

Trades

This week was a week of playing with options (a bit too much) and reorganizing my Healthcare exposure. While holding onto cash and waiting for a drop to add, I’ve fallen victim to trying to boost my gains by day trading with it. Over the last month I lost roughly $230 to day trading options while holding onto my cash. I need to be better about this! Monday and Wednesday show some bad plays in that realm.

Monday was my typical automatic investments into my ETFs. Wednesday, I consolidated my short position into only $SDS and added to it. I planned on investing in $CCO long term and started a position but later questioned it and sold the next day.

Thursday, I sold $AMGN and $MRK for +40% gains and decided to start a position in $JNJ as my chosen healthcare stock. The reasoning for this is that I do not know much about Amgen’s or Merck’s products. I know they have good patents right now that are really performing well, but I don’t know how sustainable that is or how long those patents are good for. Will they be able to create a new cash generating products after their current patents expire? I don’t know and I’m not in the business of trying to guess that. I like $JNJ because they have a base business of well-known healthcare staples that supports the riskier pharmaceutical endeavors, which is much more comfortable for me as an investor.

Friday was only some dividend reinvestments.

Below is a breakdown of the trades I made this week and the reasoning behind them!

  • November 28th, 2022
    • Apple ($AAPL) – Entered 12/16 143P at 3.35 and exited at 3.90 ($55 gain)
    • Netflix ($NFLX) – Overnight 12/9 335C from last Friday entered at $0.49 and exited at $0.27 ($22 loss)
    • SPDR S&P 500 ETF ($SPY) – added $10 at $397.55 per share (weekly automatic buy) and dividend reinvested
    • Global X S&P 500 Covered Call & Growth ETF ($XYLG) – added $10 at $25.86 per share (weekly automatic buy)
    • Schwab US Dividend Equity ETF ($SCHD) – added $10 at $77.55 per share (weekly automatic buy)
  • November 30th, 2022
    • Clear Channel Outdoor ($CCO) – bought 100 shares at $1.06
    • NVIDIA ($NVDA) – entered 12/9 $150P at $2.22 and exited at $1.12 ($110 loss)
    • S&P 500 Bear 3X ($SPXS) – Sold 2 shares at $19.52 to add to the 2x position
    • ProShares Ultra Short S&P 500 ($SDS) – added 3 shares at $41.96
    • Global X S&P 500 CC & Growth ETF ($XYLG) – dividend reinvested
  • December 1st, 2022
    • Clear Channel Outdoor ($CCO) – sold 100 shares at $1.08 ($2.14 gain)
    • Amgen $AMGN) – sold whole position at $282.68 ($100.40 gain)
    • Merck ($MRK) – sold whole position at $109.81 ($62.08 gain)
    • Johnson & Johnson ($JNJ) – bought 1 share at $178.48
  • December 2nd, 2022
    • Intel ($INTC) – dividend reinvested
    • Cummins ($CMI) – dividend reinvested

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. I really want to deploy this cash position into $T, $CMCSA, and $INTC to build 100 share positions in them for covered call activities.

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!

Read the weekly market review to get a recap of the week and help arm yourself with market knowledge! This weekly update and the last weekly update provide opinion pieces from myself and explain why I am bearish on the market.

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

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 11/25/2022 Week in Review

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 $12,280 into the account the total value of all positions plus any cash on hand is $12,548.07. That’s a total gain of 2.18%. The account is up $144.10 for the week which is a 1.16% 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 down -11.00% which puts us 12% 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 $60 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 moves this week increased my PADI by $7 to $476.

Dividends

This week we only on dividend: $1.98 from $SMHB

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: $330.47

Portfolio’s Lifetime Dividends: $353.39

Trades

Below is a breakdown of the trades I made this week and the reasoning behind them!

  • November 21st, 2022 (weekly automatic buys are a crucial part of my portfolio. Building substantial positions in these ETFs help me build my diversity and cash flow in a tried-and-true simple method.)
    • SPDR S&P 500 ETF ($SPY) – added $10 at $394.88 per share (weekly automatic buy) and dividend reinvested
    • Global X S&P 500 Covered Call & Growth ETF ($XYLG) – added $10 at $25.62 per share (weekly automatic buy)
    • Schwab US Dividend Equity ETF ($SCHD) – added $10 at $77.21 per share (weekly automatic buy)
  • November 22nd, 2022 (today my $SPY short hit my stoploss. And it hit it hard. I’m a little bummed about it, but it was a lesson I needed in not getting caught up in the emotions of timing the market and feeling strong conviction in one direction over the other. It was also a great lesson in seasonality and option premium burn. Overall, I am still bearish on the market and will continue to hold onto my short positions.)
    • Ally Financial ($ALLY) – added 1 share at $26.18
    • SPY Short – Closed the short for roughly a 60% loss at 1.33.
    • S&P 500 Bear 3X ($SPXS) – added 2 shares at #20.32
  • November 25th, 2022 (An article was posted by Politico on Wednesday that made shares drop by roughly 4%. The article says that “The Federal Trade Commission is likely to file an antitrust lawsuit to block Microsoft’s $69 billion takeover of video game giant Activision Blizzard.” That is huge news… but them it goes on to say that “A lawsuit challenging the deal is not guaranteed, and the FTC’s four commissioners have yet to vote out a complaint or meet with lawyers for the companies…”. Essentially, the article is a bunch of hearsay from “three people with knowledge of the matter”. In my opinion, the article has no grounds of the claims coming from a credible source or having any proof of coming actions. My thesis hasn’t changed and I still believe that Microsoft has done a good job of showing that the acquisition is not anti-competitive and is in fact beneficial for consumers, despite Sony’s best attempts at slandering the deal.)
    • Activision Blizzard ($ATVI) – added 1 share at $73.37
    • Leveraged US Small Cap ETN ($SMHB) – dividend reinvested

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. I really want to deploy this cash position into $T, $CMCSA, and $INTC to build 100 share positions in them for covered call activities.

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!

Read the weekly market review to get a recap of the week and help arm yourself with market knowledge! This weekly update and the last weekly update provide opinion pieces from myself and explain why I am bearish on the market.

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

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 11/11/2022 Week in Review

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 $12,160 into the account the total value of all positions plus any cash on hand is $12,400.47. That’s a total gain of 1.98%. The account is up $463.39 for the week which is a 3.88% 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 down -10.38% which puts us 12% 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 $60 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. I actually sold more than I bought this week, so those moves aren’t evident on the chart. Keep reading below to see those! These moves decreased my PADI by $30 to $462.

Dividends

This week we received no dividends.

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: $321.71

Portfolio’s Lifetime Dividends: $344.63

Trades

Below is a breakdown of the trades I made this week and the reasoning behind them!

  • November 7th, 2022 (weekly automatic buys are a crucial part of my portfolio. Building substantial positions in these ETFs help me build my diversity and cash flow in a tried-and-true simple method. I took a day trade with my cash for a tiny gain this day and made a buy ahead of $AY’s earning)
    • SPDR S&P 500 ETF ($SPY) – added $10 at $377.54 per share (weekly automatic buy) and dividend reinvested
    • Global X S&P 500 Covered Call & Growth ETF ($XYLG) – added $10 at $25.20 per share (weekly automatic buy)
    • Schwab US Dividend Equity ETF ($SCHD) – added $10 at $73.83 per share (weekly automatic buy)
    • Atlantica ($AY) – added 1 share at $28.17
    • SPDR S&P 500 ETF ($SPY) – day traded $381 11/9 call for a $4 gain
  • November 8th, 2022 (As mentioned last week, I was looking to cut some positions and build up cash as I believe a better buying opportunity is coming in the short term. I trimmed $LMT and $AMGN  and will buy these shares back at a lower price.)
    • Lockheed ($LMT) – sold 0.25 shares at $491.16
    • Amgen ($AMGN) – sold 0.25 shares at $295.24
  • November 9th, 2022
    • ETRACS 2x Small Cap ($SMHB) – bought 1 share at $6.85
  • November 10th, 2022 (I trimmed $ALLY, $AMGN, $MRK, and $SMHB. I was actually down on $ALLY and $SMHB, but both of these experienced some awesome pops this week. I figured I would take some off of the table and buy those shares back at a lower price in a few weeks. Per my bearishness as mentioned in my market report, I opened a short position today as well.)
    • Amgen ($AMGN) – sold 0.3 shares at $292.87Merck ($MRK) – sold 1 share at $101.67ETRACS 2x Small Cap ($SMHB) – sold 15 shares at $7.72Ally Financial ($ALLY) – sold 0.5 shares at $29.02
    • SPDR S&P 500 ETF ($SPY) – opened a $340 1/20/23 put at $3.03

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. I really want to deploy this cash position into $T, $CMCSA, and $INTC to build 100 share positions in them for covered call activities.

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!

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!

Regards,

Dividend Dollars

Categories
Dividends General

Lessons From My First Year of Dividend Investing

One year of dividend investing! Can you believe it? I am happy to have partnered Sharesight for most of this year. Their platform makes tracking trading and dividend history, understanding your performance, and saving time a breeze. Click the link above to get a special offer only for Dividend Dollar readers!

One year ago, on 9/24/22, I started this blog and started dividend investing. Back then, some of the stocks I first bought were $SLG, $T, and $GNL. Of those three I only still hold $T. Over the past year, I’ve worked on building my own investing philosophy and putting together a dividend portfolio that will help me reach financial freedom (you can read about that strategy here). My strategy didn’t come to me overnight, instead it was the result of a long process and still continues to change.

What I really like about dividend investing is that you are never done learning. There is always a new situation that could generate new results in your portfolio. There’s always new positions that you can pick up, or let go of. As the economy changes, so do your thoughts on certain holdings and approaches to investing. It is never a one a done. After my first year of dividend investing, here are the most important investment lessons I’ve learned:

#1 I Love Receiving Money in my Account

Every week, I receive at least one dividend and I get to see my account naturally grow bigger. Receiving these payouts is a great feeling. Week after week, these payouts start to compound and have not stopped growing.

In my first year of investing, I raked in almost $285 in dividends. I expect to get close to $700 in my next year. Today, my portfolio is roughly a $10,000 portfolio that has an annual income of $504. This is almost a 5% yield. It is a modest amount so far, but it will greatly increase over the years to come.

#2 It’s Easier to Follow Dividend Stocks

When you buy a dividend stock, you usually buy a sound & healthy company. Therefore, following quarterly results is usually more than enough to make sure one stock doesn’t slip through the cracks and start rotting. From my experience with different types of investing, different strategies usually require much more monitoring.

#3 Don’t Chase High Yield

Everyone always says don’t chase yield. But I believe every dividend investor will make this mistake at least once, even if they are familiar with the saying. I made this mistake myself with $UWMC. It had nearly a 10% yield when I started buying into it and I made a substantial position. I lost more than 40% of that position as I continued to buy into its dips and hold on. I eventually got out, but this sucker still hasn’t turned around.

The lesson to learn from this is that high yield investments always carry limited growth potential and/or higher risk. There is a reason why you get a higher yield and it’s not just for shits n giggles.!

#4 Yield Doesn’t Matter if you Select the right pick

To be honest, I still haven’t fully committed to this lesson, but I know its right! At first, I used to select only companies paying over 2% in yield. It was my way of identifying “good dividend stocks” amongst other factors. I used to ignore lower yielding companies because I wanted to start having larger dividend payouts sooner.

I have since made exceptions with holdings like $MSFT, $EA, and $SPY. There’s lots of gems out there with low yields. Take AAPL for example, low yield but the price has appreciated like crazy.

The dividend yield is not the most important metric when you select a dividend stock. Instead, I look for companies with a solid business and the ability to increase its payout consecutively for many years to come.

#5 Patience is the Most Important Investor’s Asset

In my first year so far, I’ve bought several stocks that didn’t go the right way immediately. Starbucks ($SBUX), 3M ($MMM), Intel ($INTC) are great examples of this. In fact, a majority of my holdings are in the red right now. But some, like Starbucks, stagnated before turning green.

Sometimes you get lucky and your stock keeps going up the minute you buy it. But most of the time, the result of your trade is not instantaneous. On the other hand, patient investors will receive their rewards sooner or later. Especially with starting my portfolio on the cusp of a bear market, most things will not turnaround for some time.

I am excited to finish out this year with my current portfolio, as I believe I have a lot of great holdings. I also know I will have much more to learn in the coming years. It will be interesting to see how my portfolio changes and reacts as this bear market continues. Everyone says that wealth is made in recessions, so I am excited to continue putting my money to work and see what it can grow into.

Tell me, what have you learned from dividend investing in the current bearish market?

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 9/9/2022 Week in Review

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. Click the link above 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 $11,110 into the account the total value of all positions plus any cash on hand is $10,865.93. That’s a total loss of -2.2% The account is up $232.57 for the week which is a +2.19%.

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 -8.71% whereas our portfolio is down -2.2%! 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, the trades made with that 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 and the blue ones are positions that I reinvested dividends into. The moves that we made this week increased our annual dividend income by $3 to $481 at a yield of 4.43%.

Dividends

This week we received $4.99 from two dividends: $3.96 from Amgen $AMGN, and $1.03 from Microsoft $MSFT.

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: $237.97

Portfolio’s Lifetime Dividends: $260.89

Trades

Below is a breakdown of my trades this week!

  • September 6th
    • $SCHD – added 0.13948 shares at $71.69 ($10 recurring investment)
    • $SPY – added 0.025623 shares at $390.27 ($10 recurring investment)
    • $XYLG – added 0.387385 shares at $25.81 ($10 recurring investment)
  • September 7th
    • $MMM & $AFL – $0.20 earned from stock lending
  • September 8th
    • $MSFT Microsoft dividend reinvested
    • $AMGN Amgen dividend reinvested
  • September 9th
    • $INTC Intel – added 0.9 shares at $31.32
    • $SMHB – added 0.2 shares at $9.00

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 $MO or $BBY for the upcoming ex-dividend date.

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!

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!

Regards,

Dividend Dollars

Categories
Dividend Stocks Portfolio

Dividend Portfolio: 8/19/2022 Week in Review

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. Click the link above 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 $10,800 into the account the total value of all positions plus any cash on hand is $11,123.35. That’s a total gain of 2.99%. The account is down $90.97 for the week which is a 0.81% loss.

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 -5.09% whereas our portfolio is up nearly 3%! 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

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 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 4.23%.

Dividends

This week we received $4.27 three dividends: $0.98 from Ally Financial ($ALLY), $1.60 from Realty Income ($O), and $1.69 from Texas Instruments ($TXN)

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: $219.20

Portfolio’s Lifetime Dividends: $242.12

Trades

Below is a breakdown of my trades this week!

  • August 15th
    • $SCHD – added 0.129417 shares at $77.27 ($10 recurring investment)
    • $SPY – added 0.023332 shares at $428.60 ($10 recurring investment)
    • $XYLG – added 0.354875 shares at $28.18 ($10 recurring investment)
    • $ALLY – dividend reinvested at $37.78 per share
    • $O – dividend reinvested at $74.38
  • August 16th
    • Microsoft ($MSFT) – added 0.05 shares at $291.20
    • 3M ($MMM) – added 0.09 shares at $149.33
    • $TXN – dividend reinvested

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 $BAC or $CMCSA.

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!

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!

Regards,

Dividend Dollars

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 7/22/2022 Week in Review

Welcome back to the weekly Dividend Dollars portfolio review! 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.

Thanks to everybody for showing some love on the new analysis post on Activision Blizzard ($ATVI) from last week! Above is the comment from the judge on my submission. I ended up winning third place with a prize of $400! That money helped me upgrade my home’s Wi-Fi so I can be a little bit more efficient with running things and it will help pay for the WordPress subscription that runs this website! It’s awesome to get rewarded for the work I put into this website and it’s nice to see folks get some value out of it. So, thank you for reading! Let’s dive into the portfolio review!

Portfolio Value

To date, I have invested $10,350 into the account the total value of all positions plus any cash on hand is $10,156.53. That’s a total loss of 1.87%. The account is up $11.32 for the week which is a 0.11% 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 -11.08% whereas our portfolio is down -1.87%! 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. The trades made this week 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 and the blue ones are positions that I reinvested dividends into. The positions that we added to increased our annual dividend income by $7 at a yield of 4.45%.

Dividends

This week we received only one dividend: $4.96 from ETRACS 2xPayer Levered Small Cap ETF ($SMHB), this will be reinvested on Monday.

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: $184.26

Portfolio’s Lifetime Dividends: $208.78

Trades

Below is a breakdown of my trades this week!

  • July 18th
    • 3M ($MMM) – 0.15 shares bought at $128.80
  • July 20th
    • Ally Financial ($ALLY) – 1 share bought at $33.82
    • SCHD – added 0.138125 shares at $72.40 (recurring investment)
    • XYLD – added 0.231054 shares at $43.28 (recurring investment)
  • July 21st
    • AT&T ($T) – 2 shares bought at $18.42
  • July 22nd
    • Intel ($INTC) – bought 0.25 shares at $40.04

Not a huge week of buys for me. AT&T’s quarterly earnings report showed great growth in their products and stable margins. However, the report was not received well by the market on account of the decreased FCF guidance and very heavy capital expenditure. I still believe this is a good long-term hold, if anything, their heavy investments will contribute to a better future for the firm.

Next week I plan on keeping my eyes MMM, MSFT, and TXN for their earnings reports on Tueday, MO, INTC, MRK, and CMCSA for their earnings reports on Thursday, and ALLY for its ex-date on Friday. If any of these provide a nice dip, assuming information from earnings is not catastrophic, I’ll be looking to add.

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!

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!

Regards,

Dividend Dollars

Categories
Dividends Stock Market Strategy

What Dividend Strategy Does Best in a Bear Market?

As the economy falls further into bear market territory, it is clear that dividend investing strategies have held up better than most other investing strategies this year. Today I read an article from a Morningstar writer about which dividend investing strategies are outperforming year to date 2022. This article looked at how much that performance has varied depending on specific dividend investing approaches.

Generally speaking, there are usually two schools of thought when it comes to dividend investing: dividend yield investing vs. dividend growth investing. Dividend yield is calculated as the latest dividend payment annualized divided by price. Dividend growth is defined as the rate of change of dividends paid by a company over time, generally the most recent 3 or 5 year period. Clearly, a high dividend investor is more focused on the size of the dividends they receive while a dividend growth investor cares more about the historical and potential growth of the dividend. Both styles generally have the same goal, which is create an income stream.

However, an investor’s time horizon can play a significant role in determining which strategy they focus on. Older folks may want to put their money in high yielding yet consistent payers like Realty Income ($O) or Enterprise Products Partners ($EPD). This is because reliable income now is more important to them than growing long term wealth. For younger investors, it may make more sense to focus on a dividend growth strategy by investing in companies that have low payout ratios and potential to create a long track record of increasing dividends like Lowe’s ($LOW) or Visa ($V).

With dividend strategies faring better than most other for 2022, the article looked at which one is doing the best. The article concluded that strategies that invest in high yield companies with healthy financials outperformed the most. After reading that, I decided to evaluate that conclusion for myself by back-testing a handful of dividend paying ETFs which follow various strategies. Below are the ETFs that I was able to back-test through using Sharesight:

  • ProShares Dividend Aristocrats ETF ($NOBL) which contains the numerous stocks of varying yields and growth potential that are on the dividend aristocrat list
  • Vanguard High Dividend Yield ETF ($VYM) which contains the highest yielding stocks after being filtered by market cap adjustments
  • Vanguard Dividend Appreciation ETF ($VIG) which contains stocks with at least a 10-year history of growing dividends after passing market cap and trading volume criteria
  • Schwab US Dividend Equity ETF ($SCHD) which contains stocks that meet the criteria of both yield and fundamental aspects
  • Global X S&P 500 Covered Call ETF ($XYLD) this is not a dividend ETF perse, however lots of dividend investors use covered call funds to use their high yields for income purposes

As you can see in the graph below, the S&P has fallen by 20.55% year to date. The best performer of the dividend strategies was the dividend yield strategy down by only 9.46% year to date, followed by the dividend fundamental strategy down by 10.74% year to date. Surprisingly, the covered call high yield ETF was a very close third down by only 10.77% year to date!

High yield investors (assuming sound quality of stocks) have stayed strong in this market, in part by the strong finances of their holdings but also sizable exposure to the energy sector. A high yield dividend strategy almost inherently has extra exposure to energy and little exposure to tech. High yield strategies with a quality focus on seeking profitable firms in a position to consistently pay their dividends over many years and dumping the ones that can’t, are in a great position to keep the dividends flowing which is provides important financial stability even if a recession hits.

Though energy is starting to waiver, the sector’s performance this year is primarily the determinate of the success of these dividend funds. Energy tends to be much more prominent in dividend and value portfolios. $VYM, our high yield ETF, has the second highest yield at 2.79% and has greatest exposure to the energy sector at over 10%. That is more than double the S&P’s energy exposure at 4.68%

Dividend growth strategies haven’t done as well this year, mainly because of their exposure to tech. For example, our high yield ETF $VYM has 8.37% exposure to tech whereas its growth counterpart $VIG has more than double that at 16.78%. Prior to this year, most dividend strategies in general had not performed well when compared to the market. Even with a focus on which quality, dividend stocks tend to have a hard to keeping up when the market is focused on growth. However, now that the tide of the economy has turned, dividend investing, whether that is with an emphasis on yield or on dividend growth, is shining bright as the safeguard against this volatile market.

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 6/10/2022 Week in Review

Welcome back to weekly Dividend Dollars portfolio review! You’ll notice this week that the economic review is not in this post! I have posted that separately here. Going forward those will continue to be posted individually so that it is easier to discern which articles contain which type of information.

Here at Dividend Dollars, our investing approach is a dividend growth strategy with aspects of value investing and fundamental analysis as well. I am a young investor in my 20’s, 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 $9,380 into the account, the total value of all positions plus any cash on hand is $9,250.27. That’s a total loss of 1.38%. The account is down $469.67 for the week which is a 4.83% loss. This is a huge loss for one week, but as we discussed in the market recap for this week (read that here), the markets had it worse this week with a 5.1% loss in the S&P and a 5.6% loss in the NASDAQ.

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 -12.45% whereas our portfolio is down -1.38%! 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 $160 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. The positions that we added to increased our annual dividend income by $8 at a yield of 4.2%.

Dividends

This week we received two dividends. $3.93 from Amgen ($AMGN) and $0.99 from Microsoft (MSFT).

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.

Dividends received for 2022: $138.22

Portfolio’s Lifetime Dividends: $161.14

Trades

Below is a breakdown of my trades this week!

  • June 6th
    • ETRACS 2xMonthly Pay Levered US Small Cap ($SMHB) – added 0.5 shares at $10.42
    • Best Buy ($BBY) – added 0.15 shares at $80.20
  • June 7th
    • Best Buy ($BBY) – added 0.2 shares at $78.20
  • June 8th
    • Altria ($MO) – added 0.25 shares at $50.92
    • SCHD – added 0.128609 shares at $77.76 (recurring investment)
    • XYLD – added 0.224346 shares at $44.57 (recurring investment)
    • Amgen ($AMGN) – dividend reinvested at $245.61
  • June 9th
    • Best Buy ($BBY) – added 0.5 shares at $75.28
  • June 10th
    • Intel ($INTC) – added 1 share at $39.67
    • ETRACS 2xMonthly Pay Levered US Small Cap ($SMHB) – added 0.2 shares at $9.40

Stocks I’ll be watching to add next week: Best Buy (BBY) and Altria ($MO). Both have ex-dividend dates early next week and both have good opportunities to DCA into before this next dividend payout. Aside from that, I’ll be watching my financial stocks like Bank of America ($BAC) and Ally Financial ($ALLY) for opportunities to DCA into as well. Particularly because that sector was hit the hardest last week. I expect these will have some more downside to buy into.

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!

Read the last market review to educate yourself on the prior week to help build proper expectations for the week to come! This can help you make better buying decisions.

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!

Categories
Dividends General Portfolio Strategy Welcome

Dividend Growth Investing While Young

It is a common adage that young investors should take on more risk than older investors and pursue high-growth investment strategies. There is a lot of reasoning behind this approach, but I believe it can be boiled down into three main points.

  1. Certain stocks have the potential for massive gains via quick increases in stock price. If you are successful at identifying these, you can get rich quickly.
  2. If you are unsuccessful at investing in the next “multi-bagger”, you still have plenty of time to make up for your losses.
  3. If you’re young and have a job that provides you with sufficient income, you don’t need to rely on the slow-growth or passive income that dividend stocks provide. Dividend income is not needed at a young age.

While I think that a portion of high-growth stocks have a place in every portfolio, I disagree with the approach that younger investors should overlook dividend investing entirely. Young investors do not need to entirely pursue growth-stocks, they don’t need to risk the potential large losses of this strategy, and I do not think that younger investors should avoid dividend paying stocks simply because they don’t need the income.

As an investor in my 20’s, my personal investing strategy is one of dividend growth investing. My strategy incorporates aspects of traditional dividend investing, value investing, and growth investing. I look for stocks of companies that pay dividends consistently, grows them consistently, appears to be undervalued (using a handful of techniques), and looks to be successful over the long term.

Through doing this, young investors can realize capital appreciation through successful use of both value and growth investing, they can have exposure to passive income through the dividend, and can build up their position over time by reinvesting the dividend overtime to compound their money.

Compounding is the key here. By reinvesting dividends, you are using that dividend to produce more dividends every time a dividend is declared. Compounding dividends is a powerful force for the long-term wealth builder, but it takes time for that power to grow and become significant. For this reason, young investors may not appreciate why dividend growth investing is such a sensible strategy for people who won’t be retiring till 40+ years from now.

Compounding is the 8Th Wonder of the World

Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t… pays it.” Over time, your dividends will earn more dividends. Then your dividends that were earned by prior dividends will earn you more dividends. It seems simple, but it is surprising hard to wrap your head around just how powerful compounding is till you play some numbers and graphs. We will do that here.

Take Lowe’s (LOW) for example. For the last ten years, the stock’s average dividend yield has hovered around 2%. 10 years ago today, one share of LOW cost you $26.98. Let’s assume an initial investment of $10,000. Using Sharesight, I can back-test the performance of that investment with dividends reinvested and the result is shocking.

From June 2012 to June 2022, the stock price from $26.98 to $186.33. In 10 years, the stock price grew by almost 6x. Add to that appreciation, 10 years of growth and compounding dividends your position grew from $9,982.60 on June 11th, 2012 to $64,920.20 on June 10th, 2022.

Meanwhile, your quarterly dividend payout began at $59.20 and grew to $296 which yielded you total dividend payout of $5,960.70. With just 10 years of holding, your dividend payout grew by more than 5x and yielded you a total of $5,960.70.

The magical variable in this formula is time. In 10 short years, you can see in the graph below that the dividend payouts start to resemble an exponential curve. If I had back tested for 20 years instead of 10 years, the dividend would have grown from $4.24 to $339.20 and that curve would be more pronounced. This simply goes to show why it is a good idea for dividend growth investors to start early. The younger you are the more time you have available to you for compounding.

Comparison with Aggressive Growth Investing

The graphics above show the potential outcome of a dividend growth investing strategy played out over 10 years with only Lowe’s (LOW). Assume an investor was 55 when they started investing in LOW, held it for those 10 years, then decided they wanted to retire at 65. However, now assume that that investor was persuaded that Facebook (now Meta Platforms META) would be the next big thing and decided to invest in that instead. Instead of finishing the 10-year stint with nearly a $65,000 position in LOW that pays him over $1,000 in dividends per year, this investor now has a $55,000 position in META that pays him nothing.

Though I am picking and choosing stocks for this scenario, it clearly demonstrates that the early emphasis on dividend growth provides a greater return and a stream of cashflow to rely on in retirement.

Some of the popular growth names would have caused you to lose money over that 10-year time frame (think Achillion or Blackberry). Others produced lesser gains like Google and Apple. Others barely outperformed like Amazon and Microsoft. Only a handful really took off like Netflix and Tesla. However, are you confident that 10 years ago you could have picked Tesla while you risk accidentally picking the Blackberry? And are you confident that you could make that same decision today?

Dividend Dollars Strategy

While it’s hard to pick the next Tesla, it is not hard to pick stocks that pay consistent dividends, grow them, and have potential for future growth. As I said before, my strategy incorporates aspects of traditional dividend investing, value investing, fundamental analysis, and growth investing. I look for stocks of companies that pay dividends consistently, grows them consistently, appears to be undervalued (using a handful of techniques), and looks to be successful over the long term.

10 years ago, Lowe’s already had nearly a 50-year streak of paying and growing dividends, they had good financials, a growing P/E and a growing EPS. Fundamental analysis shows that the company has value, value that may have been overlooked in 2012 depending on what quarter you look at. From a value standpoint, 2012 had some dips in the stock price that would have made sense to buy. From a dividend standpoint, Lowe’s already had great history of payments that would make any income investor feel fuzzy inside. Overall, there was nothing fancy about them back then, and there is still nothing fancy about them today.

In conclusion, it is much easier, and much safer to take the road less traveled as a young investor. Achieving long term wealth is much more realistic when considering the compounding opportunity that already successful and healthy companies can offer you.

Young investors should not feel obligated to follow the conventional advice of pursuing high growth investing or risk day trading. Taking on excess risk with goal of achieving wild returns might not materialize. Even though they have the time to recoup those losses, they may not be able to avoid the consequences of lost time for compounding.

Here at Dividend Dollars, I am a young investor trying to avoid just that. I invest in safe dividend paying companies that long-term have the greater potential support me in retirement and may even help me retire early! I have educated myself and built a sensible long-term strategy and highly encourage you to do the same.

This website is here to help you do just that by following our posts which include weekly portfolio updates, market analysis, occasional stock due diligence articles and the shared investing resources to give you all the tools you need to start!

I am also open to conversations to help! Comment below or reach out to me on my socials if you ever need anything.

Regards,

Dividend Dollars