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Dividend Stocks Dividends Portfolio

Dividend Portfolio: 2/4/2022 Week in Review

Welcome back to Dividend Dollars!

This week was a tad better than last with all indexes posting some minor gains. Data highlights this week included some strong job reports and rising treasury yields to finish us strong for the week.

Unfortunately, my portfolio didn’t fare so well and we will get into why! Every week I write an update on the dividend portfolio as we build it so that we can track its progress. I will give an overview of what the portfolio is invested in, its value, the dividends received, trades made, and any news or business announcements that may be of interest to our positions.

Portfolio Value

To date, I have invested $5,935 into the account, the total value of all positions plus any cash on hand is $6,120.91. That’s a gain of $185.91 for a total return of 3.13%. The account is down $61.98 for the week which is a flat 1% 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 up only 1.01%. Let’s keep up this good progress with smart adds to the portfolio.

We added $250 to the account this week. A significant chunk of that money added was put towards my position in 3M as you will see further down.

Portfolio

Above is a dashboard of the portfolio as tracked through simplysafedividends.com. I use that site for tracking forecasted dividend income, yield, annual income, 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. Usually, a chunk of my buys throughout the week are buys from my monthly stock picks. You can read about January’s stock picks here (I know I am late but February’s picks will be here soon!). I use a stock screener to find potentially undervalued stocks with safe and growing dividends. All stock picks (for this month and previous months) are highlighted in blue.

This week our activity raised our annual dividend income by $14. Our dividend yield increased by 0.11% and our beta remained flat. My portfolio’s dividend yield may be just slightly higher than 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 help me realize the benefits of compounding sooner. Our beta usually hovers right around the mid 0.6s which I like, 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.

This week I just had to buy the dip on 3M following their poorly received earnings report.  MMM reported $2.31 EPS beating the estimates by $0.29. Revenue has been relatively flat for the company for the last three years, yet the price has been declining. That seems unreasonable to me and this substantial dip gave me a good opportunity to buy!

Also, this week I added one share to my AT&T position following their update. T announced that they are cutting the dividend by 47% and are structuring their Warner Bros. deal as a spinoff instead of an exchange offer. The 47% dividend cut still keeps shares over a 4% dividend yield which is still attractive. The spinoff deal also will give shareholders 0.24 shares in the new entity for every share of T they own. As an investor who has only recently started building a position in T, this is great news. My position is only down 2%, my dividend yield is still strong following the cut, and I get a new (and fairly costless) position in the new WBD stock. I will keep watching for opportunities to add to T before the spinoff.

Both AT&T and 3M are both prior watchlist picks from last October, you can read that article here.

Aside from those two reasonable moves, I made more moves with UWMC. Shortly after starting this position it became the best position in my portfolio. It has quickly become my worst holding now, down 25%. I keep adding on the dips. I think long term, as long as leadership play their cards right to fix the float, UWMC will be a homerun. However, it must be watched extremely closely to make sure steps are being taken to get us there. I will read thoroughly their next earnings report and decide if an exit may be smart. But for now, we sit, wait, and collect the dividends and covered call premiums.

Dividends

This week we received dividends from MFA for $2.86, T for $5.72, VZ for $2.56, and XYLD for $0.96.

Dividends received for 2022: $9.24

Portfolio’s Lifetime Dividends: $53.69

Trades

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

  • January 31st  
    • MMM – added 1 share at $163.79
    • TD – added $0.59 from dividend reinvestment at $80.08
  • February 1st
    • T – added 1 share at $24.30
    • UWMC – added 4 shares at $4.88
    • VZ – added $2.56 from dividend reinvestment at $53.56
    • T – added $5.72 from dividend reinvestment at $24.24
    • XYLD – added $0.96 from dividend reinvestment at $49.19
  • February 2nd
    • XYLD – added 0.203294 shares at $49.19 (recurring investment)
    • SCHD – added 0.125826 shares at $79.47 (recurring investment)
    • CMCSA – $0.25 dividend reinvested at $45.55
  • February 3rd
    • UWMC – added 6 shares at $4.40

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio.

Last week had tons of news to share, and now this week I could not find anything worthy of sharing! Lots of earnings again for our positions but nothing bad or mind blowing!

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!

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 1/28/2021 Week in Review

Welcome back to Dividend Dollars! Whew what a week!

This week we saw a lot of volatility in the market. The week started rough as expectations of the FOMC meeting mid-week kept investors on their toes. That meeting confirmed the anticipated rate hikes and fight against inflation, with the first increase expected to come in March. Following this, the market showed a little strength followed by further decline on Thursday. Friday ends higher bringing the indexes to slightly positive for the week.

Moving on from the market, every week I write an update on the dividend portfolio as we build it so that we can track its progress. I will give an overview of what the portfolio is invested in, its value, the dividends received, trades made, and any news or business announcements that may be of interest to our positions.

Portfolio Value

To date, I have invested $5,685 into the account, the total value of all positions plus any cash on hand is $5,963.21. That’s a gain of $278.21 for a total return of 4.89%. The account is up $102.17 for the week which is a 1.74% gain.

We started building this portfolio on 9/27/2021 and have already built into a significant amount of diversity. That diversity has made our portfolio less volatile than the rest of the market, so we did not end the week as high as some of the indexes did.

We added $165 to the account this week. A significant chunk of that money added was put towards adding to positions in Best Buy and Allstate as you will see further down.

Portfolio

Above is a dashboard of the portfolio as tracked through simplysafedividends.com. I use that site for tracking forecasted dividend income, yield, annual income, 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. Usually, a chunk of my buys throughout the week are buys from my monthly stock picks. You can read about January’s stock picks here. I use a stock screener to find potentially undervalued stocks with safe and growing dividends. All stock picks (for this month and previous months) are highlighted in blue.

This week our activity lowered our annual dividend income by $2. I did some reorganizing and liquidated a position in favor of building others, this lowered out annual income but raised our forecasted income significantly due to better growth. Our dividend yield decreased by 0.12% and our beta went up by 0.01. My portfolio’s dividend yield may be just slightly higher than 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 help me realize the benefits of compounding sooner. Our beta usually hovers right around the mid 0.6s which I like, 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.

Dividends

This week we received dividends from CMCSA for $0.25 and from EOG for $2.30.

Dividends received for January 2022: $18.66

Year-To-Date Dividends: $41.59

This week many of our positions announced next dividends and a couple of them showed increases.

  • SJM announced their next dividend of $0.99 with no change.
  • XYLD announced their next variable dividend of $0.4808. 
  • INTC announced a 5% increase to a dividend of $0.365.
  • CVX announced a 6% increase to a dividend of $1.42.
  • MMP announced their next dividend of $1.0375 with no change.
  • CMCSA announced a 8% increase to a dividend of $0.27.

Trades

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

  • January 25th
    • MFA – sold 26 shares at $4.31.
    • BBY – added 1 share at $98.11
    • ALL – added 0.5 shares at $119.32
  • January 26th
    • XYLD – added 0.208013 shares at $48.07 (recurring investment)
    • SCHD – added 0.127944 shares at $78.16 (recurring investment)
    • CMCSA – $0.25 dividend reinvested at $45.55
  • January 27th
    • CMCSA – Added 1 share at $47.06
    • INTC – added 1 share at $48.11

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio.

Other than just the general state of the market I have a few updates for us.

Lots of our positions had earnings reports this week. I will give a brief summary of each below:

  • CMCSA: Peacock has increased their monthly active users to 24.5 million, Comcast projects this to 35 million by 2024. Comcast outperformed expectations. They reported $0.77 earnings per share on $30.336 billion in revenue beating EPS expectations by 4 cents. This earnings is up 37.5% from Q4 of 2020. NBCU revenue jumped 25.6% and the media segment jumped 8.4% despite a $559 million loss related to Peacock. Peacock lost $1.7 billion in 2021. Other segments of business such as theme parks and Universal  performed well. Looking ahead, Comcast states they will remain focused on organic growth opportunities and increasing the capacity of their network and broad-band experience by producing more premium content with multiple ways of accessing it and expanding the reach of their technology platforms. They are confident in increasing the dividend for the 14th consecutive year.
  • MO: Altria’s earning release matched up with expectations. EPS came in at $1.09 which increased 10.1% year over year. Net revenues dipped 0.8% to $6.25 billion due to lacking performance in the wine segment as a result of the timing of the wine business sale. Revenues were up 0.6% after deducting excise tax. Smokeable and Oral products experienced net revenue gains. For the year of 2021, MO bought back 35.7 million shares which is about half way through their buy back plan expecting to end by December of 2022. Expectations for 2022 are looking to be stable.
  • INTC: Intel posted record 4Q earnings but forecasted 1Q earnings to be short of expectations due to supply chain issues. Shares fell about 3% following the earnings. 1Q EPS is projected to be $0.80 compared to the expected $0.86. Gross margin forecast fell to 52%, still within the previously expected range. Gross margin is under pressure due to the high capital expenditures Intel is pursuing, these expenditures show the company is building operations needed in order to meet better positions themselves to meet strong demand for semiconductors.
  • MKC: MCK’s 4Q earnings beat most estimates. EPS rose 6% to $0.84. Sales are up 11% for the year. Sales from Cholula and FONA (both new acquisitions in 2020) contributed 4% to this upside. Both consumer and flavor solution segments experienced an increase in sales. The company is expecting 3-5% sales growth for 2022 with the growth being led by new products.

Summary

That is it for the update this week. Let’s kill it next week. Stay patient and stable. Don’t let this market scare you. 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!

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 1/21/2021 Week in Review

Welcome back to Dividend Dollars! Whew what a week!

The market had a rough time with all three major indexes posting a losing week, with the S&P down by 5%. The NASDAQ posted its worst week since October of 2020. While weeks like this scare people about our economic future, these are the weeks where wealth is made! I am sitting on some cash and held back on my purchases with week with the hopes that we see more downside soon. You will see more substantial purchases from me then. But for now, lets get into the portfolio update.

Every week I write an update on the dividend portfolio as we build it so that we can track its progress. I will give an overview of what the portfolio is invested in, its value, the dividends received, trades made, and any news or business announcements that may be of interest to our positions.

Portfolio Value

To date, I have invested $5,520 into the account, the total value of all positions plus any cash on hand is $5,739.21. That’s a gain of $219.21 for a total return of 3.97%. The account is down $193.96 for the week which is a 3.27% loss. We are not down as bad as the rest of the indexes!

We started building this portfolio on 9/27/2021 and have already built a significant amount of diversity that has kept our portfolio from experiencing losses as large as the indexes have for the past two weeks. Fingers crossed we keep this up!

We added $115 to the account this week. A significant chunk of that money added was put towards adding to positions in Aflac and Allstate as you will see further down.

Portfolio

Above is a dashboard of the portfolio as tracked through simplysafedividends.com. I use that site for tracking forecasted dividend income, yield, annual income, 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. Usually, a chunk of my buys throughout the week are buys from my monthly stock picks. You can read about January’s stock picks here. I use a stock screener to find potentially undervalued stocks with safe and growing dividends. All stock picks (for this month and previous months) are highlighted in blue.

This week our buys added $5 to our annual dividend income. Our dividend yield increased by 0.15% and our beta went down by 0.04. The increase in dividend yield is more so a result of loses this week, which raise the yield, it is not because of my purchases. However, my portfolio’s dividend yield may be just slightly higher than you will see in other portfolios, however that is strategic per my time horizon. I am in my 20s and just starting off this investment journey, so a higher dividend yield gives me greater cash flow now to reinvest which help me realize the benefits of compounding sooner. As for the decrease in beta, I like seeing that. 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.

Dividends

This week we received 1 dividend from CAH for $0.98.

Dividends received for January 2022: $16.11

Year-To-Date Dividends: $39.04

Trades

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

  • January 18th
    • BBY – added 0.2 shares at $97.45
    • CAH – dividend reinvested for 0.018676 shares
  • January 19th
    • SCHD – added 0.124339 shares at $80.43 (weekly add)
    • XYLD – added 0.199557 shares at $50.11 (weekly add)
  • January 20th
    • ALL – added 0.5 shares at $121.04
    • UWMC – Sold 2/11 $6 covered call for $12 premium
    • UWMC – added 5 shares at $5.53

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio.

Other than just the general state of the market I only have one news update for us.

It is the $69 billion dollar deal that Microsoft is executing to acquire Activision. Activision is a huge video game developer known for extremely popular brands such as Diablo, Overwatch, Candy Crush, Call of Duty, and more. Microsoft has done a great job of acquiring studios to fill out their gamepass content and it has paid off. They are steps and steps above the competition. Their gamepass market expands outside of just their Xbox player base but also to computer users with a total of 25 million subscribers. Add to that Activision’s 400 million monthly active players and Microsoft’s gamepass will be a bursting with users. Microsoft will acquire Activision at about $95 per share in the all cash deal. The deal will close in 2023. In the dark cloud of the misconduct and sexual allegations currently surrounding Activision’s CEO, I believe the deal pays a decent premium to Activision given their current state and gives a perfect platform for the CEO to step down and allow Microsoft to run with Activision and turn it around. Seems like great timing and offers some awesome potential for return on investment.

Investor mindset aside, I am extremely excited about this deal, I love Diablo!

Summary

That is it for the update this week. Let’s kill it next week. Stay patient and stable. Don’t let this market scare. 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!

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 1/14/2021 Week in Review

Welcome back to Dividend Dollars! Whew what a week!

The market seemed to whip up and down following the myriad of data releases this week that showed a mixture of good and bad numbers. We had a rough start to the week which was followed by a couple days of strength just to hit a down trend for the end of the week. The S&P 500 ended almost flat, NASDAQ ended almost flat, and the DOW ended down nearly 1%.

Every week I write an update on the dividend portfolio as we build it so that we can track its progress. I will give an overview of what the portfolio is invested in, its value, the dividends received, trades made, and any news or business announcements that may be of interest to our positions.

Portfolio Value

To date, I have invested $5,405 into the account, the total value of all positions plus any cash on hand is $5,837.65. That’s a gain of $432.65 for a total return of 8%. The account is up $98.43 for the week which is a 1.72% gain.

Love seeing these gains! We started building this portfolio on 9/27/2021 and are starting to get close to a 10% gain! I think we should hit it in our first 6 months. Fingers crossed. Within that same time frame the S&P 500 has only experienced a 7.02% gain. We’re beating the S&P by almost a whole percent! Let’s hope we can keep up this great progress as we continue to add to our portfolio.

We added $240 to the account this week. A significant chunk of that money added was put towards starting a positions in Aflac and Allstate as you will see further down.

Portfolio

Above is a dashboard of the portfolio as tracked through simplysafedividends.com I use that for tracking forecasted dividend income, yield, annual income, 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. Usually, a chunk of my buys throughout the week are buys from my monthly stock picks. You can ready about January’s stock picks here. I use a stock screener to find potentially undervalued stocks with safe and growing dividends. All stock picks (for this month and previous months) are highlighted in blue.

This week our buys added $9 to our annual dividend income. Our dividend yield decreased by 0.07% and our beta went up by 0.01. Neither of those are particularly a bad or good thing. My portfolio’s dividend yield may be just slightly higher than you will see elsewhere, however that is strategic per my time horizon. I am in my 20s and just starting off this investment journey, so a higher dividend yield gives me greater cash flow now to reinvest which help me realize the benefits of compounding sooner.

Dividends

This week we received 4 dividends. $2.70 from MO, $0.37 from MKC, $0.43 from AQN, and $0.99 from O.

Dividends received for the week of December 20th: $4.49

Dividends received for January 2022: $15.13

Year-To-Date Dividends: $44.20

Trades

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

  • January 10th
    • ALL – bought 1 share at $124.65 (new position)
    • UWMC – added 3 shares at $5.71
    • AFL – bought 1 share at 62.37 (new position)
    • MO – $2.70 dividend reinvested for 0.053512 shares
    • MKC – $0.37 dividend reinvested for 0.003902 shares
  • January 12th
    • SCHD – added $10 at $81.75 per share (weekly investment)
    • XYLD – added $10 at $50.70 per share (weekly investment)

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio.

  • Cardinal Health Says Supply-Chain Issues and Inflation to Ding Medical Segment Profit
    • In this article we see that CAH expects supply chain issues and inflation to cut off $150-$175 million off of their profit in 2022. This comes out to about 40-45 cents less of earnings per share. In order to combat this, CAH says that they are simplyfing their operating model, evolving their commercial contracting strategies, and investing in growth business. When this news came out Monday, shares were down over 8%. I personally think all companies are at risk of loss due to inflation and supply chain issues, so this really is non-news and was already baked into the stock price. Closing the week, a good chunk of that dip has been regained, was a good buying opportunity if you caught it!
  • Canadian Natural Resources expects higher spending, production in 2022
    • This article details that CNQ is forecasting a 25% higher capital expenditure in 2022 as a bet on sustained recoveries of oil and gas prices from the pandemic-driven historical lows. This increase in expenditures should result in an increase in total production. The president of the company said in conference call that they have balanced approach with this to bring production growth while also increasing shareholder returns and lowering debt. CNQ already has a healthy balance sheet and this increase in spending should be good for the company in long term.
  • Warburg-backed Navitas agrees to sale to Enterprise Products Partners
    • EPD will be acquiring Navitas Midstream Partners Holdings LLC in a $3.25 billion dollar cash deal. Navitas added 750 miles of new pipeline last year which was a very difficult time in the energy industry. Similar to the CNQ headline, this is strategic move to promote growth in a market that will prove to be very lucrative for oil and gas companies.
  • Intel Names Micron Executive David Zinsner As CFO — Analyst Terms The Move As Positive For The Chipmaker
    • Intel has hired David Zinser from Micron as their CFO and internally promoted Michelle Johnston Holthaus, a 25 year company veteran, to lead the client computing group. The CCG group accounts for over half of Intel’s revenues. Both moves appear to be smart moves per Zinser’s success at Micron and Holthaus’ performance through their career.

Summary

That is it for the update this week. Love seeing all of the news for our oil and energy positions, that sector has been on fire recently! Let’s kill it next week and keep our eyes open for more good buying opportunities! 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! Enjoy your three day weekend!

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 1/7/2022 Week in Review

Welcome back to Dividend Dollars and congrats on making it through the first trading week of 2022! This week was mostly a down week for the market. This week’s slide quickened when the Federal Reserve indicated that they may be more aggressive on the timing of their first interest rate hike. Data releases show an increase in labor force participation and a huge rise in wage growth which are both economic statistics that encourage the Fed’s case for rate increases. In addition to that, we saw a lower than expected 199,000 jobs created last month. All these things affected the market this last week and may continue to produce more downside.

Even though markets had a rough week, our portfolio probably had its best week yet! We will dive into it here. Every week I write an update on the dividend portfolio so that we can track its progress. I will give an overview of the portfolio and its value, the dividends received, trades made, and any news or business announcements made that may be of interest to our positions.

Portfolio Value

To date, I have invested $5,165 into the account, the total value of all positions plus any cash on hand is $5,520.33. That’s a gain of $355.33 for a total return of 6.88% since inception. The account is up $126.50 for the week which is a 2.35% gain!

This is huge! We started building this portfolio on 9/26/2021 and have hit a gain of 6.88% in under 4 months. Within that same time frame, the S&P 500 has increased by 6.51%. It took nearly a quarter, but as you can see our portfolio is starting to beat the market. Let’s hope we can keep this up as we continue to add money and invest in good positions for the portfolio.

We added $175 to the account this week through adds in a couple of positions as you’ll see below.

Portfolio

Above is a dashboard of the portfolio as tracked through simplysafedividends.com. I use that for tracking forecasted dividend income, yield, annual income, beta, and dividend growth.

Below is an excel sheet that I use to track all of my positions. There you can see my number of shares, shares bought through dividends received, average cost, and gains. The tickers in green are stocks that I bought this week. Usually, a chunk of my buys throughout the week are buys from my monthly stock picks. You can read about January’s stock picks here. I use a stock screener to find potentially undervalued stocks with safe and growing dividends. All stock picks (for this month and previous months) are highlighted in blue.

This week our buys added $8 to our annual dividend income. Our dividend yield decreased by 0.11% and our beta went up by 0.01. Neither of those are particularly a bad or good thing. High dividend yields can mean that a company is paying too much in dividends and could be at risk of needing to cut dividends depending on the healthiness of the balance sheet. 4.41% dividend yield is a little higher than most dividend portfolios I’ve seen. Since I am young and just starting off, a high yield, though risky, gives me greater cash flow now to reinvest which will help me realize the benefits of compounding gains sooner.

Dividends

This week we received two dividends. $10.00 from UWMC and $0.64 from XYLD all of which were reinvested (XYLD will be reinvested at market open on Monday).

Dividends received for the week of January 7th: $10.64

Dividends received for January 2022: $10.64

Year-To-Date Dividends: $33.56

Upcoming dividends for next week are coming from MO and MKC.

Trades

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

  • January 3rd
    • VZ – added 1 share at $52.32
  • January 4th
    • BBY – bought 1 share at $103.95 (new position on stock pick)
  • January 5th
    • XYLD – added $10 at $50.72 per share (weekly investment)
    • SCHD – added $10 at $82.23 per share (weekly investment)
  • January 6th
    • UWMC – $10 dividend reinvested at $5.86 for 1.705641 shares
  • January 7th
    • ACC – sold 1 share at $55.39
    • CNQ – added 1 share at $47.05
    • BBY – added 0.1 share at $102.50

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio. Unfortunately, I have been sick with COVID this week and did not spend much time watching the news, so nothing to share this week.

Summary

That is it for the update this week. Let’s kill it next week and keep our eyes open for more good buying opportunities! 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 and here’s to an amazing 2022 of getting closer to financial freedom!

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 12/31/2021 Week in Review

Welcome back to Dividend Dollars! Happy New Years! Congratulations on making it through the year!

Every week I write an update on the dividend portfolio so that we can track its progress. I will give an overview of the portfolio and its value, the dividends received, trades made, and any news or business announcements made that may be of interest to our positions. This is the last update for the year 2021!

Portfolio Value

To date, I have invested $4,990 into the account, the total value of all positions plus any cash on hand is $5,218.20. That’s a gain of $228.20 for a total return of 4.37%. The account is up $32.51 for the week which is a 0.63% gain.

We added $145 to the account this week through adds to a couple of positions as you’ll see below.

Portfolio

Below is a table of everything we are invested in so far. The tickers in green are stocks that I bought this week. Usually, a chunk of my buys throughout the week are buys from this month’s stock picks. You can read that article here. I use a stock screener to find potentially undervalued stocks with safe and growing dividends. I will add to positions on the picks, start new positions, and add to other existing positions as good buying opportunities presents themselves. Stock picks for this month are LMT, SJM, and CVX.

This week our buys added $5 to our annual dividend income. Our dividend yield decreased by 0.06% and our beta went down by 0.01. Neither of those are particularly a bad or good thing. High dividend yields can mean that a company is paying too much in dividends and could be at risk of needing to cut dividends depending on the healthiness of the balance sheet. 4.52% dividend yield is a little higher than most dividend portfolios I’ve seen. Since I am young and just starting off, a high yield, though risky, gives me greater cash flow now to reinvest which will help me realize the benefits of compounding gains sooner.

Dividends

This week we received two dividends. $5.60 from LMT and $6.00 from EOG all of which were reinvested.

Dividends received for the week of December 27th: $11.60

Dividends received for December 2021: $18.07

Year-To-Date Dividends: $22.92

Trades

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

  • December 27th
    • ACC – bought 1 share at $55.93 (new position)
    • LMT – $5.60 dividend reinvested at $350.44 per share
  • December 28th
    • SJM – added 0.50 shares at $133.46
  • December 29th
    • XYLD – added $10 at $51.11 per share (weekly investment)
    • SCHD – added $10 at $80.86 per share (weekly investment)
    • EOG – $6.00 dividend reinvested at $88.95 per share

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio. There was not too much direct news which affects our stock positions; so we are off easy this week.

Summary

That is it for the update this week. Let’s kill it next week and keep our eyes open for more good buying opportunities! 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 and here’s to an amazing 2022 of getting closer to financial freedom!

Categories
Dividend Stocks Portfolio

Dividend Portfolio: 11/12/2021 Week in Review

Welcome back to Dividend Dollars! I hope you’re doing well and had a great week of investing. Every week I write an update on the dividend portfolio so that we can track its progress. I will give an overview of the portfolio and its value, the dividends received, trades made, and any news or business announcements made that may be of interest to our positions.

This week high inflation signals continued to be at the forefront of market sentiment. Both the PPI and CPI came in above expectations at multi-decade highs. What’s a great way to protect yourself from rising inflation? The best hedge is to invest! In a rising-rate and rising-inflation environment, value and cyclical parts of the market tend to outperform. Our whole strategy is centered around strong value investing in companies that pay dividends. In addition to that, companies that pass on inflationary changes to their customers instead of absorbing those costs tend to hold up in periods like this. Consumer staples, energy, and healthcare do well in these environments. With these things in mind, our portfolio is prepared for a period of high inflation.

Overall, it was a good week for us despite most indexes ending the week slightly down. Let’s dive into the portfolio and see how we fared.

Portfolio Value

To date, I have invested $2,115 into the account, the total value of all positions plus any cash on hand is $2,157.69. That’s a gain of $42.69 for a total return of 2.02%. The account is up $6.75 for the week, but the overall total return of 2.02% is flat from last week.

Love seeing these gains! It tells me that our method of screening for undervalued stocks that pay strong dividends is working. As we stick with the strategy, we will start to rack up more and more dividends which will one day snowball to a great source of passive income!

Portfolio

Below is a table of everything we are invested in so far. The tickers in green are stocks that I added to this week. Every week $25 is automatically deposited into my account. When there is a stock I want to buy I’ll just throw some more funds in the account (if needed) and make the order. Sometimes I may also put that $25 towards a cheap stock that pays monthly dividends so that if I am saving to buy a larger position in something else my cash on hand isn’t sitting idle. You will sometimes see those temporary positions in the portfolio below.

As you see with the portfolio this week, I didn’t just stick with the $25 deposit. I added $550 this week and made some nice buys! I will usually add funds to my account like this so that I can take advantage of good buying opportunities which are usually called out in my monthly stock picks or other timely articles. Stock picks for this month are LMT, CAH, and MO. As of this week I now have positions in all of the stock picks and they are performing fairly well.

Dividends

This week we received one dividend. $1.04 from T. I own two shares and received $2.08.

Dividends received for the week of November 12th: $2.08

Dividends received for November 2021: $2.60

Year-To-Date Dividends: $3.24

Trades

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

On November 8th I bought one share of MKC for $79.50.

On November 9th I added one share of T to my position at $24.61.

On November 10th I bought one share of MO at $45.15 and 5 shares of UWMC at $7.17.

On November 11th I added one share of MO to my position at $45.00.

On November 12th I sold my two shares of AQN for $14.01 per share and put that capital towards buying one share of LMT at $338.77. I also added one share of UWM to my position at $7.04.

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio.

  • Independent Director Stephen Luczo Just Bought 25% More Shares In AT&T Inc.

Independent Director Stephen Luczo bought $2.5 million dollars’ worth of additional T shares for his position. Earlier this year he also $3 million dollars’ worth of shares. This suggests that he has confidence in the company’s future giving me greater confidence in my position! In the last 6 months, insiders have bought about $4.5 million of T shares.

  • Amgen: Lumykras Gets Positive CHMP Opinion

The Committee for Medicinal Products for Human Use of the European Medicines Agency gave a positive opinion recommending conditional marketing authorization of Amgen’s Lumykras for the treatment of advanced non-small-cell lung cancer based on results from Phase 2 clinical trials.

Summary

That is it for the update this week. Let’s kill it next week and keep our eyes open for more good buying opportunities! This has been my most aggressive week yet, let’s keep up the pressure! 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 and take care!

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 11/5/2021 Week in Review

Welcome back to Dividend Dollars! I hope you’re doing well and had a great week of investing. Every week I write an update on the dividend portfolio so that we can track its progress. I will give an overview of the portfolio and its value, the dividends received, trades made, and any news or business announcements made that may be of interest to our positions.

This week the market was hot! DJI set an all time high on November 3rd, SPX set an all time intraday high on November 4th, IXIC set a high on the 4th, and DJT set one on November 2nd. As you can see, all these major equities ended October strong and had a great week following it! The Feds also calmed some nerves this week with a message from the chair that reiterated that inflation is expected to be transitory and that the Fed will be patient with raising rates. While inflation remains high, job numbers are looking good and favorable seasonality looks to continue the market’s positive momentum through to the end of the year.

Overall, it was a great week. Let’s dive into the portfolio and see how we fared.

Portfolio Value

To date, I have invested $1,565 into the account, the total value of all positions plus any cash on hand is $1,596.66. That’s a gain of $31.66 for a total return of 2.02%. This is greater than the reported gain on the account of 0.57% last week!

Love seeing these gains! It tells me that our method of screening for undervalued stocks that pay strong dividends is working. As we stick with the strategy, we will start to rack up more and more dividends which will one day snowball into a great source of passive income!

Portfolio

Below is a table of everything we are invested in so far. The tickers in green are stocks that I added to this week. Every week $25 is automatically deposited into my account. When there is a stock I want to buy I’ll just throw some more funds in the account (if needed) and make the order. Sometimes I may also put that $25 towards a cheap stock that pays monthly dividends so that if I am saving to buy a larger position in something else, my cash on hand isn’t sitting idle. You will sometimes see those temporary positions in the portfolio below. We have no temporary positions for this update.

As you see with the portfolio this week, I didn’t just stick with the $25 deposit. I added $165 this week and made some nice buys! I will usually add funds to my account like this so that I can take advantage of good buying opportunities which are usually called out in my monthly stock picks or other timely articles. Stock picks for this month are LMT, CAH, and MO. I own positions in two of these and am watching MO for good opportunity to buy.

Dividends

This week we received one dividend. $0.52 from T. I own four shares of T, however, I only owned one at the time of the last ex-date (bummer).

Dividends received for the week of October 25th: $0.52

Dividends received for November 2021: $0.52

Year-To-Date Dividends: $1.16

Trades

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

On November 2nd, I bought 1 share of CAH from the November Stock Pick Article at $49.25. I also purchased 1 share of REYN for $27.37 (REYN was a great pick, it had an 8% gain this week and we caught most of that with this add).

On November 3rd, I bought 1 share of INTC for $50.09.

On November 4th I bought 1 share of STAG for $42.51.

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio.

Verizon and AT&T delay 5G rollout amid FAA concerns

The Federal Aviation Administration claims that 5G service could interfere with cockpit safety systems of airplanes. Verizon and AT&T claim that the FAA is just skeptical. Both companies have postponed the launch of their new 5G systems due to the concerns by about a month. Both companies are set to launch in January of 2022. This headline causeed T and VZ to drop by about 3.5% on 11/4 but they have since climbed back to prices pre-headline. Was a great quick dip to buy some if you caught it.

Summary

That is it for the update this week. Let’s kill it next week and keep our eyes open for more good buying opportunities! 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 and take care!

Categories
Dividend Stocks Monthly Picks

November Dividend Stock Picks

Welcome to another monthly dividend stock pick post! Here I will explain my screening process for finding high-quality dividend stocks. I will highlight which stocks are currently in my portfolio as well as my favorite picks this month that I will be looking to add. Please keep in mind, all suggestions or chart interpretations are all my opinion, I always high advise you do your own research and make sure you understand a company before you invest in it.

Now let’s dive into the stock screening criteria and our picks for this month (or scroll down to see the picks if you’re already familiar with the screen)!

Stock Screening Criteria

My stock screening criteria contains a mix of hard stats combined with a few fundamental ratios that I use as rules of thumb in order to identify stocks that reliably pay increasing dividends while also identifying if the stocks are undervalued and poised for growth. My criteria gave me a list of 19 stocks which I narrowed down to 3 based on the attractiveness of the chart and my general comfort with understanding the company.

Market Capitalization

Market Capitalization, also called market cap, shows us how much a company is worth as determined by the stock market. A company’s market cap is equal to the total value of a company’s outstanding shares of stock. For example, if a company has a total of 1 million shares selling for $10 each, that company’s market cap would be 10 million.

I screen for companies with a market cap of at least 10 billion. These are generally called large-cap companies. These companies are large, established, are the most common stocks to pay dividends, and are not generally at risk of going under any time soon. For a dividend portfolio, large cap stocks will be our bread and butter. These companies do not usually bring in huge gains in the short term, but in the long term they generally trend upward with consistent increases in share value and dividend payments, which is the name of game with a dividend portfolio.

I will do some experimenting with smaller companies; however, these monthly stock picks will be the majority of my portfolio and thus I will stick to screening for companies with a market cap of at least 10 billion.

Dividend Yield

The dividend yield is a financial ratio which shows how much a company pays out in dividends each year in relation to its stock price (annual dividends per share/price per share). For example, if a stock pays $5 per year and has a market price of $100, the dividend yield would be 5%.

As a dividend investor, you would think that the higher the yield the better because we want to maximize dividends. While that logic is correct, it is important to understand why certain stocks may have uncommonly high dividend yields. If a company has healthy finances, a high dividend yield may mean that the company is unnecessarily shelling out lots of money in the forms of dividends when it could be utilizing some of those funds instead to better position the company for long term success. Every dollar a company pays out as a dividend is a dollar the company is not using to generate capital gains. We want to see healthy balance of dividends and capital growth and sometimes a high dividend yield indicates the opposite.

A high dividend yield could also mean the stock’s price is declining while the dividend payout remains the same. The stock’s price is the denominator in the equation, so if the stock is trending downwards and the dividend payout remains the same, it will inflate the yield. Take for example a stock that paid a $1 dollar dividend per share last year with a cost of $20 dollars per share. That results in a 5% dividend yield. Imagine this year that same stock still paid $1 but now the stock was worth $10. The dividend yield would now be 10%, which is an increase from last year at the expense of the stock going down 50%.

In summary, a high dividend yield is not always bad, it just calls to our attention that we should review other metrics of the stock to confirm that the company is healthy. With all those things in mind, I screen with a dividend yield of greater than 3%. The average dividend yield of the S&P 500 is 2.22%. This screen keeps us higher than that average while also not being too high that we must worry about unhealthy dividend yields. We still may see some suspiciously high yields in our list, this just means we will dive into those stocks in more depth.

Consecutive Years of Dividend Growth

This criterion is straight forward. Past performance isn’t always a great indicator of future performance, but in the case of dividends I don’t think this mindset is overly risky. If a dividend has increased year over year for a substantial amount of time, it is fair to expect that it will continue to do so. A lot of dividend investors like to look for 10 years of growth, but I prefer to cut that short by a couple of years so that I am able to benefit earlier from the stocks that aspire to hit that mark of 10 years of increases. That is why I screen for stocks that have grown their dividends consecutively for at least 7 years.

P/E Ratio

This criterion I use as a rule of thumb and not a hard stat. P/E ratio is the price-to-earnings ratio and is calculated by market value per share divided by earnings per share. This ratio is commonly used by investors and analysts to determine if a stock is relatively undervalued and overvalued. This is where Warren Buffett found lots of success, he was great at finding companies that had discounted stock prices.

There are many complex methodologies that one can use to determine a stock’s relative value, however I believe the P/E ratio is the quickest and most straightforward way to understand a stock’s relative value. Generally, a high P/E ratio means that a stock is overvalued, and a low ratio means it is undervalued.

Seems simple enough, but there are a few limitations to keep in mind. With earnings per share as the denominator, if a stock has a very small earnings per share or none at all the P/E ratio won’t give you a true understanding of the stock’s relative value. P/E ratios also vary greatly from industry to industry. Therefore, it is helpful to view a stocks P/E ratio year over year to see how it is trending relative to stock price. It is also helpful to understand the P/E ratio of the market or the industry a certain stock is in. This information can give you context clues to determine if a stocks P/E ratio is healthy or not.

The S&P 500 has averaged a P/E ratio of 15.95 since its inception. With the above information in mind, I like to look for P/E ratios that range from 15-30, but sometimes exceptions will be made for stocks that require further research.

D/E Ratio (TTM)

The debt-to-equity ratio compares a company’s total liabilities to its shareholder equity which lets us know how much leverage they are using. It measures how much debt versus equity they are using to finance their operations. In general, a high D/E ratio means higher leverage which means the company is aggressively financing its growth with debt which is risky.

If a lot of debt is used to finance the business, the cost of that debt could outweigh the benefits of the increase in earnings that it produces, however the opposite can also be true in some cases. Cost of debt can vary with market conditions and D/E ratios can vary greatly depending on industry, so it’s not always clear if a company is over leveraged or not.

In general, a high D/E ratio usually means more risk, especially to stocks that pay dividends. If a company is needing to pay down its debts, it has less cash on hand to pay dividends. My general rule of thumb for D/E trailing 12 month average is less than 15. Best case scenario, the D/E is less than 2, but some stocks will be in industries that are capital intensive which generally require more debt, so I will not immediately remove a stock from this list if they have a high D/E, these stocks will just require further research.

November Picks

Above is a table of the stocks, their data that meets my screening criteria, plus some other information that is beneficial for evaluating dividend strength and good times to buy. LMT is highlighted yellow because that is one stock that I already have in the portfolio. Next let’s look at each stock.

Cardinal Health (CAH)

Cardinal Health, Inc. is a healthcare services and products company, which engages in the provision of customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, and physician offices. It also provides medical products and pharmaceuticals and cost-effective solutions that enhance supply chain efficiency. Cardinal Health was founded in 1971 and is headquartered in Dublin, OH. CAH has a good dividend yield, P/E, D/E and history of continued to grow their dividends.

Cardinal’s chart looks promising. CAH has been in a downtrend for the last three months but is looking like it is going to bounce a second time at this $47.80 level which was the start of CAH’s big run at the start of the year. If it bounces off of this level and then breaks through the down trend, we could see prices return to the +$52 area. However, keep in mind, it is always risky to play around with prices near 52-week lows, which is where CAH is. If it breaks down it will break down hard. So watch for confirmation of bounce.

Altria (MO)

Altria Group, Inc. operates as a holding company, which engages in the manufacture and sale of cigarettes in the United States. They have smokeable and smokeless product segments. Between the two segments, they produce just about any tobacco product you can think of. They also own a wine segment. I personally have qualms with supporting the tobacco market, however, I don’t have any qualms with profiting off of it. The tobacco industry is seeing the global number of users has been rising and expect it to continue. over the next decade. MO has a good dividend yield, P/E, and D/E ratios. Their payout ratio is fairly large; however tobacco products can be lumped into the consumer staples category and the payout ratio for that industry tends to run high. It is a stable and consistent industry.

MO’s chart took a hit last week with their recent earnings report, going down nearly 10%. Great opportunity for us to grab some cheap shares! I do see that the chart could go back to previous resistance turned support levels around the $42 area. With reactions to earnings being so volatile, it would be good to wait for more downside before entering. If it bounces early, great, I’ll buy! If it keeps going down, I’ll keep watching for a bounce to get in at.

Lockheed Martin (LMT)

Lockheed Martin Corp., founded in 1961 and headquartered in Bethesda, MD, operates as a global security and aerospace company, which engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services. Their defense business has a great backlog of guaranteed work and their expansion into the space realm is very enticing. I think LMT has a great long term future.

Like Altria, they had an earnings report last week that knocked the stock down from $377 all the way down to $325. In last week’s portfolio update, I wrote a paragraph reviewing the report, read that article here. Unlike Altria, however, LMT has already bounced and established a bottom on this knife. I caught a share last week at $327. I’ll keep watching how this plays out by chance I want to add some more. If this bounce proves to be significant, I see potential upside towards the $332 area. If not and this support level at $330 breaks, then there is potential downside to the 52 week low at $320. I feel good about the bounce, but if you don’t, it is always good to wait for a better confirmation as selling strength is still evident in these candles.

Conclusion

In this article, I screened for stocks that look like they will provide regular growing dividends while also having potential for capital gains. My screening criteria found 22 stocks which fit the mold, I then narrowed that list down to 3 based off of the attractiveness of the stock’s chart and my comfort with understanding the company.

I am long on all the stocks on this list. Of the picks, I already have a position in LMT. I will watch this list play out through the month and will either open new positions or add to current positions at key levels if my capital allows.

I do also take into account what months these stocks pay their dividends and I try to balance my portfolio so that I am earning roughly the same amount of dividends every month. This goal may influence my timing and decisioning when it comes to purchasing some of the stocks on this list.

All 3 stocks are suitable for further research and my article is not to be taken as financial advice. Thank you for reading and feel free to leave any replies or questions you may have on here or on my socials.

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Dividend Stocks Monthly Picks Reviewed

October 2021 – Stock Pick Review

Last month we screened for strong dividend paying stocks that are poised for growth and narrowed it down to 6 picks. I added to positions last month in all six. Here we will review how those stocks did in the month of October and how good our screener and our charting analysis was. Click here to read that article.

The stock screener gave us a list of 15 stocks which I narrowed down to 6 based off of the attractiveness of the chart and my general comfort with understanding the company. We picked AT&T (T), Amgen (AMGN), 3M (MMM), Walgreens Boots Alliance (WBA), Realty Income (O), and Coca-Cola Co (KO) for the month of October 2021.

From the date the article was published through to the end of October 2021, the picks averaged an increase of 1.08%. Realty Income (O) had the greatest increase of 6.58% and AT&T (T) had the greatest decrease of 5.64%. (Also, keep in mind I had not released my stock picks for the month until the 9th of the month, so I’m hoping with doing this for a full month now, the picks for November will have more time to play out.) Let’s review each stock and see how well our approach went.

AT&T (T)

AT&T was the big loser this month. I am down 4.25% on it. T was coming to a long-term support area around $26.75. It broke that support this month and is currently priced at $25.26. The prediction didn’t play out as planned, however if you waited for a bounce as recommended, you’d still be set up and ready to pull trigger on cheaper shares. I see another support are at $24, will watch closely to see if it holds or breaks yet again.

Amgen (AMGN)

Amgen was a small loss for me at 0.34% but could have been a 4% winner for the month if you caught the dip down to $201. AMGN was sitting at a support level for the third time since the pandemic. It dipped to just above $200 and bounced a little bit where it is still sitting at that support with a current price of $206.97. So not much has changed with the setup of this position except for the fact that it was slightly cheaper for a little bit this month. If it continues to break lower it has two support zones at just under $200 and ~$185.

3M (MMM)

3M was a good play, but those earnings messed it up a little. I am up 0.83% on it. MMM has been in a down trend for the past 5 months. At the time of the post, it had a strong week which made it look like the downtrend was losing steam. MMM did go up a little bit, all the way to $184 before coming back down after an earnings report. Gaps up to the $185 area and then the $195 area are still possible, just waiting for confirmation if this downtrend is finished yet or not.

Walgreens Boots Alliance (WBA)

Walgreens was a fun one this week. I ended down 2% on it but at one point it was up 10%. WBA had been in a short term down trend for about a month. Price had pushed the upper limit of the downtrend and also was sitting on a strong support line, it looked primed for a breakout. It broke that trend with strong price movement up after a news headline on 10/14. The news, though it was good news, messed up the price action. I would have preferred the stock to make the break above naturally, but the news forced the play it didn’t have steam. It nearly hit $52 which was the upside level I had called out, but since then it has come back to its price before the breakout.

Realty Income (O)

Realty Income was the star this month with a 6.5% gain. O has stayed within a wide upward trending channel for the last year. Last month shares climbed to the top of the channel and bounced back down slightly in the last couple of days. A breakout would have been awesome, but a rejection has its benefits too. O remains strong and if it comes back down to the bottom of the channel it could be great time to pick up some more.

Coca-Cola (KO)

Coca-Cola did great with a gain of 4.2% since the post. KO broke through the resistance area around $54 and then proceeded to hit the upside that I had called out at +$56. Would love to see this strength continue to push YTD highs above $57.

That’s it for the review! I hope you enjoyed the read and the picks from last month. We are ready to do it again for November. Let’s keep catching us some good dividend growth stocks and build out our portfolio. Each stock bought is one step closer to reliable passive income!

Thank you for reading, and take care.