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!
To date, I have invested $13,370 into the account the total value of all positions plus any cash on hand is $14,048.98. That’s a total gain of 5.08%. The account is up $302.22 for the week which is a 2.20% 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 -7.16% which puts us 12.24% higher than the market! I love tracking my portfolio against a benchmark like the S&P. The above chart comes from Sharesight which makes portfolio and dividend management a breeze!
We added $120 in cash to the account this week, trades made will be broken out below.
Above is a dashboard of the portfolio that tracks annual dividend income, yield, beta, dividend growth, and more.
Below is a table of everything we are invested in so far. There you can see my number of shares, shares bought through dividend reinvestments, average cost, gains, and more. The tickers in green are positions that I bought shares in this week, the blue ones are positions that I reinvested dividends into, the yellow ones are positions that announced a dividend increase this week, and the red are positions that I trimmed. Our PADI this week decreased from $509 to $518.
This week I received three dividends. $0.91 from $SPY, $3.98 from $XYLG, and $27.79 from $T!
In my portfolio, all positions have dividend reinvestment enabled. I don’t hold onto the dividend, I don’t try to time the reinvestment, I just let my broker do it automatically.
Dividends received for 2023: $55.72
Portfolio’s Lifetime Dividends: $466.12
This week marks the end of our second January of dividend investing. Our dividend income this January was 26% greater than the income from January 2022! Great progress and looks like February is going beat that by a lot!
This was quite the volatile week with the FOMC meeting raising rates another 25 bps and the historically strong labor data. But it was volatile in the up direction, not the down, counter to my expectations!
The market rallied very strongly this week. I hate buying stocks when they’re up, so you’ll see that most of my activity this week was buying down into my worst performing stocks like $INTC and $AY. We sold a very conservative covered call on $T, reinvested dividends, and kicked off the weekly ETF buys on Friday.
Pretty standard week, with the exception of the new position we added on Thursday! All week I have been working on an analysis of the soft lines industry and finally posted that article last night. You can read that here. The thesis is that with normalizing inventory levels, falling shipping and material costs, and an improving macro backdrop, soft line retailers (specifically luxury good retailers) are in a great position to realize large margin recoveries and growing sales. For that reason, I started a position in Steven Madden $SHOO. However, the article does have a number of other picks for the industry as well, so please go read it and assess your options if you agree with the analysis!
Below is a breakdown of the trades I made this week:
- January 30th, 2023
- Intel ($INTC) – added 2 shares at $27.86
- January 31st, 2023
- Atlantica Sustainable Infrastructures ($AY) – added 1 share at $26.85
- S&P 500 ($SPY) – dividend reinvested
- S&P 500 Covered Call & Growth ETF ($XYLG) – dividend reinvested
- February 1st, 2023
- AT&T ($T) – sold covered call $21.5 2/10 for $2 premium
- AT&T ($T) – dividend reinvested
- February 2nd, 2023
- Air Product Chemicals ($APD) – added 0.1 shares at $293.40
- Steven Madden ($SHOO) – added 1 share at $37.83
- February 3rd, 2023
- SPDR S&P 500 ETF ($SPY) – added $10 at $413.79 per share (weekly buy)
- Global X S&P 500 Covered Call & Growth ETF ($XYLG) – added $10 at $26.69 per share (weekly buy)
- Schwab US Dividend Equity ETF ($SCHD) – added $10 at $77.38 per share (weekly buy)
Next week I will continue to add $10 into each ETF ($SPY, $XYLG, and $SCHD) and will continue to hold onto some cash if the market gets lower. I have started to slowly deploy that cash in case a bottom has already been hit, but only time will tell. I really want to deploy this cash position into $CMCSA, and $INTC to build 100 share positions in them for covered call activities. I will also be watching $T for opportunities to sell covered calls.
That is it for the update this week. The market recap and outlook for this wild week will be posted soon, so make sure to have the site bookmarked or subscribe via email on the homepage!
Let me know what you think of the progress so far, share with me your progress and questions, interact with me on Twitter and CommonStock and other socials using the links below!
Thank you for reading! See you next week and stay safe!