What a month of tariffs. Trump is really flexing US economic strength lately with China and now Mexico. Looks like US consumers will have to deal with higher prices.

Tariffs placed on China has sparked an urgency for businesses to re-evaluate and diversify their supply chains to mitigate risks. There are many opinions and research on how long it will take for companies to work this out. Looks like it can take anywhere between 1 to 3 years.

I have no problem with waiting out the reshuffling of global supply chains. What better way to wait this out than investing in companies who pay you to wait.

The likely countries to benefit from this trade war taking place are probably India, Vietnam, Thailand and Malaysia. Any country with high trade deficit with the US is likely not safe from threat of tariffs as long as Trump is in office.

In times of uncertainty is where more likely you find opportunity. When you’re focused on the long-term investment objectives, it’s easier to realize that market volatility presents better potential opportunities. Those who seek them out and have patience likely reap the rewards.

It’s also when investors learn most. Every correction you weather, a little wiser and experienced you come out on the other end. Stay invested and allow the markets to educate you.

It’s important to understand that missing just a few days’ worth of rallies in the year drastically creates under performance in portfolios relative to the S&P.

With that in mind. Let us proceed.

 

Quick Recap

3M (Ticker: MMM)  The stock is down 27% from its recent highs as of this writing. Shares are trading at a 17 P/E with a starting yield of 3.6%. That last time the P/E was this low was back around 2013. Few analysts are raising concerns about forward revenue projections as well as the company’s ability to service their dividend obligations. The concerns do not have me worried at all. A starting yield at this level to own this company? Sign me up!

Qualcomm (Ticker: QCOM)  Qualcomm’s stock took a hit after a federal court ruling sited Qualcomm has violated antitrust laws by charging high royalties for their patents that results in anti-competitive practices. The judge ordered the company to renegotiate all their agreements with customers with fair and reasonable prices. This puts the recent agreement with Apple in question. Qualcomm is in the process of overturning and challenging the ruling. At this point, I have accepted the fact that the risks to their licensing model may be forced to change. I remain optimistic about the company’s ability to adapt and innovate going forward.

 

Buy Orders

I purchased 7 Shares of AbbVie Inc. (Ticker: ABBV) at $78.90, which will add an additional $29.96 in dividend income per year.

I purchased 5 Shares of 3M Company (Ticker: MMM) at $183.70, which will add an additional $28.80 in dividend income per year.

I purchased 5 Shares of United Parcel Service. Inc. (Ticker: UPS) at $99.97, which will add an additional $19.20 in dividend income per year.

I purchased 16 Shares of Iron Mountain Inc. (Ticker: IRM) at $31.41, which will add an additional $39.04 in dividend income per year.

The total addition of dividends to the year from this month’s purchase is $117.

 

Sell Orders

There have been no sales for this month.

 

Dividends

AT&T Inc (Ticker: T)  $190.23

The Blackstone Group L.P. (Ticker: BX)  $23.31

Raytheon Company (Ticker: RTN)  $31.10

Enterprise Products Partners (Ticker: EPD)  $74.81

Energy Transfer LP (Ticker: ET)  $105.23

Invesco S&P 500 High Div (Ticker: SPHD)  $152.76

This month the LBF portfolio paid out dividends in total of $577.44 from 6 holdings.

 

Dividend Increases

There have been no dividend increases for this month.

 

Portfolio Summary

“Click photo to enlarge”

The LBF portfolio closed the month at $120,669.92 which is -6.1% lower than the previous month total of $128,567.14. The portfolio now consists of 19 positions which have increased by 2 since the month prior.

As of this month, the portfolio is expected to generate $5,437.82 in annual dividends. That is a 1.2% increase from the prior month which was at $5,369.03. The average current yield for the portfolio is at 4.19% adjusted in proportion to weight.

A great tool to help keep track of all your investments that I use and recommend is Personal Capital.

 

Conclusion

Valuations are coming down for some great companies and I find myself getting more excited about stocks. I am a sucker for a good deal! The value of our portfolios may be taking a hit but with the long-term goals in mind, what better opportunity then the chance to buy great companies at lower starting yields!

The important thing to remember during times of uncertainty is to keep your focus on your long-term goals. Most storms that may arise in financial markets often are short term (1-2 years) that get resolved one way or the other. If things don’t get resolved, businesses adapt to the changing environments.

Are you excited as I am at the chance to buy stocks at lower prices? If you are younger and have the advantages of time on your side, you should be. Thank you for reading.