Dividend Portfolio Update for November 2019

What an amazing year for the markets. Stocks are hitting the highs thanks to the strong consumer. Early data suggest holiday shopping numbers are coming in strong.

As of this writing the S&P is up 25.3% YTD with one more month remaining in the year. Decembers in historical context are a great month for stocks. The long-term average return for the S&P for the month of December dating back to 1931 is about +1.6%. Making it one of the best month for markets in the year.

The strong consumer continues to carry weight even with business investments declining the last two quarters. A resolution to the trade spat between China and US would be great to help business confidence. However, I don’t have my hopes high.

Strong holiday shopping could potentially set us up for positive 1^st quarter of next year.

With the US signing the pro-democracy Hong Kong bill, I’m curious to know how much of that will play into making the deal more complicated.

It’s hard to see any major risks ahead for markets. The US is scheduled to impose another 15% increase in tariffs on China on December 15. Which amounts to about 160 billion of imports that cover a wide range of consumer goods.

Many economists estimate the increased tariffs will not lead to a recession. However, a scenario where a tariff hike in combination with someone like Elizabeth Warren becoming president could potentially push us into uncertain territory.

There will always be some short term political risks to markets. Do I care? Not too much because I am a long-term investor with my sights out far. Real far!

Remember, storms come and go. You can take advantage of storms. Sometimes you can catch some of that rainwater and use it to water your trees. 😊

All of this is interesting but let’s get to those dividends!

 

 

Highlights and Recap

Bristol-Myers (Ticker: BMY)

• Company’s acquisition of Celgene for 74 billion has been finalized.

Qualcomm (Ticker: QCOM)

• Company forecasts faster than expected 5G handset roll-out with shipments to be about: 200M in 2000, 450M in 2021, and 750M in 2022.

Johnson & Johnson (Ticker: JNJ)

• Oklahoma judge reduces companies 572M initial settlement down to 465M due to miscalculated cost of treating babies addicted to opioids.

 

Buy Orders

I purchased 3 Shares of Johnson & Johnson (Ticker: JNJ) at $130.93, which will add an additional $11.40 to my total annual dividend income.

I purchased 4 Shares of Waste Management Inc. (Ticker: WM) at $108.68, which will add an additional $8.20 to my total annual dividend income.

I purchased 1 Shares of Boeing Company (Ticker: BA) at $359.18, which will add an additional $8.22 to my total annual dividend income.

I purchased 17 Shares of Energy Transfer LP (Ticker: ET) at $11.61, which will add an additional $20.74 to my total annual dividend income.

I purchased 12 Shares of Invesco S&P 500 High Div ETF (Ticker: SPHD) at $43.20, which will add an additional $21.19 to my total annual dividend income.

The addition of dividends added to the year from this month’s purchase comes to $69.75

 

Sell Orders

There have been no sales for this month.

 

Pass Go and Collect Dividends!

Bristol Myers Squibb Company (Ticker: BMY) paid $4.51

AT&T Inc. (Ticker: T) paid $190.23

Raytheon Company (Ticker: RTN) paid $31.10

Enterprise Products Partners (Ticker: EPD) paid $75.67

The Blackstone Group Inc. (Ticker: BX) paid $30.87

AbbVie Inc. (Ticker: ABBV) paid $23.54

Energy Transfer LP (Ticker: ET) paid $105.23

Caterpillar Inc (Ticker: CAT) paid $9.27

Invesco S&P High Dividend (Ticker: SPHD) paid $168.80

This month the LBF dividend portfolio paid out dividends in total of $639.22 from 9 holdings.

 

Dividend Increases & Decreases

AbbVie Inc (Ticker: ABBV) raised its dividend by 10.3%, which added an additional $9.68 to the total annual dividends.

Invesco S&P 500 High Dividend (Ticker: SPHD) TTM yield has increased by 1.0%, which added an additional $18.36 to the total annual dividends.

The total dividend increases provided from companies comes to $28.04 for this month.

 

 

Portfolio Snapshot

“Click photo to enlarge”

• The dividend portfolio now consists of 24 holdings.
• The portfolio closed the month at $151,698.21 which is 3.3% higher than the previous month total of $146,878.35.
• Total dividends paid this month amounts to $639.22 which is a 56.9% increase YOY.
• As of this month, the portfolio is expected to generate $6,214.46 in annual dividends. That is a 1.6% increase from the prior month total of $6,115.72.
• Total dividends paid YTD is $5,209.88.
• Total dividends added from stock purchases YTD is $983.83.
• Total dividends added by companies YTD is $199.86.

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Conclusion

In February of this year, my projected annual dividend was $5,245.12. Today, the projected annual dividend is $969.34 higher at $6,214.46. The wonders of compounding at work.

It may seem slow but don’t be discouraged. Time is the single most important ingredient to building wealth. Focus on the progress in percentage and not on the dollar amount.

A 10% return on a $1,000 (portfolio A) should bring the same amount of joy as a 10% return on a portfolio B of a $100,000. I feel just the same today with this portfolio as I did when my portfolio was only few thousand dollars.

This is obvious but I do have friends I’ve noticed tend to emphasize more the dollar amount. It’s important to view your gains in percentage. Just a tip to my friends just starting to get their feet wet investing.

A Christmas sale like the one we had last year would be a nice treat but looks unlikely. Will Santa bring investors a gift this year? We shall see. Thanks for reading!