Dividend Portfolio Update for December 2019

That’s a wrap for the year. What an amazing run. One of the best years I’ve seen in quite a while.

I began this portfolio specifically with the purpose of growing my post FIRE dividend income. A portfolio that must last the test of time. A perpetual income generating portfolio that must far outlive my life over 40 years.

With no job, retired, armed with my limited sources of passive income, I challenge myself to grow my dividends.

Times have changed since a decade ago. The proliferation and organization of information on the web have changed the landscape for investors. Investing has become much less intimidating thanks to great resources online.

As an amateur dividend investor, I am humbled by the FIRE community as I have learned so much. If you haven’t joined the community, I urge you to get on Instagram and follow some of my followers on my list. There are great people sharing great contents to help you reach a higher level of financial security.

My portfolio is a mixture of passive and active holdings in pursuit of higher returns. Investing is a sport to me, so I remain opportunistic and keep my finger in the markets to measure its temperature.

All dividends generated from the portfolio are reinvested. However, they are not automatically reinvested. I let them accumulate and deploy the cash where I deem undervalued.

Reading truly does open more doors. The more you seek, the more doors you find.

Now, let’s get to those dividends!

 

 

Highlights and Recap

Boeing Company (Ticker: BA)

• CEO, Dennis Muilenburg has been fired and will be replaced by Chairman, David Calhoun. I feel like this is a political move by the board to show the company is taking accountability seriously.
• Production of 747 MAX will be temporarily stopped in January of 2020. Probably due to the lack of space to store the planes with the backlog of about 400 planes. Boeing has been producing about 40 planes per month since the grounding of the MAX back in March of 2019.
• Boeing Starliner fails to reach correct orbit due to an error from the automated timer. It seems like it’s a simple software error that would have been easily prevented with a crew on board. Looks like the chain of events will be a wakeup call for the company and board which may provide a window of opportunity to accumulate shares at depressed prices.

AT&T (Ticker: T)

• COO, John Stankey states the company has begun share repurchases in Q4 of this year with plans for an accelerated share buyback program for next year. The company expects to repurchase 100 million shares worth about $4B in Q1 of 2020.

Raytheon (Ticker: RTN)

• Company scores $3B in new contracts from the US Department of Defense as well as a $768M Air Force missile contract.

 

Buy Orders

I purchased 1 Share of Boeing Company (Ticker: BA) at $350.80, which will add an additional $8.22 to my total annual dividend income.

I purchased 17 Shares of Energy Transfer LP (Ticker: ET) at $11.40, which will add an additional $20.74 to my total annual dividend income.

I purchased 2 Shares of 3M Company (Ticker: JNJ) at $163.88, which will add an additional $11.52 to my total annual dividend income.

I purchased 10 Shares of Corning Incorporated (Ticker: GLW) at $28.15, which will add an additional $8.00 to my total annual dividend income.

I purchased 23 Shares of Invesco S&P 500 High Div ETF (Ticker: SPHD) at $43.18, which will add an additional $40.99 to my total annual dividend income.

I purchased 1 Share of Boeing Company (Ticker: BA) at $329.92, which will add an additional $8.22 to my total annual dividend income.

The addition of dividends added to the year from this month’s purchase comes to $97.69

 

Pass Go and Collect Dividends!

Wells Fargo $ Company (Ticker: WFC) paid $5.61

United Parcel Service, Inc. (Ticker: UPS) paid $26.88

Boeing Company (Ticker: BA) paid $24.66

Johnson $ Johnson (Ticker: JNJ) paid $24.70

Chevron Corporation (Ticker: CVX) paid $40.46

3M Company (Ticker: MMM) paid $69.12

Corning Incorporated (Ticker: GLW) paid $3.60

Qualcomm Inc (Ticker: QCOM) paid $87.42

Waste Management Inc (Ticker: WM) paid $2.05

Fidelity High Dividend ETF (Ticker: FDVV) paid $170.93

Bank of America Corporation (Ticker: BAC) paid $3.24

Invesco S&P 500 High Div (Ticker: SPHD) paid $172.36

This month the LBF dividend portfolio paid out dividends in total of $631.03 from 12 holdings.

 

Dividend Increases & Decreases

Bristol-Myers Squibb Company (Ticker: BMY) raised its dividend by 9.8%, which added an additional $1.76 to the total annual dividends.

AT&T (Ticker: T) raised its dividend by 2.0%, which added an additional $14.92 to the total annual dividends.

Waste Management Inc (Ticker: WM) raised its dividend by 6.3%, which added an additional $0.52 to the total annual dividends.

Fidelity High Dividend ETF (Ticker: FDVV) TTM yield increased by 0.3%, which added an additional annual dividend income of $2.72 to the portfolio.

Invesco S&P 500 High Dividend (Ticker: SPHD) TTM yield has increased by 0.4%, which added an additional annual dividend income of $8.50 to the portfolio.

The dividends added to the year from companies is $28.42 for this month.

 

 

Portfolio Snapshot

• The dividend portfolio consists of 24 holdings.
• The portfolio closed the month at $159,266.77 which is 5% higher than the previous month total of $151,698.21.
• Total dividends paid this month amounts to $631.03 which is a 63.9% increase YOY.
• As of this month, the portfolio is expected to generate $6,361.69 in annual dividends. That is a 2.4% increase from the prior month total of $6,214.46.
• Total dividends paid YTD is $5,840.91.

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Conclusion

My favorite time of year is the end of the year. It’s when I really take a step back and reflect on all the decisions I have made. Learn from them and make adjustments if needed.

This portfolio was first started in July of 2018 which generated $1,370.04 in total dividends by year end. In 2019, the portfolio has produced $5,840.91 in total dividends. That is a 326.3% increase YOY. A great start to a journey that will last a lifetime.

My target of $10,000 in dividend income per year is slightly above the half way mark and climbing! Documentation of this journey has been a great motivator and recommend others to do the same.

How amazing would it be to have your dividends outgrow all living expenses one day.

A new decade is here and I hope all my readers great prosperity! I wish these small updates have helped shed some light into dividend investing.

Thanks for reading. 2020 here we come! 🎉