Dividend Portfolio Update for January 2020

It looks like we will start the year off with corona virus being the catalyst that will give investors a reason to take profits.

I can’t discount the fact that these breakout’s will always result to nothing burgers. However, history show equity prices are in most part not determined by outbreaks. They are in most part determined by corporate earnings and economic growth.

However, with the popularity of social media and the speed at which information spreads today bring sharp market movements. Headline risks may result to real negative outcomes. Even more so today than a decade ago. Times have changed watching how fast masks can sell out globally in a matter of hours. I guess fear inevitably will always be a factor impacting markets.

But you know what they say, where there is fear, there is opportunity.

The advancements in information technology has brought fundamental changes on our ability to mobilize and respond to such crisis. A win for humanity.

The only thing worrisome about the virus seem to be the risks associated with its ability to mutate into something much more uncontrollable.

Recent data suggests, the virus is more likely to kill older people with weaker immune systems and has a lower death rate than SARS and MERS.

We also have a much better understanding of this class of virus today. Vaccine’s from Gilead are already in the pipeline approved for human testing.

I think the fear is overblown. We may have some windows of opportunity to buy on the fear.

Anyways, how about those dividends!

 

Highlights and Recap

Boeing Company (Ticker: BA)

• New CEO, Dave Calhoun takes reign of the company and announced he estimates the 737 MAX un-grounding to take place mid 2020.
• Company secures 12B in financing to weather 737 MAX grounding.
• Former CEO Dennis Muilenburg was denied the 39M severance.

AT&T (Ticker: T)

• AT&T lost 945k DirectTV and U-Verse subscribers in the 4^th
• AT&T TV Now lost 219k subscribers in the quarter.
• In light of the legacy businesses hemorrhaging subscribers as anticipated, revenues for 2019 came in at 181.2B compared to 183.7B in 2018. Down 1% due to foregone content licensing. Free cash flow is up 29B from 22.4B year prior. That’s an increase of 30%. Adjusted EPS is up 1.4% YOY. Net debt ended at 151B by year end down 29B since Time Warner acquisition closed.
• Dividend payout ratio is near 50% providing options going forward.

Raytheon (Ticker: RTN)

• Company expects to complete merger with UTC in Q2.
• Backlog up 48.8B end of Q4, which amounts to a 15% YOY increase.

 

Buy Orders

I purchased 1 Share of Boeing Company (Ticker: BA) at $334.53, which will add an additional $8.22 to my total annual dividend income.

I purchased 11 Shares of Invesco S&P 500 High Div ETF (Ticker: SPHD) at $43.63, which will add an additional $19.69 to my total annual dividend income.

I purchased 2 Shares of Boeing Company (Ticker: BA) at $342.77, which will add an additional $16.44 to my total annual dividend income.

I purchased 2 Shares of Wells Fargo & Company (Ticker: WFC) at $47.32, which will add an additional $4.08 to my total annual dividend income.

Total dividends added to the year from this month’s purchase amounts to $48.43.

 

Sell Orders

There have been no sales for this month.

 

Pass Go and Collect Dividends!

Iron Mountain Inc. (Ticker: IRM) paid $19.79

Amphenol Corporation (Ticker: APH) paid $3.00

Altria Group Inc. (Ticker: MO) paid $33.60

Raytheon Company (Ticker: RTN) paid $31.10

Invesco S&P 500 High Div (Ticker: SPHD) paid $175.01

JP Morgan Chase & Co (Ticker: JPM) paid $34.20

Total dividends paid out this month comes to $296.70.

 

Dividend Increases & Decreases

Enterprise Products Partners (Ticker: EPD) raised its dividend by 0.6%, which added an additional $1.71 to the total annual dividends.

Chevron Corporation (Ticker: CVX) raised its dividend by 8.4%, which added an additional $13.60 to the total annual dividends.

Invesco S&P 500 High Dividend (Ticker: SPHD) TTM yield has increased by 1.2%, which added an additional annual dividend income of $23.25 to the portfolio.

The Blackstone Group Inc. (Ticker: BX) raised its dividend by 24.5%, which added an additional $30.24 to the total annual dividends.

The total dividends added by companies comes to $68.80 for this month.

 

Portfolio Snapshot

“Click photo to enlarge”

• The dividend portfolio consists of 24 holdings.
• The portfolio closed the month at $154,652.27 which is -2.9% than the previous month total of $159,266.77.
• Total dividends paid this month amounts to $296.70 which is a -22.1% decrease Y/Y.
• Additional dividends added from this month’s purchases and company provided increases totals $117.23.
• The portfolio is expected to generate $6,448.68 in annual dividends. That is a 1.4% increase from the prior month total of $6,361.69.

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Conclusion

Chevron gave investors a 8.4% raise! Blackstone Group also decided to reward investors with a whopping 24.5% increase in dividends! The joy of dividend investing comes from these increases. I wonder if this is how it feels to get a raise from a traditional job.🤨

Words can’t explain how grateful I feel. The fact that a high school drop out like myself can still get a raise for doing nothing.

I began my dividend portfolio a little over a year ago with projected annual dividends in the low $2,000’s to $6,448.68 as of today. The dividends alone from this portfolio now cover my total property tax for my home!

Another way to look at it is, it costed me $143,903.79 to generate enough dividends to cover my annual property taxes.

It feels great knowing your money is working hard for you all around the world. It feels even better knowing your money is being productive rather than sitting around rotting.

If I had to start all over, without a doubt my choice would be the same, to become a full time investor. This life of learning that comes with managing capital is exciting and fun for me. I think I understand what Warren Buffett meant when he says he tap dances to work every day.

Lately, I have been reading a lot of debates on what the best method for dividend investing may be. My conclusion? There is no single best way to approach dividend investing. Because it’s highly dependent on one’s risk tolerance and life circumstances.

Stay in the game long enough and eventually you will figure out which method fits you best over time.

Dip your toe in the markets even if you don’t know what your doing. It takes time to get comfortable inside.

In time, what may seem small will surprise you how large it has become overtime. The small victories will carry you further than you think. Thanks for reading.