This month was filled with lessons that will pay dividends for our entire life. First and foremost, my heart goes out to all those affected by the coronavirus. I hope everyone stays home and stays safe so we can all get through this as quickly as possible.

The best thing we can do right now is keep each other safe and look out for each other.

I hope businesses get some much needed relief from the 2T bill recently passed this month.

Perhaps for those who have the luxury of spending some of the relief check to help the small business is the single best way we can all contribute to the recovery process from this crisis.

I believe this global crisis will leave a scar in the history of humanity that will forever change the way we think about pandemics in modern times. I’m optimistic humanity will rise from this event much stronger and better prepared for future outbreaks.

In fact, I feel there is now a high probability in the next 10 years, humanity will benefit from many breakthroughs occurring in the biotech industry.

This all feels so much like living through a movie.

I am humbled to learn how fragile our economic system really is. How unprepared we humans are to pandemics.

In light of all this chaos, I felt quite calm during the whole ordeal. Having no mortgages payments and no leverage really helps you sleep well at night even in such times.

Stocks literally fell of the steepest cliff I ever seen. The bounce was the fastest and largest I’ve ever experienced. Yet still, it was nowhere as scary as the 2008 financial crisis. This crisis is more like a natural disaster. Not one of human made financial crisis that must face the inevitable and painful process of deflation of a bubble.

However, this crisis if prolonged can definitely cause massive economic destruction more permanent in nature. The risks are all still very real and on the table.

I’m not a natural optimist. I’m more of a realist. From all the research I have been doing, I’m leaning more on the positive outcome than the pessimistic ones out there. I hope I’m right!

Regardless of my short-term outlook, it will not affect my game plan and investment goals.

I went into this crisis with a much better mindset and knowledge than back in 2008.

The more you understand the markets, the less you fear it.

I stuck to my game plan and bought stocks as normal as I keep my focus far out into the future.

Here is my update for the month.

 

Highlights and Recap

Altria (Ticker: MO)

• CEO, Howard Willard will take a temporary leave due to being confirmed to have contracted the coronavirus.

AT&T (Ticker: T)

• Company will cancel accelerated share buyback program for Q2 in the amount of $4B due to coronavirus pandemic uncertainties.

Boeing Company (Ticker: BA)

• Boeing reports 46 jet orders have been cancelled. 11 of them being the 747MAX planes. However, there were 18 new orders for planes which results to a net loss of 28 orders.
• Company has halted hiring and expect to draw down the entire $13.8B bank loan.

Caterpillar Inc (Ticker: CAT)

• Company is reporting broad declines in retail machine sales across the world. Worldwide sales slumped 7% in January of this year with February slumping another 11%.

Johnson & Johnson (Ticker: JNJ)

• Janssen Pharmaceutical a unit of J&J, is collaborating with Boston’s Beth Israel Deaconess Medical Center to develop vaccine for COVID-19. The vaccine will be based on Janssen’s AdVac and PER.C9 technologies.
• Company joins hand with BARDA (arm of US Department of Health and Services), to invest $1B in R&D for COVID-19 vaccine. Phase 1 human clinical trial to begin by September 2020.

Qualcomm (Ticker: QCOM)

• CEO says demand in China has returned to normal and mentions the dividend is something the company can handle even in the current environment. He also mentioned that the company will remain opportunistic about buybacks.

Raytheon (Ticker: RTN)

• Company announced all regulatory approvals for the merger with UTX has been completed. Merger is expected to close once the separation of Otis and Carrier from UTX is completed on April 3, 2020.
• Each RTN common stocks will be converted to 2.3348 Raytheon Technologies shares. UTX shareholders will receive 0.5 of a share of Otis and 1 Share of Carrier for each UTX common shares.
• New ticker symbol for the combined company will be Raytheon Technologies (Ticker: RTX).

United Parcel Service (Ticker: UPS)

• Company replaces CEO David Abney with new CEO Carol Tome who was the former CFO of Home Depot.

Walt Disney Company (Ticker: DIS)

• Disney+ set to launch in India by April 3 in partnership with India’s streaming company Hotstar.

 

Buy Orders

Total dividends added this month amounts to $535.77.

 

Sell Orders

There have been no sales for this month.

 

Pass Go and Collect Dividends!

Wells Fargo Company (Ticker: WFC) paid $6.63

United Parcel Service, Inc. (Ticker: UPS) paid $28.28

Boeing Company (Ticker: BA) paid $39.05

Johnson & Johnson (Ticker: JNJ) paid $24.70

Chevron Corporation (Ticker: CVX) paid $43.86

3M Company (Ticker: MMM) paid $76.44

Waste Management Inc (Ticker: WM) paid $4.91

Qualcomm Inc (Ticker: QCOM) paid $87.42

Fidelity High Dividend ETF (Ticker: FDVV) paid $235.69

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

Invesco S&P 500 High Div (Ticker: SPHD) paid $180.84

Corning Inc (Ticker: GLW) paid $8.58

Total dividends paid out this month amounts to $739.64.

 

Dividend Increases & Decreases

Marriott International (Ticker: MAR) has suspended its dividend.

Boeing Company (Ticker: BA) has suspended its dividend. (-$263.04)

Qualcomm Inc (Ticker: QCOM) raised its dividend by 4.8%. (+$16.92)

Fidelity High Dividend ETF (Ticker: FDVV) TTM yield decreased by 4.3%. (-$41.42)

Invesco S&P 500 High Dividend (Ticker: SPHD) TTM yield has increased by 0.7%. (+$15.69)

Net changes to the annual dividends from this month comes to -$271.85. 🤦‍♂️

 

Portfolio Snapshot

“Click photo to enlarge”

• The dividend portfolio consists of 30 holdings. (+6 from the prior month)
• YTD Portfolio Value: -19.2%
• In light of the dividend cuts, portfolio added $354.17 in net dividends for the month.

 

Conclusion

If this was a hurricane, I feel we have not passed the eye of the storm.

I feel like I have been picking/mining stocks all month long during this coronavirus crisis.

I tried my best to spread out my buy orders. The harder the fall the more I bought. I also did some FOMO buying as well. 🙄🤘

Trying to time the exact bottom means nothing to me. 5 to 10 years from today, it won’t matter much that I purchased 15% cheaper or higher from where we are today.

The most important thing is remaining disciplined and purchase stocks I have researched, understand and believe in for the long term.

It’s tempting to buy all kinds of names right now. Lots of stocks have fallen and I feel like a kid in a candy store. However, these are times you must exercise maximum discipline and stick to your game plan.

Dividends paid this month hit a new record. However, I’m expecting dividend cuts coming up the next few months.

Realistically, a -17.6% to -25% cut in dividend is what I’m expecting but to be quite honest I’m ready to gut upwards of a 50% cut in annual dividends in the course of the next 3 months.

Luckily, I wasn’t relying on dividends to sustain my life so it will not affect me too much.

The big question is how long will it take for earnings to get back to pre-coronavirus numbers. I’m guessing about 6 to 8 quarters out from today. The longer this drags on, the deeper the damage to the economy.

My expectations for a V recovery are diminishing quickly. I’m guessing the recovery may be more similar to one experienced during the financial crisis but shorter in duration.

However, I’m confident we will look back 1 year from today and realize what a great opportunity this has been to buy stocks.

For the first time since I went FIRE, I actually wish I had a job so I can invest more into the markets!

Are you ready for some crazy 1^st quarter earning numbers? Buckle up fellow investors. I’m guessing the numbers will blow us away.

“You can’t direct the wind, but you can adjust your sails.”

The rough seas will only make us stronger and more experienced sailors in the future! The lessons are coming quick. Let’s stay in the game, continue to learn and don’t let the markets scare us away.

The best opportunities are found in midst of uncertain times.

Stay strong, safe and healthy friends.