The markets are on a tear this month and who am I to complain. Just amazed at where we are after all the crazy set of events this year. 

I feel blessed to have the extra savings from my passive income to invest every month.

I decided to change things up a little with my dividend updates. I decided to jot down my thoughts in random so I can easily come back to them in the future and see what issues crossed my mind at the time. 

I will call this section simply “Memo”. 😎

Let’s get started!

 

Memo 

• Looks like a vaccine could be available soon, perhaps 2-3 months out? Vaccination adoption may not be as fast as what many expect. This virus will likely be around with us for a while. Something like the flu perhaps? However, the option to be vaccinated will help improve sentiment going forward. 
• We are getting better guidance from companies, volatility is down, and seeing some early signs of money rotating back into value. 
• Economics is social science. 
• This pandemic is structurally changing the way we live in many ways and tech will continue to play a prominent role. Markets will likely justify elevated valuations for companies leading in 5G, AI, cloud computing, eCommerce, for the foreseeable future.
• Housing is strong. Housing is a significant contributor to the economy and has a high multiplier effect.
• Banks are well capitalized. Some are warning of elevated mortgage defaults. Likely not a catalyst to bring down markets due to multiple factors. Homeowners have more equity to fall back on. Underwriting standards since the great recession of 08 has nearly eliminated subprime borrowers. A record amount of cash is sitting on the sidelines likely seeking returns. FED’s likely not to raise rates for at least 2 to 3 years out. Hard to see another 08′ like real estate correction.

 

Highlights and Recap 

Boeing Company (Ticker: BA) 

• Boeing bleeds another 43 orders for the 737 MAX planes for July. No new orders for the month. 

• Customer in Poland (Enter Air SA) makes first order for Boeing this year for the 737 MAX which included the option to buy two more. 

 Chevron (Ticker: CVX) 

• Chevron announced they are investing in a start-up company called Zap Energy that is developing a modular nuclear reactor that aims to advance cost-effective, flexible and commercially scalable fusion. 

Johnson & Johnson (Ticker: JNJ) 

• Company is going big. Phase 3 trial testing for COVID-19 vaccine will recruit up to 60K candidates by late September. Twice as many as other major developers such as Moderna, BioNTech, AstraZeneca, and Pfizer. 

Raytheon Technologies (Ticker: RTX) 

• Stock was dropped from the Dow index. 

United Parcel Service (Ticker: UPS) 

• Company is building two giant freezer farms capable of super-cooling millions of vials for COVID-19 vaccines. Facilities currently under construction in Netherlands and Louisville, KY will house 600 deep freezers with each able to hold 48K vials at temps as low as -112 degrees Fahrenheit. 

 Energy Transfer (Ticker: ET) 

• D.C. Court Circuit of Appeals leaves decision to U.S. Army Corps of Engineers to decide whether the pipeline must shut or not. 

Qualcomm (Ticker: QCOM) 

• Federal appeals court has finally overturned an antitrust ruling against Qualcomm allowing the continuation of the companies licensing business model. 😍

I have waited quite a while for this day. 😊

 

Buy Orders 

 

Sell Orders

There have been no sales for this month.

 

Pass Go and Collect Dividends! 

 

Dividend Increases & Cuts 

Invesco S&P 500 High Dividend (Ticker: SPHD) TTM yield has dropped by -0.17%. (-$3.62 in annual dividends) 

WisdomTree U.S. Quality Dividend (Ticker: DGRW) TTM yield has dropped by -6.6% (-$3.01 in annual dividends) 

Net changes to the annual dividends: -$6.63

 

Portfolio Snapshot 

 

• Net dividends added to portfolio this month totals $101.25.  
• YOY Monthly Dividend is up 25.2%. 
• YOY Projected annual dividend is up 27.4%. 
• YTD Dividend income: $4,477.84 

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Wrapping Up 

Are we in the clear when it comes to dividend cuts? Probably not. It’s a tough year for the dividend investors out there. It looks like this year will end on a sour note when it comes to dividend increases.

You can’t expect every year to be a good year. COVID was a black swan event that no one could have predicted and it’s likely we will continue to experience such events in the future.

As investors, i think it’s important to position ourselves so we are always ready to grasp opportunities as they arise.

Fear sweeps through the markets from time to time and the cool heads who can see past the smoke will prevail. 

I think it’s important to stick with quality right now. It looks like it will take a while for the real economy to catch up to the markets.  

For the dividend investors out there, the window for value may not stay open for long. 

Happy investing! 🚀

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