Seasons greeting and a very happy new years to you all! I am guessing many are glad we put 2020 behind us. The new year cannot possibly be worse than the previous! Although markets performed surprisingly well, many parts of the real economy are still in shambles due to the pandemic, but I find myself more optimistic about this new year. I anticipate the story of this year to be one of stabilization, normalization, and a slow recovery.

Despite the difficult conditions the pandemic resulted for many dividend paying companies, I am quite satisfied with how things have turned out. Despite the cuts in dividends suffered in my portfolio, I learned quite a bit about how a pandemic can really slam certain industries and have some flourish. The human psychology and reasoning behind why and how investors allocate capital in such circumstances was quite a fascinating learning experience.

That experience followed by the lessons was worth the scar the dividend cuts left behind this year for my portfolio.

Pandemics do not come often but when they do next time, I feel I am better experienced to weather such storm and know what to anticipate.

Now for the final update of 2020! Let us get into this! 🚀

 

News That Matter

3M (Ticker: MMM)

• 3M plan broad restructuring with anticipated results in annual tax savings of $200M-$250M with $75M-$100M of pre-tax savings in 2021. 2,900 positions in the firm to be impacted globally. “The COVID-19 pandemic has advanced the pace of change and disrupted end markets around the world, increasing the need for companies to adapt faster,” -CEO, Mike Roman.

Amphenol (Ticker: APH)

• Company will acquire MTS Systems for $1.7B including debt. Deal is expected to close mid 2021. “This acquisition is consistent with our strategy of continuing to expand our range of sensor and sensor-based products across a wide array of industries to further capitalize on the long-term growth potential of the electronics revolution,” said Amphenol Chief Executive Adam Norwitt.

Apple (Ticker: APH)

• Company rumored to launch self-branded car by 2024.

AT&T (Ticker: T)

• Warners Bros announced all 2021 movies to be released in theaters and streaming service HBO MAX at the same day they hit release dates. This change is expected to be a one year plan due to the pandemic.
• AT&T sells Crunchyroll for $1.175B to Sony’s Funimation.
• HBO Max releases natively to Comcast’s X1 and Flex customers.
• HBO Max heads to Roku and Playstation 5.

 Boeing Company (Ticker: BA)

• Boeing scores first major 737 MAX order from European budget airline Ryanair for 75 additional jets with 50 planes planned to be delivered in 2021. Order is estimated to be worth about $9B. Total orders from Ryanair now totals 210 from 135 prior announcement.
• Boeing scores orders with Alaska Airlines for 68 737-9 MAX with options for another 52 jets.
• 737 MAX returns to service in the U.S. on December 29 as American Airline flight 718 took off from Miami to NY.

JP Morgan Chase (Ticker: JPM)

• Company announced new buyback program of $30B after FED’s allow banks to buyback stocks after successful stress test.

 

Buy Orders

 

Sell Orders

There have been no sales for this month.

 

Pass Go and Collect Dividends!

 

Dividend Increases & Cuts

 

Portfolio Snapshot

• Monthly dividend is up 17.6% YOY.
• Projected annual dividend is up 24.5% YOY.
• YTD Dividend income: $7,053.15
• The portfolio consists of 28 holdings up from 27 last month. New long position added to the month was Walmart (Ticker: WMT)

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Wrapping Up The Year!

• Portfolio value ended up 26.5% since the start of 2020.
• 8 out of 12 months suffered net dividend cuts from companies. Net sum for the year equals -$628.14.
• There were 26 dividend increases and 17 dividend cuts in the year.
• Added $1,794.65 in dividends by additional investments.
• Two largest dividend cuts were from Boeing Co. cutting 100% of their dividend (-$263.04) & Energy Transfer cutting 50% (-$348.31).
• Portfolio holdings up 4 from 24 stocks to 28.
• YOC: 4.1%

For all of you fellow investors out there who have survived investing through this year, I would like to congratulate you all. 🎉🎉🎉

It looks like we are all rewarded with a badge that reminds us we have weathered a pandemic in our investing careers and are more likely somewhat wiser investors as result. 🤞🧐🤞

The more time in the markets, the more likely your views of what investing truly is will evolve along with more confidence to follow.

And in time, you will form your own investment philosophies and expectations tailored to your life and goals.

What ultimately matters most at the end is how much you are learning because with knowledge comes better odds of making better decisions.

Goodbye 2020! Let’s go 2021!