• Money flows out of large growth into value lately shows markets are behaving as it should. I expect sharp and quick rotations.
• I think we may have turned the corner this month. I am expecting dividends to stabilize and tread upwards for dividend ETF’s such as SPHD and FDVV starting next quarter.
• I have been raising some cash out of growth stocks and allocated some towards this portfolio. Notably in T, ET, and WMT. 
• Portfolio value had a nice recovery due to financials, energy, and re-opening epi-center stocks outperforming growth.
• Bond investors on the long end may be in a pickle if rates rise quicker than expected.

Portfolio value spiked up due to the rotation into re-opening stocks. Large cap growth has been the biggest laggard thus far this year. The rotation into these recovery stocks may not be over anytime soon.

Investors are expecting a rapid recovery due to pent up demand. Personal savings spiked upwards again last month and there are lots of signs people are ready to get out and about.

Airlines and hotels are beginning to see strong signs of recovery in bookings. I plan on a vacation this month and most attractions I have wanted to book are sold out! 🤦‍♂️

Vaccine distribution is ramping up with JNJ’s single dose vaccine just approved by the FDA hitting the population with another 16 million doses by end of March. With goals to have about 100M doses out by June and a 1B doses by end of this year. I think single dose vaccine by JNJ will be a game changer due to it’s lower temp storage requirement which will allow MUCH more wide access across the country and world.

Massive stimulus is about to hit the wires once again. Bond markets are flashing warning signs of expected inflation risks. I am in the camp that inflation will be a problem much earlier than what FED chair is expecting.

Lot of things to digest! Lots of uncertainty early in the year. All eyes on the 10 year it seems. All interesting stuff but I keep my focus on the business! Let us check up on those dividends, shall we? 😊

 

News That Matters

3M (Ticker: MMM)

• 3M partners with Pegatron to develop VR headset with folded optic lens using 3M’s proprietary reflective polarizer for high resolution, high transmission and wide field of view resulting in thinner and lighter weight design.
• Company to expand relationship with Palantir’s Foundry platform to support digital transformation. Foundry will assist adjusting to supply chain demand changes across thousands of products much more quicker.

AT&T (Ticker: T)

• AT&T spent $23.4B on the 5G auction.
• AT&T spun off DirecTv/U-Verse operations to private equity firm TPG valuing the business at $16.2B. AT&T to retain 70% ownership of new company, receive about $7.6B in cash, and unload about $200M in debt. Transaction is expected to close in 2^nd half of 2021.

Boeing Company (Ticker: BA)

• Longtime board members Susan Schwab and Arthur Collins will be retired.
• Company forecasts strong Latin American aircraft demand over next 20 years. Projected demand is estimated for about 2,610 new airplanes valued at $365B.

Energy Transfer (Ticker: ET)

• Company will acquire Enable Midstream in all equity transaction valued $7.2B.

Johnson & Johnson (Ticker: JNJ)

• 10-K filling disclosed company will set aside $3.9B for talc settlement.
• JNJ COVID vaccine gets emergency use approval by FDA. Taps drug maker Merck to assist in ramping up production.
• Company plans 20M COVID Vaccine doses by end of March. Also, plans to deliver 100 million single dose vaccines by end of June.

Raytheon Technologies (Ticker: RTX)

• Company plans to contest Lockheed on $4.4B takeover of Aerojet Rocketdyne. “Aerojet is a huge supplier to us, and if that merger actually happens, you don’t have an independent supplier on the solid rocket motor side. Also, I think it gives us pause as we think about the competitive landscape going forward”. CEO Greg Hayes.

 

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 40.6% yoy.
• Projected annual dividend is up 18.2% yoy.
• YTD Dividend income: $1,173.66

Almost at that $1,000 dividend payout month! $900 in one month in dividends sure feels great. Covers most of my eating habits!

Till next update friends! 🚀🚀🚀

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