Dividend Portfolio Update for February 2024

Cash is gently flowing through my dividend income portfolio like a stream alongside a river as a new milestone with annual dividends forecasted to reach $18,000 this year. This equates to $1,500 per month, making the portfolio self-funding!

However, there is a notable concern with one of the assets, MPW, which might see a considerable dividend reduction. Aware of this risk at purchase, I still view the investment’s long-term prospects positively over the next four to six years. The optimal scenario would involve the company suspending its dividend to prioritize debt reduction to improve the companies financial standing and its long-term future.

The year has started exceptionally well, with two months’ returns so strong that I would be content if the year concluded without further gains. The tech sector, buoyed by the AI-driven FOMO, is experiencing a surge in animal spirits once again. However, the visible greed in the market has prompted me to proceed with caution, secure some profits and bolster my cash reserves amid the growing challenge of identifying compelling investment opportunities.

Inflation seems stable, yet I still anticipate that the elevated interest rate policy will further dampen economic growth throughout this year. I believe tech sector layoffs may continue throughout this year and can’t help but wonder if some are early indicators of labor adjustments due to AI driven productivity gains. Interesting developments!

Anyhow, time to check the vitals on this portfolio!