Dividend Portfolio Update for June 2024

It’s remarkable how long we’ve gone without experiencing a major recession. The 2020 pandemic-induced recession lasted just 2 months, and it’s been about 14-15 years since the last significant one “the Great Recession”, which lasted 18 months.

Environmental Triggers: Record Water Temperatures

When considering potential triggers for a recession, it’s hard to ignore the recent news about record water temperatures in the Atlantic. The year 2005, which saw Hurricane Katrina, was one of the hottest years on record since 1880. While hurricanes themselves don’t cause recessions, the economic disruptions they can create are substantial. A hurricane of Katrina’s scale could wreak havoc on the mid to east coast, especially after the massive migration of people and businesses from the west to east in recent years.

Market Concentration: A Recipe for Disaster?

It’s astonishing to see how the top 10 companies in the S&P 500 now make up about 30-35% of the entire index. About 10 years ago, this concentration was around 18-20%, which already seemed significant at the time. Today, we are highly concentrated in a very small handful of businesses. This concentration, coupled with the potential for significant environmental disruptions, could lead to some challenging outcomes. The exit door is only so large for such a massive amount of capital. The last thing we need is a hurricane to wreak havoc on our supply chains, leading to another round of inflationary pressures across the country.

Crossing my fingers and hoping for an easy hurricane season! Time for that quick bookkeeping!

Buys and Sells

• Net contributions to portfolio this month: $15,638
• Purchased 3 shares of the QQQ’s this month standing at 107/500.

Purchased my first tranche and took a position into Nike for the long term. Hoping for it to come down a bit more for my 2nd and 3rd tranche. I’ve always wanted to own this company for over 10 years. Hoping to have this business pay me dividends for decades to come. 🤺

Pass Go Collect Dividends!

• Total divies received for the month: $1,470.04
• Yoy change: 9.7%

Portfolio Snapshot

• Projected annual dividend is up 25.6% yoy.
• YTD Dividend income: $8,321.97

And that’s a wrap! 🤺