Sunday, November 21, 2021

Portfolio Update - happy Thanksgiving

It has been a long time since I sat down and wrote about my portfolio. Life has become more busy and I let my portfolio go on auto-pilot in 2021. My workload has increased as I have been promoted to larger responsibilities, and spend most of my time traveling meeting new business opportunities. Right now, I do not have as close of a detail view of the stock markets but have been following at a high level. The promotion allows for more income, but I have not been continuously investing like my younger years, I just hold the cash now. 

Some takeaways I see from the overall market are:

  • All assets are very inflated, too much money chasing too few deals.
  • The COVID 19 stimulus and cash injection into the market and public hands has increased prices for everything.
  • Inflation is high. Cost of raw materials and living going up significantly.
  • There is a lack of labor or shortage of supply, increasing backlog and artificially inflating demand.
  • Dividends are very low yield, due to high money supply and low interest rates.
  • COVID 19 changed the way businesses work and do business with people, entire sectors of the industry are changed forever for the better or for the worse.
  • Increased demand for technology and any industry that supports the social distancing lifestyle and stay at home economy.
  • Decreased demand for discretionary type businesses such as restaurant and bar, travel and hotel, leisure, entertainment like movie theaters or amusement parks.
  • Decreased demand for office realty and large movement of people away from mega-cities to 2nd tier cities, creating price fluctuations (up and down, depending on region) on housing compared to pre-COVID period.
The overall effect of COVID 19 and the stimulus on my portfolio has been, overall, positive as basically all my stock prices have gone up. However, this presents a challenge as I have seen on companies worth purchasing during the last year. My portfolio is more defensive and less weighted in technology stocks, as a result my overall portfolio has had less capital gains than the S&P or Nasdaq indices. To me that is fine, as overall it is still going up and paying solid dividends. If a correction or recession occurs, my portfolio will suffer less of a serious percentage loss than the broader market.

I have actually kept all my cash position idle, and have not done anything with it except reinvesting dividends in the stocks that paid the dividends. The cash is unfortunately sitting in a low interest rate bank account, and not getting much return. The high interest rate savings account I see are now 0.50%, compared to rates above 1.0% several years ago when I used to use them, the interest rate has been going down across the board over the years which really makes it challenging to hold cash as there is no return for this asset and inflation is so high now.

The reason I am holding so much cash, it is around $120,000 USD as of this writing, is because I am looking to purchase a home. That cash will be used to start a mortgage. I am looking to finally settle down somewhere and have been looking at various cities across the United States where I can live in. My work does not require me to be in a particular city permanently, I can remote work. Most of my work is spent traveling from place to place as my work is distributed around the world and is international, which is something I like as it provides flexibility and choice. I also do not like to live in high cost of living cities and prefer a remote place or quiet location to live.

Sunday, July 11, 2021

March to June 2021 Dividends & Portfolio Update

I have not been able to write as much as I hoped to on my blog. I summarize the dividends I received in the last 4 months since I last published anything. Work responsibilities have been increasing as I am given new responsibilities, which has caused me to have less time to publish. I have not been able to invest much recently as I feel the market is over-valued. As a result, I just reinvest the dividends I receive but keep the remainder cash from my vocational income as a rainy day fund. Currently my cash is around $73K USD.

Dividends continue to track upwards, there were a few special dividends received in earlier months this year so there is a slight downward movement in the 3 month moving average. But overall, it is growing upwards. Dividends going forward will be growing slower as I have not been investing any of my cash positions.

Saturday, March 27, 2021

February 2021 Dividends Received

This is a late post. February dividends are the following. The dividends keep on moving like clockwork.

Ticker Total Taxable 401k
GIS $346.04 $304.81 $41.23
T $340.34 $339.78 $0.56
PG $253.25 $240.77 $12.48
CLX $222.09 $222.09
CL $185.46 $172.08 $13.38
O $167.23 $167.23
APD $140.38 $140.38
GD $128.24 $128.24
ABT $110.67 $110.67
MA $40.83 $40.83
COST $34.55 $34.55
$1,969.08 $1,734.20 $234.88

The graph of the trend is shown below. The dividends have spiked up recently and it's not because the portfolio is growing very heavily. In January there was a one time special dividend from Costco. In February, I received a lot more income from PG and CL and GIS because I moved positions from PM and MO into those three during tax loss harvesting, and then transferred the amounts back to PM and MO after the 30 day period was over. March is almost coming up, I will post a March dividend update when March is over.

Wednesday, February 10, 2021

December 2020 & January 2021 Dividends Received

I forgot to post the dividend report for December, and since January has also passed I will post both results in here.

December 2020 Dividends Received:
Ticker Total Taxable 401k
COST $480.89 $480.89
JNJ $287.33 $280.97 $6.36
HD $232.88 $204.02 $28.86
NEE $212.86 $161.95 $50.91
MMM $211.48 $183.36 $28.12
KO $178.89 $178.89
WEC $153.61 $135.69 $17.92
O $151.82 $151.82
MSFT $111.76 $80.83 $30.93
D $111.08 $73.45 $37.63
V $86.81 $69.02 $17.79
BDX $85.20 $85.20
MCD $69.07 $69.07
HON $63.52 $63.52
CHD $56.56 $40.86 $15.70
INTEREST $2.31 $2.31
$2,496.07 $2,110.03 $386.04

In December, Costco had a special dividend and that boosted the December dividends received more than what I planned.
January 2021 Dividends Received:
Ticker Total Taxable 401k
MO $745.22 $678.47 $66.75
PM $521.54 $459.10 $62.44
PEP $273.11 $236.51 $36.60
KMB $233.08 $186.78 $46.30
XEL $178.70 $178.70
O $165.86 $165.86
ADP $161.16 $161.16
ITW $137.00 $111.96 $25.04
MKC $105.51 $76.25 $29.26
MDT $61.46 $61.46
SYK $61.09 $55.31 $5.78
INTEREST $0.04 $0.02 $0.02
$2,643.77 $2,205.72 $438.05

January was a strong month with total dividends over $2600 USD.

Both January and December had good results, and the dividends received trend continues to push higher. I have not invested a lot of cash recently as I am debating about allocating funds for a down payment for a property. This is to diversify my assets to include real estate in addition to just stocks. Since I have stopped adding shares besides the dividend reinvestment, my dividend growth this year likely will slow compared to previous years.

I am finding it more challenging to find dividend companies at good valuations with good dividend yields in today's market environment, putting cash to work now when the market is very high is not a big urgency right now for me as I already have over a million in stocks. I can sit and wait, have a lot of cash, and if the market rises more then great since I already have a million dollars sitting in stocks to benefit. Spending my cash to get a few more tens of thousands of dollars in equities urgently now is not going to change my returns dramatically.

Thursday, December 31, 2020

2020 End: $1,053,417

The last trading day of 2020 has ended, the final pay check of the year with some one-time payment from performance incentives was paid to my bank account. Surprisingly despite the disaster of COVID19, the S&P500 ended up over 15%!

My total portfolio including all cash and assets now stands at the following. 

Net worth total:
$1,053,417.75 USD

Dividends annually: 
$25,917.33 USD

After the new years weekend, I will write a year end summary and what I plan to do going forward. 2020 was a very eventful year as there was a pandemic that destroyed the paper value of my portfolio. Some companies cut the dividend, some positions were exchanged out for new ones. And some tax loss harvesting was done. Overall, the portfolio has grown and held strong with its dividend growth investing principles, and the portfolio thankfully did not succumb to the fear of COVID19 at the bottom lows. I am thankful I still have a job in these uncertain times, and continue to invest heavily into my portfolio and underspend my take home income. This saving and investing persistence for 8 years has allowed this portfolio to grow to the size it is today. The portfolio's capital appreciation plus dividend payment now accounts for a decent chunk of this portfolio's decent size, and I believe going into the future the portfolio will carry itself more and more forward instead of relying on my periodic vocational income contributions.

Happy new year to all and wish all a fantastic 2021 investing year.

Tuesday, December 29, 2020

Tax loss harvesting for 2020

Earlier this year, I sold TJX and ROST, discount department stores, due to them cutting the dividend. These two companies are still strong and I believe have strong opportunities for the future. But the loss of the dividend was not good and I had to put the cash elsewhere. TJX and ROST, even selling after the dividend cuts, were still at large gains, so I had to offset my gains with losses. I also wanted to have a net loss of around -$3000 for this year, to offset my income.

To perform this loss harvesting, I sold $22,152 of MO on 12/24 right on the ex-dividend date so I still will get the MO dividend paid in January. And I sold $31,109 of PM today on 12/29, the last day that one could register a transaction for 2020 as the settlement date has to land on 12/31. PM went ex-dividend on 12/22 so I got the dividend as well that will be paid in January.

My positions in MO and PM are the few positions in my portfolio that have net losses, nearly all my positions are positive as the market keeps going higher. I used these MO and PM losses to offset the gains from TJX and ROST. 

MO and PM already paid their dividends in October, I had dividend reinvestment turned off so there wouldn't be any wash risks. My plan is to buy back the positions of MO and PM back in the end of January or early February after the 30 day rule.

Since the sold amount is a lot of cash, around $53K, I deployed the cash temporarily into these positions that go ex-dividend some time in January month and will pay their dividends in February. This way I get even more dividends in February.

- CL: $15,754

- PG: $15,364

- GIS: $22,166

When doing tax loss harvesting, make sure dividend reinvestment is turned off or there is potential risk for a wash. And also be mindful of dividend dates and also have a replacement position in mind you can use to offset the 30 days that you are not invested in the original position.

My plan is to recycle the temporary positions in CL, PG, and GIS back into MO and PM as MO and PM are critical to increasing the average yield of my portfolio. I need to have a way to balance high yield with lower yielding companies. Higher yielding companies I have noticed do not perform as well as lower yielding companies with higher growth potential, however the dividend is still important to me and I believe MO and PM are still safe investments if one just relies on the dividend and is not there for capital appreciation. 

However, I am open to changes in opinion as I will be researching in the coming weeks for investment ideas.

Sunday, December 27, 2020

November 2020 Dividends Received

Here is a post showing the summary of November's dividends. It was a solid month with overall dividend growth showing a nice uptrend.

Ticker Total Taxable 401k
T $334.00 $333.45 $0.55
CLX $203.21 $203.21
PG $152.79 $140.38 $12.41
O $151.25 $151.25
GIS $144.39 $103.50 $40.89
APD $139.80 $139.80
GD $118.56 $118.56
CL $90.41 $77.09 $13.32
SBUX $87.04 $71.22 $15.82
ABT $77.48 $77.48
MA $37.21 $37.08 $0.13
COST $33.60 $33.60
INTEREST $0.14 $0.14
$1,569.88 $1,335.51 $234.37