Happy new year 2020! We made it. Looking forward to making this year the best one yet.
The markets continued their roll yet again this month. With the S&P 500 being up about 28.9%, and the DOW finishing up about 22.3% for the year. Using this neat little calculator I just found here (that factors out contributions), the brokerage account achieved a decent 29.1% return in 2019. This is a good estimate, however it factors out contributions evenly throughout the year instead of by date. So I think it would be closer to 30-31% as most of the contributions were made at the end of the year (eg. factoring out all contributions at the end of the year yields a higher 32% return). Anyways, since my brain hasn’t hurt this much since the Calculus III days, I’m willing to call this one more or less a tie with the S&P 500 index I track.
It’s interesting to note that AAPL and MSFT accounted for nearly 15% of the S&P 500’s large gain this year. While I don’t hold these names directly, I do through my work’s 401k plan index funds (these funds don’t disclose dividends so I can’t include them here in these reports). Makes me think though that they aren’t as diversified as I thought.
For instance, my favorite index, VTI through Vanguard, lists below that just the top 10 names (out of the nearly 3600 other individual names held) are almost 20% of total assets:
Again, just something to keep in mind. But this is probably the main reason I don’t go the index only approach, and instead hold many individual positions as well to better diversify.
Below is the dividend income received during December: (Values are in USD)
ADM – 22.75
ALE – 23.50
AVGO – 16.25
AWK – 20.00
AWR – 15.25
CHD – 16.38
CVX – 23.80
D – 17.43
DFS – 7.04
EMR – 20.00
FLO – 19.00
GWRS – 3.62
IBM – 32.40
KEY – 18.50
LYB – 24.15
MCD – 26.25
MMM – 31.68
O – 10.22
PLOW – 12.54
ROST – 7.14
ROL* – 9.30
SAFT – 4.50
SJM – 20.24
SO – 40.30
TGT – 42.90
UL – 24.84
UNP – 19.40
WM – 20.50
WRK – 23.25
WTR – 12.18
XYL – 1.20
YUM – 7.14
YUMC – 1.68
December Dividend Totals: $595.33
Total Companies: 33 (positions marked “*” are held in an IRA)
Month Increase YoY: 47.7%
January Watchlist: DAL, JNJ, VTI
110 shares – AQN @ $14.21 (new position)
60 shares – AQN @ $14.08 (now existing position)
Note: Not exactly sure what data Google Finance is referencing for AQN here, but I think the P/E ratio is <20, Div yield is 4%, and Mkt cap is around 7.5B. That being said, I came across this company in a report that they are buying assets from one of my favorite holdings AWK. Was pretty surprised I hadn’t heard of this company before.
2 shares – BA @ $327.92 (new position)
Note: Still haven’t decided if I want to make this a full position or not, but may add a couple shares here and there if it keeps falling from these levels. Feel this one may have a ways to go yet and will require some patience.
3 shares – D @ $80.92 (existing position)
7 shares – WM @ $111.75 (existing position)
**Below each purchase is a max view chart taken at the end of the month for each of these companies. The screenshots are from Google Finance and provide a quick overview with some extra metrics. These (5) purchases added $138.86 to yearly dividend income.
Let me know below if you plan on putting any money to work in January and what you are watching in the markets – thanks for reading!
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