Welcome to this month’s report. 2020 is now halfway over, and it has been one year to remember (or forget) so far. The markets in June started out strong, but after a little volatility, ended relatively flat. With the exception being the NASDAQ, as it seems gaining at least 5% per month is just the new normal.
Definitely not into betting against any of the high-flying tech valuations, but will admit I have some concerns on how much longer this can last.
Have the markets gotten a bit ahead of themselves? Maybe. Could this keep going on for another decade? Who knows. That’s why it’s best to just stick with an investment plan that reflects the proper asset allocations for your age, goals, and risk tolerance.
With all that said, I have been putting less new cash into the markets than usual. And for the first time in years, have even sold out of a few positions. But as noted in the end of the report, not for valuation reasons.
Below is the dividend income received during June: (Values are in USD)
ADM – 23.40
ALE – 24.70
AVGO – 22.75
AWK – 24.20
AWR – 15.25
CHD – 17.28
CVX – 25.80
D – 20.68
DFS – 18.04
EMR – 20.00
FDS – 1.54
FLO – 20.00
GILD – 10.20
GWRS – 3.62
IBM – 39.12
JNJ – 10.10
JKHY – 2.15
KEY – 18.50
KHC – 20.00
LYB – 24.15
MCD – 26.25
MMM – 36.75
NEE – 4.20
O – 10.49
PEP – 15.34
PEP* – 23.92
PLOW – 12.88
RDSB* – 8.95
ROL* – 4.84
SAFT – 11.70
SJM – 20.24
SJW – 6.40
SO – 41.60
TGT – 42.90
UL – 24.45
UNP – 19.40
VTI* – 11.90
WM – 27.25
WMT – 15.12
WTRG – 12.18
XOM – 22.62
XYL – 1.30
YUM – 7.99
ZTS – 1.20
June Dividend Totals: $771.35
Total Companies: 43 (positions marked “*” are held in an IRA)
Month Increase YoY: 62.9%
Below each purchase is a max view chart taken on the last day of the month. The screenshots are from Google Finance and include some extra metrics on the buys.
2 shares – JNJ @ $138.31 (existing position)
1 share – PEP @ $129.76 (existing position)
2 shares – AWK @ $121.62 (existing position)
10 shares – NWN @ $53.99 (existing position)
3 shares – WTRG @ $41.36 (existing position)
1 share – WM @ $102.62 (existing position)
These (6) purchases added $40.64 to yearly dividend income.
In total, $1416 from built up dividends was deployed in the month for the purchases.
First off, hope this isn’t a reoccurring category, as being long term focused and patient are key in building any portfolio.
But they are as follows…
8 shares – MTN @ 183.68 (sold out)
14 shares – YUMC @ 51.24 (sold out)
50 shares – WRK @ 27.94 (sold out)
In total, $3584 in cash was generated from these (3) sales. And $40.00 was removed from yearly dividend income.
The sales were made for the primary purpose of building up a down payment on a possible house/investment property this year. The housing market is crazy right now. Too high imo. But has been for almost 5 years of tracking.
And just to clarify, the sales weren’t just from the result of slowing revenue growth, high debt loads, dividend cuts/suspensions, etc.
But the above factors sure didn’t help the cases for these companies to stay in the portfolio. In the end, something had to be sold to help build cash. However, I have nothing against adding these positions back to the portfolio again in the future. And with my past luck of selling, I wouldn’t be surprised if these names go on now to reach new highs…
Funny to note, as this wasn’t done intentionally, but with the annual dividend income gain of $40.64 from the buys and a loss of exactly $40.00 from the sales, the net gain was 64 cents for the month. Perfect, no loss for June.
Thanks for reading and have a great month!
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