October 2021 Dividend Income & Recent Buys

Welcome. 👻

Wow what a difference a month makes in this stock market.

The three month S&P 500 chart below perfectly summarizes what happened:

After a September to forget, October came back strong with a 6% vengeance, reaching all time highs in a matter of weeks. 😤

The market always seems to climb a mountain of worries, and now it just shows up as another notch in the five year chart:

This month was the 2nd highest ever in regards to portfolio value gain, just after the 3rd worst monthly decline last month.

So the big swings continue, but I have a pretty high risk tolerance for these changes. However, does the market ever just trade flat anymore?

Many of the portfolio names had a rebound month after recent declines and it certainly starts to compound and add up now.

It’s crazy that it’s now possible to save more with one good month in the markets, verses an entire year right out of university. Of course, this is the snowball effect of investing that comes from years of saving. However being unrealized-paper gains, volatility is expected.

I still feel we are in a market bubble though, as some valuations are running wild. Whether it be equities, crypto, or real estate.

“Be fearful when others are greedy, and greedy when others are fearful.” ~ Warren Buffett

There definitely seems to be an euphoric tone right now in the markets. Exhibit A:

Since going vertical, Tesla recently crossed the 1 Trillion market cap, and then in the next couple of days casually adding another 100 billion as more money rushes in.

And with the general misunderstanding of market cap in the general public, or perhaps people taking advantage of that, I’m almost certain an announcement of another stock split would send it soaring more. Same with raising capital from share dilutions, as last time it actually rose on the news.

Maybe it’s a result of so many people buying tsla calls that end up close to expiring in the money and exercising so banks have to buy a bunch of shares to cover, which only increases share price more… making more calls go in the money, and the cycle repeats. Sounds kind of like a gamma squeeze to me, with a little mix of FOMO in there.

Also, the market caps on the two most popular high flying dog crypto internet tokens hit around 40 Billion each this month. It’s crazy to think that factoring in all the other cryptos there’s over 2.6 Trillion in USD sitting there.

I’ve heard it’s the future from people and everything, and kind of get the idea of btc or eth as a currency hedge, but there seems to be no limit or competitive advantage for anything if there’s just a new <insert celebrity or animal name> internet coin every week.

Is everyone really going to have digital wallets with dozens of types of crypto in them that are all used in the economy? All priced with the volatile conversion rates based on the latest musk tweet or government ban.

Maybe I’m just too old at 31 to see the value, benefit, or extensive use of resources in this. Or maybe it’s just the fact of missing out on all those gainz over the years…

People are definitely making a killing on both ends, and I’m definitely rooting for the little guy while hoping they make it big and don’t lose anything. But the fees, transactions, and storage money seem to really be attracting the eyes of Wall Street for sure.

Not to mention the IRS and all the scams that are popping up from this.

I assume this is what some people think of when investing in stocks, (honestly it’s all kind of a casino) so no judgement here – make that money with whatever strategy works. But be careful out there.

Have been thinking a lot about all of this after looking at the portfolio stock gains for the month, and realizing how everything just looks so inflated right now.

This can’t be sustainable can it? But what justifies the valuation of anything I suppose… all in the eye of the beholder?!

Whew, end of bubble rant….

Below is the dividend income received during October: (Values are in USD)

ADP – 14.88 

AQN – 29.00

ECL – 7.20

ITW – 18.30

JJSF – 12.66

MKC – 13.60

O – 10.62

SYK – 3.15 

TMO – 2.86

WDFC* – 9.61

XEL – 24.25

YORW – 9.00

_______________________ 

October Dividend Totals: $155.13

Total Payouts: 12 (positions marked “*” are held in an IRA)

Month Increase YoY: -29.5%

_______________________ 

The dividend total was lower YoY due to a slight reorg a few months back on a couple positions for hopefully better growth prospects in the future.

The quarterly total for these months are generally lower so any updates can exaggerate changes percentage wise. Looking to break an all time total divvy record in December.

Recent Buys:

Pretty much just contribute every month nowadays, since I don’t know what else to do other than hoard cash during rising inflation.

If only the Fed would actually have interest rates in this environment… could help cool off a lot of different types of markets.

Anyway, if you can’t beat ‘em, join ‘em I guess…

Started buying to begin the month, but the market kept rising so fast, I wasn’t able to deploy as much as planned:

Bought one share of MSFT (in the 280s which I thought was high 🤪).

A couple shares of ABT.

And seven shares of KLAC.

There was also a pretty substantial top holding swap mentioned in the next section below.

I feel the portfolio is in a good place right now, even with a slightly higher cash balance than usual.

Portfolio Top 13 Holdings:

  • Target Corp (TGT)
  • American Wtr Wks Co Inc (AWK)
  • Microsoft Corp (MSFT)
  • Church & Dwight Co Inc (CHD)
  • Waste Management Inc Del (WM)
  • Johnson & Johnson (JNJ)
  • Lowe’s Companies Inc (LOW)
  • Thermo Fisher Scientific (TMO)
  • Visa Inc (V)
  • PepsiCo Inc (PEP)
  • General Mills (GIS)
  • Accenture Plc (ACN)
  • Broadcom Inc (AVGO)

No change in the top two, but the mega cap Microsoft, that has recently been trading like a penny stock, may catch up faster than expected.

WM jumped up a spot after a run-up to earnings, to now crack the top five.

A bunch of shifting in the bottom names, but the main one to note is Visa.

This is a new name to the portfolio. After the PayPal rumors came out about looking at buying PINS, it brought back memories of T buying overpriced directTV back in the day. So I jumped ship pretty fast, and was on the lookout to bring in another new quality name into the port.

After some research, Visa fit the bill especially since it basically replaces allocation in the same sector.

Think I may have gotten lucky with the timing of going all in on V last Thursday with the pypl funds, as under $210 seemed like a good value for V. Plus, a dividend from this holding should now be received in December.

If visa keeps dropping this year, I’ll add another few shares.

Excited to see how these names hold up to finish out 2021.

Well, if you made it this far in the post congrats and thanks for reading, here is some emoji money as tribute which is about as real as anything these days: 💵💵✨

Have a great month – the journey to financial freedom continues.

🐶

-Divcome 

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11 thoughts on “October 2021 Dividend Income & Recent Buys

  1. Nice summary Divcome,

    I agree it is tough to figure out what to do with cash. At best over-valuation at worst bubbles are all around us. If we stay in cash inflation has its way with us. (rock meet hard place)

    I’m on a similar path and decided to just regularly invest. However if we balance this with deals we got during the 2020 crash I guess the law averages kicks in somewhat, still feels uncomfortable though. At least our dividends are consistent.

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    1. Thanks for the comment SD Growth. Yeah cash is tricky, rock meets hard place is a good way to describe it. My rule of thumb lately has been to have just enough cash where I don’t lose any sleep or think about it. But so true, after that, dollar cost average is always best way to go. And nothing beats those consistent dividends hitting the account!

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  2. Looks like a great month Divcome. You were still able to pull in over $150 in what is normally one of the lower payout months. And I like your Visa purchase. I wish I had more cash available to put on that one but was able to add a bit more to my position. Visa is still expensive, IMO; however, there’s a still a lot of growth opportunities for them.

    I typically run my portfolio pretty much 100% invested. I’d like to have a bigger cash buffer to take advantage of opportunities but the cash just burns a hole in my portfolio’s pocket. Luckily that doesn’t happen wit the checking accounts pocket. Despite the overall frothiness I do feel like there’s almost always something that’s at least reasonable.

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    1. Great point JC that there’s always something that looks like a steal later. In the long run, 100% invested always seems to be best. Thanks.

      Yeah V always seems to be expensive, but I don’t mind paying up for quality. Good to hear you were also grabbing some shares, looks like their ex div is 11/10, I may have to add a couple more now if existing shareholders are buying!

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  3. Solid results Divcome! I’m also on the same road. I just keep investing month after month and not hoarding cash for stocks. We’ll see what happens and if new buying opportunities arise.

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    1. Thanks mr. robot! Yeah consistent investing always seems to work out in the long run. “Time in the market beats timing the market…” Hoping for some strong dividends to close out the year. Keep it going over there!

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    1. Greetings Preetverse, good to hear you liked the post. And thank you for the kind words. Hope that the information on this financial journey is interesting and contains some helpful insights along the way. Have a great weekend!

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