Greetings fellow investors. It feels like a swell time to do a dividend portfolio update with all of the exciting events surrounding the markets. How about we call this the stock market correction edition of our series?
Unless you live in a cave or are much better at ignoring the news and current events than most people, then you are probably experiencing the same dreadful market conditions. As a market masochist, I have been glued into the markets pretty much everyday from open until close and then some. BTW, I don’t recommend this for anyone. It’s what I love to do and have always done regardless of market conditions for decades. Plus now that we are retired, what else do I have to do but watch the carnage daily market gyrations?
In all seriousness, this correction was long overdue and as painful as it feels now, it really is better for the long term health of the markets. There is an entire generation of “investors” who have never experienced an actual correction or the volatility that comes with it. And no, what happened in March 2020 and the aftermath doesn’t count. That was an overreaction to a catalyst event followed by an over exuberant buying spree spurred on by cheap money and cash handouts.
Now that our esteemed Fed Chairman has been renominated for another term realized inflation is a persistent problem the party is coming to an end. The era of cheap cash and economic support via low interest rates and bond purchasing programs will start whittling away. It’s finally time to take on our inflation problem, six months or so too late, because it’s not transitory after all. Duh!
Don’t you just love bureaucracy and living on the whims of an unelected official! Anywho…………
Here is where our dividend portfolio stands hovers:
| Symbol | # Of Shares |
| ABBV | 13.211 |
| ABR | 7.079 |
| BKH | 2.034 |
| DOW | 9.17 |
| FRT | 4.034 |
| GIS | 5.067 |
| IBM | 3.076 |
| IRM | 12.362 |
| JNJ | 6.07 |
| K | 2.036 |
| KHC | 5.078 |
| KMB | 2.033 |
| KO | 2.047 |
| MMM | 5.058 |
| MO | 9.351 |
| MPW | 7.208 |
| O | 4.073 |
| QYLD | 20.92 |
| SO | 2.051 |
| SPTN | 6.163 |
| T | 13.316 |
| VTRS | 4 |
| WEBR | 50.175 |
| XOM | 5.07 |
We have kept to our strategy of only adding to existing positions. Really this is only because of lack of funds. In the past with these market conditions I would be buying with both fists. But when you only have a few bucks a month, it makes more sense to keep building current positions at lower prices.
Since our last update we added more shares of the following positions: ABR(1), IRM(1), MMM(1), QYLD(3) and VTRS(1).
We reinvested dividends via DRIP for IRM, KMB, MO, MPW, O, QYLD & SPTN. Just a note, we received a dividend from FRT, but due to a glitch, it was sent to our cash account and not reinvested in the position.
Before the world came crashing down, our portfolio crossed the $10k mark for the first time. It was a nice milestone to hit. After all, we have only been at this since April 2021 and started with about $400. With the markets in flux this month we pulled back a little and sit at $9,985 as of the last closing with a yield on cost of 4.57%. This is still an increase of $335 and a flat YOC from our previous update. Our portfolio will now provide forward annual dividends of $446 or $37 per month. Again, not a huge increase, $14 per year or $1 per month, from our last update, but we are heading in the right direction.
Considering what the markets have been doing in January, the dividend portfolio is holding up pretty good. Maybe I can use this to distract me from the rest of our portfolio? Probably not.
These are stomach churning times and it is difficult to see big red numbers in your portfolio pretty much every day. It is also perfectly a normal and healthy part of being an investor in capital markets despite the chilling effects. It’s important to remember that markets need to correct in order to move forward. If you haven’t been through this before the best advise is to stick to your plan and keep doing what you always do.
Most importantly this is NOT the time to panic and sell. That just turns a paper loss into a real loss. It is also NOT the time to think you are smarter that the market and try to time the bottom. That’s how you go broke and lead yourself to panic selling. It is the perfect time to stick to your plan and if you can, be opportunistic. If you exercise common sense and patience everything will work out in the long run.
Thank you for reading our blog. Happy investing!
Joe
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