09-07-2022, 06:18 AM
August Portfolio Update
Probably the biggest news was making a big IRA-Roth conversion on August 1. I decided I had no idea if the market was going to keep heading up or go back down and it was quite a bit lower than on January 1 so I went with it. Basically I did my usual conversion of accumulated dividends and then moved all my NVDA and AMD. This has created a Roth that behaves very strangely with over 60% in those two stocks.
I also had a necessary response to this. Once I calculated the tax bill, roughly, I made a big sale of AAPL so I could write some hefty checks to the state and federal governments in September. I did not withdraw that sale money in August but waited for September and interest earned was actually more than a few pennies.
I did make two withdrawals from the Taxable Account. One for living expenses and the other to give $6k to a nephew to start a Roth.
This was another record dividend income month, once you discount the June LYB special.
With ABBV paying on 8/15 I surpassed my total dividend income received for all of 2021. Of course I had IRA divs and the big LYB special which I did not last year. Without one of those I'd have passed this milestone in September. Without both, late October. It's been a good year for dividend increases.
Here are the numbers:
Metric IRAs Taxable Total
Buys 1 2 3
Sells 0 2 2
Dividend Increase
over August, 2021 529.52% 2.27% 55.24%
Dividend Increase
over May, 2022 44.83% .91% 18.41%
Change in value
over 7/31/22 -5.73% -4.62% -5.20%
Current Dividend Yield 1.66% 3.05% 2.33%
Change in 12-mo
projected Dividend
Income fr 7/31/22 6.74% -.63% -.15%
Organic/Internal
annual DGR 14.55% 10.28% N/A
The IRA & total dividend figures compared with May mean something, the comparison with August, 2021 do not.
The balance change includes the withdrawals from my Taxable - DG - account. Interesting that even with taking money out it lost less value than the IRAs which are Total Return accounts.
The big AAPL sale was enough to keep my dividend growth in my Taxable Account down from May and cause a small decline in my 12-month dividend income projection.
Transactions:
Taxable Account
Sales:
8/1/22 – BBY, $76.53
8/8/22 – AAPL, $166.99
Buys:
8/1/22 – TROW, $121.17
8/1/22 – MO, $44.01
Roth
Buys:
8/1/22 – GOOGL, $115.13
IRA Transactions
None
IRA-Roth Conversion:
8/1/22 - Cash, AMD, NVDA
Dividend Increases:
LOW - $.80 to $1.05/sh
The Roth GOOGL buy was with accumulated dividends after the conversion.
The Taxable Account BBY sale was the closing half of a Tax-Loss strategy. I bought some BBY for $65 in June. Once the wash period was up I sold shares bought in the $90s for the loss. Then I used that to buy TROW and a little MO which I was just short of having a full position in. I set a limit sell order of $167.00 for AAPL - no idea why it came up a penny short but the amount was small enough that I decided not to worry about it.
August was a good dividend month. I didn't like the number I came up with for what I owe in taxes after the IRA conversion (more than I've ever paid for a car!) but I knew that was coming. I'm trusting that 13 years from now once I reach RMD age that I'll appreciate having done it.
Probably the biggest news was making a big IRA-Roth conversion on August 1. I decided I had no idea if the market was going to keep heading up or go back down and it was quite a bit lower than on January 1 so I went with it. Basically I did my usual conversion of accumulated dividends and then moved all my NVDA and AMD. This has created a Roth that behaves very strangely with over 60% in those two stocks.
I also had a necessary response to this. Once I calculated the tax bill, roughly, I made a big sale of AAPL so I could write some hefty checks to the state and federal governments in September. I did not withdraw that sale money in August but waited for September and interest earned was actually more than a few pennies.
I did make two withdrawals from the Taxable Account. One for living expenses and the other to give $6k to a nephew to start a Roth.
This was another record dividend income month, once you discount the June LYB special.
With ABBV paying on 8/15 I surpassed my total dividend income received for all of 2021. Of course I had IRA divs and the big LYB special which I did not last year. Without one of those I'd have passed this milestone in September. Without both, late October. It's been a good year for dividend increases.
Here are the numbers:
Metric IRAs Taxable Total
Buys 1 2 3
Sells 0 2 2
Dividend Increase
over August, 2021 529.52% 2.27% 55.24%
Dividend Increase
over May, 2022 44.83% .91% 18.41%
Change in value
over 7/31/22 -5.73% -4.62% -5.20%
Current Dividend Yield 1.66% 3.05% 2.33%
Change in 12-mo
projected Dividend
Income fr 7/31/22 6.74% -.63% -.15%
Organic/Internal
annual DGR 14.55% 10.28% N/A
The IRA & total dividend figures compared with May mean something, the comparison with August, 2021 do not.
The balance change includes the withdrawals from my Taxable - DG - account. Interesting that even with taking money out it lost less value than the IRAs which are Total Return accounts.
The big AAPL sale was enough to keep my dividend growth in my Taxable Account down from May and cause a small decline in my 12-month dividend income projection.
Transactions:
Taxable Account
Sales:
8/1/22 – BBY, $76.53
8/8/22 – AAPL, $166.99
Buys:
8/1/22 – TROW, $121.17
8/1/22 – MO, $44.01
Roth
Buys:
8/1/22 – GOOGL, $115.13
IRA Transactions
None
IRA-Roth Conversion:
8/1/22 - Cash, AMD, NVDA
Dividend Increases:
LOW - $.80 to $1.05/sh
The Roth GOOGL buy was with accumulated dividends after the conversion.
The Taxable Account BBY sale was the closing half of a Tax-Loss strategy. I bought some BBY for $65 in June. Once the wash period was up I sold shares bought in the $90s for the loss. Then I used that to buy TROW and a little MO which I was just short of having a full position in. I set a limit sell order of $167.00 for AAPL - no idea why it came up a penny short but the amount was small enough that I decided not to worry about it.
August was a good dividend month. I didn't like the number I came up with for what I owe in taxes after the IRA conversion (more than I've ever paid for a car!) but I knew that was coming. I'm trusting that 13 years from now once I reach RMD age that I'll appreciate having done it.