Cemanuel 2022 Portfolio Thread

[cemanuel]

June Portfolio Update:


Crazy month on the dividend side and a good sort of crazy. I made a small withdrawal from my Taxable Account to pay for an expense - I let someone talk me into a European River Cruise in December and the balance was due by 6/30. I also made my first IRA conversion. This was a small one of accumulated dividends.

The LYB special dividend messes up all the income comparisons so I tried to include these with and without it. Even without, it was a good month.

I had bought extra shares of LYB at around $113 for the special and sold those shares - as you can see from the $97 sale price, that didn't work out. That's OK, tried something and may or may not try it again if a similar opportunity comes up. But I think this is better to do in a rising market.

The WHR sale was a tax-loss move. Once BBY dropped to $65 I used that cash to make a buy. This is also a tax loss move. I am now overweight Best Buy. I have some shares bought earlier this year in the 90's so some time after August 1 I'll sell shares at a loss and get back to equal weight. That will also give me some cash to work with if I want to repeat it with another stock though I am limited on candidates.

The AOS sale was to buy BLK with higher yield and IMO stronger dividend growth.

The BMO buy in my Roth was with converted IRA dividends.

I received dividend increases from:

• AMAT
  
• LYB
  
• TSCO
  
• UNH
  
• WMS
  

Keep in mind that dividend comparisons to June, 2021 are out of whack as I didn't have the IRA then.

Very solid month though account values took a dive. I own a lot of chip companies in the IRAs and they got blasted but I'll just keep holding.

Bragging Moment: Forgive me for this. Before I ran numbers in April, 2021 my idea for funding my retirement was this:

1. Taxable Account Dividends
   
2. IRA Dividends as needed
   

The idea was simple - live without having to ever sell anything. But once I ran the numbers I realized that filling the 20% (roughly) shortfall between Taxable Account income and my projected expenses would be more efficient from a tax standpoint if I used Taxable Account stock sales. The LT cap gains vs income tax rates came to a decent amount and I own GOOGL and AAPL which are suitable for sales.

So here's the brag: If I had kept to my initial plan, July would be the first month where my combined Taxable/IRA dividends exceed my average monthly expenses. I know it's not the plan any more but it's nice to have another data point confirming that DGI really can work nicely.

I actually exceeded this level - and then some - in June but that was due to the LYB special which is not sustainable.

Plans going forward:

• I will make a large IRA Conversion at S&P 3500. No idea if we get there in July but we could.
  
• I turned off drip in my Roth. As I'm now converting accumulated IRA dividends I'll just add the piddling Roth income when I make a buy.
  
• I could sell the rest of my WHR. Those shares were bought at $175 so it would be another tax loss sale. I could either sit on the cash to re-buy it after 31 days or make a buy. TROW is a possibility.
  

Now for the numbers:


Metric                         IRAs                            Taxable                                   Total


Buys                            1                                    3                                           4

Sells                             0                                   3                                            3

Dividend Increase 
over June, 2021          251.12%              10.32%, 211.10% w/LYB            52.27%, 218.36% w/LYB

Dividend Increase 
over March, 2022        334.78%                7.30%, 202.58% w/LYB             12.34%, 134.88% w/LYB

Change in value 
over 5/31/22              -10.76%                         -7.88%                                    -9.42%

Current Dividend 
Yield                             1.74%                          3.11%                                     2.41%

Change in 12-mo 
projected Dividend 
Income fr 4/30/22          1.49%                          2.02%                                     1.82%

Organic/Internal 
annual DGR                  14.45%                        10.43%                                      N/A
 
 
Taxable Account Transactions:

Sales:

• 6/9/22 – WHR, $171.52
  
• 6/14/22 – LYB, $97.50
  
• 6/14/22 – AOS, $55.34
  

 
Buys:

• 6/9/22 – BBY, $76.00
  
• 6/14/22 - BLK, $590.00
  
• 6/30/22 – BBY, $65.00
  

 
Roth Transactions:

Buys:

• 6/24/22 – BMO, $96.64