Cemanuel 2022 Portfolio Thread

[cemanuel]

July Portfolio Update.

This one will be relatively brief. I felt like there was a lot going on this month but it was actually in my mind - the big moves came on August 1. I did make one withdrawal of accumulated dividends for expenses and one stock sale.

The big news for July is another in a series of record high dividends, including in the taxable account - once you discount the big LYB special in June. I may be writing this qualifier for years. 

A Success Story, Maybe

I believe in celebrating success stories. This one is more of a if/then/success story - shout out to programmers.

Before running my tax numbers in April, 2021 my retirement funding plan was this:

• Primary Source: 80% from dividends received in my Taxable Account
  
• Supplemental Source: 20% from dividends received in my IRA once I did the rollover from my retirement account.
  

Running tax numbers changed that. The supplemental source is now sales of AAPL and GOOGL stock from my Taxable Account. The 15% LT cap gains rate resulted in a significantly lower tax bill than taking it from my IRA and having that taxed as income.

However IF I had kept to my original plan, July would have been the first month where my combined Taxable Account and IRA dividends would have been enough to meet my budgeted expenses. Is this real? Debatable but I am taking it as evidence that what I was doing leading into retirement was sound. So I'm still calling it a success story. Sort of.

Here are the July numbers:

Metric                         IRAs                            Taxable                                   Total

Buys                              0                                  0                                           0

Sells                              0                                   1                                           1

Dividend Increase 
over July, 2021           421.90%                          29.85%                                 65.65%

Dividend Increase 
over April, 2022             8.22%                           11.05%                                 10.43%

Change in value 
over 6/30/22                12.09%                            6.16%                                   9.18%

Current Dividend Yield     1.57%                            2.93%                                   2.21%

Change in 12-mo 
projected Dividend 
Income fr 6/30/22            .03%                             0.00%                                    .01%

Organic/Internal 
annual DGR                   14.47%                            10.41%                                    N/A

Some items of note include the huge YoY dividend increase - I'm sure I bought some stocks that paid during the 1/4/7/10 cycle compared with the year before. However the substantial increase over April reflects the large dividend increases I've been receiving all year. This has been a very nice DGI year to date. 

The YoY IRA dividend increase is meaningless - all I had was a Roth in 2021. The increase over April does mean something as I completed the rollover by mid-February.

The increase in value in the Taxable Account was impacted by withdrawing some dividends but this was fairly small - I still would have significantly trailed the market - read it was up about 9%.

As I made no buys and only had one small dividend increase paid, my forward 12-month dividend income projection remained unchanged, basically. The small MU dividend hike was offset by selling $10k worth of AAPL to pay for roofs on my barns. Though in case you are worried, my projected dividend income was actually up in my Taxable Account - by 69 cents. Seeing that once I calculated it was pretty funny.

• Stock sale from my Taxable Account: 7/22/22 – AAPL, $155.40
  
• Dividend Increase Paid: MU - $.10 to $.115/share
  

The organic DGR continues to be very high. This may continue for my IRA. I do not expect it to for my Taxable Account - at some point I look for 8-9%. Massive hikes from BBY and WHR and recent good ones from many others have contributed to this.

So record high dividend income and account values approaching positive YTD (considering withdrawals, passed into the green in early August). It was a very good month.

August 1 had more account activity than the entire month of July but that will have to wait.