Ron's portfolio in retirement

[rnsmth]

The week in Ron's Dividend Land

It was a pretty busy one. Let me get out my notes:

Dividends received from: SCHD, GILD, AMGN, EOG (a special, the regular comes in July) ETO, PEP, UTH, UGI, PTY and DLR.

Adds were made to AMGN, TU, TROW, GLW and SCHD.

I will point out that AMGN, TROW, and GLW are three of the mid-yield, fast dividend growth companies that I opened position in earler this year or late last year.

TU I have held longer. I purchased it by selling BCE and using the proceeds to buy TU, which had a much higher dividend safety score (Just barely above the Unsafe Range for BCE (42) and over the middle of the Safe Range for TU (72)). Improved the portfolio quality with that move.

SCHD I have written about earlier. With this dip into bear market territory, I liked its price better and have started adding to it recently.

Things slow down in August, and then even more in July.

We are at a first half all time high in dividends, in part due to special dividends.

[rnsmth]

(06-30-2022, 05:20 PM)rayray Wrote:

(05-28-2022, 01:35 AM)rnsmth Wrote:

(05-27-2022, 08:46 PM)fenders53 Wrote: Ron does DGI as it's supposed to be done.  Buy quality dividend stocks and generally doesn't sell them unless re-balancing.  Most of my port is boring as well.  I discuss the more exciting activity on the trading thread but that isn't a huge part of my port.

Thank you for the compliment.  A decade now into my switch to DGI and I have finally learned enough to feel fairly comfortable muddling though it.  It helps, at the age of 70, to have the household budget made with SS and pensions.  I do not have to get all excited about our portfolio values.  

At the close Friday we were 1.1% off of our portfolio highs.

At the close Friday, our project year forward dividends are at a all time high, both because of the selective reinvestment of accumulated dividends AND the dividend increases we received from RY and CM this past week.

In June I will be making a weekly reinvestment - it is one of our 4 big months.  I do not know what share prices will do during June, but we will be, given no dividend cuts, at another record estimated forward 12 month dividends.

i'm down 18% plus ytd

Here are our investment accounts as of the end of June

Fidelity Performance end of June 

Account 1 is about 30% of our investments
Account 2 is about 70% of our investments

Account 1, minus 9.71% YTD
Account 2, minus 3.2% YTD

S&P 500, minus 19.96% YTD

[fenders53]

It's certainly a good year to be dividend Investors.

[cemanuel]

(07-02-2022, 05:48 PM)fenders53 Wrote: It's certainly a good year to be dividend Investors.

Absolutely. Over on SA there was a thread recently where many people posted about their slowed dividend growth in 2020. Interestingly, for me, it was last year where my cuts/freezes were felt with only about a 7% increase. This year I will surpass my total dividends received in 2021 some time in August. Part of this is having the IRA but not all - without it I'd be pointing to some time in October.

A couple of months ago I heard an investment advisor on Bloomberg (driving so no notes to recall who). She said that 2021 was marked by huge earnings growth that outpaced dividends. She saw 2022 as a year when dividends would start to catch up.

[fenders53]

(07-04-2022, 07:04 AM)cemanuel Wrote:

(07-02-2022, 05:48 PM)fenders53 Wrote: It's certainly a good year to be dividend Investors.

Absolutely. Over on SA there was a thread recently where many people posted about their slowed dividend growth in 2020. Interestingly, for me, it was last year where my cuts/freezes were felt with only about a 7% increase. This year I will surpass my total dividends received in 2021 some time in August. Part of this is having the IRA but not all - without it I'd be pointing to some time in October.

A couple of months ago I heard an investment advisor on Bloomberg (driving so no notes to recall who). She said that 2021 was marked by huge earnings growth that outpaced dividends. She saw 2022 as a year when dividends would start to catch up.

As I have mentioned I am on a Dividend Discord where 90% of the investors have less than two years experience.  The ones that stuck to DGI investing and avoided hype stocks are pretty thrilled by how much they are beating the index by.  I chuckle and keep telling them to enjoy the moment, because beating the SPY by 10%+ over the long-term might just be a little harder than it appears.   I love dividend investing, but there is no strategy that doesn't have years of underperformance, and sometimes several in a row.

[cemanuel]

Sorry - posted something in the wrong place and don't see a delete option.

[rnsmth]

This Week in Ron's Dividend World

I received a dividend from TU this week. That is it.

I combined it with some accumulated dividends and bought some SCHD and GLW this week.

Next week I will get some dividends on Friday. One of them is from a Canadian company (PBA), so it will not show up in the account until the market close, so I may wait until the following Monday to combine it with O and STOR and do a little buying on Monday,

In the meantime, when I take dividends received through June 30 and add to that the SSD estimates for dividends I will receive in the second half of the year (those are based on share counts and current dividend rates), I will have real close to a 14% increase in portfolio dividend/distribution income in 2022.

That includes dividend reinvestment and three special dividends in the first half of the year. There may be another one or two special dividends from EOG in the second half of the year, but the possibility of those is not included in the 14%.

I will take it.

[fenders53]

EOG may stop doing specials quarterly, but they have the cash flow to keep the yield high.

[rnsmth]

(07-09-2022, 09:08 AM)fenders53 Wrote: EOG may stop doing specials quarterly, but they have the cash flow to keep the yield high.

We must live in different worlds.  EOG's current yield, of about 2.9%, is a solid mid-yield level.  High yield - not to me.

[fenders53]

(07-09-2022, 07:22 PM)rnsmth Wrote:

(07-09-2022, 09:08 AM)fenders53 Wrote: EOG may stop doing specials quarterly, but they have the cash flow to keep the yield high.

We must live in different worlds.  EOG's current yield, of about 2.9%, is a solid mid-yield level.  High yield - not to me.

How did you misinterpret that?  The actual yield we have received.  It's sure not 2.9%.  I just said quarterly special dividends may or may not happen.  That is pretty much what they have done. I said I expect there will be some more.  Maybe not every quarter.

[rnsmth]

(07-09-2022, 08:55 PM)fenders53 Wrote:

(07-09-2022, 07:22 PM)rnsmth Wrote:

(07-09-2022, 09:08 AM)fenders53 Wrote: EOG may stop doing specials quarterly, but they have the cash flow to keep the yield high.

We must live in different worlds.  EOG's current yield, of about 2.9%, is a solid mid-yield level.  High yield - not to me.

How did you misinterpret that?  The actual yield we have received.  It's sure not 2.9%.  I just said quarterly special dividends may or may not happen.  That is pretty much what they have done. I said I expect there will be some more.  Maybe not every quarter.

The specials are special.  I count on the regular dividends.  I expect another large raise in the regular dividend this year.

Sorry I misunderstood you.

[fenders53]

(07-09-2022, 10:26 PM)rnsmth Wrote:

(07-09-2022, 08:55 PM)fenders53 Wrote:

(07-09-2022, 07:22 PM)rnsmth Wrote:

(07-09-2022, 09:08 AM)fenders53 Wrote: EOG may stop doing specials quarterly, but they have the cash flow to keep the yield high.

We must live in different worlds.  EOG's current yield, of about 2.9%, is a solid mid-yield level.  High yield - not to me.

How did you misinterpret that?  The actual yield we have received.  It's sure not 2.9%.  I just said quarterly special dividends may or may not happen.  That is pretty much what they have done. I said I expect there will be some more.  Maybe not every quarter.

The specials are special.  I count on the regular dividends.  I expect another large raise in the regular dividend this year.

Sorry I misunderstood you.

I think we will probably get another special soon.  This may be peak earnings quarter but even if they fall back they will still be incredibly profitable.  They may buyback shares or accelerate debt repayment as well.  None of these are bad options.  I am just guessing they won't raise the base dividend a lot because it could be problematic years from now.