Portfolio Update - March 2020

Portfolio Update - March 2020

Today I am going to share my portfolio at the end of March 2020. This month we entered the bear market and my portfolio nose dived and I had to sell all of my remaining position of Delta Airlines (DAL) and also I have lowered my positions in the British Petroleum (BP) and Exxon Mobil (XOM) to raise some cash to buy some great stocks those I was waiting for an entry point for quite a long time. In February, I have sold all of my positions in Bank of America (BAC) at $34.5, 3/4 th of my JP Morgan (JPM) at $103, and Delta (DAL) at $46. I invested in DAL for a long time but I have decided to seel all because it will take them years to recover and the dividend is not going to come soon. because I am a dividend growth investor so I don't need to be invested for long in this stock. I was so lucky that I made a quick decision to sell most of my positions at $46. I sold my last few positions at $25. I raised a lot of cash in February by selling the stocks and I was holding around 10% cash in my brokerage account. I was so much active in the market around mid March and I think I made some great investment for the longer term. With those money I have opened my position in Starbux (SBUX) at $52, Disney (DIS) at $92, Cater Pillar (CAT) at $97, Realty Income (O) at $47, Store Capital (STOR), Duke Energy (DUK) at $74, and Southern Co (SO) at $44 in March. I have also added McDonald's (MCD) at $130, Cisco (CSCO) at $37, Leggett & Platt (LEG) at $23, Johnson & Johnson (JNJ) at $123, Emerson (EMR) at $46, Honeywell at $117, 3M (MMM) at $138, PPL at $26, and At&t (T) at $27. At the end of this blog you will see my overall portfolio. Below is the table that shows my portfolio distribution:

The same table is shown as a pie chart. I have invested in Apple (AAPL) in 2018 December and since then it sky rocketed. I am adding any more AAPL as I am holding more than 10% in my portfolio. I am also not going to invest in MMM anymore. I will add more positions in JNJ, HD, and MCD if I get them cheap. Microsoft(MSFT) is looking expensive right now. I will also add more DIS, CAT, and HON. I am also keeping an eye on O, STOR, DUK, and SO stocks.

The sector distribution of my portfolio is shown in the following pie chart. The sectors are based on Yahoo Finance. Currently, my highest position is in the health sector with 20% of my portfolio. I just invested in JNJ this month but the increase is because I have lowered my positions significantly in the financial and the energy sector. My second highest sector is the technology sector with 18%. The technology performed better in March and I have added more CSCO stocks. 

I always update my transaction in the tipranks website and the figure below compares my portfolio performance against the S&P 500. In most of the cases my portfolio beat the market.

My performance as a portfolio manager is also not bad. At then end of March I was ranked 1530 out of 24989 managers which is at the top 6%. My portfolio has gained 26.05% since I started to invest since 2017 August. Last month my gain was 69%. Last months bear market brought my gain down to 26%. My sharpe ratio is 0.81 while the average tiprank managers is -0.27.

My 12 month returns (TTM) is -6.07% while the YTD return is -19.5%. There may be more down turn in my portfolio but I am investing for long term so I should not be worried about this roller-coaster type movement.

The meter below shows my projected income in terms of dividends. On 31st March 2020, my projected income through dividends were $1118.99. It dropped from my last month because I have sold some high yield oil shares and holding cash. This income may drop more because some of the companies may cut their dividends.

My current yield on cost (YOC) is 3.84% while my current portfolio yield 3.54%. Because I am investing in dividend growth stocks so my YOC will continue to grow with time while the current yield depends with the market volatility. The yield will go up when the market is down and the vice versa.

The following figure shows the comparison of my current yield and YOC with time. Because the market dropped a lot, that's why the current yield is going up. This signals a buying opportunity in the market. For the longer term, if I keep investing in dividend growth stocks, my YOC will keep growing with time.

The following chart shows my growth in projected annual income with time. It is slowly but steadily increasing and this month I have received my highest earning so far through dividends.

The table below summarizes the dividends that I received in March 2020. This month I have received $144.16. My highest paying dividend paying stock for this part of the quarter was BP. Then MMM, HD, JNJ, XOM, and PFE. 

The following table shows the detailed performances of my portfolio. The current prices are based on March 31st, 2020. In the chart, I have shared my current positions, annual income through dividends, total received dividends from each companies so far, cost basis, YOC, current yield, and finally the total gain or loss including the dividend income. The top 4 stocks that I gained the most so far is MSFT 91%, MA 64%, PG 55%, and AAPL 54%. Currently, I am in the downside in all the oil stocks. I am more than 30% down in XOM, BP, and CVX.

Monthly dividend update - March 2020

March 2020 - Monthly Dividend Update

Hello everyone, I am updating my dividend portfolio in March. I always keep a record of my dividend investing in google sheet. It helps me to understand my portfolio performance so that I can make the right decision of my trades. This will also give me an idea about my future performance. I also love to share my portfolio with everyone. In March 2020, I have received a total of $144.46 in dividends. This month was the best month for me in terms of dividend-paying. Most of my dividend paid stocks actually pay dividends at this part of the quarter. I have received $18 from BP, $17.67 from MMM, $15 from HD, and $12.35 from JNJ. This month my YOY dividend growth is 37.7%. Last year this month I received $106 in dividends. I am expecting dividend cuts from some of the positions that I am holding especially from the oil stocks that I am holding. The Kraft and Heinz may also cut the dividend. Other than that I am not expecting any dividend cut from any of my stocks that I am holding.

Dividends Received in March 2020

The following chart shows the dividends received monthly from my portfolio. The chart clearly indicates the growth of my monthly dividends with time.

Monthly dividend received since June 2017

The following chart compares my monthly dividends on a yearly basis. In the last month, I have received $146 while in the same month in 2019 I received $106 which is 37.7% YOY growth in income through dividends.

Comparison of Monthly dividends received in each year

The next chart shows the total amount of dividends received on a quarterly basis. My previous two years had seen an increase in dividends every quarter. This year I am also expecting a similar increase in dividends. At the end of the first quarter, I have received a total of $292.84. Last year in quarter 1, I received $235.01. So its a 24% YOY increase on a quarterly basis.

Dividend Income on a Quarterly Basis

On a yield basis, the current yield of my overall portfolio is 3.54% while my yield on cost (YOC) is 3.84%. My current yield increased because of the market crash. The yield is dependent on market performance. In the bear market, the yield always goes up while the YOC increases on a yearly basis because of the dividend hike each year. 

YOC vs. current yield with time

The chart below shows the average dividend income received monthly and the average amount of dividends received monthly. I am slowly increasing my passive income and if I continue to invest in the dividend-paying stocks it will only grow with time. 

The following chart and table below summarize my dividend distribution in the portfolio. The most percentages of dividends I am receiving are from Abbvie (ABBV), At&t (T), and 3M (MMM) stocks. In the next few weeks, I will add some Home Depot (HD), Johnson & Johnson (JNJ), Disney (DIS), Caterpillar (CAT), and Honeywell (HON) stocks. I will not add ABBV and T anymore because I am receiving 11 and 9% of my dividends from these two stocks respectively.

The following table shows the dividends that I received from my positions in each month. In March 2020, I have received dividends from mostly BP, HD, MMM, and JNJ.

The next table shows the total dividends received in 2020 from my positions. In March, I have received $146 and the chart will help me to keep a record of my yearly income.

The next table shows my dividend growth performance in 2020. Out of my 37 stocks, 17 of them already increased their dividends while no one cut their dividends yet. I am expecting that BP, XOM, and KHC may cut their dividends significantly. Mastercard (MA)  increased 21%, ABBV 10%, Home Depot (HD) 10%, Bristol-Myers (BMY) 10%, and Comcast (CMCSA) 10% in the current year which indicates a solid increase on my passive income.

My way of finding the buying opportunity of a stock during the Bear market

Finding the entry point of buying stock during the Bear market

The market is at the bear market as it fell more than 30% in March. I have created a list that contains all of my stocks in my portfolio and some other stocks which are on my watch list for quite a long time. I have made a price comparison chart of all those stocks which compares how much the price drops from their 52 weeks high. I have also added each stock PE ratio and Current yield although for many of them the PE and current yield will change significantly. I have also calculated the price of each stock at 20%, 30%, and 50% down from their highest price. The 52 weeks high has been extracted from google finance and the PE and current yield are from yahoo finance. The energy sector got hit the most with an average of around -60% from their recent highs. The next sector that got hurt is the financial sector which is down with an average of around -30%. The best sector is so far is the consumer defensive sectors. The table below shows the energy sector performance

Energy Sector:

All the major energy stocks dropped more than 50% except Chevron but very close to 50%. The prices are really attractive but in this situation, it's better to stay away from any energy stocks. In my portfolio, I am holding BP, CVX, and XOM. I am not selling them and holding them for the longer term.

REIT Sector:

The REIT sector was also down big until the recent rally recovered from the low prices. I have started my position in realty income (O) @40.5. I was watching the stock for a long time but the price was really high just a few months ago. I will add more O if the price drops below $40 which will be more than 50% down from its 52 weeks high.

Financial Sector:

The financial sector is also down big. I was so lucky to sell all of my BAC stocks in mid-february @$34.5. I took a good amount of profit from BAC. I am not planning to add any bank stocks now. Although their PE is very low, I am expecting more than 50% drop in JPM and BAC. Their earnings will drop for sure and the PE will increase. I will add JPM if it drops below $60 and BAC below $12.

Industrial Sector:

I was very active to buy stocks in this sector in mid-March. I have added CAT, EMR, HON, and MMM stocks while sold 75% of my DAL position in February @$49.5. The prices were very attractive and I am investing in those stocks for a longer-term. Emmerson (EMR) and 3M (MMM) are the dividend kings who are increasing their dividends for more than 60 years. I have added enough MMM, now I will gradually increase my position in CAT and HON in the next few weeks.

Consumer Cyclical:

This is another sector that I love to invest a lot. GM and LEG are down almost 50%. LEG is a dividend aristocrat. It raised its dividends for the last 47 years. I have added a few LEG @$25.5. I have also added MCD and SBUX in mid-march @$128.66 and @$52.5 respectively. I will add more SBUX if the price drops below $50. I am also watching HD. I will add them @$140. I am also watching Nike for a long time but unfortunately, the stock is always overvalued. I will look for an entry @$52.

Consumer Defensive:

This is the best performing sector so far in the market. Still, I don't see any buying opportunity in this sector as their PE ratio is still high. I may add PEP if the price drops below $100 and KO below $33.

Communication:

In this sector, two of my favorite stock is At&t(T) and Disney (DIS). Disney was down big before the recent rally. I have added a few DIS stocks @$82.5. I will add more DIS if it drops below $78. I have also added T in mid-March when the price dropped below $27.

Healthcare Sector:

In the healthcare sector, I already own too many stocks of ABBV and BMY. The only stock I am adding in this sector is JNJ. recently I have added JNJ @122. I will slowly add more JNJ if the price drops even more.

Technology Sector:

I own AAPL, MSFT, CSCO, and TXN in my portfolio. I am adding any AAPL and MSFT as their PE is still high. I will add more CSCO if the price drops below $30.

Utility Sector:

In this sector, I own D and PPL. I was watching SO and DUK for some time. Recently I have added SO @ $44.5 and DUK @ $70.5. I will add more SO and DUK if the price drops around 40% from their highs.

Bumped app review - Get free fractional stocks from the selected brands that you shop

Bumped app review

Bumped is a new start-up company that gives fractional shares of a company as a reward if you spend your money on that brand.  They are testing as beta and currently, the signup process is invite-only. I waited for 7 months on the waiting list to get the invitation. Because they are in the beta stage so there are not enough brands to select in the portfolio and they give the brands randomly so you may not get the brands that you love. But I am enjoying the app because the fractional shares that I will get is a bonus addition.

You can sign in using the link. The link: Sign up. After the signup process, you have to connect your credit cards and bank accounts in the app and they will monitor your expense and will add the fractional shares of the company that you have in your portfolio. Under the loyalties, you will get the options for the selection of a company or brand. Unfortunately, they have selected the brands for me randomly. That was the only thing I did not like in the app. I am really disappointed that I haven't got Walmart in my option. I shop a lot at Walmart.

I have got 9 categories to select. They are

1. Club Warehouse
2. Coffee
3. Convenience store/ gas
4. Entertainment
5. Grocery
6. Personal Care
7. Quick Eats
8. Ride Sharing 
9. Vineyard

Under the club warehouse, I have got Sam's Club and with that, I can get 1% shares of Vanguard Total Index (VTI). I sometimes shop in Sam's but I am not planning to renew my membership when it expires. So this will be useless after the membership expiration.

My second category is the Coffee category. Here you have the option to choose from various coffee shops. I decided to choose Dunkin Brands. I don't drink coffee that much so this category will also not help me. maybe twice a year I go to the Dunkins to buy donutes.

The next category is the one I will get the reward on a regular basis. They gave me the option to select an energy company. I choose Chevron (CVX), as it is just next to my working place. The downside is that I will get only 0.5% of my spending on gas. So definitely, I will not get enough stocks of CVX for the long term.

The following category I got, is named as Entertainment. Unfortunately, I don't spend money on Netflix or Spotify. I use sling tv and I don't have it in my account. So that is a disappointment. I am a complete Xfinity customer. I use their internet, tv and mobile service. Hopefully, they will add Comcast (CMCSA) stock into their portfolio. I have selected AMC but I don't actually watch movies in the hall. I sometimes rent movies from youtube movies which cost me only $3.99.

The Grocery category is totally useless for me as there is no Kroger near my place. Hopefully, they will add more brands under this category.

Another useless category for me is personal care. I never went to these brands for shopping.

The next category is a good one for me as I sometimes go to Mcdonald's for eating. My kids also love to eat in Mcdonald's and I personally own MCD stocks in my portfolio. I will get 3% MCD shares when I spend money in MCD. That's a good pick for me.

I also got ride-sharing UBER and LYFT to choose from. I have selected UBER but I don't use that much. I live in downtown Miami, FL and there are tri-rails and metro buses available. The last Vineyards is of no use for me as I am non-alcoholic.

Sign-up Bonus:

Ok, this is interesting. As I have read some blogs about Bumped and I have never seen that anyone got any sign-up bonuses. I have got in total $25 worth of stocks from Exxon (XOM), Chevron (CVX), and McDonald's (MCD). So on the very first day the value of my portfolio is $25.12 with $10 worth shares of XOM & CVX, and $5 worth of MCD.

The first reward I got is from Chevron. This station is near my working place and I got $0.09 worth of CVX share which is nothing but if you continue to use this app and reinvest the dividends it will grow definitely and always consider this in mind that these are free stocks.

Conclusion:
I would say this is a great and unique idea from Bumped. I think this will help both the customers and the companies. I would be very happy if they keep adding more brands with time. What I am missing is Walmart, eBay, Amazon, BestBuy, Google, and Comcast stocks from them.

Dividend Received on October 2019

Dividends received in October 2019

In October 2019, I have received a total of $60.83 in dividends. The chart below shows the dividends that I received each month in 2019. This cycle I used to receive the least income compared to the other quarters. The majority amount of dividends I received in the last month was from JP Morgan (JPM) and Medical Properties (MPW). This month I have received dividends from my new addition PPL Corp (PPL) for the first time. 

The next table shows the total dividends received in 2019 from my portfolio. In total, I have received $753.48. 

The next table shows my dividend growth performance so far in 2019. The last column of the chart shows the change in dividends compared to the previous year. The box marked green indicates the percentage of dividends increased in the current year while the box with red means a decrease in dividends this year. In the last month, I got a dividend raise from Visa (V). They raised their dividends 20%. This year all the stocks in my portfolio raised their dividends except Kraft and Heinz (KHC). 

The chart and table below summarizes my dividend distribution in the portfolio. The most percentages of dividends I am receiving are from ABBV and At&t (T) with 10.1 and 8.6% respectively.

The following chart shows the dividends received monthly from my portfolio. The chart clearly indicates the growth of my monthly dividends with time.

The following chart compares my monthly dividends on a yearly basis. In October 2019, I have received $60.83 while in 2018 in the same month I received $42.62 which is 42.73% YOY growth.

The next chart shows the total amount of dividends received on a quarterly basis. This year my quarterly income remains the same but I am expecting an increase with this quarter because I sold some of my high yield BDC and REIT stocks in May and June and it took me some time to buy new stocks. the recent time I invested in MMM, PPL, and XOM, so I am expecting a good increase in my dividends this quarter.

So far my current yield is 2.98% and my yield on cost (YOC) is 3.59%. The increase in YOC is due to the dividend increase of some of my stocks. However, the current yield dropped because of the bullish market.

My projected annual dividends in October 2019 is $1068. My first goal is to earn $100 monthly which is $1200 a year. I am moving towards my goal gradually every month as you can see from the chart below. I am investing 8% of my salary monthly and also reinvesting all the dividends that I am receiving.