As noted back in April, I altered my Dividend/Income account to reduce the bond allocation to 0, and increased the dividend stocks and REITS to a 50/50 split. The idea was to increase my dividend yield, as bonds had been performing poorly for the 3+ years that I had been using them.
The first quarter was somewhat successful (an 18.7% increase in dividend $) but a real bust as far as value (I dropped almost 30% in value) due to the market volatility. If I had kept the bonds, I wouldn’t have dropped as much. As usual, my short-term timing is poor.
For the second quarter, I had to shift my account from my bank (USAA) to Vanguard, because USAA was spinning off their investments to Schwab, and I didn’t want to have my investments in multiple companies (I currently use Vanguard, and Mrs. 39 Months uses TRowePrice). I may have missed a few dividend payments on this, so the numbers are a little suspect. For the 2nd qtr 2020:
|IBM||International Business Machines||$6,038.50||5.40%||$81.50|
|O||Realty Income Corp (REIT)||$11,900.00||4.70%||$139.80|
|SVC||Services PPTYS TR||$4,254.00||0.56%||$6.00|
For 2nd qtr 2019, I received 1,280.21 in dividends on $131,994 of investments – so 2nd quarter appears to be a “wash.” I’ve managed to gain back about 12% of the value back from the 30% that I lost, but still have a ways to go to build it back up.
Again, if I was using the account to live off the dividends, I could “let it ride” and let the investments build back up, while spending the dividends. I believe the “jury is still out” on whether the shift to stocks & REITS was a good decision or not. With the current US Fed and its interest rates, I don’t think Bonds will be a good return any time soon – unless you are willing to go into some very risky bonds.
Let’s see how 3rd and 4th quarter goes.
Mr. 39 Months