Dividend Account results – 3rd Qtr 2020

Sorry I didn’t post over the weekend. Went backpacking up in New Hampshire, where it dropped down to 32 degrees with a 15 mph wind blowing. Made the hike a little more “exciting” than I wanted.

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. With Interest rates the way they appear to be, I don’t see bonds performing that well in the near future.

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. Yield was up to 6.13%, but this was primarily due to a drop in the underlying value of the investments. For the second quarter, the investments recovered somewhat, and my yield dropped won to 4.67%. The actual $ amount of dividends for 2020 vs. 2019 was just about even.

For the third quarter, the value of the underlying investments has gone up about 2% (still not where they were at the beginning of the year) and the dividend payments are only 3% higher than the same period last year. A slight improvement.

stockDetailsInvestment valueYieldDividend
CATCaterpillar$7,457.502.76%$51.50
CVXChevron$3,600.007.17%$64.50
CSCOCisco Systems$5,908.503.66%$54.00
DOWDow$4,705.005.95%$70.00
XOMExxon Mobil$3,433.0010.14%$87.00
HRHealthcare Realty$15,060.003.98%$150.00
IBMInternational Business Machines$6,084.005.36%$81.50
PFFiShares$12,029.005.39%$162.04
PFEPfizer$5,505.004.14%$57.00
ORealty Income Corp (REIT)$12,150.004.61%$140.10
SVCServices PPTYS TR$4,770.000.50%$6.00
MMM3M Company$6,407.003.67%$58.80
UMHUMH Properties$14,894.005.32%$198.00
VZVerizon$5,949.004.14%$61.50
WBAWalgreens$3,592.005.21%$46.75
$111,544.004.62%$1,288.69

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. If I had additional capital, I might invest more here, as I think these dividend stocks are undervalued.

Let’s see how the 4th quarter goes.

Mr. 39 Months

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.