August 2020 – Monthly Dividend Portfolio Update

Value: $11,047 | Gain: +$517 | Return: ▲5% | Dividends: $18

For the month of August, the S&P 500 was up 7%, the Dow was up 7.6% and the Nasdaq was up 9.6%.

Some records were set:

  • S&P 500 had its best month since 1986.
  • Dow had its best month since 1984.
  • Nasdaq had its best month since 2000.

It’s like the 80s and 90s all over again. Remember what happened in 1987 and 2001? Okay, let’s not go there. Hint: *POP*

The benchmark index for dividend investors, the S&P 500, is up 56% since the market bottomed on March 23, 2020, and up 6% year-to-date.

So, what happened?

Actually, nothing significant happened in August that would explain the gains witnessed by the stock market.

There’s no additional stimulus. There’s no vaccine. Yes, the unemployment number is decreasing and durable goods orders (a measure of business investment) increased 11.2% month over month in August.

Other than that, Apple and Tesla had stock splits and witnessed a meteoric rise in value before and after the split for no apparent reason.

So, what’s next?

According to historical data, a good August leads to a bad September as stocks drop and correct themselves. If the first week of September is any indication, this might well be the reality for the month of September.

Did I mention this is an election year?

Let’s do the numbers.

July Summary

Value: $11,047 | Gain: +$517 | Return: ▲5% | Dividends: $18 | Investment: $900

August wasn’t as good as July for my portfolio. However, my portfolio reached $10,000 in value. And I am really happy about that.

In August, I invested a total of $900 with the majority of it going towards the purchase of Cisco and Intel – $250 each. The remaining $400 was invested across 24 companies that are part of my lists.

Dividend Increases
Lowe’s (LOW) announced a dividend increase of 9.1% to $0.60 per share; the previous payout was $0.55.

Intuit (INTU) announced a dividend increase of 11% to $0.59 per share; the previous payout was $0.53.

Portfolio All-time

Value: $11,422 | Gain: +$1,088.54 | Return: ▲11% | Link to portfolio: M1 Finance | Website | Excel

This all-time portfolio no longer takes into account the gains and dividends I have re-invested. I felt that it was misleading and confused some subscribers.

Projected Dividend Income

Annual: $459 | Monthly: $39

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