During May, the markets were erratic at times as investors digested solid corporate earnings and accelerating inflation. It was a ‘Sell in May, and Go Away‘ kind of month. As a result, technology stocks took a lot of heat.
To end the month, the S&P 500 was up 0.55%, the Dow was up 1.93% and the Nasdaq was down 1.53%.
- President Biden released his $6 trillion budget, which included his $4 trillion American Jobs Plan and American Families Plan bills as well as a tax increase to help pay for the expenditures.
- Demand is exceeding supply, resulting in increased bottlenecks, labor shortages, and higher inflation. As a result of stimulus, savings, and more reopenings, Q2 growth forecasts are historically high.
- Inflation in April beat estimates by 0.6% and gained 1.6% to 4.2% YoY, which is the highest since September 2008.
- According to Bloomberg Intelligence, the Q1 earnings growth rate for the S&P 500 stands at 53%.
- As of May, 40% of the U.S. population is now fully vaccinated.
Let’s do the numbers.
Value: $23,918 | Gain: $286 | Return:▲1.05% | Dividends: $109 | Investment: $1,000
In May, I received $109 in dividend income, and my portfolio gained $286 in value, or 3.32%. And yes, for the first time since March of 2020, I took some money out from my portfolio. Previously, I had only re-balanced my portfolio without taking any money out.
I needed some cash for a purchase and instead of borrowing from the credit card, I decided to sell. That’s one of the benefits of investing using a taxable income instead of a retirement account.
I sold some of my holdings in Altria, JP Morgan, Blackrock, Camden, Cisco, Extra Space Storage and Ventas. I made $933 profit without dividends and $1,026 in profit with dividends.
In May, I received $109 in dividends from the following companies:
- SBUX: $1.17
- CAT: $0.81
- TXN: $3.37
- PG: $1.95
- HAS: $0.10
- OKE: $0.26
- COST: $0.57
- AAPL: $1.22
- DE: $0.77
- APD: $1.34
- MA: $0.53
- LOW: $1.02
- VZ: $3.76
- INTC: $2.95
- V: $0.70
- WMT: $1.75
- WFC: $0.70
- XYLD: $27.53
- QYLD: $58.00
Portfolio All-time (6/8/2021)
Projected Dividend Income
Annual: $1,303 | Monthly: $108