July 2020 – Monthly Dividend Portfolio Update

Monthly dividend portfolio update for July 2020. Value: $9,903 | Gain: +$526 | Return: ▲6% | Dividends: $27 | Investment: $1,900.
July-2020-Monthly-Dividend-Portfolio-Update-1

For the month, the S&P 500 was up 5%, the Dow was up 3% and the Nasdaq was up 6%.

July 2020 – Monthly Dividend Portfolio Update

The benchmark index for dividend investors, the S&P 500, is up 50% since the market bottomed on March 23, 2020, and up 4% year-to-date.

So, what happened?

Despite the resurgence of coronavirus in as many as 24 states, forcing them to close parts of their economy, Wall Street rallied for its 4th consecutive month in July.

Two reasons why that happened:

  1. Q2 earnings have been better than analysts feared.
  2. Q2 GDP decline wasn’t as bad as economists predicted.

300+ companies on the S&P 500 reported earnings in July. And out of all those companies that reported, 84% reported earnings above what analysts had predicted.

The markets were ecstatic, to say the least. That was the good news.

But we live in weird times. Even bad news moved the market up because it wasn’t as bad as they said it would be. I am talking about the dismal GDP drop.

Absolutely no one thought the Q2 GDP would be good. I mean, the entire U.S. economy was shut down for a better half of Q2.

However, economists were predicting a decline in U.S. GDP of 35%. But it turns out, the GDP declined just by 33%. That, believe it or not, was a cause for celebration.

Like I said, strange times.

My July 2020 – Monthly Dividend Portfolio Update

Value: $9,903 | Gain: +$526 | Return: ▲6% | Dividends: $27 | Investment: $1,900

Yes, July was a good month for my portfolio. But not better than April, when it gained 15%. As they say, I bought the dip. I don’t believe I will witness a similar buying opportunity for a long time.

In July I made 11 purchases; 3 ETFs and 8 individual companies:

  • Global X Nasdaq 100 Covered Call ETF (QYLD); $700
  • iShares Global REIT ETF (REET); $275
  • Vanguard High Dividend Yield ETF (VYM); $275
  • ONEOK (OKE); $250
  • Cisco (CSCO); $25
  • Intel (INTC); $148
  • Microsoft (MSFT); $44
  • Apple (APPL); $52
  • NVIDIA (NVDA); $40
  • Cummins (CMI); $41
  • Wells Fargo (WFC); $50

As you all know, I create my own ETF (list) using M1 Finance and make weekly investments. However, in July, I wasn’t too confident in the markets so I invested in high dividend yield ETFs just so that I don’t get burned.

Dividend Increase: Altria (MO) announced a dividend increase of 2.4% to $0.86 per share; the previous payout was $0.84.

Dividend Cut: Wells Fargo (WFC) announced a dividend cut of 80% to $0.10 per share; the previous payout was $0.51.

Portfolio All-time

Value: $9,903 | Gain: +$1,159 | Return: ▲31% | Link to portfolio: M1 Finance | Website | Excel

I rebalanced my portfolio in July and invested some of the gains back into buying more of underweighted companies. This all-time portfolio takes into account the gains and dividends I have re-invested.

Projected Dividend Income

Annual: $439 | Monthly: $37

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