September 2020 – Monthly Dividend Portfolio Update

Value: $12,809 | Loss: -$107 | Return: ▼0.87% | Dividends: $63
September 2020 - Monthly Dividend Portfolio Update
September 2020 – Monthly Dividend Portfolio Update

Markets rescinded in September and I sort of went on a buying spree. More on that later.

For the month of September, the S&P 500 was down 4%, the Dow was down 2% and the Nasdaq was down 5%.

The benchmark index for dividend investors, the S&P 500, is up 42% since the market bottomed on March 23, 2020, and up 8% year-to-date.

So, what happened?

One word, TECHNOLOGY.

The tech companies we have all come to love dragged the market down after having a fantastic August. Last month, I mentioned that there was absolutely no reason for the rally and long behold, the markets corrected itself.

They always do. That’s the beauty of the markets.

So, what’s next?

According to historical data, October is considered to be the best month for the markets; both for buyers and sellers. However, there’s also more than average volatility as indicated by this chart:

If you think the volatility is due to the coming November 3rd Presidential elections, you might be wrong. In fact, no one really knows why there’s so much volatility in October. It’s a statistical anomaly.

To a guy with a hammer, everything looks like a nail. As a tax accountant, I think this anomaly could be the result of tax-loss harvesting. Simply put, you sell stocks that have lost in value to net out the gains from selling the stocks that gained in value. Thereby, reducing your capital gains, something you need to do before the end of the tax year which is December.

Let’s do the numbers.

September 2020 - Monthly Dividend Portfolio Update

September Summary

Value: $12,809 | Loss: -$107 | Return: ▼0.87% | Dividends: $63 | Investment: $1,877

For the first time since March, my portfolio was in the RED for the month. But that didn’t stop me from buying solid dividend-paying companies. Note: I started investing in March 2020.

It was a great month for me in terms of dividends received and increases. Also, my projected yearly dividend income crossed $500.

For the month, I invested a total of $1,877 across 50 companies that are part of my lists.

Dividends Received
In September, I received $63.15 in dividends from the following companies:

  • Johnson & Johnson (JNJ): $2.75
  • Walmart (WMT): $0.31
  • UPS (UPS): $0.58
  • CDW (CDW): $0.31
  • Microsoft (MSFT): $0.56
  • YUM Brands (YUM): $0.30
  • McDonald’s (MCD): $0.43
  • eBay (EBAY): $0.21
  • Blackrock (BLK): $1.88
  • NVIDIA (NVDA): $0.06
  • Vanguard High Dividend Yield (VYM):
  • Xylem (XYL): $0.46
  • Anthem (ANTM): $0.61
  • Lockheed Martin (LMT): $1.06
  • Global X NASDAQ 100 (QYLD): $14.04
  • Goldman Sachs (GS): $0.54
  • iShares Global REIT (REET): $9.69
  • Eversource Energy (ES): $1.22
  • Extra Space Storage (EXR): $1.05
  • Pepsi (PEP): $0.44

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.

Verizon (VZ) announced a dividend increase of 2% to $0.6275 per share; the previous payout was $0.615.

Microsoft (MSFT) announced a dividend increase of 9.8% to $0.56 per share; the previous payout was $0.51.

Texas Instruments (TXN) announced a dividend increase of 13% to $1.02 per share; the previous payout was $0.90.

Accenture (ACN) announced a dividend increase of 10% to $0.88 per share; the previous payout was $0.80.

Lockheed Martin (LMT) announced a dividend increase of 8.3% to $2.60 per share, the previous payout was $2.40.

Portfolio All-time (10/9)

Value: $13,637 | Gain: +$1,574 | Return: ▲13% | Link to portfolio: M1 Finance | Website | Excel

Projected Dividend Income

Annual: $505 | Monthly: $42

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