Saturday, April 30, 2022

Week in Review

Glad to make it to the weekend after a brutal week in the market. 

After six months of tracking we're right back where we started! Pretty much dead even. Given what's happened in the market in the last 4-5 months, I'll take it. Starting in January I reallocated the portfolio towards a lower beta (~0.59) and shifted my sector weighting more towards consumer staples, utilities, energy and real estate. 

In some areas I've started a position in sector ETFs where to help balance out areas. Currently I have positions in $XLP (Consumer Defensive) and $XLU (Utilities). Both produce some yield and are sufficiently diversified until I can decide where to allocate towards individual companies.

I've also taken some of the portfolio and shifted to a higher allocation of short term treasury bonds $SCHO. Even as bonds take a hit, I think staying in the shorter term space is a good place to park some cash until I can see my way through the risk.


Unfortunately there is no telling when we can flip the switch from risk-averse to risk-taker. And by risk-taker I mean steer the dividend growth portfolio into a higher beta zone. While I'm not convinced we have seen the bottom yet, it's becoming clear there are some great dividend growth companies out there that are getting cheaper by the day. Great companies like Lowes, Target, Microsoft and Apple are off their 52 week highs. When I'm doing research I'm using SimpleSafeDividends primarily looking for companies that can weather the upcoming risk and continue to return capital. Lowes has done it for 59 years! 

While I won't make any major changes yet, I'll continue to monitor and ensure I'm investing in high quality companies with dividend reinvestment and any covered call income. 

Lowes annual dividends per Share

Dividends:  This week we had $210 worth of dividends.
  • $XLYD - $69.26
  • $CMCSA - $27.00
  • $QQQ - -$4.34
  • $ETO - $77.10
  • $AMT - $40.60
Dividend Increases:  
  • Apple lifts payout by 4.5%, achieving 10th straight year of dividend growth

    Apple announced its next dividend of $0.23 per share, a 4.5% increase over the company's previous payout of $0.22.

    The iconic technology leader has enviable brand loyalty and market positioning, which has allowed the firm to build a fortress of a balance sheet, consistently grow earnings, and maintain a conservative payout ratio.

    Increased annual income $1.96. (Big money!)

Options:
  • Bought some $54.00 $KR calls at close of business Friday hoping to capitalize on a bounce Monday. 
Next Steps:
  • I need to revisit the quarterly rebalancing but I'm not in a big hurry as I'm overall happy with things. Need to take a few profits on energy & utilities and take some consumer discretionary ($WSM) off the table and likely allocate towards more Consumer Staples. Not sure yet.  
Have a great weekend everyone!