May Dividend Income

31 May 2020 18:16
Tags monthly_income

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After 33 years of clocking in and out of work and religiously saving 10% annually every year, in good times and bad, I have decided to share my monthly dividend income to show what regular saving and investing can accomplish.

For the month of May I made $2,207; a decrease of -8.5% versus this time last year. One factor for the reduction was my CM dividend credited my account on April 30 unlike last year which credited my account on May 1. Even accounting for this my portfolio was still down -0.7% as dividend cuts & suspensions began creeping in. Here are the holdings for May that cut or suspended payments:

  • APLE suspended
  • CLDT suspended
  • SVC 98% cut
  • SBRA 33% cut
  • WRK 57% cut

June will be my first full effect of dividend cuts and it will be painful indeed. Hopefully some recent buying activity offsets some pain.

For May I sold out of my hotel holdings, sold Marine Products (MPX) at $11/share and I sold 80% of my Walmart (WMT) holdings at $128/share in an attempt to build a sizeable cash position. I have a feeling August is going to be a very bad month in the markets as the effects of a partially closed economy and a slow recovery begin to settle in. Also, if COVID-19 concerns and negative China relations in regards to Hong Kong and Taiwan persist it could send markets down as early as late July. I could be a little paranoid, however, I would rather be prepared with money on the sidelines than being caught flatfooted as I was in March missing out on quite a few buying opportunities.

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I continued with my weekly M1 Finance contribution of $120 for a total of $480. The overall dividend yield of my M1 pie decreased to 3.847% due to the market rallying at the end of May with my total portfolio return sitting at -3.53%.

Overall my M1 Finance accounts contributed $10.99 to this month’s dividend totals. Inching ever so closer to consistently delivering double digit dividends! Luckily this portfolio has had no ill effects of dividend cuts.

I also provided a link to my M1 Pie for those interested in seeing all of the individual holdings.
https://m1.finance/NCB--FZCZ

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My age 53 goal (I’m 51 for those not in the know) went backwards again this time by a whopping -5.78% all from the recent dividend cuts with the largest coming from EPR Properties (EPR). Since this goal is using forward dividend payments it should stop going negative for a few months and hopefully the worst is over.

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For those not familiar with my Age 53 goal, I plan in 7 year increments and targeted to have 57% of my expenses to be covered via dividend income and to be at 115% for my next 7 year target at age 60. Why 115%? This was based on a multiple bear market/crash analysis I performed back in 2018 that showed my optimal portfolio to withstand a long term bear market with high inflation would be to have dividend income of 115% of expenses and the equivalent of 9 months of expenses in cash.

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