Follow the dividend investment decisions of a person who has no background in financial investment and wishes to take control of their financial future to retire from their full-time job at 60.

Finished Repositioning My Portfolio - 22 Aug 2020 12:43



The repositioning of my portfolio is finally complete. It took a total of 10 weeks waiting for sell and buy prices but my portfolio for the most part is now repositioned to a level I am comfortable with. However, I will add some of my repositioning is based on my current age (I’ll be 52 in October) and decided to rebalance significantly into Utility & Telcom companies which offer more dividend stability but less dividend growth. It is interesting that the closer I get to my retirement age of 60 I look for more stability and risk becomes less tolerable.

That said, let us dive into what has transpired the last 2 ½ months by starting off my sell transactions:

Stocks I sold completely out of

  • Apple Hospitality (APLE)
  • Chatham Lodging (CLDT)
  • Dominion (D)
  • Goodyear Tire & Rubber (GT)
  • Service Properties Trust (SVC)
  • WestRock (WRK)

Stock I reduced position by 80%

  • General Motors (GM)
  • WalMart (WMT)

After all those sells I also transferred some of my cash position as it increased from 10% of my portfolio to 14% by the end of June. To get it back to a planned 10% I moved 4% and added to my pile of sold stocks.

With a significant pile of investable cash heading into July it was time to start buying and here is a summary of the buys during July & August.

Utilities & Telcom Buys (11 stocks)

  • Algonquin Power & Utilities (AQN)
  • Artesian Resources (ARTNA)
  • AT&T (T)
  • Avista Corp (AVA)
  • BCE Incorporated (BCE)
  • Duke Energy (DUK)
  • Oklahoma Gas & Electric (OGE)
  • PPL Corp (PPL)
  • Southern Company (SO)
  • Telus (TU)
  • Verizon (VZ)

Dividend Growth Buys (11 Stocks)

  • AbbVie (ABBV)
  • Bar Harbor Bankshares (BHB)
  • Canadian Imperial Bank of Commerce (CM)
  • Discover Financial (DFS)
  • International Business Machines (IBM)
  • Leggett & Platt (LEG)
  • 3M (MMM)
  • Pepsico (PEP)
  • Pfizer (PFE)
  • Prudential Financial (PRU)
  • Walgreens Boots Alliance (WBA)

I did have two casualties on the buy list, I had also targeted Wasted Management (WM) and United Parcel Service (UPS). The two stocks had their share price rocket up and fall well outside my price targets. Still holding out hope for WM but UPS went absolutely nuts from ~$110/share all the way up to $160/share and is completely off the table this point.

And there you have it, I sold 9 stocks, added some cash and bought 22 stocks. Of course to get the prices I wanted the majority of the buys occurred after an ex-dividend date which translates into no significant impact until the 4th quarter. I still have 3 stocks in my portfolio I am not comfortable with and may sell in the future but they are not large positions and in the short term I will hold to see where the go - Comments: 0

Interesting Sector Rotation - 16 Aug 2020 00:41


Wow is the only way I could describe last week’s market volatility and I cannot remember the last time I witnessed such a pronounced sector rotation and I am sure many of you felt it in your portfolio balance.


A typical and more common rotation occurs between asset types; bonds to equities, cash to equities, or vice-versa. However with last week’s rotation that was not the circumstance as the S&P 500 eked out a mere 0.64% gain for the week so no large position of cash was entering or leaving equities. The rotation that occurred was money moving out of the technology sector to all other sectors. Sector rotations are not that uncommon and you routinely see them occur during political elections when balance shifts between democrats and republicans. What made this a touch different was how much money left just one sector and funneled into all 10 other S&P sectors.

Since technology stocks are so heavily weighted in the S&P 500 it was pretty easy to monitor and Wednesday was the peak of the rotation as the S&P 500 was down -0.7% but my portfolio was up 4% and every stock in every sector (except tech) was up. By Thursday the rotation finally died and tech was back in the game after Tesla announced a stock split which coupled with Apple’s earlier announcement of a stock split was enough to slow the rotation down. By the end of the week the S&P 500 gained 0.64% and my portfolio trimmed some of its gains closing the week up 2.8% still a respectable gain versus the S&P.

The hardest thing to deal with during this rotation was I was still repositioning my portfolio and these market gains didn’t make it easy. Luckily I started repositioning the week prior to this and already bought 16 of the 21 stocks I was planning on moving into but that left 5 positions caught in the whirlwind rotation. For the first three days all 5 stocks were outside my buy range and by Friday 3 were close enough in price that I was willing to pay a slight premium for; Pepsico (PEP) Discover Financial Services (DFS), and Duke Energy (DUK). I still have 2 buys left to execute which hopefully I can get done between now and the end of the month and get my portfolio repositioning behind me.

In the meantime I just thought the rotation was pretty cool to witness and wanted to share my experience. Hopefully everyone experienced something similar as it always feels good to open the old portfolio and see a positive balance. Considering how tech heavy the S&P has become this may not be so uncommon in the future but for now it was interesting to watch. - Comments: 0

July Dividend Income - 06 Aug 2020 01:18

Tags: monthly_income


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 July I made $2,946; a decrease of -8.7% versus this time last year. The decrease was not a surprise as most of my REITs paid in the first month of a quarter and we are all familiar with REITs and dividend suspensions.

For July I sold my position in Dominion Energy (D), which I just bought in June, over the Berkshire Hathaway deal. This was a one sided deal and I think D just rushed the sale and what little capital the will receive for the deal will be redirected towards stock repurchase which I believe is a terrible use of cash. D management’s inability to adequately redeploy cash to generate more future cash flow was enough for me to question leadership so I sold.

I made no significant purchases in July as I was more focused on enjoying some long overdue vacation time with some fishing, relaxing around the house and catching up on some home projects.


I continued with my weekly M1 Finance contribution of $120 for a total of $480. The overall dividend yield of my M1 pie slightly decreased to 3.705% as the market continues its recovery.

Overall my M1 Finance accounts contributed $9.35 to this month’s dividend totals.

I also provided a link to my M1 Pie for those interested in seeing all of the individual holdings.


My age 53 goal (I’m 51 for those not in the know) moved backwards -1.5% due to my sale of Dominion. My plan is to redeploy cash reserves during the month of August so things should be moving forward once again.


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. - Comments: 0

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