Settling in at home after wandering the country a little, provides an opportunity to reflect on my observations, discussions and tenor of the people I engaged with. I thoroughly enjoyed the visits and sometimes lively discussions and following are a sampling of these. There is but one potential action item for my portfolio review – which is less than normal for these adventures.
FI Fighter returned from his self-imposed exile with a renewed passion. Now I’ll be the first to admit that his investing style is a little (ok, maybe a lot) more on the fringe than mine, but his concepts and theories are well-reasoned. Perhaps the downside to his methods as the timing – not in the sense of timing the market but in having a measure of foresight in developing trends. Being ahead of the curve tends to have drawbacks as Elon Musk can probably attest.
He returned May 18th with a series of three posts/podcasts, one of which garnered my attention. His views on metals – in particular Lithium – seem to resonate with me. I agree with his general view of market direction, our disagreement would be in the investment manner. In short I prefer a greater margin of safety with a ‘proven concept’ where he’s all-in on a ‘plausible theory’.
The month was fairly normal until the final week with Italy followed by Trump’s tariff rollout. In between we saw the on again – off again negotiating style with North Korea and China. Other than a couple of down days it appears the market is learning to ignore the noise. Again I used the dips to my advantage and stayed the course. May saw a rise in the S&P of 2.16% while my portfolio outperformed the index by registering a rise of 2.24%. YTD I still lag the S&P by 0.35%.
- Added to CMCSA (making another round lot)
- Added to my ETF group (CUT, EWA, EWW, JPMV, VGK)
- Added to GE (on the rail spin (WAB) news)
- Added SMTA (via SRC spin)
- Added to BKSC (via 10% stock dividend)
- Added to DGX on news of UNH strategic partnership
This is where my main focus resides. Market gyrations are to be expected but my goal is to see a rising flow of dividends on an annual basis. I’m placing less emphasis on the quarterly numbers as the number of semi-annual, interim/final and annual cycles have been steadily increasing in my portfolio.
- May delivered an increase of 12.97% Y/Y fueled by dividend increases.
- May delivered a 15.98% increase over last quarter (February).
- Dividend increases averaged 12.14% with 55.98% of the portfolio delivering at least one increase (including 1 cut (GE).
- 2018 Dividends received were 46.53% of 2017 total dividends putting us on pace to exceed last year in early November.
Notes: the Q/Q shows an increasing trend line due only to timing of dividend payouts (pay date shifts). Y/Y is only on par with dividend increases as dividends received were used to purchase next quarter (rather than current quarter) dividends.
GE‘s rail unit to spin then merge with WEB
XRX merger with Fujifilm cancelled.
SHPG to merge into TKPYY
Any month with increasing dividends and beating the S&P has to be considered a good one.
Hope all of you had a good month as well.