May 2019 Update

It’s little wonder that a generally good earnings season was ignored due to rising questions about the economy for the remainder of the year. From the failed trade talks with China putting a damper on the beginning of the month, the president just couldn’t help himself and decided to intermix trade and policy issues on a second front, this time being tariffs on Mexico. End result was the DOW saw six straight weeks of losses and May was the longest losing streak since 2011. To this we can now add the uncertainty of the new NAFTA deal as it is trilateral as opposed to bilateral and the recipe is set for continued disruption. But of course, this could be simply a negotiating tactic in which the living standards of Americans are in play. This month the S&P lost 7.04% (almost erasing the gains for the year) while my portfolio lost 5.85%. For the year, I’m now ahead of the benchmark by 1.2%.

PORTFOLIO UPDATES

  • increased my BDX position

DIVIDENDS

While my primary focus resides on dividends with the goal being 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 19.57% Y/Y, the largest impacts – essentially getting back on track after the earlier dividend cuts.
  • May delivered a 13.02% increase over last quarter (Feb) – slightly above announced (net) dividend increases.
  • Dividend increases averaged 9.22% with 48.02% of the portfolio delivering at least one increase (including 4 cuts (two being OMI)). This is off last years’ pace and I believe a new personal record for dividend cuts in a single year since about 1980.
  • 2019 Dividends received were 43.17% of 2018 total dividends putting me on target to exceed last years’ total in late October. The YTD run rate is 105.64% of 2018 slightly under my 110.0% goal.

Note: I updated my Goals page to provide a visual of these numbers.  Based on Mr All Things Money’s instruction set with a conversion to percentages.  My code only updates when the monthly Y/Y number is exceeded.  Otherwise, the prior year actual is used.

SPINOFFs

On Oct 4,2018 MSG filed a confidential Form 10 to spin the sports business

MERGERS

XRX merger with Fujifilm cancelled (still being litigated).

TSS to merge into GPN (all stock, .8101 sh GPN for each TSS sh) estimated to complete in October – Upon the announcement, I was prepared to sell my TSS position to book almost a triple in just over 4 years as GPN currently pays only a penny per share dividend per quarter. However, page 14 of their slideshow states: Dividend – maintain TSYS’ dividend yield. This would appear to indicate an increase in GPN’s dividend, so for now I’ll hold.

CORPORATE ACTIONS

  • FFIN declared a 2:1 stock split effective June 3rd

SUMMARY

The blog data conversion to 2019 is almost complete still being worked on. The most significant error is my cost basis (dividend date screen) which doesn’t yet account for all DRIP additions (so it is a minimal understatement – but I strive for accuracy). One more formula to construct to complete this effort.

Hope your month/quarter was a good one!