TRP

April 2024 Update

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I’m going to seriously take a look at the index I measure the portfolio performance against (S&P).  I mean, look at the hole I’m digging myself out of being overweight the financial sector.    On the other hand, there’s the S&P with AI and technology reigning supreme.  Other than Cathy Wood, most others would agree there’s an imbalance there somewhere.  The perplexing thing being I’m crushing all other metrics (for the moment).  What can be said? 

Let’s address what is working:

  • The dividend/interest run rate is at 114.62% – which if sustained would exceed the annual objective of 110%.
  • Year on year dividends/interest is at 9.73% with the CD ladder poised for an uptick through the remainder of the year.
  • The Yield on Cost is holding steady – a positive as I shy away from high-yield and the other component is purchase price.  Generally, longer holding times boost this number and I’ve been a net seller.

Bottom line, we’re continuing to outrun inflation while building a larger cash position.

Portfolio Performance

For the month, the S&P dropped 4.16% while the portfolio dropped 4.44%.  For the year, we now lag the index by 5.21%.   

Dividends & Interest

For the month we registered a 30.54% increase from last year with the payment schedule beginning to normalize.  As mentioned earlier, the projected run rate is 114.62% and steady.

New Positions

  • 3-month US Treasury Bill @ 5.371%

Positions Increased

  • BCE and PAYX on weakness

These offset the dividends lost on sales

Positions Sold

  • KEY – this one I acquired with their acquisition of First Niagara in 2016.  Since then the dividend growth rate has been steadily dropping (10Y 14.06%, 5Y 5.41%, 3Y 3.48%, 1Y (1.6 to 2.5%)).  As an ancillary position, I decided to finally book the 56% gain – most of which was the merger premium.  Holding period: 10.07 years.

Cash Position

  • Cash on hand increased from 7.65% to 8.2%.  My guess is I’ll add another rung to the ladder to get it working for me.

Spinoffs

  • TC Energy plans to spin the liquids pipelines division

So what is turning out to be a recurring theme, I’ll grade the performance a B+ with the only hits being a miss against the index and optimal utilization of the cash.

Here’s to next month!