July 2020 Update

The month didn’t miss a beat, with the market continuing its upward grind – particularly in technology issues which shouldn’t be too surprising given the continuing upswing in Covid-19 cases throughout the US.  What I continue to be surprised with is the resilience of the market even in the face of horrific GDP data or ongoing lousy jobs numbers.  I guess it shows the power of liquidity (Fed) – at least in the short term.  Growth stocks provided much of the Alpha while my retrenchment towards Value was simply defensive in nature.  That said, the S&P gained 5.22% for the month while my portfolio lagged with a 4.65% gain.  For the year, I’m ahead by 4.19%.  Both the S&P and my portfolio have erased all the losses for the year.

DIVIDENDS

My primary focus resides on dividends with the goal being a rising flow on an annual basis.

  • July delivered an increase of 26.76% Y/Y which is artificially inflated due to some duplicated dividends as a result of the repositioning.  Like I’ve previously acknowledged, 2021 comps will be tough.
  • Dividend increases averaged 4.63% with 43.22% of the portfolio delivering an increase (including 8 cuts and 9 suspensions (2 of which were sold)).  This is off last years’ pace and a direct by-product of the global pandemic.
  • 2020 Dividends received were 70.65% of 2019 total dividends putting me on target to exceed last year’s total in November. The YTD run rate is now over my 110.0% goal but I anticipate this will drop now that I’ve stabilized my portfolio movement.  A clearer picture will emerge over this next quarter.

20200731

 

Summary

What is clear are my negligible purchases with the majority of portfolio gain riding on the back of the market.  I’m essentially biding time by filling in some gaps while waiting on a more opportune time – which who knows when that will be.  The other item of note is the 4% stock dividend from Hawthorne Bank.

No spins or mergers to announce.  Only an AAPL split on the horizon.

Here’s hoping your month good as well.  Stay safe!