Home
Previous
Next
July, 2020: 28
Disclaimer - IMPORTANT - Read this first!
| Investor's Journal is a diary focused strictly on investments and personal finance issues, primarily from a contrarian and retiree point of view. Follow along with an average guy's failures and successes as he learns, by trial and error, the fine art of value investing. |
7/28/20-Since the prior entry (6/26/20) there have been a number of changes in our basic 25 holdings. These assets were sold: ACCO; AYX; BSRR; CAL; CTBI; HBQ; OPBK; and QQQ. These were bought in their place: ASB; CFFI; FRAF; FSLY; MCBC; SONA; USB; and VTWO. The new basic 25 holdings, then, are as follows: ASB; AWF; BAC; BHK; BPOP; CFFI; CRWD; DDOG; FRAF; FSLY; MCBC; OKTA; PFBI; RCII; RSP; SONA; TSBK; USB; VBF; VCIT; VIOO; VMFXX; VTWO; WFC; and ZM.
Total portfolio dividends from current assets are close to their year-end target (a 13.5% or greater annual increase [as calculated from the latest, 12/31/18, base amount of $37,500]). Total dividend income is likely in fact to reach $50,000 this year. However, with the global pandemic situation depressing folks' health and livelihoods as well as the average company's profitability, we may have reached the limit of our capacity to keep increasing dividend income by 13.5% a year. A simple calculation tells the story: at a consistent mean dividend rate of 3.00% for overall liquid assets, a portfolio of, say, $1,500,000 must rise at least $191,534 in order to achieve the targeted total dividend rise of 13.5% from its level at the end of the previous year. Can our portfolio, now roughly at that market value, keep going up by such ambitious amounts annually? For a time this strategy seemed feasible, and in fact proved doable for a number of years. However, who realistically would forecast that level of growth beyond 2020, given the current multiple crises and how much uncertainty our stock markets will be addressing? At least this annual dividend gains approach has had a good run. Seven years ago, our combined portfolio dividends from money market accounts, bond assets, and stocks or stock funds was about $20,000. Today it is nearing $50,000. If this goal is achieved as anticipated before year's end, that is a 150% increase. I doubt our income growth will have ceased after 2020, but cannot assure so robust a rate of advance in future.
Since 6/26/20 our liquid assets have added 0.92%, or $13,505, and now stand at $1,481,612.
Net total assets (including real estate and all other holdings) total $1,795,782, down 5.66%, or $107,651, from their 12/31/19 value.
Disclaimer and Disclosure Statement
Neither I nor Investor's Journal will be responsible for losses by anyone who obtained ideas from this site.
This diary is intended for personal interest and general information only. You are advised to do your own research (as well as to consult highly compensated professionals) before spending money on anything.
I know of no reason anyone should take my financial musings seriously. At best I am a dedicated amateur providing a bit of investment-related insight and entertainment, at worst an amusing diversion.
My wife, Fran, and I may at times own shares of some of the assets mentioned here. But neither of us receive any benefit from reference to them, unless you count the mutual misery when we get it wrong, or the opportunity to gloat when we get it right.