Dividends And Side Hustles Portfolio - July 2019 Highlights

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Includes: ABBV, ACB, CAG, CIO, CNP, CVS, DBI, DXCM, EPD, EV, FRT, GLW, GPC, IIPR, KO, MDT, MO, MSFT, O, OXY, OZK, REAL, ROST, SKT, SPG, SQ, T, TGT, TJX, TXN, UPS, WDC
by: Chandra Miller
Summary

The past month was very active for the "Dividends and Side Hustles" Portfolio. I opened two new positions in retail stocks while also purchasing additional shares in eight other companies.

I continue to purchase additional shares of AbbVie, Altria, CVS Pharmacy, Aurora Cannabis and Innovative Industrial Properties.

I’m still continuing to work on diversifying my portfolio across all 11 sectors.

Dividend Word Cloud

Source: Wordclouds.com

August has arrived, summer is almost over, and I'm not quite sure where and how the time has flown by so fast. I'm still reading "Mastery" by Robert Greene. It's a deep read, and I haven't been able to read as much as I'd like lately, plus I highlight when I read books and take notes, so it is taking me a bit longer.

The past month was very active for the "Dividends and Side Hustles" Portfolio. I opened two new positions in retail stocks while also purchasing additional shares in eight other companies. I find myself monitoring the markets a bit more than I normally have in the past. I've set price alerts for those stocks on my wishlist, waiting for them to fall into a fair value price range or below their normal 50-day or 200-day trading averages.

I have also started to take notice of stock price drops right after the ex/eff dividend date of some of the stocks in my current portfolio and have been wondering to myself is this the sell-off to a quick "money-grab"? I increased my position in a few stocks this month after learning there was an upcoming dividend increase and an ex/eff dividend date approaching. I now question if this is the right thing to do. I feel it's an emotional transaction, but I've justified it under the need to increase my shares and ultimately receive larger dividends payments.

I did fall short this month and not reinvest back into all the stocks that paid me dividends. I didn't quite notice this error until I was reviewing my account this month, but I will definitely correct it during August. Normally, I document my dividend payment dates as a reminder to reinvest and purchase additional shares. I dropped the ball and now I see what happens when I don't follow my normal course of habits.

I didn't close or reduce my positions in any stock this month.

Investment Strategy or "Building My Portfolio"

My strategy continues to remain as stated before: To build a well-balanced and stable stock portfolio of monthly dividend income-producing stocks purchased while undervalued (on sale/discount) on a twice-monthly interval that produces a minimum of 10% annualized growth per year. Currently, my average dividend yield for my entire portfolio sits at a paltry 3.97%. This is well below my goal of 10%, so there need to be some adjustments. I need to either lower my goal (which is not what I want to do) or start looking for higher dividend-paying solid companies to round out and increase my overall average.

Coins on

Source: ThinkStock

Someone is sitting in the shade today because someone else planted a tree a long time ago. - Warren Buffett

Selection Criteria

  1. Am I familiar with the brand/company on a personal or professional level?
  2. Do I currently use the brand or products from the company?
  3. Growth: > +10% annually for growth stocks and >+5% for value dividend stocks.
  4. Dividend / Yield Rate: >+3% for quarterly dividends and >+5% for monthly dividends.
  5. Forward P/E Ratio: < 25 (exception for REITs, MLPs and cannabis stocks).
  6. What is their economic moat of competitive advantage over their industry peers?
  7. Are they trading below their current intrinsic value, 50-day moving average, and/or 200-day moving average?

As I continue to share my journey, increase my knowledge and engage with the Seeking Alpha community, I am in no way suggesting the purchase of any stocks on my list. I am an individual investor whose passion is investing and researching stocks when I'm not reading, shopping, or trying out new recipes.

Current Portfolio

Ticker

Name

Portfolio Percentage

Sector

Price (7/31/19)

Yield

(ABBV)

AbbVie

5.81%

Healthcare

$66.74

6.50%

(ACB)

Aurora Cannabis

18.60%

Healthcare

$6.30

0.00%

(CAG)

Conagra Brand

6.98%

Consumer Staples

$28.87

2.92%

(CIO)

City Office REIT

2.33%

REIT

$12.38

7.59%

(CVS)

CVS Pharmacy

2.33%

Healthcare

$55.52

3.58%

(EPD)

Enterprise Products

11.63%

Energy

$30.35

5.89%

(GLW)

Corning

1.16%

Information Technology

$30.75

2.69%

(IIPR)

Innovative Industrial Properties

2.33%

REIT

$105.67

2.36%

(KO)

Coca-Cola

2.33%

Consumer Staples

$52.63

3.08%

(MO)

Altria

4.65%

Consumer Staples

$47.00

6.68%

(OZK)

Bank OZK

8.14%

Financial Services

$30.58

3.13%

(REAL)

The RealReal

5.81%

Consumer Discretionary

$24.55

0.00%

(SKT)

Tanger Factory Outlet

4.65%

REIT

$15.90

9.20%

(T)

AT&T

11.63%

Communication

$34.00

5.98%

(TGT)

Target

4.65%

Consumer Discretionary

$86.40

3.20%

(TJX)

The TJX Companies, Inc.

2.33%

Consumer Discretionary

$54.56

1.75%

(UPS)

United Parcel Svc

2.33%

Industrials

$119.47

3.28%

(WDC)

Western Digital

2.33%

Information Technology

$55.00

3.60%

100.00%

3.97%

Monthly Activity up/down:

Which stocks were up: The top three performing stocks for the month of July 2019 were United Parcel Service (+15.69%), Western Digital (+13.33%), and Conagra (+8.86%).

Which stocks were down: The three lowest under-performing stocks were Aurora Cannabis (-20.08%), The RealReal (-15.05%), and Innovative Industrial Properties (-14.48%).

Monthly Stock Purchases and Sells

Purchase Date

Name

Stock Symbol

Shares

Purchase Price / Per Share

7/8/2019

AbbVie

ABBV

2

$72.55

7/7/2019

Bank OZK

OZK

5

$29.74

7/7/2019

Altria

MO

1

$49.01

7/8/2019

AT&T

T

4

$34.28

7/17/2019

Enterprise Products

EPD

3

$30.35

7/17/2019

CVS Pharmacy

CVS

1

$56.36

7/17/2019

TJX

TJX

2

$56.23

7/22/2019

Aurora Cannabis

ACB

3

$6.51

7/22/2019

Innovative Industrial Prop.

IIPR

1

$113.96

7/29/2019

The REALREAL

REAL

5

$25.89

27

I continue to purchase additional shares of AbbVie, Altria, CVS Pharmacy, Aurora Cannabis and Innovative Industrial Properties. Some of the companies recently had upcoming increased dividend payments, and I also need to continue to build my share count.

Bank OZK announced a dividend increase of 4.35% to .24 cents per share that was payable on July 19, 2019, from an ex-dividend date of July 11, 2019, so I grabbed a few more shares.

AT&T announced its next dividend to be paid on August 1, 2019, with an ex-dividend date of July 09, 2019. Although this wasn't an increase from its current dividend price, I still purchased shares because AT&T stock is part of my buy and hold forever.

Enterprise Products also had a dividend increase of .46% from its last dividend payment of .438 cents per share for shareholders who purchased prior to ex-dividend date of July 30, 2019, and payable on August 13, 2019. I'm going to continue regular purchases of EPD shares as the company has a good dividend yield of 6.97%, P/E ratio of 12.38, and EPS of $.55. It is my only energy stock at the moment.

I purchased TJX for the first time this month. It didn't quite meet all of the points for my selection criteria, but as I look to increase my exposure across all sectors, I'm sure I won't hit all 7 points each time. Four out of seven isn't bad.

And lastly, post IPO, I purchased five shares of The RealReal. This was an early birthday gift to myself. I have been a customer of The RealReal for the last three years and have watched the business grow during this time.

Sector Diversification

SECTOR DIVERSIFICATION

Sector

Shares

%

Consumer Staples

12

13.95%

Consumer Discretionary

11

12.79%

Energy

10

11.63%

Financials

7

8.14%

Healthcare

23

26.74%

Industrials

2

2.33%

Materials

0.00%

REIT

8

9.30%

Information Technology

3

3.49%

Communication

10

11.63%

Utilities

0.00%

TOTAL

86

100.00%

I'm still continuing to work on diversifying my portfolio across all 11 sectors. I now have 13% of my portfolio allocated to Consumer Discretionary thanks to my purchase of TJX Companies and The RealReal. I also increased my percentages in the Energy sector, but I am still currently overweighted in the Healthcare sectors based on my personal strategy. This may remain for some time as my overall share count per company is still relatively low. I'm building on it month by month so I know there will be continued purchases and dividend reinvestments of both CVS and AbbVie. I still don't have any stocks in the Utilities or Materials sector that are on my wishlist. Any suggestions from the Seeking Alpha community would be greatly appreciated.

Dividend Payouts

Do you know the only thing that gives me pleasure? It's to see my dividends coming in. - John D. Rockefeller

June '19 Dividend Payouts

Date Rcv'd

Symbol

Name

# of Shares

Industry

Amount

7/1/19

KO

Coca-Cola

2

$0.80

7/10/19

MO

Altria

3

$2.40

7/15/19

IIPR

Innovative Industrial Properties

1

$0.60

7/25/19

CIO

City Office REIT

2

$0.47

7/15/19

WDC

Western Digital

2

$1.00

7/19/19

OZK

Bank OZK

7

$1.68

17

$6.95

Dividend payments were a bit better than last month. Each month and/or quarter will definitely see an increase as I continue to purchase additional shares.

Stock Watch List

My current short watch list is as follows:

  1. Eaton Vance (EV)
  2. Occidental Petroleum (OXY)
  3. Texas Instruments (TXN)
  4. CenterPoint Energy (CNP)
  5. Realty Income (O)
  6. Ross Stores (ROST)
  7. Designer Brands Inc. (DBI)
  8. Microsoft (NASDAQ:MSFT)
  9. Square (NYSE:SQ)
  10. Federal Realty Trust (NYSE:FRT)
  11. Simon Property Group (NYSE:SPG)
  12. DexCom, Inc. (NASDAQ:DXCM)
  13. Medtronics (NYSE:MDT)
  14. Genuine Parts (NYSE:GPC)

Final Thoughts

Next month is my birthday month, and in as many years past, I normally celebrate my born day by treating myself to a designer shoe purchase for my collection. This year, I'm planning on celebrating in a different way. While I'm 90% sure I'm still buying myself a pair of shoes, I'm going to also treat myself to the gift that keeps on giving dividend stocks! I haven't quite decided or narrowed my choices down, but it will be one or two good quality Dividend Kings or Dividend Achievers. I already made a pure fun purchase in The RealReal.

I can't think of a better way to treat myself, continue to plan for my retirement and make it fun all at the same time.

Every month I will provide an update on The "Dividends and Side Hustles" Portfolio to track my progress. Please click the "follow" button at the top of the article so that you may continue to share in following my journey. I do hope to receive feedback from the Seeking Alpha community. Any additional insight would be an added lesson during my journey.

Be Blessed, Bountiful, and, Most Importantly, Fabulous!

Disclosure: I am/we are long KO, WDC, GLW, OZK, UPS, CVS, EPD, CIO, SKT, MO, IIPR, ACB, T, TGT, CAG, ABBV. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.