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The Retirees' Dividend Portfolio: John And Jane's May Taxable Account Update

Matthew Utesch profile picture
Matthew Utesch


  • The Taxable account generated $1,721.59 of dividends in May of 2020 compared with $1,667.25 of dividends in May of 2019.
  • A total of one stock/funds in the Taxable portfolio paid increased dividends or paid a special dividend during the month of May.
  • A total of one stock/funds in the Taxable portfolio suspended or reduced dividends during the month of May.
  • The market is making its comeback but how much steam behind it is another question.
  • We used the opportunity to start a position in HON for the Taxable account and as of early June have been able to trim some of the high-cost portions of several positions.

Honeywell (HON) is the newest addition to the Taxable Account and has morphed into a dividend powerhouse. Since 2008, it currently pays a dividend rate that is more than 3x the amount paid in 2008 and it has managed to do this without compromising the payout ratio. This has been achieved by focusing on high-margin products (aerospace being a major focus) which can be clearly seen when we look at how gross profit has nearly doubled since 2008 even as revenue stays the same (or even contracted in most recent years).

This has driven earnings per share and executive management has largely increased the dividend to keep pace with earnings growth. HON has been growing its dividend at 11.3% CAGR over the last 10 years.

Jane currently holds shares of HON in her Traditional IRA and we have been adding to it as share prices continue to drop. Given the current circumstances, we felt like it was a good opportunity to build a starter position that we can potentially add to as we see the market recover and we are able to sell some of our high-cost portions of other positions.


For those who are interested in John and Jane's full background please click the following link here for the last time I publish their full story. Here are the key details about John and Jane that readers should understand.

  • This is a real portfolio with actual shares being traded.
  • I am not a financial advisor and merely provide guidance based on a relationship that goes back several years.
  • John retired in January 2018 and is only collecting Social Security income at this point in time.
  • Jane is working part-time and will continue to do so for the remainder of 2020. Whether or not

This article was written by

Matthew Utesch profile picture
**Effective 8/20/2023 I will be looking to change platforms because Seeking Alpha has indicated it will no longer support the publishing of my retirement article series John & Jane because it involved too much previous history analysis. I plan to continue this series in a video format on YouTube and apologize in advance for my delay as I build this out.https://www.youtube.com/@consistentdividendinvestor/featuredGraduated in 2011 with degrees in Pre-Law and Business Administration from Eastern Washington University. Completed my MBA at Whitworth University in May of 2017. Over the last decade, I have worked exclusively in the finance industry. I have acquired specialized knowledge in multiple areas, most notably, Secondary Marketing, Underwriting (specializing in subprime credit), and recently established an Indirect Auto Dealer Lending Program for Canopy Federal Credit Union. I am now the Director of Indirect and Retail Underwriting.Started my first Roth IRA at the age of 16, but began seriously investing closer to 2011 at the age of 22. My investment strategy is largely focused on generating retirement income from dividend-paying stocks. I do not hold any professional investment licenses, but I spend a significant amount of time educating children, teenagers, and young adults on basic finance. I also specialize in cash-flow analysis for those nearing retirement or who are in retirement.

Analyst’s Disclosure: I am/we are long AAPL, ADM, APLE, EMR, EPR, MCD, T, TXN, VFC.. 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.

This article reflects my own personal views and I am not giving any specific or general advice. All advice that is given is done so without prejudice and it is highly recommended that you do your own research. This article was written on my own and does not reflect the views or opinions of my employer.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (6)

yoctowatts profile picture
WLKP is a K-1 form right? Are stocks like that taxed higher?
Gary Jakacky profile picture
Much as you, I try not to do TOO much trading in my "basket 1" stocks: dividend income with potential capital appreciation, much like Value Line's group 2 in their weekly section. But if the stocks run up incredibly; or the company's outlook has changed substantially, I might make changes at the margin, often by writing calls so I get income while not being too upset if the shares are pulled away.
It was nice to see many of the same names in their portfolios that I hold in my and my wife's. The one big difference is the extreme amount of K-1s in their portfolios vs ours. I want to have as much money in retirement as everyone else, but I also don't want the tax burden either. Just curious how "John" and "Jane" feel about this.
Bought HON myself earlier this year (as a dividend-growth investment).
steve46 profile picture
Your opening comment would be more meaningful if it read dividend income on an investment total dollar amount of $_______. It would help determine if you dividend dollars make sense.
Matthew Utesch profile picture

Not a bad suggestion. I’ll give that a try for Jane’s Retirement account article. I’ll probably have to use a separate bullet point though because SA limits the number of characters per point.

Thanks for reading and mentioning that.
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