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Dividend Harvesting: Week 31 Update, $3,100 Allocated, $215.44 In Annual Dividends Yielding 7.02% With 48 Positions

Oct. 08, 2021 9:00 AM ETALTY, INTC, KHC, OHI, PTY, STWD, THW45 Comments
Steven Fiorillo profile picture
Steven Fiorillo


  • After 31 weeks and $3,100, the Dividend Harvesting Portfolio is generating $215.44 in estimated annual income and $17.95 in monthly estimated income.
  • In week 31 I added to my current positions of Starwood Property Trust, Omega Healthcare Investors, the PIMCO Corporate&Income Opportunity Fund, the Global X SuperDividend Alternatives Fund.
  • The Dividend Harvesting Portfolio is now generating 50 weeks of dividend income from 368 annual dividends with another 23 positions paying an estimated $14.30 throughout October.

Growing investment concept

Ghing/iStock via Getty Images

This article series is dedicated to everyone in the Seeking Alpha community interested in building an income-producing portfolio. Investing in equities and funds that produce dividends has been part of my overall investing strategy for some time. I

This article was written by

Steven Fiorillo profile picture
I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking Alpha or https://dividendincomestreams.substack.com/

Analyst’s Disclosure: I/we have a beneficial long position in the shares of STWD, OHI, THW, PTY, ALTY, INTC, SO, XOM, MO, T either through stock ownership, options, or other derivatives. 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.

I am long every position in the Dividend Harvesting Portfolio. Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters.

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 (45)

nice portfolio however just maybe want to trim the amount of positions. ALTY is so diverse that many of your positions are double dipped. you could probably trim out 12 easily and still be averaging around 7 to 9 percent without being over diversified
You are on the right track to be an Income buyer, compounding units/shares. I am an income buyer too. We live on half our income and reinvest half. Personally I have narrowed my holdings I find my brain can make good decisions for 10 or 12 stocks that I can fully understand when to buy when to hold and when to rebalance many have become fixed holdings due to low basis high returns. It really clarified my thinking when I focused on increasing
my income. For example last January when I was scheduled for my first vaccine shot my brain went to, what will immediately benefit, my first answer being a Grand Parent we would all travel to see our families. I researched gasoline and rebalanced heavily into PSXP with a $3.50 distribution and SUN with a $3.30 and continued to add from income. It also allowed me to reach expert knowledge levels on a few of my largest holdings like EPD it then is easy for me to know to ignore a Zacks #5 must sell notice when EPD fell to $21.00 two weeks ago, I immediately raised my holdings 15% selling many good shares to trade up to a better long term holding. I actually added more yesterday at $23.50 still barely in my buy range. I have one new stock I am beginning a position and will add heavily from my November cash flow, another future thinking move. Also a must sell.
Best Luck
On your new/future rules, how will you handle CEFs and ETFs? Will you limit either to <20% and a single one to <5%?
Steven Fiorillo profile picture
@baggett.brad Hey Brad, undecided. I am considering breaking them off into their respective catagories.
@Steven Fiorillo I broke the ones that I could into categories, but most seem to be diversified. So I left those as CEFs or ETFs. I’ve somewhat had the same general rules that you’ve come up with but I was curious how you would handle it. For me I am undecided as well because as I said they are diversified.
Steven Fiorillo profile picture
@baggett.brad I am in a similar situation. I am going to toy around with the idea of placing dedicated ETFs and CEFs like AMLP in oil and gas then leave diversified funds in a separate category. I need to see
Monthly Income Investor profile picture
The problem is.... a lot of your good dividend payers right now are reits...so its hard not to have them be a large %.
Steven Fiorillo profile picture
@Monthly Income Investor In the early stages yes, but over the next several years I think the allocation percentages will look much different.
Monthly Income Investor profile picture
@Steven Fiorillo I agree. Just saying currently it's difficult to not be looking at reits. Every time I look at add something.. its a reit these days. I am hoping that changes over time.
Queen of Covered Calls profile picture
Hi Steven,
Thank you for another great write up.
I am happy to see you are implementing sectors limits now and later ticker limits. I use the official 11 sectors as well as an ETF sector, I invented. It has ETFs. I don't know how to other classify QYLD or RYLD etc.
While I have not written down my limits yet, it is the reason that I only track sectors for my portfolio and cash.
I am with you with limiting a sector to 20%. However right now I am willing to give my ETF sector 25% as an exception to the rule.
I assume you are overhauling the spreadsheet a bit as the posted one still is the one from week 23?
You can read about my portfolio and my objectives here: myinvestingandtradingjourney.blogspot.com/...
Question: have you looked into QYLG or XYLG?

Again, thanks for all the posts.
Have a great weekend.
Steven Fiorillo profile picture
@Queen of Covered Calls Thanks for continuing to read and comment. I have been toying with the idea of breaking out the CEF and ETF section and classifying them but sectors. I am going to read through your link, I appreciate it
sc21 profile picture
@Steven Fiorillo
etfs a d cefs are platforms not specific forms of content, why would you want to give them special categories? I guess if you feel that these wrappers somehow impact outcomes that it might be a good idea but really it is confusing content with format. Bottom line is I fail to understand your logic here and your comments have not really clarified- could u do so. thanks sc
Hey Steven, good read. I am now following your investment journey. My time window is shorter so I started my portfolio a few years ago. I have many of the stocks you mention. I look for both value as well as decent yield to build my income. Price matters. And sometimes patience and restraint are crucial, as we all witnessed the Covid crash. Without putting in new principal, I saw my portfolio fall from about 250, 000 to 123,000, and since rise to over 270,000. I need some strategic shifting and re-invested dividends but generally avoided the herd panic selling. Still under water on some, but also got some great buys along the way.
Steven Fiorillo profile picture
@Phillip French Hey Phillip, thanks for reading and commenting. What were some of the pick-ups you made along the way?
@Steven Fiorillo Hey Steve, picked up WPC at 40.00, RTX at 59.00, IBM at 113.00, and UPS at 97.00 to name a few. Of course, just about everything was cheap March-July when the pandemic hit. I picked up PNW this week, could be a temporary falling knife. For BDC stocks, BDC Buzz is excellent, Stanford Chemist, Nick Ackerman and Steve Bavaria are good analysts on CEF'S, and Colorado Wealth has excellent information as well. Good luck to all!
Nice as always…
No CEFs for me but I also bought some OHI and more BTI + MO after this regulation fall. Have a good position in STWD too but all comes from the 14-16$ area where you could have bought last year. Now at 25 it’s gone to high for me. May be you should look to BMY now for next week - they are crazy cheap at this time. Also PNW is appealing now.

Greetings from Germany!
Steven Fiorillo profile picture
@Tyreswat Thanks for reading and commenting. BMY is on the list and I keep saying I want to add it. I also like ABBV and Novartis
@Steven Fiorillo I already have this 3 stocks and also in my healthcare basket some MRK, PFE, VTRS, JNJ, GSK, AMGN, NOVO… and healthcare reits OHI, MPW, DOC and new since last week NHI too. I like to spread the account to more smaller positions and fill up what the market shows me a make sense. Your total numbers of stocks is not really much like other people say, only my „Venture-Gamble-Depot“ has more positions. There are also some small bets in companys like TDOC, NVAX, Alibaba Health, PLTR, SOFI just to name some.
Good luck and
Greetings from Germany!
Hi @Steven Fiorillo !

It looks like your online sheet is still showing an investment of $2300. Will you be uploading an updated version of the sheet?
Steven Fiorillo profile picture
@6BQ5 I will check and see whats going on, thanks
Yields4Travel profile picture
I also have enjoyed following along on your journey Steven. I also have ORI, so I reinvested the special dividend back into the company. It was my 2nd special dividend. I am retired, but not living on my dividends. I had held KHC from its MO spinoff, but recently sold at a small profit. Added more shares to my long holding HRL to make up for the lost KHC dividend. Thanks @Steven Fiorillo
Steven Fiorillo profile picture
@Yields4Travel I should look into HRL, it was mentioned by someone else previously. Thanks for the idea, appreciate it
another week, another layer on your dividend snowball...

I also added another layer...its a beautiful thing
Steven Fiorillo profile picture
@Loki_Disciple Cheers!! what did you pick up?
@Steven Fiorillo I had more than my normal capital to allocate after selling some company stock, so big purchases last week. Still have a bit of capital to use, so we'll see what looks good this week.

1 JNJ - 4.24
1 MMM - 5.92
3 O - 8.496
3 VTRS - 1.32
1 WPC - 4.21

12 Month - 24.346
Month - 2.028
Day - 0.066
I too like seeing your progress. I am sure some will criticize your number of holdings, not me. We have 14 in common and I have over 100 holdings. What I like about your "project" is that you're proof that investing just needs to start with small steps and seeing their growth and, with dividends a revenue stream, it is exciting. Truly a lesson every young person needs to know and understand. Sadly, I still wait for my three sons 36-40 to learn it. Now, with no commissions and things like $50 "slices" that my broker offers, there is no reason not to get involved.
amegalo profile picture
@Mawyai maybe someday(after you’re gone) one of them may say. “ gee I think dad was right”)
Steven Fiorillo profile picture
@Mawyai Thanks I really appreciate it. I really hope this series does just that, and gets more people interested in investing, and gets rid of the stigma that you need a lot of capital to start investing. It doesn't matter if it's $100, $1,000, $10,000, o $100,000 you can make any amount of money work for you.
I enjoy following this project. For some reason my head keeps telling me that 48 positions for only $3,100 dollars invested seems watered down. Of course I could be missing the mark.
Steven Fiorillo profile picture
@BigBen82 Thanks for reading and commenting. Let me try to describe it differently. Look at this project as owning a business. When you own a business do you have someone telling you each day how much the business is worth? Nope. The main thing you care about is cash flow unless you're looking to expand or sell. By adding many funds and individual companies you're creating an overall business from many fragments of businesses in different segments to generate consistent cash flow.
amegalo profile picture
Thanks for another great update..I hope you enjoyed receiving that special dividend from ORI. (I received well over $800.)
You mentioned. “After the first year, the second goal is that I don't want a single position to exceed 5% of the portfolio”

In addition to that rule , it might be useful to track the percentage of your portfolio’s income come from each issue. I like to track not only the holding size in relation to the entire portfolio but also where the cash flow actually comes from.

FYI this week KMB went on sale so I added to my exhibiting position .. also started a small position in MKC.( Near its 52 week low) as restaurants rebound from COVID.
Take care.
Just One Lab Nerd profile picture
@amegalo - Yeah - that's a nice special dividend from ORI. I'll plan on adding some more of that before their next regular ex-dividend date. How regular are the special dividends for ORI - since you appear to have more than a few of those shares in your portfolio.
amegalo profile picture
@Just One Lab Nerd This is the third time I received a special from ORI since 2017.. The past is no guarantee of the future. If you look up the ORI symbol on seeking alpha and click on dividends and dividend history. You can see. This one was 1.50/ share. The past two specials were 1.00/ share. I believe (not sure)
but these help ward off special interest activist groups. See link

Steven Fiorillo profile picture
@amegalo Thanks for continuing to read. Next year I plan on tracking some items such as cash flow per security over the calendar year. I like KMB and will look into MKC, thanks
sc21 profile picture
Thanks for the project but it would be helpful if you could provide a bit of color on the issus which you are adding i.e. altx- -would like to know you thinking on why you elected to add now. Just my view thanks sc
RJCanuck profile picture
Great teaching/learning tool! Please keep up the good work.
Steven Fiorillo profile picture
@RJCanuck Thanks for reading and commenting, I am glad you enjoyed it
Just One Lab Nerd profile picture
As usual a good read Steven. I like your new goal and rules bit as well. Enforced diversification is going to lead to longer-term stability. I'm a bit heavy in REITs at the moment, but may stay that way with a more concentrated set of stocks, but with the idea that if one of those starts to falter, I will sell out of it and buy into something else that is doing better.

Bought some KMI as planned last week. Probably won't buy anything new until next week. Got that nice special dividend for ~$6 from ORI on Monday,... Will probably buy some UMH or more BP next week. Cheers Sir!
Steven Fiorillo profile picture
@Just One Lab Nerd Thanks for continuing to read and comment. I am a big fan of KMI. Have you added ENB yet?
Just One Lab Nerd profile picture
@Steven Fiorillo - I have not looked at EMB. I have been sitting on a small set of TRGP since the rolled in their old NGLS subsidiary and didn't want too many midstream type companies. TRGP got overleveraged a few years ago and tanked share price wise and it's dividend dropped like a stone. However, now that they have their finances back on track their share prices has been very much on the rise. Was considering jettisoning TRGP and taking the profits, and then reallocating it into something else.
Steven, I am a new follower, and have to say I am impressed with this project. Too many times potential investors are intimidated by 'if you invest $10,000 in stock *&^" syndrome.
$100 a week may be out of the reach of some people, but I believe you have hit the sweet spot, by showing that even a minimal investment over time will produce amazing results. Bully for you.
Now I just need to get my children and their spouses to read this! (LOL). They all have 401k's but I'd like to see them do a little investing on the side as well.
very high risk for taxable dividends
@motto5448 can you elaborate? Kind of a poor statement with nothing to substantiate it.
Steven Fiorillo profile picture
@motto5448 What's the risk? I don't mind paying taxes on dividends
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