December 2019 "Do-Ditty-Divies" Harvesting Summary Report. 24 Months Of Harvesting Results.
Seeking Alpha Analyst Since 2010
"What is SPIEES?" It is what we were taught to expect and how to act and it impacts how we invest.
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Stonk-Bogyman
It is what keeps people in their place, the 12% club.
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Portfolio positions listed from largest to smallest.
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# of stocks Sector Percentage of the Portfolio
# of stocks Sector Percentage of the Portfolio Percentage of the Portfolio 59 Information Technology 35% 46 Health Care 19% 25 Consumer Discretionary 16% 35 Industrials 12% 8 Communications Services 6% 22 Financial Services 4% 11 Consumer Staples 3% 8 Real Estate 2% 7 Materials 1% 2 Utilities 1% 1 Energy 1% 224 Total 100% ******************************************************************
Total, Style, Value, Blend, Growth
Total Style Value Blend Growth
73 Large 3, 29, 41
22 Medium 1, 10, 11
6 Small 1, 2, 3
101 Total 5, 41, 55
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Portfolio, Yield, Breakout
Growth yield, 0%: 42.4%Growth and Income yield, 0.1% - 2.0%: 46.2%
Slow Growth and Income yield, 2.1% - 3.0%: 5.0%
Income yield, 3.1% and up: 5.6% Cash 0.8%
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Asset Allocation
Domestic Stock 91%
Foreign Stock 8%
Bonds 0%
Short Term 1%
Summary
- This Blog shows what I specifically harvested in December to create additional cash flow beyond what normal dividends paid produced.
- I have 3 portfolios that I periodically harvest capital gains to create income since I have not had earned income for more than 5 years. I call this income "Do-Ditty-Divies".
- Also shown are the larger stock positions that I specifically harvested so far since January 2018 from all three portfolios.
- Maintaining or growing purchasing power is critical during retirement. In my blogs I report what I do each business day in stock buys and sells (Pruning and Planting).
- After 24 months of harvesting, this will be the last blog in this detailed format. I might combine the harvesting results in my monthly portfolio report.
I reported each harvest (Prune) on the day that I did them and the new investment made (Planting) in my SA blogs.
In the taxable account the gain harvesting needs to be managed to control taxes and the impacts associated with that to Medicare premiums, which are now $376.00 per month for just me in 2020. The Medicare increase consumed all my 2020 social security raise plus an additional $1.50. So after the raise I net $1.50 less than 2019. My brokerage firm allows me to select a tax-efficient method of harvesting to minimize taxes which is a great feature if you have a taxable account.
Zero cost trading fees have made the pruning and planting technique so easy to do and now free of transaction costs. The investor can make as little as a one share trade to harvest profit or to added to an investment. What used to be a $1,000 or more buy in just one stock can now be a variable motif of stocks. I have been using this method in my girl friend's account since she has had free trades for about 2 years.
I read where many investors are reluctant to sell shares for one reason or another. They think they will run out of shares. Share value continues to grow and stocks split their shares instantly giving the investor twice as many (or more) stock shares to sell. When a stock splits then I have twice as many shares to sell! Harvesting profit is like picking cherries off the tree or maybe sawing off a branch.
The purpose of this blog is to show that selling shares to create cash flow in retirement for purchasing power is the most common and successful practice to improve retirement life style. Right now, although retired, I am still in the Pruning and Planting mode. I do gift stock to my family each month. I might have to start using some dividends in 2020 due house repair and maintenance.
Many high yield dividend stocks have very little to no capital appreciation so harvesting profit might take years to do. No wonder high yield investors don't want to sell any of their shares, since any sale immediately reduces future income from dividends. Some who don't want to sell any shares buy CEFs for even higher yield thinking that shares are not being sold behind the curtain. It is just accounting and it is not about how many shares are owned, but rather how much each share owned is worth.
Probably the most important consideration in retirement is purchasing power. Maintaining purchasing power or increasing it. So creating income has to support that objective.
December Taxable Portfolio Harvests summary.
| DECEMBER | 2019 |
| Wealth and Income-15 Portfolio TAXABLE | |
| Stock | Amount Harvested |
| DLTR | $ (13) |
| AZO | $ 1,258 |
| MDB | $ 699 |
| OLLI | $ 901 |
| ET | $ (2,888) |
| HEP | $ (2,281) |
| WHR | $ 190 |
| SUPN | $ (3,646) |
| FLT | $ 3,005 |
| LLY | $ 907 |
| ACB | $ (2,702) |
| BA | $ 2,642 |
| SPR | $ 2,390 |
| CADE | $ (1,180) |
| APHA | $ (1,376) |
| BIIB | $ (508) |
| TWLO | $ (402) |
| NOAH | $ (940) |
| TWTR | $ (803) |
| HEXO | $ (1,934) |
| BEST | $ (2,467) |
| SINA | $ (2,698) |
| BUZN | $ (2,245) |
| Total | $ (14,091) |
I had to do some very last minute tax loss harvesting to off set gains because my tax bill would be too high.
December Roth IRA profit harvests summary.
| DECEMBER | 2019 |
| Wealth and Income-0 Portfolio ROTH IRA | |
| Stock | Amount Harvested |
| JNJ | $ 4,630 |
| MDB | $ 417 |
| SWK | $ 165 |
| ADBE | $ 320 |
| CTAS | $ 273 |
| NFLX | $ 323 |
| PM | $ 858 |
| GLOB | $ 211 |
| BNS | $ 238 |
| BMO | $ (1) |
| RY | $ 91 |
| ALLY | $ 61 |
| ZION | $ 127 |
| AX | $ 3,289 |
| WCAGY | $ (2,547) |
| ABT | $ 759 |
| Total | $ 9,214 |
December Traditional IRA profit harvests summary.
| DECEMBER | 2019 |
| Wealth and Income-32 Portfolio TRADITIONAL IRA | |
| Stock | Amount Harvested |
| CMI | $ 728 |
| SSTI | $ (632) |
| ATVI | $ 176 |
| BIG | $ 283 |
| ADBE | $ 640 |
| HTHT | $ 558 |
| EMHTF | $ (539) |
| VVCIF | $ (107) |
| LEA | $ 413 |
| MPC | $ 243 |
| NFLX | $ 314 |
| CASA | $ (5,254) |
| CTST | $ (2,219) |
| VVCIF | $ (2,661) |
| EMHTF | $ (2,048) |
| CBRL | $ 185 |
| LDOS | $ 286 |
| AIG | $ 104 |
| C | $ 1,405 |
| CMA | $ (202) |
| BR | $ 1,357 |
| COF | $ 833 |
| PM | $ 600 |
| ACB | $ (1,662) |
| CM | $ (12) |
| RF | $ 135 |
| PRU | $ (172) |
| BE | $ (3,784) |
| APHA | $ (2,050) |
| WCAGY | $ (2,257) |
| ABT | $ 946 |
| Total | $ (14,393) |
Total harvested in December 2019, (-$19,270) a loss.
Income expectation average of $400,000 annually, $33,334 monthly, or about $1,600 per business day. I will probably be raising the income expectation in 2020.
Total January 2018-to-Date (Total Harvesting for 2018 and 2019, $1,083,394). Losses included.
Average per month $1,083,394 /24 months = $45,141.
| SUMMARY of the Larger 2018 and 2019 Harvests through 31 December 2020 | |
| Stock | Amount Harvested |
| MO | $ 33,736 |
| BTI | $ 28,192 |
| NFLX | $ 22,038 |
| MDB | $ 21,498 |
| JNJ | $ 19,038 |
| SQ | $ 17,321 |
| PAYC | $ 15,819 |
| ALGN | $ 15,517 |
| MELI | $ 14,411 |
| INGN | $ 13,608 |
| LMT | $ 13,352 |
| ABBV | $ 13,062 |
| ZTS | $ 12,510 |
| TEAM | $ 12,370 |
| MAIN | $ 11,867 |
| BA | $ 11,738 |
| FB | $ 11,442 |
| CNC | $ 10,603 |
| AAPL | $ 10,346 |
| NEE | $ 10,238 |
| MMM | $ 10,140 |
| MTCH | $ 10,136 |
| CTAS | $ 9,988 |
| CLX | $ 9,978 |
| AMZN | $ 9,973 |
| BURL | $ 9,802 |
| ANET | $ 9,944 |
| LRCX | $ 9,654 |
| WM | $ 9,638 |
| FIVE | $ 9,302 |
| ANTM | $ 9,259 |
| MKC | $ 8,787 |
| KMB | $ 8,637 |
| STZ | $ 8,354 |
| SODA | $ 8,278 |
| AET | $ 8,252 |
| O | $ 8,112 |
| KDP | $ 8,060 |
| NBEV | $ 8,051 |
| INTU | $ 7,964 |
| MCD | $ 7,789 |
| ADBE | $ 7,726 |
| SYK | $ 7,593 |
| PYPL | $ 7,524 |
| CL | $ 7,494 |
| TAL | $ 7,455 |
| AX | $ 7,168 |
| MSEX | $ 7,145 |
| NHI | $ 6,904 |
| BABA | $ 6,901 |
| OLLI | $ 6,872 |
| GRUB | $ 6,747 |
| DG | $ 6,575 |
| MNST | $ 6,500 |
| NOW | $ 6,460 |
| PANW | $ 6,435 |
| TTD | $ 6,389 |
| V | $ 6,277 |
| SBUX | $ 6,166 |
| CRON | $ 6,134 |
| INTC | $ 6,118 |
| ATHM | $ 6,098 |
| MA | $ 6,077 |
| PLNT | $ 6,076 |
| UI | $ 5,967 |
| CSCO | $ 5,949 |
| HON | $ 5,901 |
| XEL | $ 5,880 |
| PM | $ 5,760 |
| AVGO | $ 5,739 |
| OKE | $ 5,731 |
| BR | $ 5,566 |
| SJM | $ 5,391 |
| NVDA | $ 5,389 |
| AMAT | $ 5,328 |
| MPWR | $ 5,516 |
| TMO | $ 5,336 |
| EA | $ 5,251 |
| ICE | $ 5,225 |
| WP | $ 5,146 |
| ABMD | $ 5,114 |
| TXN | $ 5,037 |
| HEI | $ 4,951 |
| FDS | $ 4,884 |
| LNT | $ 4,855 |
| EW | $ 4,795 |
| RSG | $ 4,777 |
| GOOGL | $ 4,772 |
| SPR | $ 4,718 |
| WEC | $ 4,673 |
| HTHT | $ 4,428 |
| MOMO | $ 4,423 |
| ITW | $ 4,412 |
| VGR | $ 4,318 |
| BAX | $ 4,270 |
| HD | $ 4,127 |
| CHTR | $ 4,123 |
| IQ | $ 4,092 |
| SHW | $ 3,991 |
| FLT | $ 3,858 |
| AMP | $ 3,791 |
| COST | $ 3,785 |
| HRS | $ 3,672 |
| FAST | $ 3,564 |
| VEEV | $ 3,604 |
| BF.B | $ 3,544 |
| EADSY | $ 3,518 |
| BLL | $ 3,453 |
| SAM | $ 3,426 |
| ADP | $ 3,397 |
| CHD | $ 3,396 |
| MPC | $ 3,376 |
| ISRG | $ 3,355 |
| SPLK | $ 3,340 |
| CMCSA | $ 3,283 |
| NDAQ | $ 3,252 |
| WCN | $ 3,219 |
| AZO | $ 3,167 |
| UVE | $ 3,154 |
| IRBT | $ 3,142 |
| DRI | $ 3,139 |
| TGT | $ 3,126 |
| AMGN | $ 3,131 |
| TIF | $ 3,097 |
| AWR | $ 3,087 |
| DIS | $ 3,079 |
| UNH | $ 3,071 |
| NKE | $ 3,064 |
| ZTO | $ 3,064 |
| CPK | $ 3,057 |
| CVX | $ 3,054 |
| C | $ 3,045 |
| YUM | $ 3,035 |
| SVIB | $ 2,984 |
| ODFL | $ 2,969 |
| KLAC | $ 2,944 |
| CONE | $ 2,883 |
| NVEE | $ 2,848 |
| PSX | $ 2,798 |
| NTES | $ 2,770 |
| ORLY | $ 2,598 |
| NOC | $ 2,545 |
| EEFT | $ 2,537 |
| VFC | $ 2,485 |
| DNKN | $ 2,476 |
| LK | $ 2,460 |
| ECL | $ 2,435 |
| WTR | $ 2,414 |
| TMUS | $ 2,381 |
| ACN | $ 2,361 |
| PF | $ 2,330 |
| SEDG | $ 2,290 |
| IPGP | $ 2,267 |
| WDAY | $ 2,173 |
| TDY | $ 2,140 |
| PEP | $ 2,139 |
| SINA | $ 2,123 |
| GP | $ 2,117 |
| WMT | $ 2,000 |
| CE | $ 1,938 |
| COF | $ 1,902 |
| ESNT | $ 1,861 |
| EL | $ 1,848 |
| D | $ 1,772 |
| ABT | $ 1,705 |
| UNP | $ 1,663 |
| ATVI | $ 1,655 |
| DXCM | $ 1,620 |
| TREX | $ 1,603 |
| RMD | $ 1,585 |
| BMY | $ 1,532 |
| CBOE | $ 1,530 |
| AVY | $ 1,527 |
| CNI | $ 1,491 |
| ENB | $ 1,472 |
| LOW | $ 1,451 |
| FTNT | $ 1,332 |
| TSN | $ 1,301 |
| SSTI | $ 1,250 |
| WFC | $ 1,225 |
| NMIH | $ 1,051 |
| SWK | $ 1,034 |
| LLY | $ 907 |
| PDD | $ 795 |
| FISV | $ 767 |
| COR | $ 761 |
| YNDX | $ 754 |
| CMI | $ 728 |
| MKSI | $ 641 |
| QCOM | $ 641 |
| ALLY | $ 636 |
| STNE | $ 603 |
| BIG | $ 572 |
| BIIB | $ 559 |
| CVS | $ 492 |
| JPM | $ 483 |
| PFE | $ 445 |
| LEA | $ 413 |
| VRTX | $ 394 |
| VRSN | $ 388 |
| WBA | $ 378 |
| WLK | $ 367 |
| REGN | $ 341 |
| WASH | $ 314 |
| ICLR | $ 310 |
| DOV | $ 309 |
| LDOS | $ 286 |
| PFGC | $ 268 |
| TU | $ 262 |
| EXPD | $ 239 |
| BNS | $ 238 |
| CSX | $ 215 |
| GLOB | $ 211 |
| EPAM | $ 191 |
| WHR | $ 190 |
| CBRL | $ 185 |
| ADSK | $ 158 |
| CSL | $ 153 |
| STE | $ 145 |
| RF | $ 135 |
| ZION | $ 127 |
| AIG | $ 104 |
| RY | $ 91 |
| BMO | $ (1) |
| CM | $ (12) |
| DLTR | $ (13) |
| PRU | $ (172) |
| APHA | $ (201) |
| CMA | $ (305) |
| TWLO | $ (402) |
| SSTI | $ (632) |
| TWTR | $ (803) |
| NOAH | $ (940) |
| CADE | $ (1,180) |
| HEXO | $ (1,934) |
| BUZN | $ (2,245) |
| HEP | $ (2,281) |
| BEST | $ (2,467) |
| CTST | $ (2,726) |
| ET | $ (2,888) |
| EMHTF | $ (2,981) |
| VVCIF | $ (3,027) |
| APHA | $ (3,426) |
| SPUN | $ (3,646) |
| BE | $ (3,784) |
| ACB | $ (4,364) |
| WCAGY | $ (4,804) |
| CASA | $ (5,254) |
Currently dividends are $81,825 annually with estimated growth rate of about 19%. Five years ago when I retired my dividends were over $124,000 annually. I sold the majority of my higher yielding stocks due to consistent under performance.
I take the time to show all this in detail because so many investors think that all they can get out of the investment is the dividend of say 3.5% to 3.7% when they could be getting 10% or more in good market years and banking the surplus if the right stocks are owned. This kind of return would provide for a much better retirement lifestyle through increased purchasing power.
Dividends-only income per month $81,825/12 = $6,819 average or
Using harvesting profit income per month $1,083,394/24 = $45,141.
Dividend contribution approximately ( $81,825 *2)/$1,083,394 = 15.1%.
In 2020 I will probably report this in a more abbreviated form, maybe combine with monthly holdings. After two years the method and results should be apparent.
Analyst's Disclosure: I am/we are long all stocks listed.
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.