Dividend Harvesting Week 61 Update: $6,100 Allocated, $428.81 In Annual Dividends Yielding 6.99% Across 71 Positions

seekingalpha2022-05-05

Eoneren/E+ via Getty Images This was another tough week for investors as big tech failed to hold the line. The Nasdaq declined by -3.5%, the S&P by -2.5%, and the Dow by -1.87%. 2022 has been awful ...

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The Nasdaq declined by -3.5%, the S&P by -2.5%, and the Dow by -1.87%. 2022 has been awful ...</p>\n\n<a href=\"https://seekingalpha.com/article/4505752-dividend-harvesting-week-61-update-allocated-annual-dividends-yielding-across-positions\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Dividend Harvesting Week 61 Update: $6,100 Allocated, $428.81 In Annual Dividends Yielding 6.99% Across 71 Positions</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDividend Harvesting Week 61 Update: $6,100 Allocated, $428.81 In Annual Dividends Yielding 6.99% Across 71 Positions\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-05-05 22:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4505752-dividend-harvesting-week-61-update-allocated-annual-dividends-yielding-across-positions><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Eoneren/E+ via Getty Images This was another tough week for investors as big tech failed to hold the line. The Nasdaq declined by -3.5%, the S&P by -2.5%, and the Dow by -1.87%. 2022 has been awful ...</p>\n\n<a href=\"https://seekingalpha.com/article/4505752-dividend-harvesting-week-61-update-allocated-annual-dividends-yielding-across-positions\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4529","symbol_name":"IDC概念","start_time":0,"source_url":"https://seekingalpha.com/article/4505752-dividend-harvesting-week-61-update-allocated-annual-dividends-yielding-across-positions","article_id":"2233816002","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2233816002","pubTimestamp":1651759200,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Eoneren/E+ via Getty Images This was another tough week for investors as big tech failed to hold the","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4529":"IDC概念","BK4201":"综合性石油与天然气企业","BK4516":"特朗普概念","BK4554":"元宇宙及AR概念","BK4110":"抵押房地产投资信托","BK4515":"5G概念","BK4570":"地缘局势概念股","BK4534":"瑞士信贷持仓","QYLD":"纳斯达克100 Covered Call ETF-Global X","BK4203":"医疗保健房地产投资信托","BK4533":"AQR资本管理(全球第二大对冲基金)","OHI":"Omega Healthcare Investors","VZ":"威瑞森","BK4575":"芯片概念","BK4535":"淡马锡持仓","XOM":"埃克森美孚","BK4559":"巴菲特持仓","BK4527":"明星科技股","BK4579":"人工智能","BK4550":"红杉资本持仓","BK4141":"半导体产品","BK4115":"综合电信业务","STWD":"Starwood Property Trust Inc","INTC":"英特尔","PTY":"PIMCO企债收益机会基金","BK4581":"高盛持仓","BK4512":"苹果概念"},"translate_title":"股息收获第61周更新：分配6100美元，年度股息428.81美元，71个职位收益率为6.99%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"XOM":1,"VZ":1,"STWD":1,"QYLD":1,"PTY":1,"OHI":1,"NRZ":1,"INTC":1,"BRMK":1},"content_text":"Eoneren/E+ via Getty Images This was another tough week for investors as big tech failed to hold the line. The Nasdaq declined by -3.5%, the S&P by -2.5%, and the Dow by -1.87%. 2022 has been awful for investors as the Nasdaq is officially in a bear market, declining by -22.09% YTD, followed by the S&P being down -13.86% and the Dow finishing the week down -9.86% YTD. I certainly wouldn't have predicted the markets would have declined this drastically over the first 4 months of 2022. While many are scrambling, I am looking at the market's weakness as an opportunity. The good thing about constantly buying is that you can invest throughout every market cycle. Over the past 61 weeks, I have allocated $100 per week to create the Dividend Harvesting portfolio, and once again, it finished its 61st week in the black, improving the record to 98.36% (60/61). Quite a few commenters have indicated that there are too many positions in this portfolio and that the idea is a waste of time. That is probably true and not wrong, as those are their opinions. No two investment styles will be identical, and what works for one person may not be the best blueprint for another investor. I started this series due to the number of questions I received regarding where to start with dividend investing. Every investor's situation is different, and a major misconception about dividend investing is that the initial seed capital needs to be large. I allocate capital toward big tech, funds, dividends, and growth outside of my retirement accounts. These are not my only investments, but I did open up a separate account, so I could easily track and document this series. I intentionally created broad diversification throughout the Dividend Harvesting portfolio so I could benefit from sector rotations and mitigate my downside risk. Investors who are too exposed to growth companies or large-cap tech have gotten crushed as the investment landscape changes. The idea of having 71 positions across $6,100 of invested capital may seem crazy to some, but the balance in this account is currently $6,135.63 putting me in the black by 0.58%. This portfolio continues to weather the storm through periods of uncertainty while producing an ongoing stream of dividend income. This series has never been about hitting a target yield, generating a certain amount of profit, or beating the market. I had two specific goals with this series. The first was to create a blueprint for constructing a dividend portfolio by documenting the journey starting from the beginning. The second goal was to illustrate how allocating capital each week toward investing, regardless of the amount, would be beneficial in the long run. Too many people are under the illusion that you need tens of thousands or even hundreds of thousands to benefit from investing. Instead of using my real dividend portfolio as an example, I decided to start a new account, fund it with $100, and add $100 weekly, providing a step-by-step guide to dividend investing. This methodology doesn't have to be used for dividend investing, and it could be as simple as an S&P index fund or a Total Market fund. Hopefully, this series is inspiring people to invest in their future to attain financial freedom. Steven Fiorillo The Dividend Harvesting Portfolio Dividend Section Here is how much dividend income is generated per investment basket:  Equities $141.58 (33.02%) Pacer Swan SOS Fund of Funds ETF|ETFs $96.02 (22.39%) CEFs $85.81 (20.01%) REITs $79.40 (18.52%) BDC $20.73 (4.84%) ETNs $5.26 (1.23%)  Steven Fiorillo Steven Fiorillo Collecting dividends can serve many functions in a portfolio. Some investors utilize dividends to supplement their income and live off. I am building a dividend portfolio for myself 30 years into the future. Since I am reinvesting every dividend, they serve multiple purposes today. In 2022 alone, I have collected $120.69 in dividend income from 162 dividends across 17 weeks. This has allowed the Dividend Harvesting portfolio to stay in the black while growing the snowball effect. These dividends allow me to gain additional equity in my investments while increasing my future cash flow in down markets. This style of investing isn't for everyone, but if you're looking to generate consistent cash flow while mitigating downside risk, this method has worked for me. I am hoping to collect between $450-$500 in dividends in 2022, which will be reinvested, and finish the year generating >$700 in annual dividends. Steven Fiorillo I didn't add new positions in week 61, so my annual dividend count remains 528. I am producing dividends every week throughout the year, and the snowball effect is in full effect as each dividend that is generated gets reinvested. Steven Fiorillo The goal of generating enough income from the dividends to purchase an additional share per year has been the never-ending project of this portfolio. There are now 3 positions that are now generating at least 1 share annually through their dividends which include the PIMCO Corporate & Income Opportunity Fund (PTY), Broadmark Realty Capital (BRMK), and the Global X NASDAQ 100 Covered Call ETF (QYLD). I am trying to get more of the current positions over the finish line. Eventually, more positions will generate one share per year in dividend income. Steven Fiorillo The Dividend Harvesting Portfolio Composition ETFs remain the largest segment of the Dividend Harvesting portfolio. Individual equities make up 48.14% of the portfolio and generate 33.02% of the dividend income, while ETFs, CEFs, REITs, BDCs, and ETNs represent 51.86% of the portfolio and generate 66.98% of the dividend income. I have a 20% maximum sector weight, so when a singular sector gets close to that level, I make sure capital is allocated away from that area to balance things out. In 2022, I will make an effort to even out these portfolio percentages. As more capital is deployed, the bottom half of the portfolio weighting will increase. Steven Fiorillo Starwood Property Trust (STWD) and Exxon Mobil (XOM) keep playing tag, and this week, XOM reclaimed my largest holding. Sticking with my 5% rule, I am not in any danger of exceeding this level.  Week 61 Top 10 By %  XOM 4.34%   STWD 4.31%   MO 3.92%   OHI 3.89%   VZ 3.81%   INTC 3.58%   T 3.25%   PTY 3.15%   QYLD 2.72%   RYLD 2.67%   Week 61 Additions In week 61 I added 1 share to each of the following positions:  Intel Corp (INTC) Verizon (VZ) Omega Healthcare Investors (OHI) New Residential Investment Corp (NRZ)  INTC INTC has fallen -24.23% in the past year and in the past month has fallen -10.57%. I added into earnings, and INTC fell after its outlook suggested possible weakness in PC sales. INTC is the dominant chipmaker in PC's and is now yielding 3.35%. I really don't think you can go wrong with INTC if you have a long investment horizon, as this is one of the most important companies in the market. INTC may be in a rut, but eventually, these prices should look like a gift. I am happy to buy shares into weakness, especially when they yield over 3%. VZ VZ has sharply declined from around $55 to $46.30 over the past 10 days. I think the market has been too harsh on VZ after VZ failed to report earnings that clearly beat estimates for the first time since 2019. VZ is still a dividend superstar with large amounts of FCF and a dividend that has grown for 18 consecutive years that's currently yielding 5.53%. Grabbing shares here isn't a bad idea in my opinion. OHI I recently wrote a dedicated article on OHI and outlined why OHI looks cheap compared to its peers. OHI just announced their dividend, and there were no cuts to be spoken of. I will be interested to hear what management has to say on the earnings call, but for now, I will continue to dollar cost average into this position as OHI is now yielding 10.52%. NRZ At the end of week 61 I had a few bucks left over, and I was down -2% on my recent addition with NRZ. I decided to buy a share as I plan on building up this position. Management has been working hard to get this company back on track, and they have already increased the dividend 3 times since the 2020 reduction. Week 62 Gameplan This is going to sound boring, but I really want to add to INTC and VZ again. What I actually want to do is allocate more capital in week 62 with the markets crashing this week, but I will resist temptation and stick with the $100 a week allotment and stay true to this series. INTC and VZ have significantly declined, and these are positions that could be cornerstones in any dividend portfolio. It's hard to ignore them when INTC yields 3.35% and VZ yields 5.53%. There are many positions I want to add to, but these prices are probably going to be too cheap for me to pass up. Conclusion Thank you to everyone who continues to read this series. Creating a passive income fund isn't an investment approach that everyone believes in, but it's one of my investment cornerstones. I have a comprehensive investment approach where I invest in growth companies, value companies, and dividend companies/funds. I also utilize an indexing approach with funds for my retirement accounts. Income generation is just one aspect that I focus on when planning for the future. The passive income I'm generating will act as additional income in retirement. I look at this as a Barbell approach because I utilize several aspects of investing in my overall approach.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2233816002"}