Dividend Harvesting Week 62 Update: $6,200 Allocated, $435.02 In Annual Dividends Yielding 6.82% Across 71 Positions

seekingalpha2022-05-12

Eoneren/E+ via Getty Images This was another difficult week in the markets, and the Thursday rally turned into the Friday dumpster fire. The markets seemed to fire on all cylinders after the Fed ...

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The markets seemed to fire on all cylinders after the Fed ...</p>\n\n<a href=\"https://seekingalpha.com/article/4508928-dividend-harvesting-week-62-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 62 Update: $6,200 Allocated, $435.02 In Annual Dividends Yielding 6.82% 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 62 Update: $6,200 Allocated, $435.02 In Annual Dividends Yielding 6.82% Across 71 Positions\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-05-12 22:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4508928-dividend-harvesting-week-62-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 difficult week in the markets, and the Thursday rally turned into the Friday dumpster fire. The markets seemed to fire on all cylinders after the Fed ...</p>\n\n<a href=\"https://seekingalpha.com/article/4508928-dividend-harvesting-week-62-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":"BK4581","symbol_name":"高盛持仓","start_time":0,"source_url":"https://seekingalpha.com/article/4508928-dividend-harvesting-week-62-update-allocated-annual-dividends-yielding-across-positions","article_id":"2234973564","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2234973564","pubTimestamp":1652364000,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Eoneren/E+ via Getty Images This was another difficult week in the markets, and the Thursday rally t","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4581":"高盛持仓","GOOGL":"谷歌A","BK4512":"苹果概念","BK4504":"桥水持仓","BK4549":"软银资本持仓","BK4110":"抵押房地产投资信托","BK4561":"索罗斯持仓","INTC":"英特尔","BK4548":"巴美列捷福持仓","BK4514":"搜索引擎","AGNC":"美国资本代理公司","BK4529":"IDC概念","BK4201":"综合性石油与天然气企业","BK4516":"特朗普概念","BK4532":"文艺复兴科技持仓","BK4554":"元宇宙及AR概念","AMD":"美国超微公司","BAC":"美国银行","BK4515":"5G概念","BK4553":"喜马拉雅资本持仓","BK4534":"瑞士信贷持仓","BK4567":"ESG概念","BK4507":"流媒体概念","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4576":"AR","BK4566":"资本集团","PTY":"PIMCO企债收益机会基金","BK4575":"芯片概念","BK4525":"远程办公概念","GFS":"GLOBALFOUNDRIES Inc.","NVDA":"英伟达","BK4535":"淡马锡持仓","AMZN":"亚马逊","BK4508":"社交媒体","BK4543":"AI","BK4538":"云计算","BK4077":"互动媒体与服务","BK4579":"人工智能","QYLD":"纳斯达克100 Covered Call ETF-Global X","BK4550":"红杉资本持仓","BK4141":"半导体产品","STWD":"Starwood Property Trust Inc","BK4503":"景林资产持仓","BK4122":"互联网与直销零售","XOM":"埃克森美孚","BK4574":"无人驾驶","QCOM":"高通","BK4573":"虚拟现实"},"translate_title":"股息收获第62周更新：分配6,200美元，年度股息435.02美元，在71个职位中收益率为6.82%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMD":1,"XOM":1,"STWD":1,"QYLD":1,"QCOM":1,"PTY":1,"NVDA":1,"INTC":1,"GOOGL":1,"FB":1,"BRMK":1,"AGNC":1,"AMZN":1,"BAC":1,"GFS":0.67},"content_text":"Eoneren/E+ via Getty Images This was another difficult week in the markets, and the Thursday rally turned into the Friday dumpster fire. The markets seemed to fire on all cylinders after the Fed announcement, but Friday proved it was nothing more than a massive head fake. The Nasdaq closed down -1.12% for the week bringing its YTD performance to -23.29% as it falls deeper into a bear market. The S&P was relatively flat as it appreciated by 0.19% over the previous 5 days bringing its YTD performance to -14.04% as it approaches bear market territory. The DOW was also relatively flat as it declined by 0.30%, bringing its YTD performance to -10.07%. The major indices are off to a slow start in 2022, while the growth trade has been decimated as multiples compress. This is exactly why I have a portion of my investments allocated to dividend-producing assets. The ongoing stream of income comes in handy during major corrections if you're not trying to time the markets. 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. On the growth and tech side of my investments, I am feeling the pain as some of my favorite companies, including Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (FB), have been taken to the woodshed. The idea of having 71 positions no matter what portfolio balance is could seem overwhelming or outright crazy to some people, and this strategy certainly isn't for everybody. I have created a broad level of diversification that once again has proven to navigate the uncertainty of the market quite well. While the markets inflicted further amounts of pain on some portfolios, the Dividend Harvesting portfolio climbed from being up 0.58% last week to closing this week up $176.09 or 2.76%. Over the previous 62 weeks, I have allocated $100 a week and have finished 61/62 weeks (98.39%) in the black. This portfolio is now generating an estimated $435.02 in annual dividends and has a forward yield of 6.82%. 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 $146.01 (33.56%) Pacer Swan SOS Fund of Funds ETF|ETFs $96.06 (22.08%) CEFs $86.12 (19.80%) REITs $80.84 (18.58%) BDC $20.73 (4.77%) ETNs $5.26 (1.21%)  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 $130.74 in dividend income from 170 dividends across 18 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 62, 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, Seeking Alpha 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, Seeking Alpha The Dividend Harvesting Portfolio Composition ETFs remain the largest segment of the Dividend Harvesting portfolio. Individual equities make up 49.38% of the portfolio and generate 33.56% of the dividend income, while ETFs, CEFs, REITs, BDCs, and ETNs represent 50.62% of the portfolio and generate 66.44% 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 In week 62, I had a new position take the #1 spot due to adding to the position. Verizon (VZ) is now the largest holding in the Dividend Harvesting portfolio, followed by Exxon Mobil (XOM), and Starwood Property Trust (STWD). I have a 5% max rule for an individual position, and I am watching VZ closely now.  Week 62 Top 10 By %  VZ 4.62%   XOM 4.49%   STWD 4.28%   INTC 4.19%   OHI 4.17%   MO 3.84%   T 3.37%   PTY 3.04%   QYLD 2.59%   RYLD 2.55%   Week 62 Additions In week 62 I added 1 share to each of the following positions:  Verizon (VZ) Intel (INTC) AGNC Investment Corp (AGNC)  VZ VZ declined further at the beginning of the week, and I grabbed another share at $46.61 as it started to rebound. VZ closed the week at $48.27 and is yielding 5.3%. VZ is a company that can be a cornerstone of any dividend portfolio, and with 18 years of consecutive dividend increases, a payout ratio of 46.83%, and a 5.3% yield, I am happy to add shares. VZ has a strong business that I don't see being disrupted and will look to add more shares in the future. INTC The market didn't like the quarter, and investors have flocked to Advanced Micro Devices (AMD), Nvidia (NVDA), and Qualcomm (QCOM) in the semiconductor industry. I wouldn't call INTC's plan a turnaround story, more of a fortification one. When you look at the CPU industry market share for PC's and Servers, INTC is still the dominant force. On the Server side, AMD started to take market share from INTC, but it was short-lived. On the PC side, AMD had looked like they were almost going to repeat history as the gap closed between them and INTC. Over the past 4-5 years, AMD has taken market share away from INTC, but in the recent quarters, INTC started to widen the gap as they approach a 70% market share level once again. I grabbed another share of INTC at $43.68, and it closed at $44.30 yielding 3.3%. I am happy to add shares in the $40s as INTC has a 28.43% payout ratio, 8 years of dividend growth, and a 6.25% 5-year growth rate. I don't believe INTC's best days are behind them, and the crazy part is that INTC hasn't recovered from its dot com highs 2 decades later, even though they produce significantly more FCF, Net Income, and Revenue. I think we will see INTC in the $ 60's sometime in the future and will add to this technology staple when opportunities present themselves. CPU Passmark CPU Passmark AGNC There isn't much to say about AGNC. It's been one of the worst positions in the portfolio, and dollar cost averaged with the remaining capital at $11.07. It ended up working out as AGNC closed at $12.41. I am not ready to call it quits on AGNC and think it can rebound. This is now a waiting game where I am being paid 11.6% from its dividend. I was pleasantly surprised by the quarter as AGNC beat earnings by $0.08 and, as of 3/31, had a tangible net book value of $13.12. I will continue to monitor AGNC, but this may become a situation where I buy some more shares to get back to even and increase the cash flow his position generates. Week 63 Game Plan I have had my eye on Bank of America (BAC) for this portfolio for some time, and it's back to trading at an attractive price. Shares are hovering around the 52-week lows and have declined -25.26% since their 52-week highs of $50.11. BAC is becoming a strong dividend player with a 2.24% yield, 8 consecutive years of dividend increases, and a 23.14% payout ratio. I don't need every investment to be a high-yielder and add high-quality companies when they're on sale. BAC is a high-quality bank that's trading at an interesting yield. I think this could provide both dividend income and appreciation for the Dividend Harvesting portfolio. In addition to considering BAC as an addition, I want to take advantage of the tech wreck. I am going to be looking at some of the ETFs and CEFs that have large allocations to tech and possibly dollar cost average into them. 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":6,"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/2234973564"}