Dividend Harvesting Week 64 Update: $6,400 Allocated, $450.88 In Annual Dividends Yielding 7.05% Across 72 Positions

seekingalpha2022-05-26

Adrian Vidal/iStock via Getty Images This was an important week in the Dividend Harvesting series as the markets experienced large amounts of volatility. The S&P 500 closed down -2.87%, the Nasdaq was...

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The S&P 500 closed down -2.87%, the Nasdaq was...</p>\n\n<a href=\"https://seekingalpha.com/article/4513697-dividend-harvesting-week-64-update-allocated-annual-dividends-yielding-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 64 Update: $6,400 Allocated, $450.88 In Annual Dividends Yielding 7.05% Across 72 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 64 Update: $6,400 Allocated, $450.88 In Annual Dividends Yielding 7.05% Across 72 Positions\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-05-26 22:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4513697-dividend-harvesting-week-64-update-allocated-annual-dividends-yielding-positions><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Adrian Vidal/iStock via Getty Images This was an important week in the Dividend Harvesting series as the markets experienced large amounts of volatility. The S&P 500 closed down -2.87%, the Nasdaq was...</p>\n\n<a href=\"https://seekingalpha.com/article/4513697-dividend-harvesting-week-64-update-allocated-annual-dividends-yielding-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":"BK4579","symbol_name":"人工智能","start_time":0,"source_url":"https://seekingalpha.com/article/4513697-dividend-harvesting-week-64-update-allocated-annual-dividends-yielding-positions","article_id":"2238684636","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2238684636","pubTimestamp":1653573600,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Adrian Vidal/iStock via Getty Images This was an important week in the Dividend Harvesting series as","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4579":"人工智能","BK4020":"通信设备","RYLD":"Global X Russell 2000 Covered Call ETF","C":"花旗","BK4115":"综合电信业务","BK4503":"景林资产持仓","WFC":"富国银行","BK4574":"无人驾驶","BK4122":"互联网与直销零售","BK4207":"综合性银行","VZ":"威瑞森","BK4551":"寇图资本持仓","BK4561":"索罗斯持仓","BK4573":"虚拟现实","BK4581":"高盛持仓","XOM":"埃克森美孚","BK4560":"网络安全概念","AGNC":"美国资本代理公司","BK4504":"桥水持仓","BK4110":"抵押房地产投资信托","BK4559":"巴菲特持仓","BK4548":"巴美列捷福持仓","BK4514":"搜索引擎","BK4527":"明星科技股","BK4176":"多领域控股","BK4538":"云计算","BK4201":"综合性石油与天然气企业","QYLD":"纳斯达克100 Covered Call ETF-Global X","BK4516":"特朗普概念","GOOGL":"谷歌A","BK4532":"文艺复兴科技持仓","NYCB":"纽约社区银行","BK4515":"5G概念","BRK.A":"伯克希尔","BK4554":"元宇宙及AR概念","CSCO":"思科","BK4553":"喜马拉雅资本持仓","BRK.B":"伯克希尔B","BK4534":"瑞士信贷持仓","BK4576":"AR","BK4533":"AQR资本管理(全球第二大对冲基金)","AMZN":"亚马逊","BK4525":"远程办公概念","BK4535":"淡马锡持仓","BK4195":"互助储蓄与抵押信贷金融服务","BK4524":"宅经济概念","BK4508":"社交媒体","BK4501":"段永平概念"},"translate_title":"股息收获第64周更新：分配6400美元，年度股息450.88美元，72个职位的收益率为7.05%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMZN":1,"AGNC":1,"WFC":1,"VZ":1,"RYLD":1,"QYLD":1,"NYCB":1,"GOOGL":1,"FB":1,"CSCO":1,"C":1,"BRMK":1,"XOM":0.82,"BRK.A":0.66,"BRK.B":0.66},"content_text":"Adrian Vidal/iStock via Getty Images This was an important week in the Dividend Harvesting series as the markets experienced large amounts of volatility. The S&P 500 closed down -2.87%, the Nasdaq was down -3.33%, while the DOW declined by -2.87%. You may be wondering why I am considering this an important week? It's because week 64 marks the 2nd week the Dividend Harvesting portfolio has closed in the red, and I am glad it happened. 2022 has been a great barometer of how this portfolio would navigate choppy waters, but there is nothing like the markets declining by -3.57% to -4.73% in a single day to put a portfolio to the test. On 5/18, the S&P 500 declined by -4.04%, while the Nasdaq fell -4.73% and the Dow by -3.57%. On 5/18, the Dividend Harvesting portfolio fell by -2.5%. I have allocated $6,400, and the Dividend Harvesting portfolio gave back its gains and finished the week with a portfolio total of $6,393.15, leaving me in the red by -$6.85. A loss is a loss, and even though it's only -$6.85, this is the 2nd time over 64 weeks I have finished the week in the red. It's inevitable that portfolios are going to fluctuate, and I am thrilled that my over-diversified portfolio is proving my point. The Dividend Harvesting portfolio has navigated the markets extremely well, and no matter what external economic events have occurred, it's taken the negativity on the chin and continued to move forward, leaving me in a better position than others. The Dividend Harvesting portfolio still has a 96.88% (62/64) record of finishing the week in the black, and being down by -$6.85 is hardly a blemish. The Dividend Harvesting portfolio is generating $450.88 in annual dividends and is now yielding 7.05%. Steven Fiorillo, Seeking Alpha It's amazing how people click on this series and immediately write a negative comment without either reading the article or just skimming through it without grasping the concept. 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 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. 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 A historical recap of the Dividend Harvesting Portfolio series I thought it would be a good idea to create a quick recap of the rules and the Dividend Harvesting Portfolio's progress. The rules:  Allocate $100 weekly to this portfolio Only invest in dividend producing investments No position can exceed 5% of the portfolio No sector can exceed 20% of the portfolio All dividends & distributions are to be reinvested  The Dividend Harvesting Portfolio Progression  Blue line is my initial investment $100 in week 1, $1000 in week 10, etc. Red line is the account value at the end of each week Yellow line is the annual dividend income the Dividend Harvesting Portfolio was projected to generate after that week's investments and dividends reinvested  Steven Fiorillo The Dividend Harvesting Portfolio Dividend Section Here is how much dividend income is generated per investment basket:  Equities $150.59 (33.40%) Pacer Swan SOS Fund of Funds ETF|ETFs $101.74 (22.56%) CEFs $90.82 (20.14%) REITs $81.64 (18.11%) BDC $20.82 (4.62%) ETNs $5.26 (1.17%)  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 $150.22 in dividend income from 187 dividends across 20 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 In week 64 I didn't add any additional positions to the portfolio. The Dividend Harvesting portfolio's annual dividend count remains at 532. 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 5 positions that are generating at least 1 share annually through their dividends which include the PIMCO Corporate & Income Opportunity Fund (PTY), Broadmark Realty Capital (BRMK), AGNC Investment Corp. (AGNC), the Global X Russell 2000 Covered Call ETF (RYLD), 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.  Shares from Dividends Annually  0-9.9% 10-19.99% 20-29.99% 30-39.99% 40-49.99% 50-59.99% 60-69.99% 70-79.99% 80-89.99% 90-100% Generating > 1 share   LGI NUSI MPW PFFA GLDI T THW PDI OHI STWD QYLD   CCAP NRZ PFFD GSBD ALTY BCAT USA ECC     PTY   AMZA C KMI VZ ARCC           BRMK   FOF MLPX UTF SLVO BST           RYLD   BBDC XYLD BTI ORCC EXG           AGNC   BP QYLG NYCB MO                 CWEN AQN INTC                   KHC BDJ MFC                   AMLP ENB                     JEPI XOM                     RQI                       UTG                       SO                       THQ                       OKE                       AY                       VICI                       STAG                       O                       ORI                       MMM                       ABBV                       CSCO                       ED                       HPQ                       BMY                       KO                       BAC                       WBD                       XYLG                       The Dividend Harvesting portfolio composition ETFs remain the largest segment of the Dividend Harvesting portfolio. Individual equities make up 49.82% of the portfolio and generate 33.40% of the dividend income, while ETFs, CEFs, REITs, BDCs, and ETNs represent 50.18% of the portfolio and generate 66.60% 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.   Industry Investment Portfolio Total % of Portfolio   ETFs $1,031.35 $6,393.15 16.13%   Closed End Funds $971.51 $6,393.15 15.20%   REIT $941.88 $6,393.15 14.73%   Oil, Gas & Consumable Fuels $593.08 $6,393.15 9.28%   Communication Services $520.99 $6,393.15 8.15%   Consumer Staples $499.08 $6,393.15 7.81%   Financials $431.72 $6,393.15 6.75%   Technology $366.17 $6,393.15 5.73%   Utility $295.09 $6,393.15 4.62%   Pharmaceuticals $231.21 $6,393.15 3.62%   BDC $217.25 $6,393.15 3.40%   Industrials $145.27 $6,393.15 2.27%   Independent Power & Renewable Electricity Producers $102.41 $6,393.15 1.60%   ETN $39.67 $6,393.15 0.62%   Cash $6.50 $6,393.15 0.10%   There are 4 positions over 4% of the portfolio and Verizon (VZ) is closing in on 5%. Citigroup (C) crept into the top ten this week as I added another share on Monday prior to the Berkshire announcement. The top 4 positions should see their percentages decline over the next several weeks as I am not planning on adding to these positions.  Week 64 Top 10 By %  VZ 4.73%   XOM 4.48%   OHI 4.32%   STWD 4.09%   INTC 3.93%   MO 3.46%   T 3.42%   C 3.13%   PTY 2.93%   BST 2.82%   Week 64 additions In week 64 I added 1 share to each of the following positions:  Citigroup (C) New York Community Bank (NYCB) Global X Nasdaq 100 Covered Call ETF (QYLD) Global X Russell 2000 Covered Call ETF (RYLD)  C I wrote an article about C which was published 5/16/22 prior to the Berkshire announcement. I believed C was undervalued at the time by at least 67.38%. C was trading at $47.64 while its tangible book value is $79.74 leaving a $32.10 (67.38%) spread between the two. Also, C has $198.35 billion in total equity on the books, and its market cap was $92.51 billion. C was the only bank in its peer group besides Wells Fargo (WFC) that traded under a 1:1 ratio on its total equity. C is currently yielding 4.10%, and I think it's a great long-term addition. I was down on the position, so I added another share. Steven Fiorillo, Seeking Alpha NYCB NYCB is a relatively new position, and it's fallen a bit since I purchased it. I said from the beginning if I didn't catch the bottom, I would just add to the position, and that's what I continue to do. I think the regional banks will do well in the rising rate environment and plan to continuously add to NYCB. Since NYCB reduced its dividend in Q1 of 2016, its quarterly dividend has held strong at $0.17 all through the pandemic. NYCB is paying $0.68 per share, which is a forward yield of 7.2%. NYCB is generating $1.22 in EPS, and I wouldn't be surprised if they start increasing the dividend again in the future. QYLD and RYLD I recently wrote an article on QYLD, and as many of you know, I am quite fond of these funds. Since its inception at the end of 2013, QYLD has paid $19.90 per share in distributions and has an annualized yield of 9.48% since it went public at $25 per share. QYLD will continue to follow the markets to some extent, and I am happy just adding to the position and reinvesting the monthly distributions. RYLD, in my prior research, had performed better than QYLD, and I decided to add to this position when the markets crashed during the week. Week 65 Game Plan Cisco Systems (CSCO) is a 100% buy after the dramatic sell-off. I read through the quarterly report, and these headwinds aren't as bad as what people made them out to be if you're a long-term investor. CSCO is now yielding 3.54%, and I will be adding another share to the portfolio. Other than CSCO, there are many great buys out there, and I am not sure what else I am going to look at. 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. 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