Dividend Harvesting Portfolio Week 177: $17,700 Allocated, $1,594.04 In Projected Dividends

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Markets experienced a rotation out of tech stocks, IT departments panicked due to cybersecurity bug, S&P 500 closed down -2.41%.Dividend Harvesting Portfolio saw record-breaking week, generated $33.49...

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PM Images It's been an interesting week as reports that a rotation out of technology was occurring heading into Netflix (NFLX) earnings. Then, on Friday, many IT departments panicked as businesses were impacted by a global outage on several Windows systems due to a bug in an update CrowdStrike (CRWD) pushed through their cybersecurity platform on Microsoft's (MSFT) servers. The S&P 500 closed down -2.41% for the week, while the Nasdaq retraced by -4.19%. Despite the sell-off, we're heading into the most anticipated weeks of the Q2 earnings season, as most of the Magnificent Seven will report. Despite the price action this week, UBS raised its guidance for the S&P 500 and put a 5,900-price target to close out 2024 based on earnings growth and AI. UBS went as far as to put a 6,200 handle on the S&P 500 for June of 2025. Things are about to get very interesting as the next FOMC meeting will take place in the middle of earnings season for big tech. I don't think we're going to get a rate cut even though we should, as I believe Fed Chair Powell will set the stage for a September pivot. Regardless of what happens, I will be deploying capital each week into the Dividend Harvesting Portfolio, which I believe is positioned to generate recurring income while navigating future markets. While there is a possibility that the markets will continue to climb throughout 2024, the Dividend Harvesting Portfolio won't always be making new highs week over week. I want to make sure that reader expectations are realistic because several consecutive weeks of making new highs won't always occur. Be that as it may, this was another record-breaking week for the Dividend Harvesting Portfolio across the board. After 36 consecutive weeks in the black and allocating $17,700 to the Dividend Harvesting Portfolio, the account balance finished week 177 at $20,795.35. This is an ROI of 17.49% on invested capital as the profits have expanded to $3,095.35. In week 177, I added to the Blackstone Secured Lending Fund (BXSL) and the NEOS NASDAQ-100(R) High Income ETF (QQQI). The 3rd week in July was strong for income generation as $33.49 of dividend income was produced. The combination of adding to BXSL and QQQI while reinvesting the dividend income generated in week 176 has increased my forward projected annualized dividend income by $13.35 (0.84%) to $1,594.04. There is no question in my mind that I will exceed $1,600 of forward dividend income being generated by the end of July, and I may come close to hitting $1,650 by the end of the summer. I think the power of compounding is really going to surprise some of the readers as $2,000 of forward dividend income, then $3,000 will be much quicker than the first 159 weeks it took to pass $1,400 of forward dividend income.   Steven Fiorillo, Seeking Alpha The Overall Performance of the Dividend Harvesting Portfolio It's always easier to discuss investment strategies when things are going well. This is why I like to highlight when things have gone wrong. Throughout the Dividend Harvesting Portfolio's journey, I have experienced positions that reduced their dividends, inflation rising to the largest levels in 4 decades, geopolitical tensions, and macroeconomic headwinds. The crash of 2022 made investors cringe as companies such as Amazon (AMZN) were cut in half, yet I continued to invest each week. In the beginning of this series, there wasn't a larger deviation from invested capital, and at the worst level, the account value had been in the red by more than -10% for 3 consecutive weeks. The largest percentage that the Dividend Harvesting Portfolio had finished a week by was -12.65% in week 83. Throughout this series, there have been ups and downs, but no matter what, the dividend income continued to roll in, and I continued investing. I have always said that capital appreciation is not a direct investment goal, and I am more focused on building a portfolio that can mitigate downside risk while generating recurring income. Looking at past performance, I can truly say that these goals are being achieved while we experience the secondary goal of upside appreciation in 2024. I have specifically invested in more positions than most would feel comfortable with so I can be extremely diversified for when the markets rebalance. I am not a trader, and timing markets is next to impossible. I would rather have exposure to everything that way, I can benefit as different sectors catch a bid and not get too impacted when a sector falls out of favor.   Steven Fiorillo, Seeking Alpha The Dividend Harvesting Portfolio Dividend Section Here's how much dividend income is generated per investment basket:  Equities $448.40 (28.13%) ETFs $382.51 (24%) REITs $295.32 (18.53%) CEFs $273.65 (17.17%) BDCs $184.29 (11.56%) Treasuries $9.89 (0.62%)    Steven Fiorillo, Seeking Alpha  Steven Fiorillo, Seeking Alpha Collecting dividends can serve many functions in a portfolio. Some investors utilize dividends to supplement their income and live off of them. I'm building a dividend portfolio for myself 30 years into the future. In 2022, I collected $507.80 in dividend income from 533 dividends. In 2023, I collected $978.11 in dividend income from 660 dividends. After the first 29 weeks in 2024, I have collected $798.43 from 386 dividends. This is 81.80% of the total dividend income generated in 2023 from 58.48% of the dividends produced. This was another big week as the Dividend Harvesting Portfolio produced $33.49 of dividend income, which brought my weekly average in 2024 to $27.53. I have already exceeded $100 in dividend income in July, and the powers of compounding are really starting to take form. As 2024 progresses, I think that I will see a single week exceeding $100 in dividend income and several more weeks over $50. Looking back at the previous years, it's interesting to see how the weekly dividend income has increased, and I am excited for the future as this is an account I will be adding $100 per week to for a long time.   Steven Fiorillo, Seeking Alpha  Steven Fiorillo, Seeking Alpha After 3 weeks, it happened as I have exceeded $100 of dividend income in July. There are still 8 trading days left in the month, and I have generated $107.51. The first month of each quarter seems to generate the largest dividend income, and it looks like I may be on track to exceed $150 this month. It's going to be interesting to see how things play out as I firmly believe that the Dividend Harvesting Portfolio will continue to exceed $100 each week going forward, and we may see at least 2 months in 2024 where the dividend income tops $150. I am excited to see how the year concludes, as I think 2025 is going to be a big year for the Dividend Harvesting Portfolio.   Steven Fiorillo, Seeking Alpha Well, Kinder Morgan (KMI) fell out of the green section of the table below, which represents all of the companies that generate more than 1 share on an annual basis from their dividend income. There are now 32 positions generating at least 1 share, and the new shares are expected to add $116.60 of dividend income to the Dividend Harvesting Portfolio. I have been working on several positions, and by the end of the summer, I think I can have another 3-5 positions cross over into the green section. Eventually, I would like all of the positions to generate at least 1 share per year from their dividends, but that's going to take many years to accomplish. As more dividends are generated and reinvested the powers of compounding will intensify, and I am excited to see what this chart looks like in the future.   Steven Fiorillo, Seeking Alpha The Dividend Harvesting Portfolio Composition   Steven Fiorillo, Seeking Alpha While I didn't allocate capital toward REITs this week, the sector is closing in on representing 20% of the portfolio again. I have tried to make sure that I stay below 20% for each sector of the portfolio to ensure I am overly diversified to mitigate downside risk during market transitions. Eventually, I would like to see these sectors even out, but I think it will be skewed toward ETFs and REITs for some time. Realty Income (O) is a REIT that I plan on adding to over the next couple of months, as I am more than halfway to having that position generate at least 1 share on an annual basis from its dividends. Individual equities now represent 38.63% of the Dividend Harvesting portfolio while generating 28.13% of the dividend income. REITs, ETFs, CEFs, and BDCs make up 61.37% of the portfolio and generate 71.87% of the forward income. I am working on getting individual equities to represent more of the portfolio, and there are many companies within utilities, pharmaceuticals, financials, energy, and consumer staples that I want to add to over the next several months.   Steven Fiorillo, Seeking Alpha  Steven Fiorillo, Seeking Alpha  Steven Fiorillo, Seeking Alpha I have written several dedicated articles about why I felt Altria Group (MO) was incorrectly valued when it was in the low $40s. MO has been rallying over the past 6 months and is now up 22.61% to $49.45. I feel good about MO heading into earnings as I still think it's undervalued, and the crazy part is that the yield is 7.93% after shares climbing more than 20%. Tobacco is still a beaten-down sector in my opinion, and I think there is further upside and income to collect from the dividends. MO is now the first company to have a position worth more than $1,000 in the Dividend Harvesting Portfolio. I haven't added to the position since sometime in the spring, and it keeps getting closer to the 5% threshold I have placed on individual positions. The rest of the top-10 are flattening out well, and eventually, as I add more capital to this account, MO will represent a smaller portion of the portfolio. In week 177, Pfizer (PFE) made it back onto the top-10 list as the BlackRock Science and Technology Trust (BST) rolled off.   Steven Fiorillo, Seeking Alpha The table below changed a bit as BST rolled off the top-10 list, and PFE made its way back on. My allocation to the top-10 positions is $5,386.61, and they finished the week with a value of $6,566.57. This is an ROI of $1,179.97 (21.91%). There has been $601.01 of dividends generated and reinvested, which is 11.16% of the initial investment into these positions. I am now projecting that $487.79 of dividend income will be generated from the top 10 holdings, which have a forward yield of 9.06%. These positions represent 31.58% of the portfolio, while their forward dividend income is projected to generate 30.60% of the Dividend Harvesting Portfolio's annualized income.   Steven Fiorillo, Seeking Alpha Week 177 Additions In week 177 I added to the Blackstone Secured Lending Fund (BXSL) and the NEOS NASDAQ-100(R) High Income ETF (QQQI). Blackstone Secured Lending Fund  I added to BXSL as I feel it represents good value for the portfolio and I am working on getting it to generate more than 1 share on an annual basis through its dividends. BXSL generates a 10.18% yield and has grown the dividend over the past 2 years  BXSL has 98.5% of their investments tied to first-lien senior secured notes which is my favorite type of debt when it comes to BDCs. Since going public, BXSL has increased the quarterly dividend by 54% from $0.50 to $0.77 and I think it will be in a position to continue increasing the dividend going forward BXSL has deployed a lot of capital into a higher rate environment so they should benefit from larger levels of interest payments coming in as we enter a Fed pivot  NEOS NASDAQ-100(R) High Income ETF  I am bullish on technology leading the market higher and on the Nasdaq in particular. If I am correct, QQQI should do well and continue generating large amounts of income to the Dividend Harvesting Portfolio Similar to BXSL, QQQI is one of the ETFs I am working on getting to generate at least 1 share per year from its dividends QQQI has already generated $3.02 of dividend income in its first 5 dividends and has a monthly average of paying $0.60 per share. If I extrapolate there dividends out, QQQI should pay $7.25 per share in dividends which is a yield of 14.12% I will probably add to QQQI again heading into earnings for big tech  Week 178 Gameplan There are a lot of companies I want to increase my position in, but I can't buy everything at once. Heading into earnings season, I will probably increase my exposure to QQQI and Neos S&P 500(R) High Income ETF (SPYI) as I really like the way these ETFs are structured to capture some upside potential while generating large amounts of income. Conclusion I remember that there were several negative comments about this strategy in the early weeks of this series. Some investors couldn't wrap their heads around starting with $100 and investing in boring income-producing assets. This investment method isn't for everyone, but I wanted to document and provide a framework around how anyone could start from the beginning and grow an income-producing portfolio without having a large amount of seed capital. By staying consistent with my weekly investments and doing the research, the Dividend Harvesting Portfolio is now generating $1,594.04 in forward dividend income after finishing week 1 with $7.44 of projected forward dividend income. The chart below really puts into perspective how the dividend income has grown over time, and I am excited to see how it changes over the next several years as the powers of compounding start to intensify. I am getting closer to reaching $2,000 in forward dividend income, and eventually, this portfolio will generate more than $1,000 per month, all on a $100 per week allotment.    Steven Fiorillo, Seeking Alpha  Steven Fiorillo, Seeking Alpha","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":1,"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":"4.29.3","shortVersion":"4.29.3","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/2454059875"}