Nearly half way through 2019 and the dividend income is adding up nicely and is being reinvested almost as quickly as it is deposited into the investment accounts in an attempt to take advantage of relatively low valuations of particular securities with the hope of enhancing the compounding effect over the long term. Recent examples of such investments include BAYRY, CVS, and CAH. Each of these companies has its near term challenges such as legal battles, balance sheet leverage, and/or regulatory concerns. However, despite these challenges each offers a compelling valuation backed up by a very generous free cash flow yield and attractive corresponding dividend yields to boot, which patient investors can collect as they wait for business to adjust and respond to the near term headwinds. Recent operating cash flow yields for the aforementioned stocks equate to 16.6%, 11.8%, and 21.1%, respectively. In regards to BAYRY, May was the first time the portfolio has collected a dividend from the company as it only distributes a dividend once a year. Take a look at the summary below for a breakout of the dividend income received in May.
Wednesday, May 29, 2019
I've been cautiously watching the market over the past several weeks reading up on various stocks as there always seems to be at a least a handful appealing valuations hiding in plain sight. One franchise that has caught my attention in recent weeks has been DOW Inc. (DOW). This company was recently spun off from DowDupont (DWDP) conglomerate that merged a few years back which disclosed the intent of eventually dividing the combined company into three separate publicly traded companies. The material science division of DowDupont was the first to be spun-off, effective April 1, 2019, and is now known as the "new" DOW Inc. See below for details of the purchase along with some additional metrics and information obtained from the 2018 investor day.
Tuesday, May 21, 2019
Better late than never as they say. Life has been super busy both professionally and on a personal level as it typically is this time of year for me. I have multiple kids playing baseball and a daughter involved in dance so once I am done with work for the day I am usually dashing off to one more activities each evening. However, despite these times, the one great thing about passive income is that my invested capital keeps working with very little, if any involvement, from myself day to day. At most, I reinvest the passive income and allocate new capital to where I perceive the greatest value to be a few times each month. Below is the April dividend summary which reflects a favorable increase in YoY dividend income despite an ad hoc transaction that impacted the portfolio's income in April. See below for further details.
In March, the Disney (DIS) and Twenty-First Century Fox (FOXA) transaction was completed. Over a year ago, Disney agreed to purchase a portions of FOXA assets at a value of $71.3B. This post is published to record the impact on the portfolio as well as my subsequent allocation between my accounts. Below are the details of these transactions.
Tuesday, April 16, 2019
I started a position in WFC a few years back and have experienced very little total return at this point. As is well known, the company has been in the headlines for unfavorable reasons that past couple of years and as a result has been the favorite target of a handful of politicians. The most recent CEO, Tim Sloan, resigned a few short weeks ago and so the company is currently conducting a search for his replacement. The vacant CEO position combined with the revised guidance the company outlined with the recent quarterly report is of course weighing stock valuation. Despite these headwinds, I believe the company is attractively valued for the long term and so I decided to increase my position. See below for the details of the purchase.
Monday, April 8, 2019
The first quarter of 2019 is a wrap. Overall I'm pleased with the portfolio's start to the new year and the YTD dividend income YoY performance looking really good for Q1 which of course is substantially driven by the March results since many companies pay their dividend in the last month of the quarter. See below for the details.
Tuesday, April 2, 2019
Both of these stocks are roughly 5% below my cost basis and neither position is a very large portion of my portfolio at the moment. Both CVS and CAH decline nearly 4% on the day following the announcement of Walgreen Boots Alliance, Inc. (WBA) Q2 results pre-market which weighed heavily on much of the healthcare sector, including CVS and CAH. See below for the details of both purchases.
Friday, March 29, 2019
Tuesday, March 26, 2019
I've finally made my first purchase of the year, last week, on the 81st day of 2019. I certainly did not anticipate waiting this long. The rapid rebound in the overall market's valuation during this first quarter of the year I think took many by surprise and I was certainly hoping to add to positions at much more attractive valuations on the whole than can currently be found. Even BAYRY has been begun creeping back up to the low $20's in recent weeks but that came to a halt when additional verdicts against the company came to light in recent weeks which is playing a part in the stock now retreating below its previous 52 week lows in the mid $16 range. And now, this week, JNJ and BAYRY announced a $775M settlement related to the drug Xarelto despite winning all 6 cases that went to trial according to the Dow Jones Newswires likely adding to the further weakness in both stocks. See below for additional details on the recent purchase.
Wednesday, March 13, 2019
Two months into the new year and still have yet to make my first purchase for 2019. Nonetheless, my inactivity has not precluded my accounts from receiving monthly dividend deposits. February continued the streak of YoY dividend income gains, ringing in a favorable variance of 24%. Take a look at the breakout of this monthly dividend income below as well as some highlights from my reading of Warren Buffett's latest annual shareholder letter.
Friday, February 1, 2019
Other than collecting dividends in the month, all other investment activity has been on pause for longer than usual. However, the many purchases that occurred in 2018 resulting in the additional of fresh capital infused into the PIV portfolio and reinvestment of dividends set up 2019 to see a nice YoY gain of 91% despite one particular dividend cut from a very unloved, and understandably so, company. Take look below for the details of last months dividend income.
Tuesday, January 8, 2019
I have been really excited to compose this blog entry to not only report December's dividend income, but to also look back on the YTD activity as a whole compared to last year and also document where the portfolio stands at the of 2018 going into 2019. Without further ado, let's take a look at how year in dividends came to close.
The third quarter of the calendar year is now in the books and companies will soon begin to report the latest quarter of earnings. As many...
The first quarter of 2019 is a wrap. Overall I'm pleased with the portfolio's start to the new year and the YTD dividend income Yo...
I have been really excited to compose this blog entry to not only report December's dividend income, but to also look back on the YTD a...