Although January 2020 ended with a volatile week of trading largely attributed to the coronavirus, no on would be able to tell based the monthly dividend receipts the PIV portfolio collected. Take a look below for an account of the dividend transactions.
As noted above, the January 2020 dividend income total increased by $83.78 or 22.7% compared to last year. Looking at the breakout between rate and volume you'll note that the additional sum of shares purchased over the past year accounted 21.6% increase in dividend income with a minimal 1.1% increase due to rate increase. Certainly nothing exciting about the very low rate impact and as one can see, five of the positions noted above did not increase their dividend during the past 12 months. A few of those with frozen dividends were purchased more so for the larger margin of safety and/or future earnings/FCF yield they presented at time and less so for any immediate chance of dividend growth in the near term following the purchase. A few transactions lead to the favorable volume impact seen above which included additional share purchases of CAH in the past year and which I still like below $50/share and the other favorable impact on the portfolio was the acquisition of FOXA assets by DIS which lead to a higher share count in DIS when the transaction was closed between the two companies. Looking forward to building these recent additions as opportunities present themselves. As of late, Mr. Market has be been overly optimistic IMO, I prefer to trade with him when he is much more rational or perhaps even pessimistic.
Take a look at the P/E ratios of the major indexes noted below and let me know what you think about Mr. Market's current state of mind. Some attempt to justify the high P/E ratios of 25+ with the inverse of such implying a relatively low earnings yield of < 5% as justified given where treasury yields currently sit. It is in this current environment where I believe the ability to prudently select individual equities trumps buying the whole market when investing in equities. What say you?
As noted above, the January 2020 dividend income total increased by $83.78 or 22.7% compared to last year. Looking at the breakout between rate and volume you'll note that the additional sum of shares purchased over the past year accounted 21.6% increase in dividend income with a minimal 1.1% increase due to rate increase. Certainly nothing exciting about the very low rate impact and as one can see, five of the positions noted above did not increase their dividend during the past 12 months. A few of those with frozen dividends were purchased more so for the larger margin of safety and/or future earnings/FCF yield they presented at time and less so for any immediate chance of dividend growth in the near term following the purchase. A few transactions lead to the favorable volume impact seen above which included additional share purchases of CAH in the past year and which I still like below $50/share and the other favorable impact on the portfolio was the acquisition of FOXA assets by DIS which lead to a higher share count in DIS when the transaction was closed between the two companies. Looking forward to building these recent additions as opportunities present themselves. As of late, Mr. Market has be been overly optimistic IMO, I prefer to trade with him when he is much more rational or perhaps even pessimistic.
Take a look at the P/E ratios of the major indexes noted below and let me know what you think about Mr. Market's current state of mind. Some attempt to justify the high P/E ratios of 25+ with the inverse of such implying a relatively low earnings yield of < 5% as justified given where treasury yields currently sit. It is in this current environment where I believe the ability to prudently select individual equities trumps buying the whole market when investing in equities. What say you?
That's a pretty solid YoY increase, keep at it!
ReplyDeleteThanks DGX Capital! Looks like I will need to be a bit patient for the time being given that the market doesn't appear to be very rational with its valuation in the near term. I would love the opportunity to put some more cash to work. I believe Charlie Munger commented earlier this week that the market is exhibiting 'wretched excess' and I would agree with him.
DeleteVery good mr Vortex! That YoY is where it's at! Keep it up!
ReplyDeleteThank you sir! Hoping to see these income trends continue for years to come, despite any dips in the market price in the interim - one of the great things about DGI.
DeletePIV -
ReplyDeleteNice work and collection of divvies this month! I believe we are all curious on what Disney does with their dividend, once the dust and debt settles a bit : )
-Lanny
Lanny, I agree and I am hoping the acquisition from FOXA will be more than justified by the operating results in the coming decade that will allow owners to look back and see this as a "no-brainer"transaction that ultimately supports substantial growth in cash flow, and thus dividend income :)
Delete