Josh Kohn-Lindquist's avatar
$24.5m follower assets
10/10/10 Screener
I ran a screener for fun on my Dividends 500 portfolio, trying to find "undeniable" types of stocks for fighting the market's weirdness right now.

A stock needs to have three things to make it into Dividends 500:
  • be an S&P 500 member (mainly to keep the size of the portfolio under control for me)
  • an increasing dividend YoY
  • a payout ratio below 50%

Using this group of roughly 200 stocks, I added another filter for the following:
  • 10%+ revenue growth YoY -- both forward and trailing
  • 10%+ net income and free cash flow (FCF) margin
  • 10%+ return on equity (ROE) and return on invested capital (ROIC)

I chose to use net income margin and FCF margin to avoid getting pencil whipped by stocks boosting FCF through stock-based compensation. If a company's ROE was negative from share buybacks, I looked to ROIC to see if they qualified.

Here is the list of what remained:

It increased my interest in Hershey and Waste Management as steady-Eddie picks as they might be the safest on this list. I also lined up KLAC, ACN, MPWR, MSCI, and FDS for more research, as it feels like I keep seeing their names everywhere.

Did any of these stocks surprise you or stand out in any way?
Would a basket of these 10/10/10 stocks beat the S&P 500 over the next decade?
13 VotesPoll ends on: 09/27/22
Scoreboard Buys of the Week
I finally was able to build up to my target 2% cash position through dividend collection and the continued market sell-off. As always, when my rules trigger, I step into action.

I hit my target cash position in both my Roth IRA and Taxable Brokerage on Friday. Below are my buys (market orders for Monday, 9/26):

Taxable
$ABBV - For those of you that have followed me, Abbvie was my July Idea Competition submission and has been at the top of my list for some time. I have been buying with every opportunity over the last few months. This is my 3rd buy of Abbvie since June.

Abbvie still sits at the top of my Scorecard at a 5.5/6. $ABBV has outperformed the market since I initially bought it, has a dividend payout less than 50% of its FCF, pays a dividend, is underweight versus my target position, has a P/E under 25 and is a company I strongly believe in.

This buy will move $ABBV up to 3.7% of my portfolio and into my Top 10 holdings. Additionally, it will add $5.64 in annual dividend income.

Roth IRA
$KMB - Kimberly-Clark was one of my 2022 Birthday Buys and has remained at the top of my Scorecard (how's that for confirmation on a stock pick???).

I had a few positions tied at 4.5/6 - $KMB, $HSY and $LOW. I followed my tiebreaker rule of position weight and went with $KMB since it is the most underweight holding of the 3 versus its target. Kimberly-Clark has outperformed the market since my initial purchase, has FCF to cover its dividend, pays a dividend, is underweight versus my target position size, has a P/E less than 25 and is a company that I have moderate conviction in.

This buy will move $KMB up to 6.3% of my Roth IRA and into my #6 largest holding in that portfolio. Additionally, it will add $4.64 in annual dividend income.

Looking forward, the last few months of the year are typically large dividend months for me. Additionally, we have completed some of the savings goals we have been working towards, so my plan is to start directing more money to my investing accounts. Hopefully my next buys come quickly!
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My $UNP $HSY trades
As part of my progress toward getting to 20 boring, stodgy, stable, (mostly) dividend paying positions in my 401k, I opened positions in UNP and HSY last week.

The buy mapped over to Commonstock incorrectly. There are two transaction for UNP and two for HSY, not 4 and 1.
Dividend Forecast - Week of 9/12
Below are my incoming dividends this week and how they will be utilized:
Taxable
$FUN - $0.30 per share, $0.90 total, reinvesting
$O - $0.25 per share, $0.52 total, reinvesting
$MCD - $1.38 per share, $2.80 total, reinvesting
Roth IRA
$CSX - $0.10 per share, $0.30 total, cash
$HD - $1.90 per share, $3.80 total, cash
$HSY - $1.04 per share, $2.08 total, reinvesting
Do you have any dividends coming in this week?
Which dividend payer would you add?
I'm considering replacing $MMM in my 401k, which I've populated with stodgy, "boring," stable, (mostly) dividend paying companies. My current holdings are:

Traditional side of 401k - $CRM, $JPM, $MKL, $MPW, $SHW, $TROW, and $TYL
Roth side of 401k - $BIPC, $MCD, $MMM, $O, $PEP, $PLD and $WM

Just curious what the Commonstock crowd would choose to replace $MMM with.

Feel free to drop a suggestion in the comments though I've already whittled a list of ~twenty stocks down to these four. $HSY $UNP $UPS $CAT
Which would you replace 3M with?
25%The Hershey Company (HSY)
31%Union Pacific (UNP)
12%United Parcel Service (UPS)
31%Caterpillar (CAT)
16 VotesPoll ended on: 09/03/22
My August Returns Are In!... And The Good Trend Continues
Retirement Portfolio
In August, I opened two new positions in $NET and $PCOR. I added to three times to $MKL , $TYL, $MCD, and $WM as part of my 401k DCA and added to no other positions. Another relatively quiet month. I also added to $JPM, $AAPL, $SBNY, $COST, $O, and $SBUX via DRIP. I exited $MTCH and sold 32% of my shares in $BMBL.

My retirement portfolio was down 2.54% in August but that was less than my benchmark SPY portfolio (down 4.41%) and benchmark QQQ portfolio (4.51%). I'm now down 37.40% YTD compared to my SPY benchmark at 16.52% and QQQ benchmark at 21.72%.

My best performing retirement positions YTD:
  • $SWAV is up 96% YTD
  • $EGIO is up 17% YTD
  • $WM is up 14% since I started buying a couple months ago

My best performing retirement positions in August:

My top 10 positions now make up ~35% of my portfolio. The top 6 remain in the same order of $MELI, $AAPL, $AMZN, $F, $GOOGL, and $SHOP. $SWAV jumped up from 9th to 7th after a great month with great earnings with $NVEE, $SIVB, and $COST rounding out the top 10.

Looking forward to September, I'm contemplating exiting my $SQ position. I'm turned off by Jack's comments and his insistence on $BTC.X being the be all and end all. I don't mind the crypto exposure but the Bitcoin only hardline is narrow-minded in my opinion. If you made me czar, I'd actually just have Square exit their crypto entirely and focus on what they're good at.

I'm also considering exiting $MMM in my 401k and replacing it with one of $ABBV, $BEP, $DEA, $HSY, $MKC, $MTN, $TGT, $TROX, $UNP, or $UPS but I need to research them first before deciding.

Taxable Portfolio
In August, I only added to $DT. No positions in this brokerage pay a dividend so there was no DRIP and I did not exit any positions.

My taxable portfolio had a second great bounce back month, up 9.56% after being up 13/67% in July. My benchmark SPY portfolio was down 3.64% and my benchmark QQQ portfolio was down 4.18%. I'm now down 30.15% YTD compared to my SPY benchmark at 14.84% and QQQ benchmark at 21.43%.

My best performing taxable positions YTD:
  • $TMDX is up 172% YTD for me. Wowsers.

  • $MSP with a 39.49% return YTD - RIP as is had such a great return because it was acquired.

  • That's it. None of my other 14 positions are positive. Whomp whomp.

My best performing taxable positions in August:

My top 10 positions continue to make up ~90% of my portfolio as I only have 14 positions in this brokerage. The top 10 remains basically the same with $SNOW, $TMDX, $ATZAF, $SILK, $DT, $LMND, $NCNO, $CPNG, $OM, and $BIGC.

Looking forward to September, I already added to $ATZAF as my monthly add. I don't expect to make any other moves but we shall see.
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July Portfolio Review
We started to see some rebounding in July as we moved into the second half of 2022!

Below is a review of my two portfolios through the end of July:

Not much to note in my Overall Top 10. This is the combination of both my Taxable and Roth IRA. Only notable change was $VWO decreasing from 5% to 4%, as I will note below.

Taxable Portfolio
% Change (vs S&P): +5.25% (-3.86%)
Contributions: $0
Dividends: $30.58 (-38% over June '21)
Buys: 1 share of $ABBV at $151.84 on 7/5
Dividend Reinvestments: 0.0027 shares of $BAM
Sells: None
Cash: 1.08%

Top 5 Positions:
  1. $CMA - 13%
  2. $VTI - 12%
  3. $VEA - 7%
  4. $VWO - 5%
  5. $PFE - 5%

Historic Trend:

Roth IRA
% Change (vs S&P): +7.45% (-1.66%)
Contributions: $0
Dividends: $9.55 (+195% over June '21)
Buys: 1 share of $HSY at $219.73 on 7/11/22
Dividend Reinvestments: 0.0256 shares of $KMB, 0.0176 shares of $EMB
Sells: 2 shares of $VEA at $39.66 and 2 shares of $VWO at $40.59 on 7/5/22 as part of quarterly portfolio rebalance
Cash: 1.15%

Top 5 Positions:
  1. $VTI - 12%
  2. $VNQ- 12%
  3. $SBUX - 9%
  4. $VIG - 9%
  5. $HD - 7%

Historic Trend:

I realized that I had a broken calculation in my trending calculations and was adding current month performance to the end value of ~6 months ago. This has been corrected and trend charts are now accurate.

Thanks for following along and I would love to hear any of your thoughts and questions in the comments!
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Scoreboard Buy of the Week - $HSY
We got back on that sweet, sweet chocolate train in my Roth IRA this week as I added to my $HSY position

$HSY was one of my Birthday Buys this year and I am excited that it is staying at the top of my Scorecard and I get to add again.

This is the second time I have added to this position this year and am now half way to my target weighting!

$HSY was a 4.5/6 on my Scorecard - dividend yield is below my portfolio average and P/E is slightly high at just under 32.

I will continue to add to it until I reach my target weighting as long as it remains the highest rated holding.

Anecdotally, it seems that in the innumerable red days recently in the market, more often than not, $HSY is closing with small gains.

I did a longer write up on $HSY a few months back, if you want to check it out for more info on the company.

Probably will be my last buy for a while, as my ability to only buy full shares put a dent in the 2% cash position in my portfolio and my contributions have slowed in the current environment.

I'd love to see your thoughts or questions on Hershey in the comments below!
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June Portfolio Summary
June was an interesting month. Mr. Market continued its downward trend, and we ended up with the worst 1st half of the year in 50 years. If you are still here and investing, congratulations for weathering, hopefully, the worst storm of our lifetimes.

Personally, I had a pretty decent month. I collected a decent amount of dividends, restarted contributions to my Taxable account and was able to make some buys.

Let's get into it:

Not much to note in my Overall Top 10. This is the combination of both my Taxable and Roth IRA. All positions stayed the same as May, with some slight shifting in positions. Only percentage change was $VEA going from 7% at the end of May to 6% today. I will break down individual portfolios below.

Taxable Portfolio
% Change (vs S&P): -6.56% (+1.83%)
Contributions: $60
Dividends: $76.72 (+147% over June '21)
Buys: 1 share of $ABBV at $140.97 on 6/13
Dividend Reinvestments: 0.0278 shares of $CNA, 0.0279 shares of $DD, 0.0063 shares of $RTX, 0.0347 shares of $XLE, 0.0195 shares of $SCHD, 0.0392 shares of $VDE
Sells: None
Cash: 2.03%

Top 5 Positions:
  1. $CMA - 13%
  2. $VTI - 12%
  3. $VEA - 7%
  4. $PFE - 5%
  5. $VWO - 5%

Historic Trend:

Roth IRA
% Change (vs S&P): -17.19% (-8.8%)
Contributions: $0
Dividends: $30.23 (-4% over June '21)
Buys: None
Dividend Reinvestments: 0.0154 shares of $EMB, 0.0043 shares of $HSY, 0.0054 shares of $DD
Sells: None
Cash: 1.92%

Top 5 Positions:
  1. $VTI - 12%
  2. $VNQ- 12%
  3. $VIG - 9%
  4. $SBUX - 9%
  5. $HD - 7%

Historic Trend:

I am happy to have weathered this storm and continuing to be able to contribute and buy great companies.

I am a little concerned about performance of my Roth IRA, but keep the goal of the portfolio in the back of my mind - build a portfolio for dividend income for retirement. Seeing as I still have nearly 30 years (within 11 days) until I hit 59 1/2 & the penalty-free withdrawal age, I am not too concerned.

I am going to continue to stay the course and execute my plan. Hopefully Mr. Market will feel better with the summer sun and start turning this thing around!

Thanks for following along and I would love to hear any of your thoughts and questions in the comments!
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Dividend Forecast - Week of 6/13
Good morning!

Below are my expected dividends I will be receiving this week and how they will be utilized:

Taxable
$IEMG - $0.60 per share, $1.21 total, cash
$IEUR - $1.11 per share, $3.38 total, cash
$O - $0.25 per share, $0.52 total, cash
$UL - $0.46 per share, $1.88 total, cash
$RTX - $0.55 per share, $0.57 total, reinvesting
$SCHF - $0.60 per share, $1.79 total, cash (estimated)
Total: $9.35

Roth IRA
$CSX - $0.10 per share, $0.30 total, cash
$HSY - $0.90 per share, $0.90 total, reinvesting
$HD - $1.90 per share, $3.80 total, cash
Total: $5.00 total

Do you have any dividends coming in this week?
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