My holding period just increased

3 months ago:

What have changed?
  • My $VOO trades has been reflected - 30 trades per month
  • Concentrated my position - removed $NUSI, $STAG, and $MMM
  • Initiated position in $HD
  • Traded 30% of $VICI for 15% profit
  • Doubled down in $U (hopefully bought and DCAed the dip) - resulting top 10 position % increment
  • Holding period increased from 7.6 months to 10 months thanks to long term holdings like $AAPL, $MSFT, $COST, $O and $NRZ

Future plans:
  • Increase holding period to 1 year+
  • Decrease the top 10 holding concentration and buy more into $HD and $WM
  • Keep 30 trades per month (buy $VOO daily)
  • Keep open position close to 15
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This is awesome - thanks for sharing!

Concentrating a portfolio is hard work.
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What Dividend Strategy Does Best in a Bear Market?
From my most recent article: As the economy falls further into bear market territory, it is clear that dividend investing strategies have held up better than most other investing strategies this year. Today I read an article from a Morningstar writer about which dividend investing strategies are outperforming year to date 2022. This article looked at how much that performance has varied depending on specific dividend investing approaches.

Generally speaking, there are usually two schools of thought when it comes to dividend investing: dividend yield investing vs. dividend growth investing. Dividend yield is calculated as the latest dividend payment annualized divided by price. Dividend growth is defined as the rate of change of dividends paid by a company over time, generally the most recent 3 or 5 year period. Clearly, a high dividend investor is more focused on the size of the dividends they receive while a dividend growth investor cares more about the historical and potential growth of the dividend. Both styles generally have the same goal, which is create an income stream.

However, an investorโ€™s time horizon can play a significant role in determining which strategy they focus on. Older folks may want to put their money in high yielding yet consistent payers like Realty Income ($O) or Enterprise Products Partners ($EPD). This is because reliable income now is more important to them than growing long term wealth. For younger investors, it may make more sense to focus on a dividend growth strategy by investing in companies that have low payout ratios and potential to create a long track record of increasing dividends like Loweโ€™s ($LOW) or Visa ($V).

With dividend strategies faring better than most other for 2022, the article looked at which one is doing the best. The article concluded that strategies that invest in high yield companies with healthy financials outperformed the most. After reading that, I decided to evaluate that conclusion for myself by back-testing a handful of dividend paying ETFs which follow various strategies. Using Sharesight, I was able to back-test ETFs that follow various dividend investing strategies.

As you can see in the graph above, the S&P has fallen by 20.55% year to date. The best performer of the dividend strategies was the dividend yield strategy down by only 9.46% year to date, followed by the dividend fundamental strategy down by 10.74% year to date. Surprisingly, the covered call high yield ETF was a very close third down by only 10.77% year to date!

I dive into a little more detail in the article, but this is enough to give you the full idea. Thanks for reading!
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Why I like dividend growth investing and you might too...
I have been a dividend investor for more than 20 months now and I was able to build a portfolio of over $350,000. Now the portfolio is hovering around $300,000. YTD my portfolio is down around 13% and wrecks my heart as my portfolio is going down everyday. There are times people in finance attack dividend growth investing at times for its focus on companies that payout dividends, and as it is passive form of investing - today I will try to defend DGI by showing how it's relatively good in all market conditions with a brief history and strategy of my portfolio. I look towards the positive side and why I choose Dividend Growth Investing in the first place.

๐Ÿ’ธ Dividend growth investing in every market conditions
The market can go in 3 directions and here are the scenarios and why dividend growth investing makes the best out of every conditions assuming companies that you invested doesn't cut the dividends:
  • ๐Ÿ‘‰๐Ÿฝ Sideways: If the price stays relatively flat, we can buy more of the shares at $100, and once the sideways movement ends the compounding will be greater as we accumulated more stocks at a small price.
  • ๐Ÿ‘‡๐Ÿฝ Downwards: Let's say if the market goes down, we still are getting the dividends from stocks that we hold. So, we can accumulate more of the dividend stock at a lesser price. We are increasing the cash flow and buying more assets.We just have to play the waiting game for the market to go to the bull run for capital gains.
  • ๐Ÿ‘†๐Ÿฝ Upwards: Although, our reinvested money won't be able to buy as much of the asset, we have both capital gain and dividends to re-invest.
๐Ÿ“ Brief history of my portfolio
I have been building my portfolio for few 20 months now and I have recently crossed $16k in dividends ๐Ÿฅณ๐ŸŽ‰. Capital gains can vanish like how it did with my $U but companies won't ask the dividends back

My portfolio link: here.

๐Ÿ™ˆ My strategy
I have concentrated down my portfolio into 3 parts in the hopes to achieve all the possible benefits of dividends and growth of dividend growth investing.
  • ๐Ÿ’ฐ Income: I want my portfolio to earn as much as I can, so I can re-invest as much as I can. This is possible due to covered call ETFs with high dividend yields like $JEPI, $QYLD and $BST. These 3 income ETFs yield at an average of 10.15% and has an expense ratio of 0.6% (on the higher side). They generate over 60% of my dividend income while they are 35% of my portfolio. I don't expect significant capital gain from it.
  • ๐Ÿ’ธ Cashflow: While income and cashflow are similar, cashflow category consists of monthly dividend stocks that yields at lower rates and has capital appreciation. This includes stocks like $O, $STAG, $AGNC, $NRZ. They cover around 15% of the portfolio while generating around 20% of the dividends income.
  • ๐Ÿ’— Growth: For growth in both capital gains and dividend CAGR I have stocks like $AAPL, $MSFT, $VICI, $VOO (i am planning to increase my position), $HD, $COST, $WM and $JPM. Together they make 45% of the portfolio and generating 20% of the dividends. They have a 3 year - weighted CAGR of 8.28% and average 3 year CAGR of 9.68%.

This gives my portfolio a decent place to stand. It will generate around $1,584.67 (while my cost per month are barely over $300) per month at 5%+ dividend yield (good cashflow). It also has a beta of 1.000217417 where I will be making gains similar to market (which I am happy about) and the movement lets me sleep well in the night as well (not too crazy in comparison to other individual stocks), so I can expect to make around 8ish% per year in capital gains. And, best of all the dividend CAGR is at 12%. So, I will be increasing my dividend cashflow too. This might be too conservative for some and but this gives me everything I need - cashflow and peace of mind.

Investing is like having sex - very personal. Everyone follows different strategy, and has different goals. But, every now and then it's exciting to mix things up. So, you might want to give DGI a try, you might like it...

And my final attempt to convince you to try DGI...

If this magic trick doesn't convince you, idk what will haha
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Keep accumulating and building that passive income! Doing that now when things are down is much better for you long term if you stick to it! Congrats on the substantial portfolio.
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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:

$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?
How $STOR Wins
STORE Capital is a real estate company, unlike many others. From the smaller deal sizes to the massive acquisition pipeline and the co-founder-based leadership team $STOR is a REIT certainly worth looking into.

STORE buys individual real estate from smaller businesses in exchange for long-term leases at a broad level. This specific approach allows the company to win in a lot of different areas.

The lease terms tend to be much longer than competitors. This is most likely due to the smaller deal sizes. Generally, the big box stores that Realty Income makes deals with tend to want more flexibility in lease terms.

Next is a cap rate much higher than competitors. Again, the cap rate is operating income divided by property cost given the smaller deals, STORE gets higher income while not spending as much on properties.

Using this business model the company has grown to over $11b in assets over the last 11 years.

While $STOR is heavily concentrated in the service industry it is still fairly diversified across that field.

STORE still manages to be incredibly diversified across its top customers. STOREs top10 accounts for roughly ~12% of the total rent. In contrast, $O's top10 accounts for nearly 20% of their total rent.

And even though most of STOREs properties are owned by smaller businesses the majority of its business comes from the larger tenants. Along with these many new deals come from these existing businesses expanding.

Overall STOREs got a lot of good things going for it. While there certainly are concerns from the sudden departure of the founder Chris Volk to Credit rating risk from their smaller tenants I believe STORE is worth the risk.

And if you want a much deeper dive into the company from its history to an expanded bull case and a closer look at the downsides it is the subject of my newest video.

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This is my kind of venture. I am building a REIT watchlist at the moment, with the eventual aim of adding 5 to 10% of exposure to REITs sometime in the next year. This one will fit nicely into that.
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Stanley's avatar
$9.2m follower assets
Real Estate Summary for Week ending 6/3/22
Summary of my Real Estate activities for the week.

M1 Finance - 37 buys this week

Posted a loss this week on this REIT portfolio as 'Fat Cat Investing' is currently DOWN 1.59% for the week but still UP 2.62% overall since inception.

Concreit - received my weekly dividend payment of $0.1292 on deposits of $101.19 (including DRIP).

Both are a part of my ongoing "Real Estate Rumble"

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Steve Matt's avatar
$10.2m follower assets
My May Returns Are In!... And They're Not Great (Still).
As I said in April, my horizon remains 20+ years out. I see my portfolio getting pummeled right now and generally don't care. I only see opportunity.

Retirement Portfolio
In May, I added to $ABNB, $BIPC, $CHWY, $CRM, $CRWD, $DDOG, $GLOB, $JPM, $MMM, $MPW, $O, $OKTA, $PEP, $PGNY, $PLD, $PUBM, $SHW, $SWAV, $TROW, $U, $UPST, and $ZS. I also added to $AAPL, $COST, $JPM, $O, $SBNY, and $SBUX via DRIP. I exited $SMG and $XYL.

May saw my retirement portfolio retreat by 6.86%, bringing my YTD fall to 37.36%, easily getting beat by $SPY, $QQQ, and $VTI.

I'm still learning this new investment software so my all-time performance below is only through the end of 2021.

It's safe to say QQQ is beating me by at least a couple hundred bps through May 31, 2022. I'm certainly still trouncing SPY though.

My Top 10 holdings by current market value make up ~34% of my portfolio.

Taxable Portfolio
My taxable brokerage is ~10% of my total investments. It's also much more speculative (early stage medtech is a big portion). In May, I added to $SILK, $BTC.X, and $ETH.X. Nothing in my taxable brokerage pays a dividend so no DRIP. I didn't exit anything either.

May saw my taxable portfolio retreat by 9.67%, bringing my YTD fall to 42.22%, easily getting beat by $SPY, $QQQ, and $VTI.

My taxable has gone through 3 different iterations over the past 13-ish years. You can see there was no holdings around 2013 and again around 2017 as I sold out of all positions for different life reasons. The beginning to 2013 iteration was the "I don't know what the fuck I'm doing, let me buy random companies I know with no research and pray" phase. Thankfully it was a bull market and I got lucky. The 2014 to 2017 iteration was "I nailed it last time. I'ma do that again but also play with options as well" phase. You can see how well that worked out.

This iteration is actual research with a what-can-this-company-be-in-a-decade being my main thought. This approach is why I don't mind seeing my this portfolio getting whooped. None of the positions in this portfolio are core holdings, which means I follow them quarter-by-quarter via 10-Q/K, press releases, general news, etc. I have my finger on the pulse and the underlying businesses are performing as I hoped or struggling by with bright spots (looking at you $DMTK, $LMND, and $BIGC).

(Note: I didn't lose almost all my money in 2015 but I can't figure out why the software is calculating it that way. 2015 was a bad year in the taxable portfolio but not that bad. Hopefully I have it corrected for my June update).

My Top 10 holdings by current market value make up ~90% of my portfolio.
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Stanley's avatar
$9.2m follower assets
Real Estate Summary for Week ending 5/27/22
Summary of my Real Estate activities for the week.

M1 Finance - 17 buys this week

Posted gains this week on this REIT portfolio as 'Fat Cat Investing' is currently UP 5.30% for the week and UP 5.51% overall since inception.

Concreit - received my weekly dividend payment of $0.126875 on deposits of $101.06 (including DRIP).

Both are a part of my ongoing "Real Estate Rumble"

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Steve Matt's avatar
$10.2m follower assets
1 of 10
401k Buys
They didn't all map over to Commonstock so here's a breakdown of my monthly 401k buys. I buy the same dollar amount of each once per month. This month equaled ~13% more to each total cost basis.

$BIPC - Added ~12% more shares
$CRM - Added ~20% more shares
$PEP - Added ~12% more shares
$O - Added ~13% more shares
$MMM - Added ~14% more shares
$SHW - Added ~14% more shares
$MPW - Added ~16% more shares
$PLD - Added ~16% more shares
$JPM - Added ~16% more shares
$TROW - Added ~18% more shares
Luka ๐Ÿฆ‰'s avatar
$96.9m follower assets
Realty Income ๐Ÿ’ธ $0.247/share
$O is one of the few companies that transform you into a landlord.
I like to receive my monthly payment from renting out my properties ๐Ÿ‘
Yield 4.32%
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Commonstock is a social network that amplifies the knowledge of the best investors, verified by actual track records for signal over noise. Community members can link their existing brokerage accounts and share their real time portfolio, performance and trades (by percent only, dollar amounts never shared). Commonstock is not a brokerage, but a social layer on top of existing brokerages helping to create more engaged and informed investors.