Today, I'll be highlighting dividend stock/mutual fund purchases within my portfolio during the month of July.
As I'll discuss below, July was a continuation of relatively low deployment of investment capital for me due to the fact that I am finishing up on deleveraging from a bit of credit card debt before my promo 12 month interest free APR expires (which will soon carry a ~25% APR) and other various small debts.
As illustrated above, between my 7% gross contribution and my employer's 3% match on my contributions in my retirement account, I was able to contribute gross capital of $251.24 and $239.94 in capital net of sales charges.
These contributions allowed my Capital Income Builder (CAIBX) holdings within my retirement account to grow from 116.430 shares entering July to 120.546 shares entering into August.
Assuming $2.14 in annual forward dividends/share, the extra 4.116 shares of CAIBX boosted my annual forward dividend income by $8.81, which equates to an average net yield of 3.67%.
When also weighing the $300 of my own capital that I contributed to my Robinhood portfolio and the $60.09 in dividends that reduced my margin balance from approximately $2,100 entering July to just under $1,750 heading into August, my annual forward dividend income was increased by ~$18.00 (given the 5% cost of capital for Robinhood margin).
Concluding Thoughts:
Overall, I deployed $600.03 in capital during the month of July to investments/deleveraging Robinhood (compared to $661.35 in June) and added $26.81 in annual forward dividend income, which worked out to an average yield of 4.47% on my capital deployed.
When factoring in the impact of dividend announcements during July (D and WFC dividend cuts and an SJM dividend increase), my annual forward dividend income increased $8.81.
While it has been a slow and steady endeavor to restore my dividend income to my all-time high of $1,252 just a couple months ago, I'm now less than 2% away from doing so.
Discussion:
Did you experience any dividend cuts during July as I did with D and WFC?
How was your month in terms of dividend stock purchase activity?
As always, I appreciate your readership and look forward to reading your comments in the comment section below.
Sorry to hear about these dividend cuts that you faced in July. fortunately we didn't see any dividend cuts. We did see Saputo increase its dividends. :)
ReplyDeleteTawcan,
ReplyDeleteThanks for the comment. I'm glad that your portfolio fared better than mine last month. If anything, I have definitely taken lessons from COVID-19 to focus more on higher quality dividend stocks going forward that have fared relatively well despite this uncertain operating environment.
Cuts get us all sooner or later. The longer you are in the DGI space the greater the odds you experience a cut. Congrats on continuing to add to your portfolio. I have been buying each month like I always do trying to mitigate some of my own cuts too. As you said... slow and steady.
ReplyDeleteKeith,
ReplyDeleteThanks for the comment and the support over the years. I couldn't agree more. Cuts were bound to happen to my portfolio eventually, but consistent capital deployment in solid businesses is all we can do to steadily advance dividend income.