Saturday, September 8, 2018

Dividend Income - August 2018

Hi Everyone!

Another busy month in the ADD household.  We had a one week vacation to the beach and our boy LOVED it! As soon as you put him down he would crawl right to the ocean. When you stood him up by the water he would rock back and forth and smile and laugh every time the water crashed into him.  It was a lot of fun!  Plus, the relaxation and stress free life for a while was great.

The markets have climbed their way back to new highs over the past month.  Will it continue? Who knows, but the dividends keep rolling in! Like last month, I continue to shuffle some holdings around and add to my CVS position. Furthermore, I have been able to deposit some funds from savings to juice up the holding.  I start out each year front loading my 401K but my company only matches when you deposit on each paycheck.  As such, if I put in 25% of my paycheck in the beginning of the year, I have to lower it down to 5% towards the end to continue to get the match.

I added heavily to CVS around the $65 range and was even able to snag some around $60.  My last purchase this past week occurred at $75.  Through gains in stock price and adds on the way up, my position is now over $50,000!  I know I'm getting away from what a lot of others in the community do - buy multiple different companies at attractive valuations instead of just one - but I'm not backing down from this.  There is no turning back, I'll either look like a hero or a failure but I'm committed. This company is now sporting just an 11 forward PE.  Market PE is still around 25.  This stock could conservatively double from here and only have an average S&P PE ratio - insane!

But, here is what you all came here for - Dividends

BTI   -   $24.22
SKT  -   $32.91
O       -   $41.23
CVS  -   $191.11
OHI   -   $343.18
M.M. -   $0.19

TOTAL:   $632.84

An outstanding month! I would have to go all the way back to June 2016 to see a similar total.  2017 August was only $385 so this is a massive improvement.  In October, the total is expected to be around the same but you will see a lot more CVS and less OHI.  One big portfolio move that I had this past month was selling half of my OHI position.  OHI had a heck of a rally before and after earnings so I thought it was best to take some off the table.  The huge dividend will be missed but like I stated above, I think there is more growth potential from CVS at this time.

As for the rest of 2018, I might continue to purchase CVS with any extra funds I come across.  I think CVS is still a good purchase up until $80 per share.  After that, things will need to be monitored.

Hope you all had a great August!

ADD

5 comments:

  1. ADD -

    Dayum! Aggressive as heck in CVS, and I am hopeful that it will all work out, no doubt. And yes - your October CVS dividend is about to be massive!

    -Lanny

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    1. Yup, staying aggressive. Hope it works out! So far, AMZN world domination fears have been over-exaggerated and I'm banking on that to continue. TGT and WMT have not shown too much backlash from AMZN and TGT has CVS pharmacies in them. I'd rank WBA and CVS up with the likes of WMT and TGT as market leaders in their retail space. If they can weather the storm, I'm hoping CVS will too. Government intervention with regards to PBM and prescription costs is another issue but I think that there will still be a space for them. The pharmacy aspect does not make nearly as much net profit as the biotech companies who sell and set the prices for their drugs. So we will see how it plays out but I didnt want to be telling myself 2-3 years from now - shoulda coulda woulda - bought CVS.

      Thanks for stopping by!

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  2. I know you aren't alone in liking CVS at these levels but that is some commitment to the stock. Not my style to have so much in just one company but as you stated there is no turning back for you and time will tell if this was a good allocation of cash. In the meantime, your dividends continue to look impressive. Keep on building.

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    1. Yea, its about 50% of the portfolio at this point. But only 25% of total portfolio values when including the 401K. I like to think I'm still pretty diversified in that regard but like you said, only time will tell if it was a good allocation of cash. At least its better than having it in a bank though as its spitting out $1,300 in dividends each year - barring it does not drop like a rock lol. Also, I think CVS is a more recession proof stock than others because people still need prescriptions and while in the store they will still buy greeting cards and beauty products and snacks.

      Thanks for commenting!

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