Sharing my Investing Journey through Dividend Investing, Stocks, Passive Income, and more

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QQQ ETF is Fantastic | My Portfolio

The two main ETF’s I’m buying this month are QQQ and ITOT. QQQ is weighted towards the Nasdaq and technology. I think during this Coronavirus crash, weighing heavier towards technology is a wise move. So far, it has paid off quite well.

I just added $400 to my ROTH IRA and $500 to my Traditional IRA. In addition to the above ETF’s, I’m also buying these individual stocks-Universal Forest Products and Chewy. I am up over 25% in Chewy, it is of course a growth stock. Chewy is a company that specializes in pet foot delivery. We use their services and see Chewy boxes all around us via our neighbors each week.

In this video, I discuss these ETF’s and bring you my dividend report SO FAR for the month of June **More Dividends to come!**

So far, my DIVIDENDS are as follows:

Stanley Black & Decker $11.04, IEF $0.61 for a total of $11.65 in my TRADITIONAL IRA

PMM $0.61 in my BROKERAGE. Lots more DIVIDENDS to come in this account!

In my ROTH IRA, VBILX $6.77

I’m FINALLY able to add to my accounts this month, so, I’m looking forward to watching that money grow in the market.

I am currently sitting at 6%; one of my short-term goals is to get my total market ETF’s/Index Funds up to 25%. I also want to continue increasing my position in Chewy, Universal Forest Products, Marten Transports, and Fortinet. I feel strongly that these stocks are going to GROW big over the next few years.

Lastly, I’ll briefly mention my Swing Trade for the month. I am swing trading ROKU. This won’t be a long-term hold for me, I’m simply looking for a 8% gain. I am sitting at 2% right now, holding a bit longer. Update later!

Investing Lessons I’ve learned the last 2 years

1)Buy and Hold is a great strategy but not ALWAYS the best strategy. I have had serious winners (up 30%) turn to losers (down 30%) in a hurry. I held on because I believed in buy and hold. Meanwhile, I would have been better off to take some off the table. I ALWAYS take a bit off the table every other quarter or so. This provides a psychological benefit of “winning” as well 🙂

2)Check a companies BOND RATINGS. This has become even more evident during the recent Coronavirus Crash. You are seeing companies that have paid dividends for decades have to cut their dividend. Many of these companies were downgraded to Junk and downgraded again. Look to see the standing of the bonds of the company you are investing in. Use the Moody’s website, create a free account. You can do this research quite easily for most large-cap stocks.

3)Check companies’ EARNINGS in detail. If you see the earnings dropping quarter to quarter over the course of a year or more, it may be time to get on another horse. These companies are not growing. It doesn’t matter if they pay a dividend if your TOTAL RETURN is seriously negative. Buy companies with some growth, whose revenues and earnings are increasing.

4)Debt/Equity Ratio-Once again, the Coronavirus Crash is showing just how important this is. If the company is overleveraged, in hard times like this, it will not be able to meet it’s debt. Invest in companies with PLENTY of cash and reasonable debt levels.

5)Don’t over diversify-I think one issue I had with my portfolio initially is simply too many positions to keep up with. Ideally, I’d like 20 at the most, maybe even 15 really good ones. You don’t HAVE to own every sector with individual stocks if you already have a good index fund.

6)Don’t fall for the P/E trap. What I mean is, just because something has a low P/E, does NOT mean it is undervalued. First and foremost, it is ridiculous to believe the rest of the investing world can’t look at a P/E number and ascertain whether it’s valued appropriately… yeah, it’s most likely “priced in.” Not all sectors have the same P/E values, tech can have higher P/E values. Companies on their last leg can have very low P/E numbers but that doesn’t make them undervalued.

7)Don’t forgo BONDS-Luckily, I never had this problem but it bears repeating. I often see people tell younger investors you don’t need to use bonds/bond funds. I think this is ridiculous. One of the reasons my IRA and Roth aren’t down as bad as they could be is because of the bonds. They have a HUGE purpose in a portfolio.

8)”Cash is Trash”. A famous investor recently said that and I know I’m taking it out of context but cash is DEFINITELY not trash. Cash is SUPER important and should be conserved so when a buying opportunity comes along, you can take advantage of it. One thing I did wrong last year is I just kept buying, all the time. Then, when I had lower prices, I didn’t have enough cash to buy. NEVER AGAIN! I think I want to have 10% of my portfolio in cash going forward. Get the money in the market but also don’t just throw it all in at once.

9)Cut losers QUICKER. That is right, when a company drops 20%, maybe it’s time to sell. Not always but sometimes. Personally, I’ve found when I get a quick drop like that I almost always come out better if I just sell. Have a game plan, once you lose a certain percentage, get out. Do not mindlessly use a buy and hold approach, reassess the situation.

Corona Correction Saga Continues!

The Coronavirus continues to tear through the world. The stock market briefly entered bear market territory yesterday; however, after Trump’s National emergency speech, it flew up over 9%. This was all during the last twenty mins of today’s market. Wowzers, who would have thought.

What have I recently bought?

I did start buying a bit again. Here are just a few companies.

Hyatt-Despite all of the bad news in the hospitality industry, I just had to buy some more Hyatt at these levels. I was down about 20% so this lowered my cost basis considerably. Also, Hyatt has held up well considering everything.

Fortinet-The books are SOLID on this cyber security stock. They also seem to be stealing market share from competitors. Very low debt, good cash flow. I will continue buying anywhere below 90.

Hooker Furniture Company-This is one I haven’t bought in FOREVER. I am currently down in this stock over 30% but it’s not a large position really. These are historically low levels for this company. My original thesis hasn’t changed, this is a value stock and this company is extremely well managed. I may have to hold a while but I will.

Akamai-What can I say? Akamai has held up better than any stock in my portfolio besides General Mills. This thing is a beast. I will continue to buy anywhere 85 and under.

Eaton Vance-This is my favorite DIVIDEND ARISTOCRAT. The dividend is over 4.3%, with a low payout ratio. This things earnings are growing like a weed as well. I know in the event of a market crash they will get destroyed but if you look at 2009, they bounced back EXTREMELY fast. Given the nature of this correction (not bank/financially related so much) I think they will bounce back faster.

Darden Restaurants-This has been a hard one to watch just collapse. I bought pretty high and am down over 32%. I expect the restaurant industry will be punished BAD during the virus scare. However, I still believe in Darden management long-term. I will simply lower my cost basis and collect dividends at this level.

Westrock-The Dividend YIELD on this one is getting INSANE. With around a 50% payout ratio, I believe it will be safe, even at 7-8%. Westrock does carry a decent amount of debt but they have been paying it down. Today, this stock blasted up SEVENTEEN PERCENT. Talk about putting a smile on my face 🙂

Worst Performer

My worst performer right now is Ryman Hospitality Properties. It came out and said they will lose 40 million dollars in revenue this quarter due to cancellations. The stock is down over 30% in less than a month. I remain positive because the company just had a great earnings report. However, I don’t have the stomach to buy more at this time. I am going to wait until the virus peaks here in the states or I get more information about the cancellations. Too much risk here to lose more money in my IRA.

Did I sell anything?
Boy did I ever. I sold PMM, Putnam Municipal Bond Closed-End Fund. I sold it JUST in the nick of time as well. It went down 3% and I sold, I knew that was a sign of things to come, seeing as how it’s not a volatile investment. After I sold completely out, it fell 10% the next day and then some more. There was a Municipal Bond sell-off due to people panicking and worries of city revenues being hurt I suppose. At the same time, I have every intention of buying right back in, hahaa. It’s trading at a 14% discount to NAV right now at 7 bucks a share. I’m looking for anything under 7 dollars to re-enter. PMM is a monthly payer, free from Federal taxes, it’s a no brainer for me.

What are my next moves? What am I looking to buy?

First and foremost, I’m sticking with my original thesis of buying the market at 2500 on the S&P. So anytime I get that or near there I will start dollar-cost averaging into ITOT. Around the same mark, I will also be buying QQQ.

As far as individual stocks? What is on my radar?

  1. I’d love to increase my position of AKAM further
  2. Home Depot or Lowes
  3. Microsoft at 115-120; this is not something I’ve ever thought about buying but at that level I’d pick up some.
  4. General Mills is a tank and I’d love to get up to 4% of my portfolio in that.
  5. Zoetis if it EVER comes down, I’m not sure it will

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