I was recommending Stanley Black & Decker as THE stock to buy back in March. I was literally buying it every other day as extra money came in.
You can see the screenshot from my IRA account below. I am up over 42% total in less than three months. One tranche is up over 95%, talk about crazy.
This is why, when the fear is high and the market is crashing, real wealth can be created during that time. The sky was falling, people were all yelling don’t buy, sit on the side lines. Meanwhile, SWK was at 5 yr lows, it was a DIVIDEND ARISTOCRAT, and most importantly, my time horizon was long. It was an opportunity I couldn’t pass up.
I knew SWK was going to be a winner, but I never thought it would be the top performing stock of this quarter for me.
I think the stock STILL has legs to run, so I’ll probably add a little more to top it off.
So, I’m STARTING to concentrate more on my passive income besides Dividends. More income equals more money to invest. I need to get the cash flow coming in more and more so I can invest it and compound it even faster.
I’m gradually finding out what works for me and what doesn’t work. This lets me know where to funnel my energy, so it pays off the most.
Right now, the biggest winner for me is Patreon. While it certainly isn’t 100% passive (I have to upload content), once it is up, it is up and it generates income.
Probably my biggest loser is Amazon Affiliate. I don’t really do too many reviews and I only have the links under my music videos and a few places on my music website. However, I would think after over a 100 clicks I could generate SOME income from it. Apparently not so.
Here is the breakdown of May’s PASSIVE INCOME
Amazon Affiliate- $0
Patreon – $67
Digital Products- $0
Adsense- $5. 27
TOTAL PASSIVE INCOME FOR THE MONTH OF MAY WAS $187.64
I am SERIOUSLY surprised I sold ZERO digital products in May. I’m not sure what happened. At the same time, I recently converted my main site over to https and that caused it to take a traffic hit via google. June is only a week old at this point and I’ve already made digital product sales, lol.
Patreon continues to be the outperforming. I’m gaining supporters each and every week and my goal is to get up to that $100 mark.
Skillshare is a nice platform if you are just getting started. I haven’t updated it in half a year because I’m not a HUGE fan of the platform’s payment method. Also, consider me IRKED that they cancelled one of my courses without notifying me one time. So yeah, I’ll take the money but I am not being active on Skillshare any more.
Teachable is simply from instructional video sales. I believe this is on a one month lagging payroll so this is probably from April technically. Since concentrating on Patreon I haven’t really updated my Teachable either. I plan on turning my Teachable into a membership access site just like patreon. I think I will have better results that way, rather than pay per video.
Adsense-I once again think Adsense was negatively affected from the https switch on my site. Also, google has decided you can no longer choose your fill rate, it does it automatically. We will see how this affects my ad revenue. I’ve heard many people’s ad revenues are down. Basically my expectation here is a base level of $10 a month at the moment; that is “normal” for me.
Here are my DIVIDENDS for the month of May. If you’d like to compare to last month, here you go:
First up is my BROKERAGE account, here they are:
Putnam Municipal Income Closed End Fund paid me 0.13 cents. Ha, if you haven’t seen my post before, I bought into this over a year ago and completely sold out of my position BEFORE the crash. Now I’m diving back into this one with small doses. This is free from Federal Taxes and pays over a 5% yield, so great for the brokerage account. Now I just have to get that percentage up there.
General Mills-The very first individual stock I ever bough. It paid me $16.66. I LOVE General Mills, it’s still looking good and have no plans to EVER sell this stock
Ennis paid me $29.48. This is one of my heavier positions in my portfolio. I actually sold just a little bit of Ennis this month, so that amount will most likely be less next time. I just felt like I was overweight in the stock and wanted to take some of the gains off the table to put to use elsewhere.
Eaton Vance is one of my absolute FAVORITE Dividend stocks. It paid me $23.63. This DIVIDEND ARISTOCRAT is a great addition to any portfolio; it has dividends, growth and presents a great value opportunity at these prices.
Westrock-It paid me $10.60. Westrock recently slashed their dividend so we can expect smaller payouts like this from them for awhile.
These brings the total up to $80.50 in my BROKERAGE account.
Now a quick look at my Traditional IRA:
Lowes paid me $1.65. I swing trade Lowe’s so this is not a permanent dividend.
IEF (Intermediate Bond Fund) paid me .64 cents
My cash account threw me .01 cents, haha.
So a very small total of only $2.30 in my IRA. Keep in mind that dividends are not really the focus of my IRA (or brokerage for that matter), so some months will be extremely small amounts.
Going forward into June, I had some money I took out of the market to pay about $1000 extra on my car loan. So, I will be getting a little bit less dividends in the following months. However, this will be short-lived and I’ll be back on the income/cash flow train again shortly, headed up.
Thanks for tuning in and as always-I’m NOT a financial advisor; I am simply sharing my journey here.
Here is my latest youtube video where I detail how my GROWTH stocks are killing my DIVIDEND stocks. How are your dividend stocks fairing in this Coronavirus Correction? I’ve had THREE Dividend cuts and that sure hasn’t helped things
My top performers continue to be Fortinet, Netflix, and General Mills.
I am up over 30% in each of these. I’m up almost 40% in Fortinet in a super short time (only 2 months!). General Mills I’m up in because I bought it starting Christmas Eve of 2018 and by the time I count the dividends I’ve gotten, my total return is over 40% on this stock. Netflix continues to outperform; I just hope that price appreciation continues.
In this video, I also detail why I am buying ITOT and QQQ over NOBL and DGRO. In summary, a basic Total Market ETF outperformed ETF’s that focused specifically on Dividends. Focusing on dividends led to increased risks and a weaker performance. One line often touted by Dividend investors is “Dividend Investing performs better during bear markets, it is safer.” However, what this correction is proving is that it is NOT necessarily safer. Currently over 33 companies have cut their dividend. Imagine relying on that dividend during retirement? Not good!
I am continuing to buy QQQ and ITOT a little bit each week. I also plan on increasing positions in Marten Transports, Chewy, Eaton Vance, and perhaps Mcgrath Rentcorp. I think these stocks still present incredible growth opportunities and I’m thinking LONG-TERM here.
As usual, I will repeat the old mantra, timing the market is difficult. I think there is nothing wrong with sitting on the sidelines for a bit, but I want to get that money working for me as quick as possible.
One question I keep seeing all over the internet is was March 23rd the bottom? Well, that remains to be seen. Maybe, maybe not.
I am of the opinion that the market could keep going up and that COULD have been the bottom. At the same time, we could also go lower from here.
At the same time, I can’t say I care one way or the other. The majority of my investments are on a 5-20 year timeline. All that matters to me is that the prices we saw in January are not the highest we will EVER see again. I expect that we will get back to All-time highs and go higher after this is over. The pressure is building and when we hear good news, I fully expect the market will rally like never seen before. I won’t be surprised if a rally occurs faster than most people expect.
As long as the market is up higher than the current ATH during your investment horizon, you are getting dividends, reinvesting, making regular contributions, then the current market conditions are not something to worry about.
How is the Coronavirus itself looking?
We are now seeing a slowing of Coronavirus cases in Italy and Spain. Cases are increasing under 3% and deaths under 4%. This is reassuring. Who knows how long it will be until those economies open back up. However, we are seeing a move in a positive direction. Here in the states, we are still seeing an increase of 8.4% in cases and a whopping 18% increase in deaths today. We have a ways to go, especially here in Georgia, where I don’t believe we adequately prepared for this. Our governor is a bit of a disappointment.
I think life as we know it will probably change until the end of the year. Things will gradually open up but we will all be cautious of going to a crowded concert or restaurant again. Who wouldn’t be???
I have largely been staying in, only to go out for mail/groceries and a rare walk (most places are closed). My fear is not the illness itself but perhaps the medical bills that come with it. My greater fear is having it, not knowing it and giving it to my elderly mother who is an extremely high-risk case here. These are the things that linger at the back of our minds as we face this. My wife’s job has been TERRIBLY affected because she is a full-time musician who depends on gigs for a living. Imagine all of your work gone in a blink of an eye. Myself, I am lucky that I do mostly online teaching anyways and my business has even increased due to the virus.
I fear what will happen to the country during this downturn. So many small businesses could go under here. I see LOTS of businesses over leveraged, borrowing more so they will be “prepared” if this goes on longer.
Anyways, what moves have I made this week with my buying and selling?
1)I keep buying Stanley Black & Decker. I am up an incredible 42% in one tranche I bought, not even that long ago. Of course, I keep buying, so overall I’m up something around 18% in the stock. Nice Dividend Aristocrat and solid company LONG-TERM
2)I am taking nibbles at ITOT every couple of days. I am NOT trying to time the bottom here. I am sticking to my plan of buying anywhere near 2400 and under. I am also buying smaller portions at 2600. I think these are decent entry points long-term.
3)I am gobbling up QQQ on any dips. I think this is a SUPERB ETF to be in. It is less exposed to things like restaurants, hotels, and cruise lines. It is tech-heavy, but I am fine being tech-heavy during these times.
4)I bought Lowes for a SWING TRADE. I only made around $24 bucks off of it but I only held it like three days. I continue to play either Home Depot or Lowes for weekly Swing trades. I like these stocks for swing trades, because I am fine holding either long-term if I can’t get out of my trade quickly for a profit. I made around 8.4% off of this trade. Last week, I traded Home Depot in my IRA account for even a greater profit. I think THIS is the type of market to swing trade-in. You will see tremendous volatility, swings of 8-10% in one day. Why not take advantage of it to go with your long-term investing??
5)I am still playing the TRUCKING SECTOR as I feel these stocks were already beaten down prior to the crash and are holding up well. Marten Transports is one that continues to perform well. So far, up over 8% in the stock over the course of a few days.
As always, here is the YOUTUBE video discussing Some of this: