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.
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.
Unlike many investors, I continue to buy, even as the market climbs up against all odds. I figure I can’t time the market perfectly so why not? I was able to sell a lot at the very top and avoided a HUGE loss in my IRA, so, back in I go. I am buying small portions but consistently, March 13th was the day I re-entered.
I am looking for a new SWING TRADE opportunity this month, but for now, purchasing long-term plays in the Tech, Consumer Staples, Materials, and Financial sectors. Here are my picks:
1)Mcgrath Rentcorp-I just got a dividend from them and decided to reinvest that money back into Mcgrath. I really like this company; it just had a great earnings report. An EPS of .81 vs .75 a year ago, 129.45 million in revenue vs. 122.01 million a year ago. As you can see this company continues to grow. I also believe even during the Coronavirus episode, Mcgrath is fairly well positioned to weather the storm with it’s modular building and storage segments
2)MimeCast-I buy just a little Mimecast here and there. It’s not a huge position for me as I believe it’s a bit more risky. MIME is an email security company. It’s European exposure will of course be a problem during the next two quarters. However, long-term I don’t think anyone does email security quite as well as them and the stock has been beaten down for awhile (even before the virus!)
3)Stanley Black & Decker-I must say SWK has been THE stock to buy for me the last month or so. I got in at a GREAT price with this company and I’m simply adding to my shares here. The company recently had an earnings report; the report was not as great as say Mcgrath’s, with some noticeable weakness; however, SWK has been around forever and I believe will continue to be. This is a long-term hold in my IRA account
4)Eaton Vance-EV will always be one of my favorite stocks. It’s a DIVIDEND ARISTOCRAT that’s increased it’s dividend for over 37 years. I add on any pullbacks.
5)ITOT-Not much to say here, other than I’m a total market guy when it comes to ETF’s. I still have a little cash left in my account and just continue to buy consistently. I don’t want to be caught sitting on the sidelines while the S&P 500 runs back to 3000.
1)Macy’s-I sold out of Macy’s a while back but for some reason I’m still getting dividends. Hey no arguments. Macy’s paid me $4.53
2)Eastman Chemicals paid me $33.00
3)Schneider Trucking paid me .91 cents
So as you can see not a WHOLE LOT in Dividends this month in my Brokerage account. I go into the reasons behind that below.
Moving on to my IRA account, lots of REITS:
Medical Properties Trust-$26.46
Xenia Hotels $1.65
Ryman Hospitality $13.30.
Both XHR and RHP have suspended their dividends due to the Coronavirus environment; so this is probably the last dividend this year I’ll be getting from either of those companies.
IEF Bond Fund paid me .72 cents.
Mcgrath Rent Corp $4.62
This brings me to the following totals:
$39.89 in my Brokerage account
$46.75 in my IRA account
A COMBINED TOTAL of $86.64
Here is my latest DIVIDEND GRAPH since my initial investing. Once again, you will see that the amount of dividends paid has dropped considerably. This is because I sold some of the stocks paying dividends and I had one dividend get deferred (American Eagle outfitters).
Overall, I’m still happy to be getting the dividends even though they certainly have decreased. COVID-19 is an usual situation that most companies simply weren’t prepared for. Hopefully, these dividend cuts don’t last for a year.
Given that I’ve been concentrating more on growth/tech investing; I am not as concerned about the dividends at the moment. However, no one likes to see their dividends get cut. At the same time, whatever a company needs to do to make ends meet in this trying time. Far better they cut the dividend than go out of business.
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: