My Investing Journey with Passive Income, Stocks, and Cryptocurrencies!

Tag: How to dividend invest

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!

HUGE Winner-Stanley Black & Decker

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.

11 Stocks to Fight the Coronavirus Crash

Lots of crazy happenings here in the world due to this Global Pandemic. Here in Atlanta, GA most businesses are closed, some cities even have curfews. People are rushing to stock up on essentials such as food, toilet paper, and hand sanitizer. On the other hand, traffic at our local parks has increased greatly; people are all cooped up inside and want to get outside. I’m not so sure walking in the park around big crowds is the smart thing to do. Anyways, onwards to the STOCK PICKS.

How did I pick these stocks? What were my main selecting factors?

1)Debt to Equity ratios. Companies that are highly leveraged right now are being priced to fail. Even if there is a smaller chance of that happening, they are being punished. This makes sense because investors are even dumping MUNICIPAL BONDS, due to fear that cities’ revenues will be cut and unable to pay obligations. Think about all of the sports events that were canceled; that is a TON of income for cities. Less business = fewer taxes paid.

2)Cash on hand. Companies that have a good portion of cash can weather this storm than those that don’t. Many companies will have to take out loans to meet their obligations.

So I’ll give you the list and then break each of them down

  • Ennis
  • Fortinet
  • Mcgrath Rent Corp
  • Akamai
  • Eaton Vance
  • Schneider Trucking
  • Marten Transport
  • Cisco
  • Intel
  • Stanley Black and Decker
  • Kforce

Ennis is one of my favorite DIVIDEND STOCKS. It’s a smaller-cap stock, not much of a capital appreciator but the dividend is safe and will protect your portfolio in the event of a worse market crash. They make paper products/forms for businesses.

It currently has a Debt to Equity ratio of only 6.87%. Its cash on hand is 88.4 million. Current liabilities per quarter are around 31 million. Free cash flow last quarter was 55.3 million. So, given that the Free Cash flow PAYOUT ratio is around 42%. This company has plenty of room to keep paying dividends.

Fortinet is one of my top 3 growth stocks; I LOVE this company. It has an impeccable balance sheet. The Debt to Equity is only 3.5%. Cash on hand is 1.2 BILLION, wow! Revenue increased by 21% last quarter. This company is in the cybersecurity business. Even if the world slows down, companies will still need their networks protected and I think it’s somewhat insulated from some of the issues in other sectors.

Mcgrath Rent Corp is another small-cap company. They produce storage and modular buildings. This is a more capital intensive business but their books look good as well. 47% Debt/Equity and a Free Cash Flow payout of only around 20%. Currently, the Dividend is 3.44%. MCGR is also a growth play, it’s earnings has increased dramatically every year.

Akamai is also one of my top growth stocks. AKAM does cybersecurity and content delivery. The more video games people play online the more they benefit and right now TONS of people are online. This stock has held up INCREDIBLY during the Coronavirus Crash. Some days it is green while the rest of the market is red. Akamai has 1.54 Billion in cash and a 73% Debt/Equity ratio. The Debt ratio is higher than others on this list; however, I believe they are built to weather the storm given their business and cash. Free Cash Flow, Revenues and EPS growth as been fantastic with this company over the last year. I’m buying anywhere 85 and under.

Eaton Vance is an asset management company. They will, of course, be hit hard in the event of a stock market crash. However, look at 2009 as an example of how fast they bounce back. EV is a dividend aristocrat that’s increased its dividend over 37 years. With a Free Cash Flow payout of only around 33%, the dividend is SUPER safe here. Not only are you getting a great dividend, (currently 5.22% yield ) you are getting EARNINGS as well. Revenue and Earnings is up incredibly on EV over the last year. This is one of the most undervalued stocks in the market in my opinion. They currently have 606 million in cash on hand with current liabilities running around 385 million a quarter.

Schneider Trucking and Marten Transport I am going to combine. These are both trucking companies. First and foremost, trucking has already been in a recession for the last year. These things were already priced to fail so they didn’t far to fall. I’ve noticed the little SNDR that I still own has held up a lot better than the majority of my other stocks. You could argue this is the value factor at play. I think trucking stocks, defying logic, will be one of the gems of this crash to buy. SNDR only has a debt to equity of 19.85%. Its dividend is only 1.44% but is super safe with less than a 30% payout ratio. If this puppy hits 15 bucks and some change I’m buying back in. Marten transports was on my radar before the virus, but the price was too high. Now that it’s corrected, I’m watching it closely. It has a Debt to Equity of an INSANE 0.2%; however, its not much of a dividend play at a .67% yield.

Cisco has of course been around for a long-time. The dividend yield is 3.82% but a payout ratio of 54%, so that dividend is definitely safe here. Debt to Equity of 48% and 11.8 Billion in cash on hand. Looks good to me to beat the virus. Not to mention it’s a play on online learning and web conferencing as well.

Intel has a very low Debt/Equity ratio of 38%. The dividend is currently 2.88% with a payout ratio of only 26.75%. Cash on hand is a whopping 13 billion. Intel is VERY well suited to weather the storm here. Valuations look sound as well.

Stanley Black and Decker is, of course, the toolmaker. They make everything from drills and saws, to big fasteners used on automobiles. They also have a small play on security and healthcare equipment. The current dividend is 3.47% with a payout ratio of only 42.5%. They have a Debt/Equity ratio of 44.78% with 297.7 million in cash on hand. This stock is currently getting DESTROYED day in and out, I just had to buy some at these prices.

Kforce is a small-cap temp service, mostly in the tech fields but many others as well. It has a 52% Debt/Equity ratio. The dividend yield is currently 3.18% with a free cash flow payout ratio of only 29.5%. This company is taking charge and reducing its debts quickly, they have their eyes focused on being debt-free over the next few years. Last year this thing had a 32% Return on Equity, so they are doing a great job of managing their money and investments. Of course, we will have to see how the job market goes and lays off here. The business will be hurt; however, I will also say, companies are more inclined temps to do work, so they don’t have to pay them benefits. This helps Kforce’s business indirectly.

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