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Weekly Dividend Roundup 9/18/20

9/14 – 9/18/20

This will be a busy weekly dividend roundup, so lets get to it!

The biggest note here is that I’ve officially begun to “transfer” my REITs out of the taxable account and into the self directed IRA (SDIRA).

Dividend.com has a fantastic article written up here

I sold all of my CubeSmart (CUBE) and Realty Income (O) this week and now only have New Residential Investment Corp. (NRZ) & Simon Property Group (SPG).  

In a nutshell, REITs are considered by the IRS as Non-Qualified dividends and are taxed at your ordinary income rate. But, if held in a tax advantaged account, you do not pay income tax on any dividends, so the compounding effect intensifies.

This may not be for everyone, and has different implications in different countries. assess your own situation accordingly and decide if moving REITs to a tax advantaged account makes sense for you.

 

What I bought this week-

CVS Health Corp (CVS) – I bought a few shares to swing, as I believe the shares will see a spike in price in the coming weeks and months. The 3.13% net margin worries me and is well below my 10% threshold I like to see. The dividend is frozen at $0.50, but it is only 18% of FCF. My target is $10/share and I will collect the dividends until my target is eventually hit.

Johnson & Johnson (JNJ) – Another week another JNJ buy. Solid all around and a reason it is one of my favorite dividend growth companies. Sporting a 34% FCF payout ratio and 22.69% net margin and a P/E of 21.81, I’m finding it hard to not add even more. BTW, did you know JNJ owns Neosporin?

PepsiCo (PEP) – Like clockwork I’m buying at least one share every week until I have 100. Thursday I added share number 14. It is not a bargin right now, but I’m paying for quality. If there is a healthy pullback, I’ll absolutley be adding more. 10.13% net margins and 57% FCF ratio, this is a quality company that I’m proud to keep adding to.

Kimberly-Clark Corp. (KMB) – Another stalwart providing the necessities of life, I’m rapidly building a  nice position here. 13.58% net margin, 45% FCF ratio and almost 25 years of consecutive dividend growth. They own Huggies brand diapers and I’m pretty sure people will continue to be having children!

Prudential (PRU) – The financial sector has been beaten down and increased banking regulations aren’t helping matters. Insurance companies are part of this sector, and I feel confident that they will outperform their sector peers. Super low debt, a payout ratio of only 33% and a yield of over 6.5%. Sold!

AbbVie (ABBV) – There are questions surrounding Abbvie’s future in regards to it’s biggest drug – HUMIRA. Competition will eventually come in from Biosimilars, but I like the acquisition of Allergan which adds many new drugs to their pipeline. 5.24% yield and 19.20% net margin on top of a 45% FCF payout ratio, I like adding at these levels evermore.

Realty Income (O) – Sold out of the taxable at $63.03 and then bought a few moments later in the SDIRA at $62.86. All 25 were sold in the taxable, but I only bought 10 in the SDIRA, as I feel that the price may be dipping this coming week and I can buy in at a better price. 35% net margin and they just increased the dividend for the 108th time. I’ll beholding this in the SDIRA until I’m required to start taking minimum distributions.

To wrap things up, my Altria (MO) $46.00 call I sold for $19.00 expired worthless. I keep all 100 shares and I’ll be selling another this week.

Check out the recapped portfolio activity below, and click on the underlined portfolio title to be taken to each spreadsheet. Side note: I use the estimated income over the next 12 months on my Schwab account for the annual income. This differs from my spreadsheet which scrapes the numbers from FINVIZ.COM. They are close enough and for consistency, I use the Schwab number.

 

And as always, listen to the podcast every Tuesday and Friday. Thanks!

Taxable Portfolio

Dividends Received

TickerNameDividends Received
MMM3M$17.64
MCDMcDonald’s$12.50
ORealty Income$5.60
DUKDuke Energy$10.62
PRUPrudential$15.40
TOTAL$61.76

Buys Of The Week

TickerNameSharesShare PriceYield%Added Annual Income
PEPPepsiCo1$132.603.08%$4.09
ABBVAbbVie2$89.565.27%$9.44
KMBKimberly Clark4$145.652.94%$17.12
PRUPrudential1$68.496.42%$4.40
JNJJohnson & Johnson1$148.892.71%$4.04
CVSCVS Health2$57.753.46%$4.00
TOTAL$43.00

Income Breakdown

PeriodAmount
Yearly$1,490.24
Monthly$124.19
Weekly$28.66
Daily$4.08
Hourly$0.1701

SDIRA Portfolio

Dividends Received

TickerNameDividends received
ORealty Income$5.84
MMM3M$13.23
EDCon Ed$7.65
MCDMcDonald’s$5.00
GOLDBarrick Gold$2.00
DUKDuke Energy$1.93
Total$35.65

Buys Of The Week

TickerNameSharesShare PriceYield%Added Annual Income
ORealty Income10$62.864.47%$28.08
KMBKimberly-Clark2$147.102.90%$8.56
Total$36.64

Income Breakdown

PeriodAmount
Yearly$1,200.91
Monthly$100.08
Weekly$23.09
Daily$3.29
Hourly$0.1371
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