Dividend Builder – June 2020

Green grass field.

June is through. Time to share some dividend results with you. 2020 has given us a wild and memorable first half. Here’s to the second half. Here’s to all that is new, to lessons learned, to seizing the day, and to a world that is taking a moment to reflect and redefine. I won’t wax philosophical or poetic for most of the rest of this post, probably.

June 2020 Dividend Income

BACBank of America Corp$0.90
BPYUBrookfield Property REIT Inc$3.33
HRZNHorizon Technology Finance Corp$3.00
MMM3M Co$7.35
ORealty Income Corp$0.47
STAGStag Industrial Inc$1.20
TROWT. Rowe Price Group Inc$0.90
XOMExxon Mobile Corporation$4.35
Total: $21.50

Ford and APLE delivered a conspicuous $0.00 this month. I’m not getting down on either company. The lack of dividend impacts my dividend growth of course. But, I am choosing to dwell on the positives. One of those positives being the world of selling covered calls. Ford is the gift that keeps on giving in the covered calls department. The income I’ve gained there actually outstrips what I would have made in dividend income. My attention turned to my other options once dividends started getting cut. Those other options turned out to be, well options. So I’ll take the positives from what at first blush was a pretty discouraging development.

As a trader, I have been slow to delve into the world of options. My brother Joe has done a great job of introducing and patiently teaching me what he’s learned. I’m happy dabbling in the entry level of options trading which includes selling covered calls.

Bank of America and T. Rowe Price both made their first dividend contributions to the Dividend Builder portfolio this month. Both of these were added when I beefed up my banking and finance sectors as chronicled in Fear and Greed in a Pandemic. My hometown company 3M also made its first contribution to the portfolio this month.

June 2020 First Time Additions

No first time additions to report.

June 2020 Increased Positions

I bought 100 shares of Ford but I also sold 100 shares so no net increase in that position or in any other position.

June 2020 Position and Swing Trades

I sold off my one share of Broadcom (AVGO) for a profit of 4.39%. I realized I had bought pretty high when I first acquired it, so I decided to trim it once it floated back over my entry price. Possibly I’ll get back in on a future dip. Otherwise, I’ll look to add another technology ticker or add to my Cisco (CSCO) holdings.

Mastercard (MA) was another one of my banking/finance sector buys back in March of this year. I realized a profit of 19.29% on this position trade. I would have been happy to continue holding Mastercard and it was tought to part with it. The desire to capture profit and put that capital to work in other areas was too strong though. I will gladly buy more Mastercard in the future.

This next one didn’t turn out so well. A covered call I had sold in Ford was exercised when the whole market had that amazing surge in early June. I thought my strike price was safe. Time to think again. All in all, not a bad result as I was forced to sell, but then bought in again which helped to bring my overall cost basis much lower. My average price had been reflecting the pre-Coronavirus price range for Ford. This swing was a loss of 16.43%.

June Summary

I earned $26.25 in dividend income which is a 30% increase over June 2019.

My swing trading efforts netted me a loss of $54.47.

Total result for June 2020 is -$28.22. An overall loss for the month. I took a hit on Ford, but I’ve been able to average down and get my cost basis closer to the current pricing levels. This is my first month taking an overall loss. It likely won’t be my last in the process of learning. I will learn from it and work to minimize months that end in the red. Either way, I am enjoying the learning and enjoying the slow building of passive income.

Thanks for reading. I’ll see you next month for the Dividend Builder – July 2020 post.

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