Dividend Builder – January 2020

Lone tree in a snow-covered field.

Monthly Recap

It is impossible for me to compare January 2020 against January 2019 as I had no dividend income last January. I changed my entire investing strategy that month. My days of trading penny stocks, momentum trading, and trend following had yielded negative results. Especially true after the market correction of December 2018. Yep, that one hurt! I started 2019 with my Dividend Builder strategy which focuses on position trading and dividend investing. Dividend payments didn’t start rolling in until March of 2019. I’ll be able to compare year over year results starting in March.

I dropped fresh capital into my account this December. After a year of demonstrated success with the new strategy, I was ready to commit more money. As a result of these new funds, this monthly update will be a bit busier than future updates.

January 2020 Dividend Income

TickerCompanyDiv Income
APLEApple Hospitality REIT Inc$0.00
NRZNew Residential Investment Corp$6.00
ETEnergy Transfer LP Unit$15.86
HRZNHorizon Technology Finance Corp$2.30
SPGSimon Property Group Inc.$0.00
ORealty Income Corp$0.47
STAGStag Industrial Inc$1.20
MAMastercard Inc$0.40
Total: $26.23

*Actual dividend payment for NRZ is $65.00. I own 68 shares on $1,000 margin provided by Robinhood Gold. I deduct $15.00 (3 months worth of Gold) each quarter.

January 2020 First Time Additions

  1. BPR Brookfield Property REIT Inc Class A
  2. AVGO Broadcom Inc
  3. CSCO Cisco Systems, Inc.

My portfolio has been heavy in the REIT space. The additions of AVGO and CSCO are an attempt to diversify. I also believe both companies are on track for decent growth and share price appreciation in 2020.

January 2020 Increased Positions

  1. APLE Apple Hospitality REIT Inc
  2. ET Energy Transfer LP
  3. F Ford

My holdings in Ford were increased as part of my Trading on Margin Challenge. APLE and ET are high yield dividend companies whose share prices dipped below my cost basis, so I increased my positions.

January 2020 Trimmed Positions

  1. NRZ New Residential Investment Corp

In hindsight, this was not a great move. NRZ had solid earnings and the share price jumped to the mid $17 range. I used the proceeds from selling to buy more APLE, and then APLE dipped even more.

January 2020 Position and Swing Trades

  1. LUV Southwest Airlines
  2. INTC Intel Corporation
  3. FDX FedEx Corporation
  4. SRC Spirit Realty Capital Inc

I generated $95.82 in income from position or swing trading the stocks above including the trimming of NRZ. My working capital is low (that’s a fancy way of saying “I don’t have a lot of money.”) which is why position and swing trading is a key component to my investing strategy. Dividend income is a thing of beauty, but I am also working to multiply my investment pool. I also really enjoy trading. The key for me, if I swing or position trade, is to only trade in companies I would be happy to own long term. This means quality companies that pay a healthy dividend. I continue to get paid even if the share price drops and I get stuck in the trade for a long time.

Monthly Summary

Dividend income was at $75.05 which is my highest monthly total since I started. February will not be as beefy. The NRZ dividend definitely boosted my results this month.

Trading income was $95.82. I don’t have a good sense yet on where I will land month to month with trading income. I would love to hit $90 plus, but we’ll see if that is realistic while also staying true to my investing strategy.

Total income for January 2020 is $170.87.

Thanks for following along. I hope to keep this monthly update going as it helps me to think critically about my investing. Feel free to share your own dividend favorites in the comments below. I’m also open to feedback if there is content or a format you’d like to see in these monthly updates.

Leave a Reply

Your email address will not be published. Required fields are marked *