Dividend Builder – February 2020

Bare tree in a snowy field.

Monthly Recap

The importance of dividend investing hit home hard in February and obviously now into March. Dividend investing is a buy and hold strategy. That means holding through the ups and the downs, even the way downs.

“I’m still holding. Yeah, yeah, yeah.” Please forgive my taking liberty with lyrics, but yes, I’m still long the stock market and still holding my shares. My only regret is that I do not have a decent pile of cash on stand-bye ready to pour into several of the screaming deals that emerged from this Coronavirus dive.

Next month will be my first opportunity to compare year-over-year results. March 2019 was the first month where dividends began landing in my account. I am looking forward to being able to track and compare progress over time. My inner stats-geek is already way too excited.

Time to dive into what went right, wrong, and headlong in February.

February 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

February dividend income was not nearly as beefy as January, but it is $38.66 more in passive income then I earned in February 2019. I happily celebrate the small milestones. Success for me is in starting and doing not in having already made it.

You will notice APLE and HRZN showing up in each month’s report since those two companies pay a monthly dividend. I am eyeing up another monthly payer, STAG, as it is trading at a generous discount at this time. Monthly dividend payers grab my attention a lot. I try not be overly infatuated with receiving a dividend every month, but I will dive in if the company and price is right.

February 2020 First Time Additions

  1. MMM 3M Co: 5 shares at $154.13.
  2. DAL Delta Air Lines, Inc.: 20 shares at $54.28.

Technically this is not my first time investing in Delta Air Lines. It is however my first time back in the company since starting this blog. I was excited about the great entry I had for both of these companies until the market took the radical Coronavirus-sponsored nose dive. Of course I’d love to be getting in at current prices. Either way, I’m invested in two companies that I believe in. I have full confidence in their long term value.

February 2020 Increased Positions

  1. CSCO Cisco Systems, Inc.: 2 shares at $45.00.
  2. F Ford Motor Company: 30 shares at $7.42.

Yup, hindsight is 20/20. Could have bought Ford in the $5s and Cisco in the $30s.

February 2020 Trimmed Positions

No positions trimmed this month.

February 2020 Position and Swing Trades

  1. NRZ New Residential Investment Corp : 100 shares at $17.00.

This one turned out well even with 20/20 hindsight. I had not overtly intended to sell these shares. A couple of months back I sold a call for NRZ with a February 21st expiration and a $17.00 strike price. The price was over $17 on the 21st and the option was assigned. I was not super pleased at the time as the price went higher in the $17 range, but now with the price sitting in the $11 to $12 range, it was for the best. This trade netted $154.00 in profit, and is my only trading profit for this month.

Monthly Summary

Dividend income landed at $38.66. Energy Transfer and Simon Property Group contributed the most this month.

Trading income landed at $154.00. I have a feeling March will end with little to no trading income given the state of the market.

Total income for February 2020 is $192.66.

As always, thanks for taking time to follow along. The market is certainly volatile, but dividends from solid companies are consistent and reliable. Let me know who you like for your future dividend growth. Watch for a March 2020 update in a few weeks.

2 thoughts on “Dividend Builder – February 2020”

  1. Hey Marcus,

    Every little bit of income adds up along the way, so long as it’s put back into the portfolio through reinvestment (whether selective or passive). Congrats on your first February with passive income rolling in.

    Take care,
    Ryan

    1. Thanks Ryan. Yeah I’m definitely reinvesting every bit of dividend income at this point. I think that part is a lot of fun. Putting earned money to work to earn more. Thanks so much for reading and commenting. – Marcus

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