Dividend Builder – May 2020

Burnt out building with "I Can't Breathe" protest graffiti.

My Dividend Brother Joe and I put a pause on our posts as our neighborhood and world erupted after the killing of George Floyd. Joe and I live in a duplex in the 3rd Precinct of Minneapolis. We are blocks from the site of the killing and even closer to the overrun 3rd Precinct police station. This is a blog devoted to trading, investing, and building dividends in life. I won’t stray too far from that lane; however, my thoughts and prayers go out to all those who have been denied the opportunity to build the life of their dreams. My hope is for our Minneapolis community to heal, to right wrongs, and to treat all life as precious.

The world of investing looks trivial in the light of a city on fire. For now, I am finding my way and place, which for me includes the discipline of writing and sharing my adventures in investing and trading. Maybe there will be a day when I can speak or contribute in a more profound way. Until then, I will continue to listen and to learn.

May 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

May now holds the record for my lowest month of dividend income in 2020. I missed out on $20.50 due to Coronavirus-economy fueled dividend cuts. Namely APLE and SPG. Neither company has declared the reappearance of their dividends. I will be curious to see what amount they settle on if and when they declare dividends.

Year-over-year my monthly dividend income for May increased by 42.17%, an increase of $7.78 over May 2019.

May 2020 First Time Additions

I made additions to the fund in May; however, none of them where first timers. So we’ll cruise right down into increased positions.

May 2020 Increased Positions

TickerCompaySharesEntry
FFord Motor Company140$5.47

It seems I can’t stay away from Ford. I’m trading it in my infamous Margin Challenge, which is well overdue for an update. Plus, I’m already holding shares in my Dividend Builder fund. Ford is no longer paying a dividend. What it does provide me is great swing trade opportunities and the selling of covered calls. I have not tracked the income generated from selling covered calls or buying and selling options in my monthly updates. I am still learning and feeling my way around options, so I don’t know that I’m ready to share my experiences in that realm yet. I’ll leave that to Joe and his weekly updates.

May 2020 Position and Swing Trades

I sold my final 10 shares of JetBlue (JBLU). Hindsight tells me I should have held longer as I could have sold in the $15 range. I sold at $9.30 for a profit of 18.62%. It is overwhelming to me to think of all the buying opportunities the market presented in March and April of this year. Most companies have made significant recoveries since then. The mantra of buying when others are fearful has once again held up to the test of time. My lesson learned is to save dry powder (cash) for the market bottoms and to trim some positions when companies reach historic highs.

Speaking of trimming. I sold all three of my shares of JP Morgan (JPM), not a trim when you sell them all, but it was a trim of my banking and finance sector. I got into a few banks back at the bottom of the market when I realized I had no representation of that sector in my portfolio. You can read all about that in my riveting post Fear and Greed in a Pandemic. I earned a dividend with JPM, but my overall profit from swinging the shares was only 1.37%. I sold when it popped a bit above my entry only to see it really pop when the rest of the market took off in early June. JPM remains on my watchlist. I’ll look to add it again if it droops down into the low $90’s or high $80’s.

May Summary

I earned $26.23 in dividend income to progress 42% over May 2019.

My trading income came in at $18.46. I am not counting any profit or losses from my Swing Trading with $300 challenge as that is being tracked as its own entity.

Total income for May 2020 is $30.09.

Thank you for reading. Keep an eye out for some make-up summary posts as I work to get caught up on my swing trading and margin challenge updates. See you next month for the Dividend Builder – June 2020 post.

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