As I'm writing this blog post a few days into March, spring is in the air! Here in Central Wisconsin about half of the snow on the ground has already melted. Only time will tell whether Mother Nature is trying to lull is into a false sense of security before dumping a foot of snow on us in April as it has the past few years or if this time will be different.
With that aside, I will be delving into the intent of this post, which is to discuss my capital deployment during the month of February 2021.
Starting with my retirement account, I deployed $252.00 in gross capital when factoring in my 7% contribution to my Capital Income Builder (CAIBX) position within my retirement account, as well as my employer's 3% matching contribution.
Adjusting for the 3.5% sales charge that CAIBX charged to my account in February, I deployed $243.18 in capital during February 2021.
My capital contributions helped my CAIBX position to increase from 149.514 shares entering February 2021 to 153.282 shares entering March 2021.
Assuming $2.14 in net annual dividends/share, my net annual forward dividends increased by $8.06, which works out to a 3.31% net yield on the deployed capital.
My first dividend stock purchase during the month of February was 14 shares of Verizon (VZ) at a total cost of $776.83.
Going into February, one of the companies near the top of my watchlist (as well as Lanny's of Dividend Diplomats) was VZ as I had always wanted to build a position in the stock and the mid-$50s offered a nice entry point to start a position in my view.
The $35.14 in net annual forward dividends that were added as a result of this purchase equate to a 4.52% net yield.
I also added 2 shares to my position in Pfizer (PFE) at a total cost of $68.95, which was because I felt the stock was a solid value in the mid-$30 range.
When weighing the $3.12 in net annual forward dividends added to my portfolio, this works out to a 4.53% net yield.
I added a share of W.P. Carey (WPC) at a cost of $68.00 due to the company's fair operating results in 2020 and relative underperformance relative to the S&P 500 since my previous Seeking Alpha article on the stock, which equates to a yield of 6.15% when considering the $4.18 in net annual forward dividends added due to the purchase.
I purchased another share of AbbVie (ABBV) at a cost of $105.19, which was due to the reasons outlined in my recent Seeking Alpha article on the stock.
When considering the $5.20 in net annual forward dividends that were added to my portfolio due to my purchase, this equates to a 4.94% net yield.
I also added another share of Philip Morris International (PM) at a cost of $86.33, with most of the reasons outlined in my previous Seeking Alpha article on the stock.
The $4.80 in net annual forward dividends that were added to my portfolio as a result of my purchase equate to a 5.56% net yield.
I purchased another share of Prudential (PRU) at a cost of $83.98, which I discussed in a Seeking Alpha article last month.
When considering the $4.60 in net annual forward dividends added to my portfolio due to my purchase, my net yield equates to 5.48%.
I also added 2 shares of British American Tobacco (BTI) to my portfolio at a total cost of $72.73 due to their appealing valuation and strong operating results during 2020.
When weighing the $5.94 in net annual forward dividends added to my portfolio, my net yield works out to 8.17%.
I purchased an additional share of L3Harris Technologies (LHX) at a cost of $188.28, which was largely for the reasons outlined in my Seeking Alpha article from January on the stock.
The $4.08 in net annual forward dividends that were added to my portfolio equate to a net yield of 2.17%.
Since WEC Energy Group's (WEC) stock fell considerably from the time I last covered the stock on Seeking Alpha and the stock announced a 7.1% increase to its quarterly dividend, I decided to add another share of the stock at a cost of $83.30.
When considering the $2.71 in net annual forward dividends added to my portfolio, my capital deployed worked out to a 3.25% net yield.
Finally, on the dividend stock purchase front, I made my first purchase of Viatris (VTRS) since I received a share from the spinoff that was completed last November from PFE ahead of what I anticipated would be a quarterly dividend announcement of around $0.22/share.
Unfortunately, VTRS's announced quarterly dividend of $0.11/share was well below my expectations, but even so, my purchase of 9 shares at a total cost of $163.85 added $3.96 to my net annual forward dividends.
When weighing the $3.96 in net annual dividends added as a result of my purchase, my net yield equated to 2.42%.
The one other bit of activity within my portfolio during February was that I reduced my Robinhood margin by $246.33, which helped to boost my net annual forward dividends by $6.16 at an annualized margin rate of 2.5%.
Concluding Thoughts:
February was a strong month in terms of capital deployment and dividend increases (and early March was nice too as General Dynamics' dividend increase beat my expectations), which helped boost my net annual forward dividends from just under $1,400 to just under $1,500 (as of March 3, 2021).
I added $87.95 in net annual forward dividends as a result of the $2,186.95 in capital deployed during the month, which equates to a net dividend yield of 4.02%.
I also added just over $10 in net annual forward dividends as a result of the 7 dividend increases that I discussed in my previous post, as well as PepsiCo (PEP) and BTI dividend increases.
Since I'm forecasting another status quo month of around $1,500 in capital deployment during March, I believe I will be able to continue to build on my portfolio's progress once again.
Discussion:
Did you add any new positions to your portfolio during February as I did with my purchase of VZ?
I appreciate your readership and look forward to your comments in the comment section below!
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