Tuesday, November 3, 2020

October 2020 Dividend Stock Purchases

Readers will have to forgive me for sounding like a broken record over the past number of months, but we're already in November as I'm writing this blog post!

This year continues to fly by and as a result, I am in crunch time as far as trying to achieve my personal and financial goals for the year.

Without further ado, I'll get into the crux of this post, which is to discuss my capital deployment during the month of October 2020. As a spoiler alert, there was a significant improvement in capital deployment during October 2020 as compared to September 2020.

Beginning with the activity in my retirement account, I deployed $378.00 in capital between my 7% contribution and my employer's 3% contribution.

Net of the $17.00 in sales charges, I set aside $361.00 in capital to build my Capital Income Builder (CAIBX) position, which boosted my share count from 130.445 starting October to 136.677 at the end of the month.

Factoring in $2.14 in annualized dividends/share, this boosted my net annual forward dividends by $13.34.

The additional net annual forward dividends as a result of my capital deployment during the month works out to a 3.70% net yield.

Transitioning to my Robinhood account, I lowered my margin used from $1,619.88 heading into October to just under $1,000 at the end of October.

Since margin used after the first $1,000 accrues 5% annualized interest charges, this $619.88 reduction in my margin as a result of $561.45 in capital contributions and $62.98 in net dividends resulted in a $30.99 increase in my net annual forward dividends.

Concluding Thoughts:

Overall, October was a great month in terms of capital deployment for me as I deployed $980.88 (my strongest month of capital deployment since I deployed nearly $3,000 in May 2020) during the month in the form of retirement contributions and deleveraging my Robinhood margin to just below $1,000.

This activity within my portfolio added $44.33 in net annual forward dividends to the portfolio, which equates to an average weighted yield of 4.52%.

Unfortunately, my net annual forward dividends fell $32.34 as a result of dividend announcements during October 2020 (i.e. Energy Transfer's distribution cut, as well as dividend increases from AbbVie and Visa), which led to my net annual forward dividends plunging from their all-time high of $1,281.99 set earlier in the month.

However, I was fortunate enough to end October 2020 with my highest end of month net annual forward dividend total of $1,254.52.

Given that I have now paid off virtually all of my personal debt going into November (aside from a few hundred dollars in credit card debt that I still have about 3 months to pay off without incurring interest charges and the $1,000 of interest free Robinhood margin), I anticipate that I will be able to deploy $1,500-$1,600 of capital in November.


How was your October in terms of capital deployment?

Did you initiate any new positions in dividend stocks during the month?

As always, I appreciate your readership and look forward to reading your comments in the comment section below!

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