[Investor] So here we are, it is Friday at about 2:30 p.m.
close to the end of the trading day
and I invested another $5,000
into my M1 Finance dividend stock portfolio
and I added two brand new stocks to this portfolio,
I'm excited to share with you guys.
Now before we get into that,
a couple of quick things to mention,
first of all, this is just
for entertainment purposes only here, guys,
where I am documenting myself,
building a $100,000 dividend stock portfolio.
I am not a financial advisor
and this is not financial advice.
And you should always do your own due diligence
before you yourself invest in the stock market.
And the other thing I want to mention as well here
is if you are interested in learning more
about M1 Finance, the platform I use for investing,
I have a free training down in the description below
that walks you through step by step
how to sign up for this brokerage
and full transparency here, guys,
so I may earn a small commission if you use my link.
That being said, guys, let's get into my portfolio,
do an update on the two new stocks, look at my holdings
and then briefly talk about a couple of changes
I have made going forward for this investment portfolio.
So first of all, one thing I want to show you guys here
is that we have started earning our first dividends
from this portfolio.
And even though it is a small amount of money,
it really is getting me excited,
because that is one of my favorite parts
about dividend investing
is that even when you are, in fact, in a bear market,
you are still able to earn dividends from your company,
which gives you new money to be invested
if you're reinvesting those dividends,
and it's a way for generating returns,
even when you are in a bear market.
So on March 10th, I earned a $24.87 dividend from IBM,
which was reinvested into the portfolio.
You can see that right here
that money went into National Grid stock
based on whatever I was low in,
and then I also earned two dividends today, $22.76 from 3M,
as well as $21.13 from Walgreens Boots Alliance.
So it's pretty exciting here to me
that basically in the last three days or so,
I've earned about $65 in dividends,
which is truly passive income
being reinvested into my portfolio.
Then on March 12th, I deposited an additional $5,000
into this account,
which was deployed today being March 13th.
And it went into three particular stocks here.
Number one, I increased my allocation to National Grid stock
just because that's a defensive plane,
and it's a stock I want to have more of in my portfolio
during this time of uncertainty.
And then I added two brand new stocks to this portfolio,
which we'll talk about very briefly here,
which are Boeing as well as Genuine Parts Company.
I'm sure we've all heard of Boeing before,
but GPC may be one that you're not familiar with,
but if you've ever heard of the NAPA Auto Parts,
that is the parent company that owns NAPA.
And so that was a new dividend aristocrat
I've added to my investment portfolio.
So if we look at my holdings tab here, guys,
you can see that there was a lot of red in my portfolio.
Obviously GE being the largest position here
is down the most, down 47.83%.
I've talked about General Electric all the time here
in the last couple of videos.
If you're not familiar with that position,
check back on my old videos.
This is a stock I bought back in 2017.
And I will apologize because I wasn't really thinking
when I transfer this into my portfolio,
because I had said earlier
I was building this portfolio from scratch,
and it was kind of unfair of me
to move this into this portfolio.
So that was a misstep on my part, I apologize, guys,
but all of the other investments is going to be new money
flowing into this portfolio, building this up,
there will be no more stocks transferred in.
IBM down 21.5%, down quite a bit in 3M around 22,
down 14% or so in Walgreens,
American Airlines down 23%, Dunkin Donuts down 12.3%,
National Grid down 10, and that's one of the reasons
why I like this stock in particular
is because it doesn't really move as much as the market
because this is a very defensive investment.
Delta Airlines down 16.5%, Microsoft down 10,
we are down 8% in Apple, down 3.7% in GPC,
which was purchased this morning,
and barely up anything in Boeing stock.
So overall, looking at my portfolio,
I am down $10,717.09, down 27%.
And looking at numbers like this guys,
it can begin to look scary.
And some people may be worried that they're making mistakes
if their portfolio looks like this,
and a lot of you may just think that I'm bad at investing
and I totally understand that and I respect your opinion,
but it does take a certain amount of courage
to plaster your losses all over social media and on YouTube.
But whether or not I'm making good moves
or bad moves in the market,
I like to be as transparent as possible with you guys.
That way you can learn from my successes
as well as my mistakes and anything in between.
So as far as myself, personally,
I'm focused on the five to 10 year outlook
for most of these companies, excluding the airlines,
like I said, I may not hold those that long.
But every other stock here,
I like for the next five to 10 years at minimum,
and I'm going to continue earning dividends
from these stocks,
which will allow me to get returns over time.
So I'm not so much focused on
what the price does in the short-term,
because based on all the news coming out about the virus,
nobody has any idea where the market is heading,
and it's kind of useless to try to guess or plan that,
and a lot of people are just sitting on the sidelines
waiting to get started with investing.
And while that is a good idea
to have some cash on the sidelines,
at a certain point, you have to say you know what,
I'm going to start diving in in dollar cost averaging.
Otherwise, you may find
that you're just sitting on the sidelines
and waiting and waiting to invest
and opportunities like this come and go.
I'm not saying the markets won't go lower,
they probably will.
But at a certain point, you just have to say,
all right, I'm gonna dive in
and I'm going to begin investing.
And if it goes down in the short-term,
you have a long-term outlook.
And I think this is not a time
where I would personally be involved
with unprofitable companies, or growth stocks,
but as far as blue chips and dividend aristocrats,
in my opinion I think this is a great buying opportunity
and that is why I am putting my money where my mouth is,
and dropping a lot of money into this portfolio.
Now, I did make one additional major change
to this portfolio aside from bumping up my allocation
in National Grid, which is now 20% of my portfolio.
What I also did is I bumped up
the amount of money I am depositing every single Monday.
So if you're familiar with the progress so far
of this portfolio,
I've been investing $500 per week on every Monday.
And what I decided to do
is I bumped that up to $2,500 per week.
So I will now be investing $10,000 per month
into my investment portfolio.
And I'm in a position where I am comfortable doing that.
And I could do that for many, many months going forward
and not be worried
about dumping too much money into the market.
And that is because I have a lot of idle cash
sitting on the sidelines.
So going forward, I'm probably gonna have less
of that lump sum investing,
unless I see particular opportunities I want to dive into
and I'll be doing more of $1 cost averaging like I was,
but just with a larger amount going in each and every week.
Now, just before jumping on and recording this video,
I also just found out that my home state New York
is now the number one state in the US for the virus
but to be honest with you guys,
I'm just following the basic guidelines we've had
of washing your hands, don't touch your face.
And take practice with not being out in public as much
and social distancing measures.
I'm not very concerned about myself as a healthy adult.
But it is kind of wild to be in New York
at this point in time, all of the stores are pretty barren,
no toilet paper to be found anywhere.
But in the long-term, guys,
I don't think this is going to be something
that we're going to be talking about
one to two years down the road,
or maybe even by fall, it could be old news, for sure.
But that being said, guys, let's briefly jump
into the two new additions to my portfolio
and talk about those particular stocks.
So Boeing is a stock I have been waiting to buy since 2017.
And in a second here, we'll look at the price chart,
and I'll show you why I waited until now
to begin purchasing this stock.
I think it's a great company to own
and it's one I've been watching for a very long time,
and it recently went into a absolute nosedive,
which we'll take a look at right now.
So over the last five days alone, Boeing dropped 35.42%.
Over the last month, they're down 54.83%.
And if we look at the five year chart here,
you'll see what has gone on with this company.
They're approaching what may be their five year low
if they continue going down
to somewhere around 108 per share.
But this is a stock that was just trading like crazy,
it was a stock that rarely ever went on sale.
We did catch a small sale there in early 2019.
But again, not that much
because it was still trading in the $300 per share range.
So now seeing Boeing at 169.50 per share,
this to me is a stock I want to dive into headfirst.
And there's a couple of reasons
why I like Boeing as an investment.
So first of all, over 600 different companies
supply parts to Boeing.
And they're also one of the largest independent contractors
for the US government.
And in 2017, I believe it was $22 billion,
is how much money the government spent with Boeing
out of their defense spending budget.
So in terms of companies likely to be bailed out
by the US government,
I would personally put this very high on my list
because of the relationship Boeing has
with the US government.
They're very essential to ongoing operations
and defense spending.
So I think that it's very likely
that it would be bailed out in a worst case scenario.
And also, because of the number of companies
that supply parts to them,
the fallout if this company were to fail
would be absolutely massive.
So the reasons for Boeing stock falling
should be pretty obvious.
First of all, we have the grounding of the 737 MAX aircraft,
which was over one year ago
after two of those airplanes crashed.
So they're sitting on inventory that can't be delivered
until the FAA allows these planes to fly here.
Second of all, because of the decline in demand
in the airline industry,
a lot of airlines are grounding aircrafts themselves
and this is going to affect the number of planes
they are ordering in the near future.
Boeing operates on a backlog and it's a pretty sure bet
that that backlog is going to shrink
as the airlines have to cut down on their spending.
One of the first things they're going to do
is stopping ordering of new aircrafts
that are going to be delivered at a future date.
Then we had JP Morgan downgrade this stock
from a 370 price target to a 210 price target.
And that essentially is what largely sparked this freefall,
not to mention the broad market was correcting.
And in my opinion, it went into a totally oversold condition
in a very short period of time.
This is a very high quality company
that people have been investing in for decades.
And based on what I'm seeing here, in my opinion,
I like the look of the stock
and so I added it to my investment portfolio.
Now in the short-term, probably gonna have to cut dividends,
probably gonna have to take some drastic measures.
But I think in the long-term, it's a tremendous stock to own
with a proven track record
and this price is very appealing to me.
So then we have this other company here
called Genuine Parts Company,
it's one that not many people are familiar with.
But a lot of people aren't familiar
with the automotive parts arm of this company,
which is NAPA Auto Parts.
So we'll talk more about this stock
when I do my formal portfolio update
at the end of the month.
But for now, I'll just go ahead
and read this description for you guys.
Genuine Part sells automotive parts,
56% of their sales in 2018,
industrial components, and business products.
The company sells vehicle parts
to commercial and retail customers
through over 9,400 stores worldwide,
most of which are independently owned.
Its industrial unit supplies bearings, power transmission,
industrial automation, hydraulic and pneumatic components
to maintenance, repair, and OEM clients.
Now this is what you call a defensive investment here
because what you're going to see
if we are in a recession and people aren't spending money,
one of the first things people will do
is stop buying new vehicles and as a result,
they're going to be maintaining their older vehicles
which would help NAPA for sure,
as more people are buying auto parts
or more garages are buying auto parts
while they fix vehicles.
They are a dividend aristocrat,
they are a lesser known name
and they currently pay a 4.03% dividend yield.
If we look at the stock over the last month,
it's basically fallen just as the market has down 19%.
And over the last five years,
it's pretty much just a stock
that oscillates back and forth
between couple of different price ranges here.
So it's kind of a boring investment.
It reminds me of AT&T,
where it just trades laterally and does very little.
But at times of uncertainty, these boring investments,
and these recession proof investments can be a wise choice
because boring is good during times of uncertainty,
so they're a new addition to my portfolio.
I'm excited to buy more shares
and earn that dividend yield
and earn that compound interest
through the reinvesting of dividends.
So going forward with this portfolio,
as I said, I'll be investing $2,500 per week,
10,000 per month, maybe more if I see opportunities
to add more money to my portfolio lump sum.
As far as stocks I'm purchasing,
I'm mainly going to focus on these dividend aristocrats,
which are companies that have grown their dividends
for 25 years or more consecutively,
and I now have three dividend aristocrats in my portfolio.
First of all, Walgreens Boots Alliance
has a 43-year dividend growth streak.
3M is another dividend aristocrat
with a 56-year dividend growth streak
and now Genuine Parts Company a third dividend aristocrat
with a 56-year dividend growth streak.
Now I was thinking next week that I might do a video
exclusively on dividend aristocrats
and if you guys want to see that video,
drop me a comment down below
just so I know if there's any interest in that.
I think this is a good time
to talk about dividend aristocrats
during times of uncertainty
when people are looking for safer,
more recession proof investments.
But anyways, guys, that's gonna wrap up this update.
I hope you enjoyed it.
Drop me a comment down below,
I will do my best to respond to each and every one.
As always the free training
and link to sign up for M1 is down below
if you want to support the channel and give back to me.
But thanks so much for watching guys
and I will see you in the next video.
#Best Education Page #Online Earning
online earning,make money online, earn money online, online earning, online earning sites,
make money online free, online money income, earn money online free, money online, best way to earn money online, online income site, money earning websites, best online earning sites, easiest way to earn money online, earn money payment bkash, online money income site
No comments:
Post a Comment