Month in Review – March 2019

Mr. Market continues to MARCH higher. See what I did there?

Yeah, so I still don’t fully trust this rally, although I can’t rule out a good ole fashioned melt up either. This month marks our highest cash weighting since October of 2017. If the market goes into full blown momo parabola mode, I will definitely be sad.

Part of the cash build up is because I admittedly haven’t been dedicating enough time to researching new stocks to deploy capital into. I’m sure there are some good values out there. There always is.

Anyway, let’s take a look at the final month of the first quarter.

Portfolio Summary

Metric

End of March 2019

End of February 2019

Total Invested

$543,602.80

$531,262.34

Market Value of Total Invested

$550,831.34

$538,035.60

Allocation % – Equity

50.73%

52.09%

Allocation % – Bonds

16.97%

17.25%

Allocation % – “Other”

3.57%

2.80%

Allocation % – Cash

28.64%

27.78%

Income Assets – Invested

$259,317.62

$259,715.82

Income Assets – Market Value

$255,425.41

$259,247.61

Projected Annual Income

$14,023.27

$20,635.70

Invested Yield

5.41%

7.95%

Market Yield

5.49%

7.96%

Stock Purchases

03/06/19 – WBA: 100 shares purchased at $64.50/share. This was the result of a short put contract being assigned early when the price completely fell through my strike. I already owned 18 shares in my traditional IRA, so this an increase to an existing position. The company reported disappointing earnings on Tuesday and the share price puked all over its shoes some more. We’ll see if this knife stops falling any time soon. If it doesn’t, I suppose I will see about averaging down again.

Total investment income is increased by $176.00/year based on the annual dividend of $1.76/share.

Pay Days

Dividend Income Tracker is published here at the mothership and has been updated.

Total investment income of $1,695.04 with a taxable total of $27.91. We’ll call it 16 “pay days” with 40 individual payments received.

Options premiums represent 510.57 of that total.

Capital gains made up $500.00.

Which leaves $656.56 of actual bona fide dividends (plus $1.13 of P2P interest and $26.78 of treasury interest).

Speculation Income

Observant readers will notice that I didn’t mention anything about my sports betting in the investment income summary. The reason is because I’ve chosen to start tracking that separately. In addition to sports betting, I’ve started dabbling in day and swing trading as well. I will write more about my speculation experiments in the coming weeks.

Sports betting was up $288.57.

Meanwhile equity trading was down $375.19, which means that net speculation losses were $86.62.

Losing money is a bummer, but I’m still getting my sea legs with all this. Here’s a pretty sweet graph:

Lending Club

Lending club income is aggregated into a single income record for simplicity’s sake. It actually arrives as a lot of small payments over the course of the month.

Two loans got charged off this month. Boo!

That cleared the baffles a little bit, so to speak, but we still have late loans queuing up.

The number of bad (charged off) loans we’ve invested in so far comes to 26 out of 270 or 9.63%.

I’ve given up reinvesting principal as it gets paid back to me. The number of quality loans that meet my selection criteria has plummeted recently, which means I can’t keep up with the amount of principal that’s accumulating.

I’ll continue to track the existing loans’ performance to their maturity.

Month

In Grace Period

Late (16 -30 days)

Late (31 – 120 days)

Charged Off (aggregate)

End of 2017

0

0

6

8

End of  2018

1

0

5

23

January 2019

1

0

5

23

February 2019

0

1

4

24

March 2019

1

1

1

26

Lending club’s algorithm is suggesting I should write down $40.62 worth of principal for the  loans that are late, but as the eternal optimist, I’m going to continue to wait until the loans are actually charged off before I recognize the loss.

That is down only slightly from what it suggested last month ($46.54), which is interesting since the quantity of late loans dropped off quite a bit (5 to 3), but  the loans that got charged off didn’t have much principal remaining. So there you go.

Comparisons

Month over month, investment income was down 15.71% compared to $2,011.03 in February.

Month over month comparisons are stupid given the way that I count “income”. Options activity and capital gains are pretty erratic. But that’s how I count it, so it is what it is.

I now have 5 years (!) of data on my income tracking sheet. So I can make graphs like this:

Pretty cool huh?

As 2019 progresses, I will start tracking more things here using fancy graphs like this one. Stay tuned.

Raises

Count ‘em up one, two, three FOUR of the dividend distributions represented a raise this month. How exciting is that?

VLO increased their quarterly payout from $0.80 to $0.90/share, which is good for a 12.5% increase. I’ve decreased my position in VLO because I’m not super happy with the debt they’ve reabsorbed by reacquiring their MLP. It’s probably fine, but I’m a little allergic to MLPs. I still hold shares in my ROTH IRA and am glad to have the raise.

Not to be left out of the midstream party, MPC raised its distribution from $0.46 to $0.53/share, which is a 15.2% increase.That is excellent for a stock that has a forward yield of 3.5%. Perhaps I don’t really need to look too far for investment opportunities after all.

CVX also increased their payout from $1.12 to $1.19/share, which represents a 6.25% raise. I might have preferred management keep the increase more modest and used that capital to pay down debt instead, but here we are.

And finally GILD increased their dividend for the 5th consecutive year. The quarterly payment went up from $0.57 to $0.63, which comes to a 10.53% bump. I’m starting to grow impatient with GILD. What once seemed like a deep bench of potential compounds has dwindled as one after the other seems to continually disappoint in trials. The raises are nice, but they’re just burning through the cash pile now. They need another blockbuster, and quick.

So that was March. Here comes April. Time marches on.

Tell me what you think in the comments below!

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