Since my last portfolio update, I’ve invested over $6,000 in new stocks. The majority of
this was invested in my 2 top holdings: Disney and AT&T. I bought the dip on both these stocks,
as their prices declined over the last month. So throughout this video, I’m going to explain
the 4 stocks I bought, while also updating you on the overall progress of my long-term
dividend stock portfolio.
My name is Zach and you should leave a like and subscribe to the channel if you enjoy
the video.
My current portfolio value is $98,833, which is a 25.66% total return on dollars invested.
I was actually, at a 30.78% total return last portfolio update, but my top 2 holdings saw
a significant decline over the last month. We can see that the Walt Disney Company has
now grown to my largest position at $13,889. It’s currently down 2.21%, with my cost
per share being $154.38. AT&T is my second largest holding, valued at $11,540. This is
down 12% and my cost per share is sitting at $27.49. We’ll talk about both of these
stocks later since they were my 2 largest buys.
My next 3 largest stocks have been performing very well. Exxon Mobil is up 64.35% and continues
to pay significant dividends. Apple is up 41% and has been on a nice rally over the
past month. I’d love to add to my Apple position, but I think there will be better
buying opportunities in 2022. I say this because their business had such massive growth. Their
free cash flow per share increased by over 30% in both 2020 and 2021. I think over the
next year or 2 this growth rate will slightly decline. There could be less people upgrading
devices or supply chain production constraints. I do think this will be a short-term slowing
of growth but could cause a stock price correction enough for a good buying opportunity. This
is my intuition, but who knows. I could be wrong and adjust. I’m definitely a buyer
long-term. Microsoft is up 36.25% and this is another stock I’ll be looking to pick
up much more of over the long term. Kimberly Clark is up 7.2%, Walgreens is up
8.5%, and MO is up 8.7%. Federal Realty is up over 81% and continues to be a long-term
hold for me. Kroger is up 26.34% and is one I’m looking to buy on any significant dip.
3M is up 24.71% and has fallen over the past few months to a point where I may look into
buying more. Let’s look at my overall diversification.
Consumer Defensive is my largest sector, which includes Kimberly-Clark, Altria, Kroger, PepsiCo,
Smuckers, and Coca-Cola. Consumer Cyclical has grown to my second largest with Disney
and a little Mcdonald’s. This is followed by technology with Apple and Microsoft. Energy
with Exxon, EPD, and Chevron. Then Communication services with AT&T.
Alright, let’s take a look at my dividend income. In total, I’ve earned $3,925 in
dividends, with $2,440 so far in 2021. Last month, I earned $272.62, which put my 3-month
rolling average at $257.97. So far in December, I’ve earned $44.57. This was from Johnson
& Johnson, Smuckers, and Kroger. However, I’m about to earn some huge dividends over
the coming week. On the 9th, I’ll get $13.69 from Microsoft. The 10th is a giant day. $26
from Chevron, $7.81 from Scotts Miracle Grow, $57 from Walgreens, and $131 from Exxon Mobil.
On December 12th, I’ll get $28 from 3M. On the 15th, I’ll get $12 from Coca-Cola,
$9.94 from McDonald’s, and $5.23 from O. By the end of December, it should be my largest
month of dividends since the creation of my portfolio.
Now let’s get to the topic of the day, the 4 stocks I’ve been buying. Number 1 is Disney.
I bought 29 shares at an average cost of $153.50. The stock had fallen over 15% from the release
of their Q4 earnings, hitting a low of $142. This was nearly 30% down from their 52 week
high. I used this as a buying opportunity and continued buying into the stock as it
went down. In their Q4 earnings, they missed analyst estimates for earnings, revenue, and
Disney plus subscribers. Personally, I think this is not indicative of any significant
trends and am very bullish on the stock long term. I made an entire video where I explain
this thesis in-depth. It’s called “The FALL of Disney Stock” and I’d say it’s
one of my best-researched videos. So definitely check that out if you’re interested.
Number 2 is AT&T. I bought 40 shares at an average cost of $23.23. AT&T just continues
to fall and fall. I have no idea where the bottom is. Since the WarnerMedia and Discovery
deal was announced back in May the stock has fallen nearly 30%. The company is now valued
at 6.5 times free cash flow over the trailing twelve months. This is getting crazy. It’s
hard for me to assign logical reasons for continued selling around the current valuation.
But then again, who knows. I’m just going to keep collecting and reinvesting dividends.
I’ll buy more if it continues to fall. As a side note, I want to talk about how it
feels when one of your largest investments is negative like AT&T is for me. I kept buying
as the stock price continued to fall. All of my logic was telling me the stock is dramatically
undervalued. As it continued to fall, I began to worry about allocating so much of my portfolio
into a company that I don’t view as top-tier quality. The more I thought about this, I
remembered that I was actually in a similar situation last October. This was with Exxon
Mobil. At that time it was the largest position in my portfolio and I bought all the way down
to the bottom. In the end, I lowered my cost per share to $40.91. However, that position
was negative by nearly 20%, as Exxon Mobil hit a low of $32.62. Today, Exxon Mobil is
one of my best-performing investments. I’m not saying that AT&T will have the same outcome,
as the 2 stocks declined for different reasons, but the psychology is similar. It comes down
to the old saying: "Buy when there's blood in the streets, even if the blood is your
own". I continue to believe that AT&T is undervalued
and sometime after the WarnerMedia deal goes through in 2022, reality will return to the
2 stocks. I have an entire playlist of in-depth videos on AT&T stock which is linked here.
The 3rd stock I bought was MO or Altria Group. I purchased 17 shares at an average cost of
$44.01. This will provide me with an 8.18% dividend yield on cost and generate $61.20
annually. Altria is a cash flow machine that has increased its dividend payouts for 56
consecutive years. I think this is a rock-solid company to have in a long-term dividend stock
portfolio. Not to mention the potential of federal cannabis legalization, which could
be a giant positive catalyst for the company. I did a stock review video on this, so check
that out if you’re interested. I’ll continue to buy more MO on dips.
Finally, I bought 2 shares of Walgreens Boots Alliance at an average cost of $45.50, giving
me a 4.2% dividend yield on cost. This was a minor addition, but the stock dipped to
around my cost. This stock has a 10.24% free cash flow yield and has been increasing its
dividends for over 45 consecutive years. The company is in the middle of an interesting
transition. They are investing heavily into adding primary care to its pharmacies through
investment in VillageMD. They are also making heavy investments in improving their business
through technology. I made a stock review video on WBA, which you should check out for
more info.
Alright, so those are all of the stocks I bought. As a bit of a bonus stock, I’ve
been very interested in Visa as a potential investment. The stock recently hit it’s
52-week low, but has rebounded the past few days. I may look at this and do a stock review
video in the future. Leave a comment if you want to see that.
Thank you for watching Dividend Data. I’d greatly appreciate it if you leave a like
and subscribe to the channel. If you follow me on Twitter, link in the description, you
can real-time updates of my buys and dividends coming in. You can support the channel over
on Patreon, where you can gain access to a community discord server. The link is in the
description. Please leave a comment below and thank you for watching!