In March 2020 we began the Wanderer Dividend Portfolio. The purpose being to allocate a portion of your overall portfolio to a "passive income" generator. I say passive in quotes, because no investing should be done completely passively. We should always evaluate and manage our money. So let's do that today.
As of 12/18/20 the dividend account is sitting at $27,589. We have gradually invested a total of $22,000 in the account.
Dividends paid have totaled: $1012.02
This is our real-estate trade. REITs are strong dividend payers. However, they also come with significant risks. Especially during times like this. ARR has been our worst performer to date, but is showing signs of life again, recently breaking out of a seven-month long consolidation at $10.28. It's down 41% currently, but is paying a dividend yield of 11.3% as of the 12/18/20 close. Based on our entry price in March it is still paying a 6.6% yield. Not great, but not terrible. We expect that this one will eventually dig its way out of the deep COVID hole. This stock is a BUY.
At our original entry price of $20.12 Atlantica is currently paying us an 8.3% dividend yield. This trade has turned into a real beauty, currently up 85%, on top of the over 6% in dividends it has paid us so far. There is no reason this stock can't continue to climb long-term, and as long as we're sitting on an over 8% dividend yield there will be absolutely no reason to sell it. The company's stated goal is to grow their dividend, meaning our yield will continue to grow over time. Currently, however, the stock is yielding only 4.6% for buyers at the current price of $37.24. Probably still a solid trade, but not really in line with the sort of returns we are targeting for our dividend account. This stock is a HOLD.
This is one of only two of our positions that are currently in negative territory, down 13%. We purchased this at a 10.1% dividend yield. Unfortunately, they have cut the dividend and we are now getting just 5.5%. The chart has spent months chopping around the $7 level and hasn't given us any compelling reason to cut it off yet. A breakout above around $8 should get the stock moving and see them increasing the dividend again. We remain bullish on the energy sector as a whole. For now this remains a BUY, though a rather weak one. If there is another dividend cut it would be moved to a HOLD only.
Canadian Imperial Bank is currently up 50% and paying us a dividend yield of 7.5%, up from our original 7.1% entry. Overall, this is a great buy, and there is no reason to do anything but enjoy the dividend. The stock is currently bumping up against resistance at $87.60, but easily has upside to at least $100. At current prices the stock is paying a dividend to new buyers of 5%, which isn't bad. This remains a BUY for new buyers, just be aware the yield is lower than our Wanderer target.
This is another very nice performer, up 87% from our entry. The dividend remains at .70/quarter where we are earning a 9.4% annual yield. The stock is nearing its highs around $60 and despite what would still be a 5.2% dividend yield probably isn't a very strong buy at current levels. It does however remain a strong HOLD for the Wanderer portfolio.
LEO is up 29% and continues to pay us a 7.4% dividend yield. At current levels the stock is paying a 5% dividend yield. Based on where this is sitting on the chart, up near significant resistance around $9.00, we rate this a HOLD.
MSB continues to outperform, up 93% from our entry in April. Steel stocks are quite strong, and we believe this trend will continue in the medium-term. MSB pays a different dividend amount each quarter so we use a trailing four quarter total for calculating our current yield, which is now 11.3%. However, for a current purchase at these levels the dividend yield drops to 5.8%. While that is still a solid yield, with the stock approaching eight-year highs, and the chart being fairly stretched from the 200-DMA, we can't recommend a buy right now. MSB remains a strong HOLD.
NTR is up 80% and pays us a dividend yield of 6.8%. NTR "produces and distributes over 25 million tonnes of potash, nitrogen, and phosphate products for agricultural, industrial and feed customers world-wide." We are bullish the agricultural commodities sector and remain bullish NTR. There is currently no reason to do anything with NTR but collect the dividend. The stock remains a HOLD.
T remains right at our original purchase price of $29.86. We remain bullish on the stock. At current levels it is paying a 7.1% dividend and we believe remains a buy anywhere in the $26-$33 range. AT&T is a BUY.
CEQP is up 46% and paying us a dividend yield of 18.1%. This has the potential to be one of our best long-term purchases. If the stock continues to rise it's likely we'll see an increase in the dividend in the future, further increasing our already very high yield. CEQP remains a buy anywhere in the $13-23 range for the dividend yield alone. Currently it would be paying 12.8% if purchased on this breakout above recent resistance at $19.00. CEQP is a dividend account BUY.
Our MJ stock is up 18% and paying us a dividend yield of 5.2% based on the trailing four quarter dividend's paid. Dividends fluctuate on this etf, but if our bullishness on the cannabis sector plays out over the coming couple of years, we should should see significant appreciation in that yield amount. We remain buyers of this anywhere between $10 and $16. MJ is a BUY.
The AM chart presented us with a very nice head and shoulder chart pattern setup, indicating that a bottom was in and significant upside was ahead. We believe this could run as high as the $14 range. Currently we are up 38% on the stock and being paid a rather astronomical 20.5% dividend yield. Even at current prices the stock's dividend yield is 15.4%. Of course, with high yields, generally come high risk. Without risk you would obviously invest all your money in this stock and collect the dividends forever. We can't do that, but it's certainly nice to get a couple of these into a portfolio. When they work out they can boost the overall portfolio's dividend yield considerably. AM remains a BUY.
Our aim with the Wanderer Dividend Portfolio is to continue to grow it, buying stocks with strong long-term stock potential and high dividend yields. In order to continue adding and growing the account we will be adding $2,000 every six months to the original $20,000 portfolio. NHI was purchased with our first $2,000 capital add.
We purchased NHI a little early, as normally we would have waited for the breakout that we have now gotten. Our early entry has us up 6% as the breakout hits, and we are very well positioned with a 6.7% dividend yield. We believe this can still be purchased below $72.50. NHI is a BUY.