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Blue Chip DRiP Portfolio: August Dividends + Covered Call Income

Published Thu, 03 Sep 2020 07:50:44 -0400 on Seeking Alpha

Seeking AlphaDividend StrategyBlue Chip DRiP Portfolio: August Dividends + Covered Call IncomeSep. 3, 2020 7:50 AM ET|| Includes: ABBV, AM, ARCC, BMY, BP, BPYU, CAT, ET, GD, IRM, KMI, LAND, LYB, MSM, PBCT, PFE, PFF, PNW, PPL, PRU, SBUX, SKT, SO, SPG, T, TXN, VER, VZ, WFC, XOMby: Blue Chip DRiPBlue Chip DRiP SummaryAugust dividend income was stronger than anticipated, considering the widespread cuts and our recent stock liquidation to buy a home.
The -50% dividend reduction from British Petroleum hurts, but we're happy that we still received a combined $1,380.24 from 15 companies in August.
All-time dividends received are up to $19,052.64 since we began this portfolio in February 2019.
In addition to dividends, we accrued $578 in covered call premiums in August, bringing our 2020 YTD total up to $1788.
Don't Drink The Kool-Aid

(Image Credit)
Many would like to believe that the COVID-19-induced stock market downturn in March/April and subsequent recession is all but over. The markets have jumped back up to challenge February highs. Virtual high fives and elbow bumps to all. I only have one issue with drinking the Kool-Aid: the fundamentals.
Yep. This recovery has zilch to do with fundamentals. Sure, it's fun to have a bright red tongue and run around bouncing off the walls with a massive sugar high. Unfortunately, the high will eventually fade away, just like stimulus checks and the $600/week bonus unemployment payments. Fundamentals always prevail. Maybe not tomorrow or next week. But this economy is akin to a body builder getting pumped up artificially with steroids. Eventually, the internal organs break down and the facade of external health can hide it no longer. The only question is how long the Mr. Olympia market of stocks can stay propped up.
With that said, I still firmly believe in time in the market over market timing. True, I'm hoarding way more cash than in the recent past. I will be prepared for fantastic bargains when they... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ARES CAPITAL 19.19   10.5 1.82 1.60 8.39
TANGER FACTORY OUTLET CENTERS 16.50   21.4 0.77 1.42 8.35
IRON MOUNTAIN 34.14   28.4 1.20 2.44 7.29
BP 37.67   14.3 2.64 2.44 6.45
ABBVIE 70.83   26.0 2.72 4.28 6.28
VEREIT 9.77   40.7 0.24 0.55 5.86
ISHARES S&P US PREFERRED STOCK INDEX FUND 37.21   0.0 0.00 2.08 5.60
PPL 30.88   12.7 2.43 1.65 5.50
AT&T 38.38   16.1 2.38 2.04 5.43
SIMON PROPERTY GROUP 155.27   20.8 7.48 8.40 5.21
KINDER MORGAN 20.42   20.6 0.99 1.00 4.94
LYONDELLBASELL INDUSTRIES 83.78   8.8 9.53 4.20 4.94
EXXON MOBIL 71.98   17.3 4.15 3.48 4.83
PRUDENTIAL FINANCIAL 88.22   9.0 9.82 4.00 4.61
PEOPLE'S UNITED FINANCIAL 16.06   12.3 1.31 0.71 4.52
WELLS FARGO 48.65   10.0 4.84 2.04 4.22
SOUTHERN COMPANY 59.99   14.0 4.28 2.48 4.19
MSC INDUSTRIAL DIRECT 71.99   13.6 5.30 3.00 4.18
VERIZON COMM 60.43   15.8 3.83 2.46 4.04
PFIZER 37.28   17.0 2.19 1.44 3.85
BRISTOL-MYERS SQUIBB 49.61   13.1 3.80 1.64 3.38
PINNACLE WEST CAPITAL 93.28   20.9 4.47 2.95 3.21
CATERPILLAR 131.75   12.3 10.74 4.12 3.16
TEXAS INSTRUMENTS 130.22   23.8 5.47 3.08 2.42
GENERAL DYNAMICS 189.41   16.8 11.25 4.08 2.17
STARBUCKS 92.06   32.6 2.82 1.44 1.59

ARES CAPITAL - ARCC
ARES CAPITAL - ARCC  


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