Dividend Update February 2021

 

It's March already?!?..........dam that was quick. Alright then, so welcome back to the Dividend Mascot blog aka let's get straight to the money. Alright, guys so there are a couple of things I want to add throughout this intro. Most importantly with Sherwin-Williams (SHW), which was my honorable mention last month, I called this stock a hidden gem. The reason why I say that is because no one wants to talk about it, a 1% dividend yield doesn't start many discussions. Next thing you know a few weeks later they announced a 23% dividend raise.............I felt sooo good when I saw this because I called it. Here's a little lesson for the new investors that just started like last month,........"if you double a penny enough times, you'll end up with a massive fortune". This quote comes directly from me, it's almost like one of those Jedi riddles quotes you hear from Star Wars. Anyways I just wanted to add that little moment into the blog, before I get started ill probably add some other behind the scenes stuff at the end. So let's scroll down through the dividend income.   

Roth IRA

Total: $100.94

Taxable Account

Total: $33.97

Grand Total: $134.91

YoY: 19.23%

Purchases: 3 shares of MSFT, 2 shares of NKE & 1 share of MA, $1,362.35 in stock purchases.........(does a long yawn) not bad. 

So it looks like I received my first dividend payment from Mastercard (MA). 1,000% chance ill have this over $10+ a quarter this year, which is going to be too easy. Dividends upfront shouldn't really matter when investing in low-yielding stocks, it's more like a checkpoint than a dollar amount. This is pretty much a repeat of what I said last month, being absolutely ruthless before that massive dividend raise comes in. I've also been hearing good things about the covid-19 vaccine, the economic recovery will be stronger than ever before. I just imagine this 85 to 90 degree curvature in consumer activity the moment every covid rule is removed and no more face mask. This would be a massive revenue increase in transaction fees, and for Visa (V) as well (have to give Visa there props too), but we will have to wait and see what happens. 

There's always extra stuff I forget to add to the blog, so here's some more behind the scenes. So there was this really cool comment from my December 2020 update on Facebook. This person said if I was a dividend growth stock they would invest in me..............that has to be the coolest comment I have ever received.......ever. The reason being is the way I look at the numbers. for example, let's use a 25% dividend raise and let's say $10,000 position in two different scenarios but in the same stock. Scenario A $10,000 position =  $7,500 of shares + $2,500 of gains vs Scenario B $10,000 position = $10,000 of shares + $0 of gains. Which Scenario would benefit more from receiving a 25% dividend raise? Take a guess.............the answer is Scenario B. lets me explain why, if the stock was worth $100 a share Scenario A would be $10,000 at 75 shares, Scenario B would be $10,000 at 100 shares. Since B has 25 more shares the 25% dividend raise would have a heavier impact on the year-over-year progress. Anyways that's enough of my crazy math theories. 

This also goes along with my super deep analysis of companies I invest in, like I literally want to know the percentage revenue from this product and then from this other product. Profit margin's, free cash flow, operating cash flow, CAGR (compound annual growth rate), price/earnings ratio, long/short term debt, shareholders equity, recent stock buybacks, reviewing the quarterly earnings in past few years, and everything else on its balance sheets.......and I mean everything. How much goodwill does your favorite company have? For any Microsoft (MSFT) shareholders out there, did you know that Bing.com is worth 6 billion dollars? Came out of the Ceo's mouth himself. I think all of this is the reason why that person put down that cool comment. 

 

 Well, I guess that's it for this one. Oh and I almost forgot, for my 26th birthday 🎁 I received a wireless set of earphones, a couple of gift cards, and the best for last is.......a new lunch box. Obviously, I received more than that but I was just going to list the main stuff on here at the end. So anyways I'm off to more ruthless 16 hour days, hope you enjoyed it, and ill see you next time.