The year is winding down to a close and with November resulting in another solid dividend income report, I will now review the movers and shakers to see how that might align with my dividend watch list.
It is always nice to add shares at a discounted price, however it is important to do your due diligence to confirm that there haven’t been fundamental changes to the business that might indicate additional risk.
Also, keep in mind that the numbers here are reflective of the stock performance overall and not in relation to my purchase price or holding.
While we continued to see a good deal of volatility through November, it was not quite the same as what we saw in October. In many cases, for each step back there was a step to step and a half forward. As a result, there were not as many stocks in the red as what we saw during the month of October.
Out of the 47 positions currently in my dividend portfolio, there were 7 that were in the red.
During October, there were 28 positions in the red!
With fewer positions in the red, there was a greater percentage that had double-digit losses for the month with three of the seven positions seeing a loss in excess of 10%.
You may recall from my discussion about tracking portfolio performance that my spreadsheet will highlight any positions that have had a loss greater than 10% in a given month.
The 3 stocks with double-digit losses during November include the following:
- Apple declined by 18.12% for the month > If I were not currently overweight with Apple, I might be looking to add but I have a full position at an extremely attractive cost basis so I am sitting tight here.
- Altria Group declined by 15.70% for the month > This one is on my watch list and I may have missed my chance to add to my position yesterday. Today they made a splash into the cannabis market with their announcement to buy a 45% stake in Cronos, so I am watching closely for a dip to add shares.
- Target Corporation declined by 14.45% for the month > The drop in price did give me an opportunity to add to my position, and it is approaching a price where I will be looking to add some more.
The other four positions had modest declines, although Sabra Health Care was the worst with a decline of 8.91%.
With only 7 positions in the red, that means there were 40 that were in the green!
Out of the 40 positions that were in the green, there were a whopping 11 that exceeded the threshold of 10%+ gains for the month!
The market leaders were led by the following:
- AbbVie gained 21.09%
- Brinker International gained 17.83%
- Starbucks gained 15.12%
- Cracker Barrel gained 13.95%
- Meredith Corporation gained 12.13%
- Clorox gained 11.57%
- Cummins gained 11.39%
- Franklin Resources gained 11.11%
- Kimberly Clark gained 10.61%
- Iron Mountain gained 10.98%
- 3M gained 10.03%
There are a number of companies on this list that I have added to over recent months and some that I am continuing to watch for opportunities to add more.
The remaining 29 positions in the portfolio had single-digit increases with OGE Energy being the closest one to cracking the list above by turning in a 9.60% increase.
Remember that with our long-term perspective on dividend growth investing, these month to month fluctuations tend to smooth out and we should not be overly concerned with the day to day, or even month to month, price movement.
As long as the fundamentals of the company and criteria that we used when making a purchase continue to hold true, the price movement of the market should not cause a great deal of concern. We want to see those dividends remain strong and consistent and look for the price movement to present attractive buying opportunities.
I am still looking to make some purchases here in December, and I do like seeing that a couple of my targets (no pun intended with Target on my watch list) have taken a hit and are trading at a discounted price.
How did your portfolio perform in November?