Week 12, 2020

I was asked earlier this week “Why do you keep going with this strategy and blog?” With stocks making record single day drops it makes sense to question the validity of a dividend portfolio. I keep going because I’ve been through this before. I first learned to trade shortly after the market crash in 87. I was trading in 99 and 2000. I was trading in 2008. The market always comes back. Buying stocks every week is a form of Dollar Cost Averaging – essentially reducing the volatility of a portfolio by adding to it at regular intervals. And, the market has been nothing if not volatile lately. In addition, I use a money management technique whereby I invest only 20% of my available cash every week. This ensures there is always something left to trade with the next week and the next. Sure, there may be more downside. But, this portfolio invests only in strong companies with solid fundamentals. There are no high-tech high-flyers, no pump-n-dumps, and no high-risk pattern trades. I believe that good companies with long histories of positive earnings, profits and dividends will handle the upcoming uncertainty better than other companies in their respective sectors. So, on with the show!

For Monday, the pick is Polyone Corporation (POL). This plastics company brought in nearly $3 billion in revenue last year and the latest numbers look strong. Their dividend has been raised nearly 20% in the last five years and the current yield is 3.8%.

Next up is Huntington Bancshares (HBAN). We traded this regional bank in all four quarters last year – three times for profit and once with a small loss. Headquartered in Ohio, they operate 920 banks in the Midwest and South. They recently reported record profits for the fifth consecutive year. Dividends have been raised for the last seven years and the current yield is just over 6%.

Synovus Financial (SNV) gets the mid-week slot. We traded this twice last year. They operate 298 branches in five states and have nearly $50 billion in assets. No telling how the current pandemic will affect banks, but this company has been going strong for over 130 years. The current yield is 5.8%.

Walmart (WMT) is up next. Love ’em or hate ’em, Walmart knows how to make money. Again, it’s hard to know how badly retail will be affected in this environment, but Walmart is an essential store for millions of Americans. The current yield is 1.8%.

We’ll close out the week with Bank First National (BFC). We traded this last year for a small .35% return in two weeks and their current numbers look just fine. They’ve weathered a lot in their 125 years of existence and the current yield is 1.4%.