Week 30, 2020 – Is a Daily Dividend Portfolio Still Possible?

When I started this blog 83 weeks and 90 posts ago there were dozens of stocks paying dividends every single day of the year. On some days there were hundreds. But, I have seen the numbers dwindle steadily since Quarter 2 began on April 1. COVID has hit business hard both large and small. Even well-managed companies that technically don’t need to cut their dividend to stay profitable are doing so just to be cautious.

In 393 market days we have missed only one dividend and that was my fault. I performed a bad search and didn’t think there were any good companies to invest in that day even though there were several candidates. Now, unless I did a bad search again, we’re going to miss another day. There will be no dividend for Monday, July 20.

I think this time, however, is only the beginning. Where there were dozens of dividends to choose from, now there are less than ten on most days. If this continues, our Daily Dividend Portfolio (and this blog) will need to stop and wait for the COVID threat to end and businesses to get back on track.

For Tuesday, July 21 the pick is Lowe’s (LOW). We’ve traded Lowe’s several times before – each with positive results. Sales and revenues are up because, like Home Depot, they reacted swiftly and efficiently to the COVID crisis to keep customers coming into the stores in a safe way. The current yield is 1.6%.

For Wednesday we’ll go with CVS Health (CVS). We’ve traded this a couple times before and they’re still making heaping piles of money. They are one of the most trusted consumer brands for health and perform thousands of COVID tests every day. The current yield is 3.2%.

Next is Pentair (PNR), a stock we’ve held since Week 4. As mentioned before, they’ve had 44 straight years of dividend increases and plan to keep it that way. I’m willing to stick with the position. The current yield is just under 2.1%.

Finally, we’ll close out with Simulations Plus (SLP). They’re a small software company with only about $12 million per quarter in revenue, but they do keep a nice profit from that. The current yield is 0.4%.