Investment Portfolio Update: February 2025 Trading Activity

 

Market Overview and Strategy

As we move through February 2025, I've been strategically building positions in select dividend stocks and growth opportunities. This month's trading activity reflects a balanced approach between stable dividend-paying securities and high-potential tech plays.

Key Position Updates

Super Micro Computer (SMCI)

On February 19, I established a significant position in SMCI through a calculated scaling strategy:

• Total Position: 100 shares

• Average Cost Basis: $59.82

• Total Investment: $5,981.93

• Entry Strategy: Used multiple orders to build position from $56.85 to $60.26

• Rationale: SMCI has shown strong momentum in the AI infrastructure space

Reddit (RDDT) Options Assignment

A notable development occurred on February 14 with two option assignments:

• Position Size: 200 shares

• Average Entry: $198.75

• Total Investment: $39,750

• Type: Put option assignment

• Strategic View: Long-term hold on social media platform ahead of anticipated growth

Dividend Portfolio Building

Schwab US Dividend Equity ETF (SCHD)
Continued systematic accumulation throughout February:

• Multiple entries at price points between $27.44 and $28.29

• Regular small-lot purchases to average into position

• Focus on dollar-cost averaging strategy

• Total February Investment: ~$650

Verizon (VZ)

• Market Purchase: 1.99303 shares at $41.64

• Dividend Reinvestment: 0.562492 shares at $39.70

• Demonstrating commitment to dividend growth strategy

Portfolio Strategy and Outlook

My current investment approach balances three key elements:

1. Steady dividend income through SCHD and VZ

2. High-growth potential through strategic SMCI position

3. Long-term tech exposure via RDDT shares

Looking Forward

I'll continue monitoring these positions while maintaining my systematic investment approach. The mix of growth and income positions provides portfolio diversification while targeting both current income and capital appreciation.

#Investing #StockMarket #PortfolioManagement #DividendInvesting #GrowthStocks

Weekly Dividend Boost: GILD,LMT,SHEL,VOO

Dividends are more than just periodic payouts; they can significantly enhance your investment returns when reinvested wisely. Let’s review my recent dividend activity and reinvestment strategy for the week of December 23rd to December 30th, 2024.

December Dividend Highlights:

Gilead Sciences (GILD):

• Dividend Received: On December 30, 2024, I received a $46.12 dividend from Gilead Sciences.

• Reinvestment: I promptly reinvested this amount into additional shares of Gilead Sciences, leveraging the compounding effect.

Lockheed Martin (LMT):

• Dividend Received: On December 27, 2024, I received a $90.21 dividend from Lockheed Martin.

• Reinvestment: This dividend was reinvested to acquire more shares of Lockheed Martin, further boosting my portfolio.

Shell PLC (SHEL):

• Dividend Received: On December 23, 2024, I received a $46.69 dividend from Shell PLC, effective as of December 19, 2024.

• Reinvestment: I reinvested this dividend to increase my holdings in Shell PLC.

VOO:

• Dividend Received: On December 27, 2024, I received a 9.1 dividend from VOO.

• Reinvestment: This amount was reinvested into additional units of VOO, diversifying my portfolio and capitalizing on the broad market index's stability and growth potential.

Why Reinvestment Works:

Reinvesting dividends is a powerful strategy for long-term investors. By using dividends to purchase additional shares, you can generate more returns, creating a snowball effect that fuels exponential growth over time. This strategy not only enhances your portfolio's performance but also maximizes the potential of your investments.

Conclusion:

The dividends received and reinvested from Gilead Sciences, Lockheed Martin, Shell PLC, and VOO during this week exemplify the effectiveness of this strategy. Each reinvestment contributes to the growth of my portfolio, ensuring that every dollar earned is put back to work. Remember, the key to successful investing is not just earning returns but reinvesting those returns to maintain growth momentum.

Happy investing, and may your dividends always be plentiful!

Options Trading: December 9th option Trades

 December 9th, 2024, was a dynamic day in the options market for me, featuring strategic moves across multiple positions. Here’s a breakdown of my trades, the thought process behind them, and key insights.

---

Trade Highlights

1. $ACHR $7.5 PUT (Exp. 12/13/2024)

   • Premium Collected: $40
   • Rationale: With ACHR trading near the strike price, this trade presented an opportunity to generate income from a stock I’m comfortable owning at a discounted price should it be assigned.

2. $SOUN $14 PUT (Exp. 12/13/2024)

   • Premium Collected: $68
   • Rolled To: $SOUN $14 PUT (Exp. 12/20/2024) for an additional $50 premium.
   • Reason for Roll: Rolling the position provided flexibility, extended time for price recovery, and captured more premium while maintaining a favorable risk-reward balance.

3. $SOUN $13.5 PUT (Exp. 12/13/2024)

   • Premium Collected: $101
   • Purpose: With a lower strike than the $14 PUT, this trade allowed me to diversify my exposure within SOUN while locking in a higher premium for a more conservative entry point if assigned.

---

Key Takeaways

1. Rolling for Additional Premium
   Rolling the $SOUN $14 PUT to a later expiration not only added $50 in income but also aligned the position with my outlook for SOUN’s price stabilization over the coming week. It’s a great example of how flexibility in options trading can optimize returns.

2. Managing Risk with Strike Diversification
   By selling puts at both $13.5 and $14 for SOUN, I ensured a balanced approach to risk. Should the stock dip below these levels, my cost basis remains attractive given the total premiums collected.

3. Strategic Capital Deployment
   Collectively, these trades generated $259 in premiums, showcasing how options strategies can effectively enhance portfolio income. The mix of shorter and longer expirations further spreads risk across time horizons.

---

Looking Ahead

Options trading is all about adaptability. Whether it’s rolling a position, managing risk through diversification, or seizing opportunities to collect premiums, each decision contributes to building a robust and resilient portfolio.

With these trades, I’ve not only reinforced my income-focused strategy but also maintained flexibility for future moves. Stay tuned for updates on how these positions evolve and the lessons they bring!

---

What’s your favorite options strategy, and how do you manage rolling positions? Let’s discuss below!

November 2024 Dividend Portfolio Review

 As November 2024 draws to a close, it’s a perfect time to reflect on the dividend growth in my portfolio over the last five years. Tracking these numbers not only shows how far I’ve come but also reinforces the power of consistency and compounding. With steady increases across many holdings, my annual dividend income for 2024 now stands at $821.99—a remarkable $337.03 growth since 2020!

Portfolio Growth Overview (2020–2024)

The total annual dividends received have grown impressively over the years:

• 2020: $484.96
• 2021: $596.53
• 2022: $659.24
• 2023: $732.00
• 2024: $821.99

This represents a 69.5% increase over five years, or an average annual growth rate of around 13.9%, fueled by dividend hikes, reinvestments, and strategic stock additions.

Stock	2020	2021	2022	2023	2024	Difference
VZ	16.94	36.95	64.81	72.43	88.63	16.2
T	52.52	56.4	31.73	33.82	36.03	2.21
CVS	23.5	25.69	28.89	34	38.42	4.42
MA	0.52	1.01	4.45	7.66	9.27	1.61
WRK	7.05	8.96	14.77	17.86	18.23	0.37	moved to december
SBUX	13.12	14.51	19.8	24.36	31.67	7.31
DE	19.43	26.91	29.3	35.43	39.17	3.74
BMY	0	29.4	49.24	57.53	64.83	7.3
AGNC	6.17	6.44	7.66	8.85	10.28	1.43
GD	21.42	29.82	32.29	34.395	37.97	3.575
NNN	3.28	3.79	4.125	4.4525	4.83	0.3775
HRL	10.96	11.67	15.84	17.1825	18.28	1.0975
ABBV	61.36	75.53	88.1673	97.7075	106.2	8.4925
AAPL	82.52	88.84	93.41	98.05	102.64	4.59
CAT	52.77	57.41	63.46	70.155	77.4	7.245
AMP	15.71	17.22	19.37	21.2575	23.635	2.3775
SBUX	9.7	10.64	13.3	14.6075	15	0.3925
RY	8.38	10.26	13.42	14.6325	15.78	1.1475
T	52.52	55.44	30.83	30.83	30.83	0
O	6.23	6.41	7.55	8.45	11.34	2.89
SCHW					10.5	10.5
PG	20.86	23.23	26.83	28.34	31.06	2.72
Total Dividends	484.96	596.53	659.2423	732	821.995	89.995

Top Performers Driving Growth

Here are some standout stocks that significantly boosted my dividend income:

1. AbbVie (ABBV)

• 2020–2024 Growth: $61.36 → $106.20 (+$44.84)
• Key Drivers: Consistent annual dividend hikes and strong cash flow from its pharmaceutical portfolio.

2. Starbucks (SBUX)

• 2020–2024 Growth: $13.12 → $31.67 (+$18.55)
• Key Drivers: Business expansion and robust consumer demand, despite macroeconomic challenges.

3. Bristol-Myers Squibb (BMY)

• 2020–2024 Growth: $0 → $64.83 (+$64.83)
• Key Drivers: Dividend reinstatement and growth following major acquisitions.

---

New Entrants Adding Value

2024 saw the addition of Charles Schwab (SCHW), contributing $10.50 in its first year of dividends. This highlights my strategy of selectively expanding the portfolio to include dividend-paying stocks in the financial sector.

---

Steady Compounders

Stocks like Verizon (VZ) and Apple (AAPL) have continued to deliver, with modest but reliable increases year over year:

• Verizon (VZ): +$16.20 over five years.
• Apple (AAPL): +$4.59 over five years.

---

Dividend Growth Challenges

Not every stock contributed significantly:

• AT&T (T) saw limited growth due to dividend cuts during restructuring.
• WRK and NNN posted small increases, reflecting slower business growth.

---

Key Takeaways and Plans for 2025

1. Focus on Growth Stocks: High-growth dividend stocks like Mastercard (MA) and Apple (AAPL) will remain core holdings.
2. Rebalancing: Divesting underperformers to reinvest in better opportunities.
3. Reinvestment: Ensuring every dollar of dividends is reinvested to maximize compounding.

With this strategy, I’m optimistic about surpassing my 2025 dividend goals and achieving even greater financial independence.

---

2024 Dividend Goal:

s the year nears its close, it's time to reflect on my progress toward one of my most significant financial goals for 2024: earning $19,500 in dividend income. With my current Year-to-Date (YTD) dividends standing at $15,239.47, I’m approximately 78.1% of the way to my target.

---

Breaking Down the Numbers

Year	YTD Dividend	Goal	Progress
2024	$15,239.47	$19,500	78.1%

While there’s still some ground to cover, I remain optimistic. The final month of the year typically bring a surge of dividend payments, thanks to quarterly payouts from key holdings and special dividends from select companies.

Final Thoughts

November 2024 marks another milestone in my dividend journey, demonstrating the power of patience and disciplined investing. As my portfolio evolves, I’m excited to see how these numbers grow and how I can continue to optimize my income stream.

How is your dividend portfolio shaping up this year? Let me know your strategies and thoughts!