This post will catch up my dividend income so far for the 2020 year. You will see some waves in it upon which I will explain the up and downs. At the start of the year things started off on a normal trend. Then a peak brief uptick for April this was a result of the Coronavirus Pandemic.
Now if your scratching your head wondering how that can be. If you believe it’s the Coronavirus has effectively brought the global economy to almost it’s knees you wouldn’t be wrong. Don’t kid yourself we are in unprecedented times as a whole. Sure we have had stalled economies before, sure we have had global virus/health concerns at one time or another. And we have also had trade issues and OPEC issues throughout our history.
Globally unique is all these issues are aligned timing wise right now. How does this equate to this dividends post? Share prices of good high quality blue chip companies have been shaken down no sector left untouched really. For those that have read about Warren Buffett one of his favorite quotes is “Be fearful when others are greedy and greedy when others are fearful”. Consequentially what transpired in March was buying a high quality blue chip stock. This stock had become discounted by almost 75% of where the company was at share price wise pre COVID 19. The kicker in all this is it has left it’s dividend intact!!
This stock had a dividend payout which paid out in April. Then sold for some capital gains when they made a quick 20% bounce back towards pre COVID 19 share price. This stock has been a rollercoaster since. And if one had more stomache as a swing trader or day trader it would be a worthwhile venture for sure. It hasn’t been all good news 4 of my holdings have reduced their dividends to help with cash flow during this pandemic I still believe they are good companies and continue to hold them.
This whole scenario we are in these last few months has definetly been a challenge and there appears too not be a short term end insight. I have more ideas and topics I would like to share my perspective on and they will be the topic of future posts. Posted below is the chart for dividends so far this year until next post stay safe and stay healthy!!!
