Quarter End Update - Former iPIG Portfolio

According to the current value snapshot as of 11:40 p.m. Eastern on 30-JUN-2022, the former iPIG portfolio is worth $101,753.50. That number may change a bit when the broker publishes the monthly statement for the account. According to the account’s March closing statement, it was worth $117,938.52. That’s a loss for the quarter of about 13.7%.

For comparison, the S&P 500 index tracker SPY finished June 30, 2022 at a closing price of $377.25. Per Yahoo Finance’s current Adjusted closing price, the SPY ETF had an Adjusted closing price of $449.70 for March 31, 2022. That gives that index tracker (with dividends reinvested) an estimated loss for the quarter of around 16.1%.

As a result, the former iPIG portfolio won something of a pyrrhic victory on a total return basis, outperforming the index by around 2.4 percentage points.

More importantly, the former iPIG portfolio appears to have again met its primary design criteria of dividend-like payments increasing more than inflation. Per my Quicken records, the account received $742.83 in dividend-like income in the April - June 2022 quarter, vs. $650.43 in the April - June 2021 quarter. That’s about a 14.2% increase in dividend-like income. That compares favorably to the 8.6% year over year inflation rate published in the most recent Bureau of Labor Statistics inflation publication.

During the quarter, I made one set of trades. I sold the shares of Teva Pharmaceuticals (TEVA) and Disney (DIS) that the account held and used the cash from those sales, plus some accumulated dividend payments, to buy shares of Genuine Parts (GPC). The sales were made because both Teva and Disney ceased paying dividends (Disney’s last dividend was for the end of 2019, and Teva’s was for the end of 2017), and neither have shown active signs of re-starting their dividend payments. That is inconsistent with the dividend growth objective of the portfolio. Both companies appear to have returned to sufficient operating health to where they could have reinstated their dividends if they wanted to yet have not done so. As a result, it was clearly time to part ways and move on.

I hesitate to point to near term price movements, but I sold Teva at $8.265 per share and Disney at $103.68 per share. I bought Genuine Parts at $131.55 per share. As of June 30, Disney closed at $94.40, Teva closed at $7.52, and Genuine Parts closed at $133.00 per share. In addition, Genuine Parts declared and went ex-dividend on a $0.895 per share payment that I expect to receive on 01-JUL-2022. So at least in the short term, that looks like an early potential success. It also helps boost the former iPIG portfolio’s dividend income for the JAS 2022 quarter, as the money that went to buy those shares came from sources that have not been actively paying dividends recently. Given the still high inflation rate, I’ll take all the help I can get on that front.

Net - it wasn’t fun, and the losses are still real, but I am thrilled that the former iPIG portfolio managed to meet its core design criteria of a growing income stream capable of keeping pace or exceeding inflation.

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Disclosure: I own shares of Genuine Parts


Hi TMFBigFrog,

Great job!

“the account received $742.83 in dividend-like income in the April - June 2022 quarter, vs. $650.43 in the April - June 2021 quarter”

While it probably does not pertain to this situation, there can be an issue when comparing dividends like this.

There are a few companies that may adjust their pay date because of weekends/holidays and actually change the calendar quarter the dividend is paid in. Companies that pay around month end or the first of the month are the ones to look at.

Does that help you?

All holdings and some statistics on my Fool profile page


Thanks for the push, Gene. I should have touched on the drivers more.

Per this post: https://discussion.fool.com/quarter-end-update-former-ipig-portf… , the JFM quarter saw dividend-like income of around plus 10.4% vs. the same quarter year ago. The plus 14.2% in the AMJ quarter is an acceleration from that rate, and the drivers were probably worth mentioning.

One key driver was that in February 2022, I had used the accumulated cash in the account (from dividends and the paltry interest) to buy shares of 3M (MMM). I received my first dividend payment from that purchase in June, marking another case of swapping in a dividend-producing asset for a non-dividend producing asset.

Another key driver was dividend increases during the quarter. Seven of the portfolio’s holdings increased their dividend during the AMJ quarter. Many were small increases, but Otis Elevator (OTIS) (a spin-off I got shares in during a breakup of an actual pick) raised its dividend by nearly 21%, Raytheon Technologies (RTX) (the company, formerly known as United Technologies, that did the spin-off) raised its dividend by nearly 8%, and Union Pacific (UNP) raised its dividend by just over 10%.

There also is also some carry-over effect from a purchase in May of 2021. That pick paid the portfolio its first dividend in July of 2021, so the AMJ 2022 quarter was the last quarter of that dividend being incremental to the portfolio. I can’t name the name of that company because I also have an options position in it and I expect to be rolling options in the near future and don’t want to cause Fool Disclosure issues.

And, of course, while not every pick increased its dividend in the quarter, several are still paying increased dividends vs. year ago. Which, of course, was the initial design goal the portfolio was seeking.

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Disclosure: I own shares of MMM, OTIS, UNP, and RTX, as well as the company that shall remain nameless for the time being.

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