Portfolio Update
The FiveTwenty portfolio received $135.19 in dividends in the past week. GPC, MDU, and PEP paid their quarterly dividends during the week.
| Past Week Dividend | $135.19 |
| Current Quarter Dividend (Q1 2024) | $135.19 |
| LifeTime Dividend | $17,917.11 |
| Estimated Annual Dividend | $10,922.65 |
The capital allocation for the week of 01/07/2024 to 01/13/2024 will be used to add to our position in Vanguard Dividend Appreciation ETF (VIG) and Vanguard International Dividend Appreciation ETF (VIGI).
Decrease in Estimated Annual Dividend
For a second week in a row, the estimated annual dividend for the FiveTwenty protfolio decreased week over week. The decrease was caused by WBA cutting its quarterly dividend from $0.48 to $0.25 per share starting with the Q1 2024 payout.
What does this mean for our position in WBA? Following the dividend cut, WBA has a FWD dividend yield of 4% based on the share price of $25.01 as of close of business on 1/5/2024. The payout ratio based on estimated forward earnings is 30.2%. Therefore, for the time being we will continue to hold on to our position in WBA.
VIG & VIGI – Position Update
| TTM | Prev. Update | |
| VIG Yield | 1.90% | 1.88% |
| VIGI Yield | 1.95% | 1.92% |
Thesis
Why are we adding to our position in VIG & VIGI?
We continue to allocate our new capital into the broad basket of dividend paying stocks held by VIG and VIGI for the same reason as before: we do not think that we can pick individual stocks that will overperform the ETFs in the long run.
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