Dividend Harvesting Portfolio Week 175: $17,500 Allocated, $1,566.24 In Projected Dividends

Market Overview - The S&P 500 increased by 1.69% and the Nasdaq appreciated by 3.29% during the short trading week over the July 4th holiday, indicating a strong start to the second half of 2024 [1] - The Nasdaq has risen 33.07% over the past year, while the S&P has increased by 25.19%, suggesting a robust bull market [1] - The upcoming earnings season, particularly for the "Magnificent Seven" companies, will be crucial for the market's short-term trajectory [1] Federal Reserve Insights - The CME Group projects a 6.7% chance of the first rate cut occurring soon, with a 22.4% chance that rates will remain unchanged at the September FOMC meeting [1] - Historical data indicates that an increase in unemployment by 1% often precedes a recession, raising concerns about the Fed's current stance on interest rates [1] Dividend Harvesting Portfolio Performance - The Dividend Harvesting Portfolio has exceeded $20,000 for the first time, with an account value of $20,003.60, reflecting a return on investment (ROI) of $2,503.60 or 14.31% [1] - The portfolio generated $44.41 in dividend income in the first week of July, increasing the projected annualized dividend income by $13.42 (0.86%) to $1,566.24 [1] - The portfolio has maintained profitability for 34 weeks, with a goal to generate at least $1,650 - $1,675 in forward projected dividend income by the end of summer [1] Dividend Income Breakdown - The portfolio's dividend income is distributed as follows: Equities $446.81 (28.53%), ETFs $371.68 (23.73%), REITs $286.71 (18.31%), CEFs $273.65 (17.47%), BDCs $177.48 (11.33%), and Treasuries $9.89 (0.63%) [4] - In 2022, the portfolio generated $507.80 from 533 dividends, which increased to $978.11 from 660 dividends in 2023 [5] - As of week 27 in 2024, the portfolio has collected $735.33 from 371 dividends, representing 75.33% of the total dividend income generated in 2023 [5] Investment Strategy and Future Outlook - The portfolio aims to mitigate downside risk while generating ongoing dividend income, with capital appreciation as a secondary goal [3] - The strategy includes adding to positions in Bristol-Myers Squibb (BMY) and the Blackstone Secured Lending Fund (BXSL), with BMY yielding 6.05% and BXSL yielding 9.47% [17] - The portfolio is diversified, with no single sector exceeding 20%, allowing for stability in various market conditions [10] Top Holdings and Performance - The top 10 positions in the portfolio represent 31.51% of the total, with an ROI of $962.03 (18.01%) and projected forward dividend income of $491.37 [15] - The largest position remains Altria Group (MO), which constitutes over 4.5% of the portfolio [14] - The portfolio is expected to generate at least $100 in monthly dividend income going forward, with potential for higher amounts in July and October 2024 [6]