The Covid

Just when the market was getting a little boring, this happens.

This is why I refuse to ever pull from my 401k.  When I retire, which will be hopefully soon, I will just move it into an IRA, receive taxable dividends from it, and NEVER pull from it.  If you have to depend on it, the market will fall when you need it, then what will you do?
I have depleted all of my dry powder, and now am waiting for each paycheck as it comes in to buy as much as I can here, or on the way down.  I don't expect my job to be in peril, as it is big tech, and big tech is the clear winner here with everyone at home using it.


I am trying to be careful to pick quality stocks with increased dividends, but since I am middle-aged and prone to a little risk to catch up, I have bought a few riskier stocks (MAIN, OKE).  I did tax harvest IP, but I maybe

KMB Makes Toilet Paper!

should not have since they have a great balance sheet.  I should have harvested OKE, and I may yet still.  If anyone cuts their dividend, I *will* sell them, so that is why I am not harvesting yet, I may be forced to.  I only see OKE cutting at this point, but many stocks are at or slightly above their payout ratio.  I am watching the market more often to see if I can catch the moment the announcement is made.

Many stocks have cancelled buybacks, which I have mixed feelings on.  Buybacks decreased the payout ratio, and during these low prices it seems foolish not to take advantage.  At the same time, it is very bad PR for the company, since everyone wants companies to use that extra money to keep people employed.  If! they use it for that. 

Several CEOs have come around saying the dividends are safe.  Of course they are, until they aren't, right?  Q1 earnings will be the true test.  Still, I was surprised to see O raise theirs, even a little.  QCOM raise should be fine, with the 5G rollout and the home PC use, tech will be fine or better for Q1.

In the past week, the market seems to have found some footing, to slightly the point at the beginning of Trump's presidency, so a nice mulligan for anyone who wants to start jumping in.  However, many stocks are at risk.  The recessionary stocks, as expected, are doing fine, and are floating my portfolio well enough against the rest of them.  I expect them to have a good quarter, if not a great one, and all the others to be affected almost exactly inversely.  It is basic econ, the money flows one way, then the other.  I also expect Home Depot to do well, as people finally get around to doing their home projects if they still have a job.  I'm glad I don't have any stocks in the RED ZONE, such as restaurants, travel, and any consumer discretionary that isn't selling recessionary brands.

I am VERY proud to own ABT and JNJ, as they are leading the charge in this pandemic war.

It is hard not to say anything that hasn't already been said by the stock gurus.  Stay safe out there, and always make sure the main source of your passive income is recessionary stocks!  I need to buy more ADM on Monday!

Dividend Increases & Special Payouts
Qualcomm (NASDAQ:QCOM) announces dividend increase to $0.65/share quarterly dividend, 4.8% increase from prior dividend of $0.62.
Realty Income (NYSE:O) declares $0.233/share monthly dividend, a 0.2% increase from prior dividend of $0.2325.

March Purchases:

MAIN	47
FAST	11
QCOM	6
NNN	20
ADM	30
WTRG	12
SO	22
WEC	16
GIS	22
KMB	17
WSO	9
OKE	60
CVX	17
IP	-30
PG	4
TGT	5
JNJ	5
ABT	5
ABBV	10
ORI	35

Whew!  Most purchases I have made in a month, and I certainly exceeded 30 trades (all of the ones above were split into 2 or more transactions throughout the month).

Keep on buying on the slide down, or the ramp up.  Research your companies.  Receive your dividends.