On 2022-01-04, the equally weighted S&P 500 Index [SPXEW] closed at an all-time high of $6,664.65. It took 918 days, over 2.5 years, to get above that mark. It closed at $6,697.32 on 2024-07-10. The market had finally decided that there is some merit to owning the other 493 companies after all. The market liked how it felt and SPXEW rose again on July 11th and then again on July 12th. The weekend saw a failed assassination attempt on former President Trump and the market seemed to like that, too. SPXEW gapped up on the 15th and followed still higher on the 16th. The index traded slightly down today and closed at $6,932.70. Thus, it took 918 days to move 0.5% and a week to move up another 3.0%.
But that’s SPXEW; I care about Royal Dividends. And guess what? The Portfolio for the Ages turns two years old today. Let’s take a closer look.
Observations
- Total return (includes realized and unrealized capital gains, dividends, and call premiums) is 22.8% since inception.
- Active holdings have an annualized total return of 18.5%.
- Fourteen of the 18 holdings are in the black.
- TDS is the best performing stock, representing 56% of all the Portfolio’s gain.
- Gains have come from price appreciation (61.3%), dividends (27.3%), and options (11.4%).
Due to their decisions to cut their dividends, TDS and LEG are not long for this portfolio.
I would love to see TDS called away at $25.00 on 2024-08-16. If that happens, I will sell the remaining 45 uncovered shares on the following Monday. But if I am not assigned on the 300 shares that are covered, my plan is to close out the entire position on TDS on that same Monday, capturing those gains. The proceeds of the sale will go into the highest ranked stock from the Communication Services sector at the time.
Unlike with TDS, I will NOT be selling LEG if it is still trading under its strike price of $15.00 on 2024-12-20; I will sell more calls in an effort to turn the position positive.
Other than addressing those stocks that chose to abdicate the throne, there is no other plan than to continue investing every week and collect dividends. Then invest those dividends.