2024 December Dividends Report

December has consistently been a standout month for dividend growth, reflecting the portfolio's strategic diversification and compounding returns. This December  marked another milestone in dividend growth for the portfolio. With a total of $4,032.19 received, this represents a year-over-year increase of 8.14% and an impressive cumulative growth of 137.49% since 2020.

Surpassing $4,000 in December 2024 marks a pivotal milestone in this portfolio’s journey. This achievement not only reflects steady year-over-year growth but also underscores the compounding effect of strategic investments and reinvestments over the past five years.

Summary of Total December Dividends:

• 2020: $1,697.80

• 2021: $2,881.08

• 2022: $3,201.72

• 2023: $3,728.46

• 2024: $4,032.19

Growth Highlights:

1. Overall Growth: The total December dividends increased by 137.49% from 2020 to 2024, reflecting the portfolio’s strong strategic allocation and reinvestment strategy. This growth is a testament to the compounding returns over time.

2. Year-over-Year Trends:

   • 2020 to 2021: 69.74% increase due to significant additions to high-yield assets.

   • 2021 to 2022: 11.11% increase, showing steady portfolio maturation.

   • 2022 to 2023: 16.42% increase, driven by market recovery and dividend hikes in key stocks.

   • 2023 to 2024: 8.14% increase, highlighting consistent contributions from top-performing sectors and funds despite a more challenging economic environment.

Overview of December 2024 Dividends

In December 2024, several companies stood out with their impressive dividend distributions. Here are the highlights:

Symbol 2024 Dividend
AVGO $53.10
GILD $46.12
LMT $90.21
D $18.11
KTB $4.23
PRU $31.08
SHEL $46.69
ED $47.45
HSY $45.11
SCHD $41.58
FLO $24.75
UL $53.77
TGT $31.67
AGNC $10.28
LYB $46.06
AMGN $63.75
JNJ $69.97
HON $30.58
DFS $136.05
UPS $20.22
AFL $24.59
KR $8.38
WFC $41.64
VMCIX $357.74
HD $89.43
MMM $44.81
ADM $11.76
GILD $40.96
V $15.13
SO $30.82
CVX $51.14
MSFT $13.80
TGT $40.53
O $11.40
KO $15.12
UNP $70.70
TROW $85.68
FXAIX $170.20
Goog $4.00
VOO $9.10
VIIIX $720.00

Achieving the 2024 Goal

2024 was a pivotal year for dividends, with a year-to-date (YTD) dividend total of $19,271.66. The target goal for the year was $19,500. Though it fell short by a small margin, the overall growth reflects a strong investment strategy and disciplined financial management.

Standout Performers

1. Broadcom Inc. (AVGO): Broadcom ended the year with a robust dividend of $53.10, thanks to its continuous innovation and strategic acquisitions in the tech sector.

2. Lockheed Martin (LMT): With a dividend of $90.21, Lockheed Martin solidified its position in the defense industry, buoyed by key contracts and cutting-edge technology.

3. Discover Financial Services (DFS): DFS's significant dividend of $136.05 reflects its strategic expansion and robust financial management, making it a standout in the financial sector.

4. Hershey (HSY): A dividend of $45.11 highlighted Hershey's growth, driven by its innovative product lines and effective marketing strategies.

5. Microsoft (MSFT): Microsoft, a stalwart in the tech industry, issued a reliable dividend of $13.80, underscoring its sustained growth through cloud services and software solutions.

Sector Trends

• Technology: Companies like AVGO and MSFT led the tech sector's dividend growth, driven by ongoing innovation and digital transformation.

• Financial Services: DFS and WFC showed remarkable dividend increases, thanks to their strategic expansions and solid financial health.

• Consumer Goods: HSY and UL were key performers, adapting effectively to market demands and consumer preferences.

• Energy: SHEL and CVX demonstrated strong dividends, supported by global energy demand and strategic investments in renewable energy.

Conclusion

The December 2024 dividends reflect the dynamic and resilient nature of the market across various sectors. While the YTD dividends fell slightly short of the ambitious goal, the overall growth and strong performances are a testament to strategic investments. As we step into 2025, these companies' continued innovation and strategic initiatives will be crucial to watch. Investors can take confidence in the robust performances and look forward to potential opportunities in the coming year.

Feel free to share your thoughts on this analysis or discuss your investment strategies for the future. Happy investing!

Capturing Premiums with a Rolling Options Strategy: A Deep Dive into October-November 2024 Trades

 In October and November 2024, I implemented a rolling options strategy to maximize my income through premium collection while managing potential risks. Below, I’ll walk through each trade, including the rationale behind rolling, capturing premium, and other key insights from this options strategy.

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Trade Summary

Throughout these two months, I executed a series of call and put options on several stocks, notably SMCI, VZ, T, and HOOD. My approach focused on selling options to collect premiums, rolling contracts to adjust risk and capture additional premium, and letting some contracts expire worthless to secure gains. Here’s a detailed breakdown of each trade.

1. SMCI PUT Options: Active Rolling Strategy

The SMCI options played a significant role in this strategy, with a continuous series of puts rolled to optimize outcomes. Here’s a closer look:

• 10/10/2024: Started by selling an SMCI $40 PUT, expiring on 10/25, for a premium of $81. Rolled to a $40.5 PUT expiring 11/1 for more strategic positioning.
• 10/11/2024: Sold SMCI $40.5 PUT (11/1) for $55, then rolled it to a $44 PUT expiring 11/8 for added premium.
• 10/14/2024 - 10/16/2024: Continued with a series of SMCI PUT rolls, ultimately landing at a $46 PUT with expiration extended to 11/29, capturing additional premiums along the way.

Outcome: This series of SMCI PUTs exemplifies the benefits of rolling—capturing incremental premium, extending time frames, and increasing the strike price to align with my market outlook.

2. T and VZ CALL Options: Capitalizing on Premium from Expiration

• T $23 CALL (10/25, 11/8 Expiries): Both of these options expired worthless, allowing me to keep the entire premium.
• VZ Calls: The $46 CALL (10/25) and $42.5 CALL (11/8) also expired worthless, again yielding full premium capture.

Outcome: The T and VZ calls were well-positioned above current market levels, giving a low probability of assignment and allowing me to retain all premiums without needing to roll or close out early.

3. HOOD PUT Options: Selling for Steady Premiums

• 10/29/2024: Sold a HOOD $25 PUT expiring 11/28 for $65, which eventually expired worthless.
• 11/11/2024: Sold a HOOD $31.5 PUT expiring 11/22 for $63. This position was part of a straightforward premium collection strategy.

Outcome: The HOOD PUT options provided consistent premium income without needing to roll. These contracts were placed with comfortable strike prices, leading to expiration without any additional management required.

4. VZ $41 and T $23 CALLS (Expiring 11/15 and 11/22)

• 11/11/2024: Sold a VZ $41 CALL (11/15) for $15 and a T $23 CALL (11/22) for $8, both designed for potential premium capture with minimal risk of being called away.

Outcome: These were smaller plays in the larger strategy, offering steady premium income with low assignment risk.

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Key Takeaways from My October-November Options Strategy

1. Rolling as a Premium-Enhancement Tool: Rolling allowed me to maximize income from the SMCI PUT options. By adjusting strike prices and expiration dates, I could manage risk while enhancing premium collection.

2. Capitalizing on Expiring Options: A significant portion of these options expired worthless, which is ideal in an options-selling strategy. The T, VZ, and HOOD options were positioned carefully to expire out-of-the-money, enabling me to keep 100% of the premium.

3. Managing Risk with Strategic Strike Adjustments: With some positions, I gradually increased the strike price, especially with SMCI. This maneuver allowed me to remain in the trade for longer, capture more premium, and maintain a favorable risk profile.

4. Consistent Premium Income: This strategy generated consistent cash flow, contributing to the overall growth of my portfolio. The cumulative premiums from these options reinforced the value of a disciplined selling and rolling strategy.

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Final Thoughts

The October-November period demonstrated how a structured options-selling strategy can yield steady returns, even with volatile underlying assets. By strategically rolling SMCI PUTs and allowing other options to expire worthless, I maximized my income and managed downside risks effectively.

If you’re exploring options selling, consider incorporating rolling and expiring strategies like these to capture premiums consistently. Remember, always assess the risk tolerance, monitor market movements, and adjust positions as necessary to optimize your portfolio.