Portfolio Update
The FiveTwenty portfolio received $285.79 in dividends in the past week. BMY, T, and VZ paid their quarterly dividend during the week.
| Past Week Dividend | $285.79 |
| Current Quarter Dividend (Q3 2023) | $626.14 |
| LifeTime Dividend | $13,092.44 |
| Estimated Annual Dividend | $10,049.61 |
The capital allocation for the week of 08/06/2023 to 08/12/2023 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
In the past week the Estimated Annual Dividend for the FiveTwenty portfolio decreased from the preceding week. The decrease was caused by MDU adjusting its quarterly dividend payout down following the spinoff off its KNF subsidiary.
What does this mean for our position in MDU? At this time the FWD dividend yield of MDU stands at 2.38% and a payout ratio of about 66%. Furthermore, the board has set expectations for the future payout ratio to remain between 60% to 70%. These number are close to the targets outlined in our investment strategy, and therefore, we will continue to hold our position in MDU.
VIG & VIGI – Position Update
| TTM | Prev. Update | |
| VIG Yield | 1.90% | 1.87% |
| VIGI Yield | 2.13% | 2.08% |
Thesis
Why are we adding to our position in VIG & VIGI?
For a 4th week in a row, we continue to build our position in the 2 dividend ETFs. The reasoning remains the same as last week: we continue to wait for the end of earnings seasons to take stock of where our portfolio companies stand and determine if any of them offer a good opportunity to deploy additional capital.
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