12-05-2022, 10:09 AM
November Portfolio Update
The biggest DGI news to report was increasing my Taxable Account income by making some buys which I'll discuss more below.
I met with a tax guy and after going through tax implications for conversions I converted roughly another $30k from my IRA to my Roth. The cliff notes version of this is that, for some reason, Taxable Account cap gains do not count as income toward the IRS tax bracket levels - IRA moves do. However those gains do count toward the $200k circuit breaker where I'd have to pay an additional 3.8% Medicare tax. My conversions were basically a stock version of "The Biggest Loser" and are listed later.
Here are the numbers, discussion of which will be below.
Metric IRAs Taxable Total
Buys 0 4 4
Sells 0 0 0
Dividend Increase over
November, 2021 416.63% -13.18% 36.14%
Dividend Increase over
August, 2022 -16.61% -12.83% -13.64%
Change in value over
10/31/22 9.85% 5.58% 7.71%
Current Dividend Yield 1.65% 3.09% 2.31%
Change in 12-mo
projected Dividend
Income fr 10/31/22 .21% 4.00% 2.55%
Organic/Internal
annual DGR 14.91% 10.39% N/A
As has been the case for a while and will be through next February, Taxable Account dividend numbers mean something, IRA and total numbers do not.
This month was mostly good but some of the numbers look poor so I'll cover them.
The gains in account value were nice and I am now very close to even in my Taxable Account, accounting for account withdrawals, for the year. I'm still down 8% or so in the IRAs. Unlike October, my IRA gains outpaced the Taxable Account. This is how it should be so I'm chalking the October numbers to a one-month anomaly.
I made one $5k withdrawal from the taxable account for living expenses. That and other withdrawals count when it comes to calculating value. IOW I do NOT add $5k to my ending value to get the value change number in the table.
The 4% 12-month dividend projection gain in my Taxable Account is nice. I had a fair amount of cash available. Some was from selling OGE in September where I still hadn't spent all of it and more was from a 10/31 tax loss sale of BBY. Putting that to work gave me a nice boost and my dividend income is now at an all-time high with growth figures remaining solid.
The minimal IRA increase in projected dividends is from the three companies that announced increases.
So now the negatives. My November Taxable Account income was down substantially both YoY and from August and the IRA income from August. The declines were big enough for me to dig into.
In the IRA the reason is simple. My last two TD dividends are dated 8/2 and 10/31. It's a substantial contributor to IRA income. Don't ask me why it paid late the previous time but it did - I log dividends as being received when they show up in my account. So that income being there in August and not in November is the reason for this - and for the outsize October IRA dividend growth over July.
The Taxable Account declines are also simple. In November, 2021 I owned much more T and VZ than I do now, I owned AOS which I have since sold, and I have trimmed some AAPL for living expenses. Comparing with August of this year, again, I've sold 2/3 of my VZ and some AAPL. That income loss accounts for the difference and then some. I'd have had a very minor increase both YoY and from August if I still had as much of them. My 4th quarter shows a dividend increase over the 3rd quarter so there's nothing to worry about.
Taxable Account Transactions
Buys:
No IRA transactions
IRA-Roth Conversions: AMZN, CRM, LCID, META, TSLA
Dividend Increases:
In the IRA I have made my final conversion for 2022. This was for received dividends and I already added more TGT with it on 12/5.
In my Taxable Account I was open to selling the rest of my VZ and using that to add more BBY but this was when BBY was trading in the 60's. I'm willing to trade off a 7%, glacially growing yield for 5.5% with a double-digit 5-yr DGR. But now that BBY yields roughly 4% I'd lose more current income than I'm willing to sacrifice. That opportunity may come along again, or not.
Otherwise I plan to collect dividends, wait for the next Fed decision, and enjoy the holidays.
The biggest DGI news to report was increasing my Taxable Account income by making some buys which I'll discuss more below.
I met with a tax guy and after going through tax implications for conversions I converted roughly another $30k from my IRA to my Roth. The cliff notes version of this is that, for some reason, Taxable Account cap gains do not count as income toward the IRS tax bracket levels - IRA moves do. However those gains do count toward the $200k circuit breaker where I'd have to pay an additional 3.8% Medicare tax. My conversions were basically a stock version of "The Biggest Loser" and are listed later.
Here are the numbers, discussion of which will be below.
Metric IRAs Taxable Total
Buys 0 4 4
Sells 0 0 0
Dividend Increase over
November, 2021 416.63% -13.18% 36.14%
Dividend Increase over
August, 2022 -16.61% -12.83% -13.64%
Change in value over
10/31/22 9.85% 5.58% 7.71%
Current Dividend Yield 1.65% 3.09% 2.31%
Change in 12-mo
projected Dividend
Income fr 10/31/22 .21% 4.00% 2.55%
Organic/Internal
annual DGR 14.91% 10.39% N/A
As has been the case for a while and will be through next February, Taxable Account dividend numbers mean something, IRA and total numbers do not.
This month was mostly good but some of the numbers look poor so I'll cover them.
The gains in account value were nice and I am now very close to even in my Taxable Account, accounting for account withdrawals, for the year. I'm still down 8% or so in the IRAs. Unlike October, my IRA gains outpaced the Taxable Account. This is how it should be so I'm chalking the October numbers to a one-month anomaly.
I made one $5k withdrawal from the taxable account for living expenses. That and other withdrawals count when it comes to calculating value. IOW I do NOT add $5k to my ending value to get the value change number in the table.
The 4% 12-month dividend projection gain in my Taxable Account is nice. I had a fair amount of cash available. Some was from selling OGE in September where I still hadn't spent all of it and more was from a 10/31 tax loss sale of BBY. Putting that to work gave me a nice boost and my dividend income is now at an all-time high with growth figures remaining solid.
The minimal IRA increase in projected dividends is from the three companies that announced increases.
So now the negatives. My November Taxable Account income was down substantially both YoY and from August and the IRA income from August. The declines were big enough for me to dig into.
In the IRA the reason is simple. My last two TD dividends are dated 8/2 and 10/31. It's a substantial contributor to IRA income. Don't ask me why it paid late the previous time but it did - I log dividends as being received when they show up in my account. So that income being there in August and not in November is the reason for this - and for the outsize October IRA dividend growth over July.
The Taxable Account declines are also simple. In November, 2021 I owned much more T and VZ than I do now, I owned AOS which I have since sold, and I have trimmed some AAPL for living expenses. Comparing with August of this year, again, I've sold 2/3 of my VZ and some AAPL. That income loss accounts for the difference and then some. I'd have had a very minor increase both YoY and from August if I still had as much of them. My 4th quarter shows a dividend increase over the 3rd quarter so there's nothing to worry about.
Taxable Account Transactions
Buys:
- 11/2/22 – WHR, $136.00
- 11/2/22 – TROW, $106.00
- 11/17/22 – LYB, $80.00
- 11/30/22 – TROW, $120.00
No IRA transactions
IRA-Roth Conversions: AMZN, CRM, LCID, META, TSLA
Dividend Increases:
- AOS – $.28 to $.30 per share
- SBUX – $.49 to $.53 per share
- VZ - $.64 to $.6525 per share
In the IRA I have made my final conversion for 2022. This was for received dividends and I already added more TGT with it on 12/5.
In my Taxable Account I was open to selling the rest of my VZ and using that to add more BBY but this was when BBY was trading in the 60's. I'm willing to trade off a 7%, glacially growing yield for 5.5% with a double-digit 5-yr DGR. But now that BBY yields roughly 4% I'd lose more current income than I'm willing to sacrifice. That opportunity may come along again, or not.
Otherwise I plan to collect dividends, wait for the next Fed decision, and enjoy the holidays.