BTI - Dividend Harvesting Portfolio Week 168: $16800 Allocated $1496.16 In Projected Dividends

2024-05-23 09:00:00 ET

Summary

• The stock market closed at record highs in the third week of May, with the S&P 500 exceeding 40,000.
• The Dividend Harvesting Portfolio reached another all-time high, with an ROI of 14.44% and a forward projected dividend income of $1,496.16.
• The portfolio is diversified across various asset classes, with equities, ETFs, REITs, CEFs, and BDCs generating significant dividend income.

The third week in May was one for the record books as the Dow closed at record as it exceeded 40,000. As the Dow added 1.03% this week to finish at record highs, the S&P 500 added 1.36% as it finished the week at 5,303.27, while the Nasdaq closed at 16,685.97, adding 1.82% on the week. The market continued higher after the April CPI report was released, which indicated that the YoY inflation rate decreased by 0.1% MoM to 3.4%. We also got some surprising data out of China that industrial production increased by 6.7% YoY which I believe is important for the global macroeconomic environment. The market keeps climbing higher despite the chances of a rate cut dropping to only 8.9% for the June meeting. I believe the market is strong and shows that the economy doesn't need rates of 2% or lower to thrive. I think that if the May CPI report comes in favorable in June, we could see the Fed pivot at the July meeting, as Fed Chair Powell probably wants another month of data to analyze. The July meeting makes sense to me because the next FOMC meeting isn't until September, which gives the Fed 2 months to see how the economy responds to a cut and if inflation increases or continues to trend in its current direction. Either way, I will continue allocating capital weekly to the Dividend Harvesting Portfolio and make my investment decisions based on what the economic environment is signaling. Even though the markets are at all-time highs, I think there are many opportunities out there, and as the risk-free rate of return declines, I believe that capital will flow into many income-producing assets, especially REITs....

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