Max Dividends portfolio: month 6 - week 2. Goal $12,000 monthly for 120 months
Monthly Dividends $309.66 | Yield on cost 5.18% | Stocks purchased today 👀
MaxDividends Mission: Help & Support Everyone on the way Retire Early and Live off Dividends
Every Friday, I share with MaxDividends Members my weekly buys in real-time to show my journey toward living off dividends. I focus on high-yield and dividend growth companies to build a solid and growing passive income stream. My goal is $12,000 a month over the next 120 months, and anyone can start doing the same.
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Markets
Inflation Pressures Persist as Tech Shines. Stocks declined, with the S&P 500 down 0.21% to 5,780.05, and the Dow Jones Industrial Average dropped 57.88 points (or 0.14%) to close at 42,454.12. The Nasdaq Composite slipped by 0.05% to finish at 18,282.05.
The market's movement was largely influenced by the release of September’s CPI data, which showed a 0.2% increase month-over-month, bringing the annual inflation rate to 2.4%, slightly ahead of the 0.1% monthly gain and 2.3% annual rate expected by analysts.
Portfolio manager Luke O'Neill commented, "Today’s moves were driven mostly by the CPI report," noting that while the report wasn’t a massive surprise, some of the underlying inflation data was "a little bit hotter than anyone would prefer."
The result? Small- and midcap stocks, which tend to be more sensitive to interest rates, saw some selloffs.
Fed President Raphael Bostic mentioned he was comfortable with holding rates steady at the November meeting, despite the market's hope for another cut, stating: “This choppiness… maybe we should take a pause in November. I’m definitely open to that.”
The CPI data comes as the Federal Reserve navigates growing concerns that it may slow the pace of future rate cuts, following September’s 50-basis-point cut.
The FedWatch Tool from CME Group showed an 85% likelihood of a quarter-percentage-point cut in November. Meeting minutes also revealed division among members, with some preferring a smaller cut instead of the recent 50 bps move.
In other news
Universal Insurance surged 12% as Hurricane Milton made its way through Florida.
Pfizer fell roughly 3% after activist investor Starboard Value accused the company of threatening litigation against two former executives.
Advanced Micro Devices (AMD) dropped 4% after introducing a new AI chip to compete with Nvidia.
Key Economic Data and Global Updates
Germany's exports grew by 1.3% in August, surpassing expectations of a 1% decline.
Japan’s producer prices rose by 2.8% year-over-year in September, up from 2.6% in August, beating the expected 2.3%.
New Zealand cut its official cash rate by 50 basis points to 4.75%, with inflation down to 3.3% in Q2 2024, the lowest since Q2 2021.
Commodities and Currencies
Oil prices remained volatile, with WTI crude closing at $75.72 per barrel as rising U.S. crude inventories (up 5.8 million barrels) put downward pressure on prices.
Gold held its support, while traders continued to focus on China's upcoming stimulus measures.
The U.S. Dollar Index extended its winning streak to eight sessions.
10-year U.S. Treasury yields climbed by 22 basis points to 4.07%, while the 2-year yield rose by 31 basis points to 4.01%.
Market Events and Earnings
Delta Air Lines faced challenges, with revenue growth expectations dropping 5.4% year-over-year, impacted by higher capacity and weaker demand.
Fast Retailing, the parent company of Uniqlo, reported an 11% gain in shares following a strong fiscal Q4 earnings report and positive future outlook.
Alphabet (Google) remained in focus as the U.S. government announced plans to alter the company's grip on the search market, though previous antitrust cases have had little long-term impact on major tech firms.
Max Dividends Portfolio Updates
This week, I made my regular stock purchases for my dividend portfolios. The total amount invested in my dividend portfolios is ~$185,931.34 .
In September, I received my first significant dividends and reinvested the funds by purchasing more shares. Over time and by exercising patience, I create a dividend snowball effect.
Since last week, my dividend income increased by $625, going from $10,671 to $11,296. Since October started, my dividend income already raised by $1,427.
By investing in strong stocks that increase their dividend rates frequently, I enjoy a dividend-compounding effect.
Each week, I add to my dividend portfolios, choosing reliable companies that increase dividends over time and grow in value. This way, I benefit from capital appreciation and a constantly growing passive income.
With MaxDividends Top Stocks, you can build your compounding dividend portfolio to produce a growing passive income stream.
Here’s a breakdown of the stocks I bought today, my plan, and the latest updates on my portfolios.
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