I can’t believe that it is February already and that I’m already writing the first dividend update of 2017.
Ferris sure was right when he said that life moves pretty fast because we’re already 1/12th of the way through 2017.
For those among us that are big fans of winter, Punxsutawney Phil saw his shadow which means we’re due for some more cold weather ahead. That’s not too great in my mind but it’s February already and we’re getting closer to Spring, one of my favorite seasons so I’m excited for the quick passage of time. The days are getting longer and it’s no longer pitch black when I leave work so that’s also a great bonus of putting January behind us.
December was an amazing month for dividends but we’re back to reality for January as I no longer own any individual dividend payers this month and the only cash coming in is my monthly payment from my bond mutual fund.
The cold weather means Steve, my trusty dividend employee who earned me a respectable $7000 last year had trouble finding work this month.
February will be similar story but we’re both certainly looking forward to March which has historically been a good month for me as a lot of my ETFs, individual holdings and mutual funds pay quarterly.
The market has continued to do well although pockets of value have begun to emerge as we wade into the depths of earning season.
I’m keeping a close eye on earnings and have seen some big moves in certain industries. Apparel companies were the talk of the last few weeks and have tanked recently after a bevy of mixed results. Companies like UnderArmour or HanesBrands dropped 15-25% after earnings announcements and there were others as well that were hit by the negative sentiment in that industry.
Massive drops like that are quite interesting because they show how quickly this market punishes bad performance. It’s certainly a stressful time to be an individual stock owner as companies can get a massive haircut by announcing poor earnings or guiding down for 2017.
I always feel like huge drops on solid companies are a good time to do some research. I’ve added a few companies to my list in the past few weeks to take a closer look. In the apparel sector specifically which has taken quite a pounding, I am looking forward to see how VFC does in the next few weeks as that’s one that’s getting closer to a really attractive valuation.
I’m eager to get started on the second full year of dividend tracking here and that all starts with January so let’s take a look at how my portfolio employee Steve did for me this month.