Dividend Portfolio Update #10 – February 2025
Apologies for the slight delay—let’s jump into our tenth monthly update for this dividend-centric portfolio!
Overview
• Total Portfolio Value: $1,011.09 (a notable jump from last month’s $803.24)
• Number of Holdings: 10 stocks
• Key Milestones This Month:
• Breaking the $1K Mark: After hovering in the $800 range, the portfolio has now crossed the four-figure threshold.
• New Addition: Starbucks (SBUX) joins as our second consumer-focused holding, alongside Costco (COST).
Portfolio Breakdown
1. Apple (AAPL)
• Shares Held: 0.869119
• Comment: Apple remains our cornerstone in the tech-dividend space. Strong earnings and continued buybacks reinforce its robust cash flow, which underpins its reliable dividend growth.
2. Home Federal Bancorp of Louisiana (HFBL)
• Shares Held: 13.60
• Comment: Our regional bank saw another month of modest price action. Its dividend track record remains solid, making it a dependable component of our financials sector.
3. Costco Wholesale (COST)
• Shares Held: 0.149563
• Comment: Costco continues to serve as a stable, defensive play. With membership renewals historically high, we see a steady runway for its dividend growth.
4. Microsoft (MSFT)
• Shares Held: 0.364088
• Comment: The fundamentals—particularly Azure and enterprise services—remain strong. The company’s dividend is well-covered and typically sees annual increases.
5. Dell Technologies (DELL)
• Shares Held: 0.890566
• Comment: Dell bounced back slightly this month after a noticeable pullback earlier. We remain focused on its dividend potential as it continues to expand in enterprise solutions.
6. Meta Platforms (META)
• Shares Held: 0.138989
• Comment: Meta’s dividend remains minimal, but the company’s long-term pivot toward AI and metaverse initiatives could bolster future payouts if it continues to execute well.
7. Alphabet (GOOGL)
• Shares Held: 0.326590
• Comment: Google’s dividend is still in its infancy, but its broad reach (search, ads, cloud) makes it a promising growth engine that could blossom into a more robust dividend payer over time.
8. Visa (V)
• Shares Held: 0.129970
• Comment: Payment volumes remain strong globally. Visa’s reliable dividend growth track record fits perfectly into our long-term dividend focus, despite minor month-to-month fluctuations.
9. Mastercard (MA)
• Shares Held: 0.038829
• Comment: Like Visa, Mastercard benefits from the ongoing shift away from cash. We’re optimistic about its dividend growth potential and worldwide expansion in digital payments.
10. Starbucks (SBUX)
• Shares Held: New Position
• Comment: Our newest consumer-discretionary holding. Starbucks has a consistent dividend history and strong brand loyalty, which could help weather economic ebbs and flows.
Strategy & Rationale
1. Dividend Growth Focus
We continue blending stable dividend payers (Apple, Microsoft, Costco, HFBL, Visa, Mastercard) with promising tech names (Dell, Meta, Google) that may further develop their dividends over time. Starbucks adds a well-known consumer staple with a growing dividend history.
2. Sector Diversification
• Tech: Apple, Microsoft, Meta, Google, Dell
• Financial Services: HFBL, Visa, Mastercard
• Consumer/Retail: Costco, Starbucks
3. Long-Term Outlook
Despite broader market volatility, our portfolio climbed past $1,000—a testament to balancing proven dividend stalwarts with growth-oriented companies. We aim to keep reinvesting dividends to harness compounding over the long haul.
Looking Ahead
• Further Diversification: We may look into sectors like Energy or Healthcare to broaden our defensive positioning.
• Dividend Updates: Several holdings have ex-dividend dates on the horizon—stay tuned for potential bumps in monthly dividend income.
• Market Watch: Inflation and interest rates remain key issues. We’ll monitor economic data but remain committed to a buy-and-hold approach with high-quality, dividend-paying stocks.
Closing Thoughts
That concludes our February 2025 update, and we’re thrilled to celebrate the milestone of surpassing the $1K mark. As always, we focus on blending dividend stability with growth, and Starbucks joins the family to add another layer of consumer-driven earnings power.
Thank you for reading another edition of the Gedal Notes! Here’s to continuing our dividend journey in the months ahead.
— The Gedal Notes Team
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Always do your own research or consult a professional before making investment decisions.
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