Stocks + Fireworks = Explosive week of gains
You know by now that the main focus of the DDI portfolio is (daily) income generation, but with a week like this, the Capital Appreciation that we saw is always always a nice side benefit. The DOW started the week at 11,943 and with 5 straight days of solid gains ended the week at 12,582 for a total gain of 639 points. On a percentage basis the index rose a whopping 5.3%!
The DDI Porfolio weekly performance
While it didn’t keep up with the performance of the broader market, the DDI portfolio did quite well. The portfolio started the week valued at right around $123,900.00 and by yesterday’s close, had finished up to close out at $128,043.12 for a dollar gain of $4143.12. This represents a gain for the week of 3.34%.
While the DDI portfolio lagged the performance of the broader market this week, there are three important factors you should keep in mind when comparing their performance:
- The DDI portfolio seeks to generate consistent DAILY income
- The DDI portfolio seeks to generate income greater than the market indices
- Capital appreciation is secondary in focus for the the DDI Portfolio
The current dividend yield
on the DOW is 2.8% while the current yield
for the DDI portfolio is 5.2% – nearly double the performance of the DOW. And as new holdings are added to the portfolio I expect this gap to widen as the DDI portfolio increases it’s cash flow
The week ahead
Summer is typically a bit choppy for the markets and with a 3 day weekend for investors to digest their new found gains, I would expect to see some sort of pull back next week as profit taking
enters the market. While I believe the market is fairly healthy and should perform well over the coming months as our economy continues to improve, a pull back to sub-12,000 levels are not out of the question. Since I missed my opportunity to pick up Caterpillar (ticker: CAT) a couple weeks back
when it was trading in the $95 range (closed today above $108) a pull-back from these levels would be a welcome event for some stock market
Happy 4th of July!
I hope that as we celebrate our country’s birth this 4th of July, you will take some time out spend with family and friends and enjoy the warmer weather this time of year affords us. Stay safe and enjoy!