May 2019 Portfolio Update

While May saw relatively muted dividend activity, it was nevertheless an interesting month for my portfolio. I added a net new company based on some exciting announcements. Although the future is never certain, it is important to be involved in trends that shape the consumer landscape—even if that means paying up every now and then.

CAD Dividends

Company	CAD Payments ($)
RioCan Real Estate Investment Trust (REI.UN)	31.32
Chartwell Retirement Residence (CSH.UN)	5.00

USD Dividends

Company	USD Payments ($)
AbbVie Inc. (ABBV)	40.02

Dividend Summary

I saw my off-month totals increasing considerably with my May dividends. I received C$36.32 and U$40.02 which brings me to a currency-neutral total of $76.34. While this is still slightly below my May 2018 figure, it still represents a considerable rise from the drop experience in August and November of last year (the Feb-May-Aug-Nov quarterly payment schedule tends to be roughly similar). When Jean Coutu was merged into Metro Inc. (MRU), the payment timings were changed and resulted in some lean months. Here is how May has looked since the inception of my dividend growth portfolio:

ABBV is now stepping in to pick up some of the slack. I initiated my position back in November 2018 and then more than doubled it in January of this year. Doing so both increases my exposure to healthcare (ABBV is a biopharmaceutical with a strong historical track record) while also adding dividends to the slow months.

Year To Date Progress

While I have been consistently tracking my dividends in monthly articles, I feel it is useful also to provide the higher-level-view within each monthly rundown. Here are the monthly tabulations:

Month	Dividends ($)
January	540.02
February	54.41
March	591.07
April	521.00
May	76.34
Total	1782.84

Market Activity

It has always been my philosophy to buy stocks when their market prices decline either unjustifiably or more than they should even when a decline is warranted. I broke that rule in May when I initiated a position in The Walt Disney Company (DIS).

At their Investor Day Webcast in April, the company announced plans to begin a streaming service called Disney+. Naturally, this will be a considerable threat to other content streaming services currently on the market given DIS plans to open up their portfolio for the low price of U$6.99 monthly. Point blank, DIS has the best content on the market with proven brands such as Marvel and Star Wars which will offer decades of runway for growth.

I was not, of course, the only person to recognize how huge this could potentially be for DIS. Following the news, DIS jumped from ~U$116 per share to a trading range above U$130. I hate to pay up for stocks, but I am making an exception in this case. I feel the growth story too compelling (particularly when I am a consumer myself) not to get on board. My hope is that there will be opportunities along the way to average down and take a larger position.

On my 10 shares and with the semi-annual dividend of U$0.88, I am expecting to bring in U$8.80 every six months or U$17.60 annually. While this isn’t much at the moment, the story for DIS is really about the future growth that has only really begun to be tapped. With proper execution, I see no reason DIS couldn’t still be ruling the roost thirty years from now. While the way we consume entertainment will invariably change in ways it is impossible now to foresee, the human craving for it is never going to dissipate.

Cash

I am again just sitting on cash for the most part. Earning 3% keeps it from growing too stale, though I’d much rather be deploying into the market if prices will cooperate. The tariff trade talk hasn’t given me the opportunities I’d like to see, to this point.

Berkshire Hathaway Annual Meeting

I haven’t yet put together a summary article based the trip to the Berkshire Hathaway (BRK.B) shareholder event in early May. That should be coming over the weekend.

Conclusion

While not a banner month overall in terms of dividends received, it feels nice getting closer to the $100 total in an off-month. ABBV has been a solid addition to the portfolio and I’m looking forward to tracking its dividend growth in the years to come.

Adding DIS to the portfolio this month feels great as I strongly believe in the company’s future. Not being able to pick DIS up at a discount stings a bit, but if I’ve learned one thing from Charlie Munger, it’s that a great company at a fair price can still be a good idea.

Full Disclosure: Long REI.UN, CSH.UN, ABBV, MRU, BRK.B