Week 49 - $955.87
Stock prices reach a six-week low as technology stocks continue to lead losses, despite signs of slow, but steady, progress in an economic recovery.
Total Report (Since October 11th, 2019)
Positive Performing Sectors
1. Consumer Discretionary (+40.03%)
2. Materials (+38.69%)
3. Industrials (+22.01%)
4. Consumer Staples (+17.01%)
5. Healthcare (+8.94%)
6. Financials (+0.93%)
Negative Performing Sectors
7. Information Technology (-14.62%)
8. Real Estate (-14.83%)
9. Communication Services (-16.52%)
10. Utilities (-16.77%)
11. Energy (-34.90%)
1. Consumer Discretionary (+40.03%)
2. Materials (+38.69%)
3. Industrials (+22.01%)
4. Consumer Staples (+17.01%)
5. Healthcare (+8.94%)
6. Financials (+0.93%)
Negative Performing Sectors
7. Information Technology (-14.62%)
8. Real Estate (-14.83%)
9. Communication Services (-16.52%)
10. Utilities (-16.77%)
11. Energy (-34.90%)
Weekly Report (September 18th, 2020)
Positive Performing Sectors
1. Financials (+2.33%)
2. Industrials (+1.39%)
3. Information Technology (+1.21%)
4. Real Estate (+1.12%)
5. Consumer Discretionary (+0.85%)
6. Materials (+0.83%)
7. Energy (+0.70%)
8. Healthcare (+0.48%)
9. Utilities (+0.11%)
Negative Performing Sectors
10. Communication Services (-0.27%)
11. Consumer Staples (-0.51%)
1. Financials (+2.33%)
2. Industrials (+1.39%)
3. Information Technology (+1.21%)
4. Real Estate (+1.12%)
5. Consumer Discretionary (+0.85%)
6. Materials (+0.83%)
7. Energy (+0.70%)
8. Healthcare (+0.48%)
9. Utilities (+0.11%)
Negative Performing Sectors
10. Communication Services (-0.27%)
11. Consumer Staples (-0.51%)
GICS Sector Performance Ratio - Balanced: From 2:9 (18.18%) to 9:2 (81.82%)
Review
The stock market may be falling, but the Dividend Aristocrats are standing strong this week with a slight gain against the relatively significant losses of the S&P 500. Tech stocks control a significant portion of the overall stock market, with the largest among them accounting for around 20% of the capital-weighted index. As a result, tech wields incredible sway over the S&P 500's overall performance, often outweighing many other sizable sectors such as Consumer Staples and Financials that contain mega-cap companies such as Walmart and JPMorgan Chase, respectively.
The Dividend Aristocrats 2020 portfolio differs from the S&P 500 in that all sectors are given approximately equal weighting, regardless of any one company's market cap. Not only does this protect from volatility due to any one sector, but allows greater emphasis on gains made for the whole economy over that of a particular sector. Coupled with a dividend reinvestment strategy that favors downturns to buy in, the Dividend Aristocrats 2020 portfolio could potentially outperform the S&P 500 over the long term. Unlike most stocks that require a sell-off in order to realize gains, dividend-centered stocks realize gains every time dividends are paid out, virtually allowing for infinite cash flow without the need to reduce one's position in a company.
At some point, non-dividend stocks must be sold. This fact is what causes the stock market to fluctuate so dramatically for even the most entrenched companies. With dividend-centered stocks, fluctuations are nearly non-existent as little incentive remains to sell off one's position. Companies that opt to pay increasing dividends in the long term often are the ones that stay around the longest.
The Dividend Aristocrats 2020 portfolio differs from the S&P 500 in that all sectors are given approximately equal weighting, regardless of any one company's market cap. Not only does this protect from volatility due to any one sector, but allows greater emphasis on gains made for the whole economy over that of a particular sector. Coupled with a dividend reinvestment strategy that favors downturns to buy in, the Dividend Aristocrats 2020 portfolio could potentially outperform the S&P 500 over the long term. Unlike most stocks that require a sell-off in order to realize gains, dividend-centered stocks realize gains every time dividends are paid out, virtually allowing for infinite cash flow without the need to reduce one's position in a company.
At some point, non-dividend stocks must be sold. This fact is what causes the stock market to fluctuate so dramatically for even the most entrenched companies. With dividend-centered stocks, fluctuations are nearly non-existent as little incentive remains to sell off one's position. Companies that opt to pay increasing dividends in the long term often are the ones that stay around the longest.
Last Week's Update (September 11th, 2020)
M1 Finance Platform Referral Link: https://m1.finance/UIl_N9XNA_CO
M1 Finance Dividend Aristocrats 2020 Pie: https://m1.finance/quB1JH2k6
M1 Finance Platform Referral Link: https://m1.finance/UIl_N9XNA_CO
M1 Finance Dividend Aristocrats 2020 Pie: https://m1.finance/quB1JH2k6
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