WEEKLY UPDATE
🔆2024 WEEK 22, June 3 – 9
Dear Investors, Followers and Copiers,
It seems that macro environment becomes more favorable for our dividend portfolio as chances of interest rate cuts are higher now. That is because an inflation slowly moves downward and the US economy decelerates.
Inflation data was released at the end of the last holiday shortened trading week. Core PCE (Personal Consumption Expenditures, excluding food and energy) inflation, released on Friday, shows that its downward trend continues. PCE price index is up 0.2% in April and 2.8% per year, as it was expected by economists polled by Dow Jones.
According to the Bureau of Economic Analysis in Q1 real GDP growth in the US is expected to be 1.3% annualized, down from the first 1.6% estimate. In Q4 2023 it was 3.4%. That deceleration in real GDP reflected decelerations in consumer spending and state/government spending.
According to San Francisco Fed pandemic related excess savings of over $2T in 2021 turned to negative $72B. Higher food, shelter and other expenses are particularly painful for lower income families. Debt is rapidly increasing: household debt was $17.7T at the end of Q1, by $3.5T more than before pandemic (according to the Fed of New York). This debt level combined with current high interest rates put pressure on consumer spending and can become a headwind for the economy.
Last week 10 – year Treasury yield topped 4.6% again, but by Friday close it was 4.5%.
FT said that investors are betting heavily that European Central Bank will lower interest rate by ¼ percentage point from current 4% at this week’s meeting as Eurozone inflation is close to the bank’s 2% target.
PORTFOLIO NEWS OF THE WEEK
☀️Ex – Dividend Dates This Week
The following Ex -Dividend Dates are expected this week.
🍓Jun 3 $O (Realty Income Corp)
🎊Dividend Increase!
O increased its monthly dividend by 2.1% to $0.2625 per share. The yield is 5.9%. The dividend will be paid on Jun 14.
🫐Jun 3 $CWEN (Clearway Energy Inc)
🎊Dividend Increase!
CWEN increased its quarterly dividend by 1.7% to $0.4102 per share. The dividend will be paid on Jun 17. The yield is 5.9%.
🍏Jun 4 $ORA.PA (Orange)
A semiannual dividend of EUR0.42 per share will be paid on Jun 6. The yield is 7%.
🍊Jun 6 $VOD.L ( Vodafone Group PLC)
A semiannual dividend of EUR 0.045 per share will be paid on Aug 2. The yield is 10.2%.
🍰Dividend Payments
The following dividends are to be paid this week.
🔹Jun 4 $VNA.DE (Vonovia SE)
VNA.DE pays a dividend of EUR0.9 per share and yield is 3%.
🔹Jun 6 ORA.PA
As it was mentioned above, ORA.PA pays a dividend of EUR0.42 per share.
🔹Jun 6 $YAR.OL (Yara International)
YAR.OL pays a dividend of NOK5 per share. The yield is 1.5%.
👉Portfolio’s Top Stock Movers
Last week the following companies belonging to our portfolio had the biggest stock price changes.
Winners: UGI +5.82%, SLG +4.52%, CCI +4.46%
Laggards: AQN -3.52%, AV.L -1.84%, YAR.OL -0.99%
📈Performance
Last week the main sectors within the portfolio performed as follows.
REITs are up 2.5%, Telecoms up 2.1% and Utilities up 1.2%.
The portfolio is up 1.6% for the week.
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