Robbie Thomas
Investing Into 2021
With 2021 coming up and a new presidency, I’m looking to go further with my investing. I said a couple of posts ago that I don’t think that the Covid-19 scare isn’t going away in 2021, look for us to see more light in 2022. In Michigan, we have been under strict lockdowns including ordering restaurants to go carry-out and outdoor dining only. I have to say that the outdoor dining thing with the weather getting colder in MI is goofy as hell, but I’m not the one calling the shots.
I invest through Stash Capital and my portfolio isn’t quite diversified. For instance, I don’t have much of an investment in Europe at this time and my future plans include an investment in a European ETF. I’ll discuss that further within this article. Besides Stash, I’m looking to put the $3,000 minimum into a Vanguard Index Fund come next month. I’ll probably go to the Wellington Fund. If things go well with Vanguard and my personal financial life, I’ll likely buy another fund at that $3,000 minimum in January 2022, we’ll see.
I want to do another thing in 2021, that’s to keep an eye on the approval of employees of said companies that I invest in. I really don’t want to invest in companies that treat their employees like shit overall. You can’t make anybody happy, but a crap rating with Glassdoor could be a problem.
So, here are some of the stocks I will continue to invest in:
AT&T (T) – AT&T has been around since dinosaurs roamed the Earth (kidding), and for my personal experience with AT&T’s fiber internet being so good, I like that service working well. My formula that calculates Income Percentage (Operation Revenue / Net Income) has seen AT&T in Q1: 11.6%. It went down in Q2 at 3.82%, with Q3 (on 30 Sep 2020) going up at 7.48%. According to Glassdoor, AT&T is rated at a 3.6 out of 5. Hopefully, they can raise that rating a tenth or two. I thought AT&T would raise their dividend to $0.53 this time around, but we are still $0.52. It’s good anyway!
Cisco (CSCO) – When it comes to business networking, Cisco is topps. Yes, Cisco’s WebEx can’t compare to Zoom, but Cisco is keeping up. I did a math formula by calculating the total assets with equity into a percentage. They have been increasing that, with Q1 2020 at 37.22% and Q1 2021 at 40.16%. Sadly, the company’s revenue has been dropping. However, the company keeps shedding its expenses as well. I do like their Glassdoor rating at 4.2. My best guess is they are trying to create more automation. But also, I want to see if their SaaS will work out. It’s almost 4/5 of how the company is running. I’ll wait for the next report and decide if I continue more with Cisco.
Iron Mountain (IRM) – This one was pointed out to me by Tom Leykis. Iron Mountain is a data/digital storage company. I do notice that their New Jersey storage area is doing well. My best guess is that some New York businesses are using Iron Mountain to keep their data for a possible move out of there. With New York being quite high with the rents, some businesses that can run mobile will likely leave NYC for a different location where rents are cheaper. Iron Mountain does pay a good dividend of $0.6185.
Pfizer (PFIZ) – Pfizer and Biotech are leading the way with the Covid-19 vaccines. I chose Pfizer due to upping my investments under the Science category. Also, I like companies with a stock price of $25-60 that pay an outstanding dividend. Pfizer stands at $0.39, coming up in January. Pfizer gave any stockholders shares of Viatris, a spinoff company, shares of that company. I had 8 shares of Pfizer, and I got a share of Viatris for free. I don’t expect the path for Pfizer to be smooth; there will be some problems with them down the road despite them being the leader of the vaccine. Hopefully, they don’t fuck up big time.
Dow Chemical (DOW) – Dow has been around for a while, but they have split from DuPont in recent times. I saw that dividend at $0.70, and I’m a filthy whore for that dividend. I got my $4.22 payment; I just started investing with them, and my six shares aren’t a big thing to brag about. The problem with Dow is that in 2020, they haven’t been making much of a profit. I’ll be waiting for the Q4 report to see if they can get it together.
iShares Core Moderate Allocation ETF (AOM) – This one is listed as Moderate Mix on Stash. When the fund started in late 2008, it was under $20 a share. I’ve been buying them at an average of $38, starting in mid-2018. I’m still buying the fund when it got past $40, and I’m looking to keep buying until it reaches $50. Then I’ll sell when or if it gets to $75-80. This fund does not climb up as much as VGT. VGT in March 2020 went down to $185; now it is at $343 (as of 15 Dec 2020). I was buying this until it got to $210. I sold half of my position before Election Day. AOM is highly likely NOT going to move fast as VGT and some big ETFs you could name, but I see AOM often associated with conservative investing articles. If you’re a beginner or looking for low-risk, AOM might be a good idea. AOM’s dividend ranges from $0.15-$0.32. I recently got a $0.16 dividend from them.
Alternative Harvest ETFMG (MJ) – This one is listed as Corporate Cannabis on Stash. I jumped into the MJ in 2018 with a small purchase, and in Sep 2018, this ETF went down like a mofo. From Sep 2018 to Mar 2020, it went down from $35 to under $10. I was making bigger purchases with MJ starting in May 2020 and continue to do so. Since the Biden victory, I see MJ jumping little by little, with the price right now at $15 as of 15 Dec 2020. Some major cities like Detroit are more agreeable with Marijuana. However, something strange happened in Warren, MI, with the attempt to opening pot shops. It will take a while for us as a country to agree on Marijuana shops, especially cities and counties that vote red. For instance, I can’t see many marijuana shops opening big time in Michigan’s thumb area, even if they paid high taxes to help said counties. I’m treading lightly…
Future ETFs I’m Considering
Vanguard International High Dividend Yield ETF (VYMI) – Also known as International Dividends on Stash. I’ve been looking to invest at an international level. Not due to Stash telling me too. It was something I was looking to do down the road. We here in America have not been doing so well with handling Covid-19, but Australia has been doing good for an example. Going to VYMI, it pays an annual dividend at $2.30; the pay per quarter varies. The stock price is $61, a dollar more than my $60 limit, but I’m looking to give this one a try come January 2021. I think for a virgin international investor like me, this one would be a good start. If this fund has quite a few Australian companies in it, that’ll be good.
Invesco Dynamic Leisure and Entertainment ETF (PEJ) – Also known as Destination Recreation on Stash. This ETF got its ass kicked in March 2020, going from $46 to $18. It’s creeping up to $38 as of 15 Dec 2020. This is one of these funds I don’t expect to fly high until at least 2022. Like I said in a previous post, I don’t think 2021 will be the big recovery year; I’m thinking 2022-ish (2022 or 2023). Will people go on international vacations in the summer of 2021? I can see many Europeans and Australians NOT wanting to go to America in 2021 (My American self doesn’t blame you). With this fund, I’ll be treading slowly. This fund pays shit dividends, an average of 2-7 cents per share since early 2018. Do you want dividends? This isn’t the place! I may not jump into this fund in January 2021 and may wait a few months after.
Vanguard FTSE Europe Fund (VGK) – Is at around $60 as of 15 Dec 2020. As said with the VYMI, I like to add more international to my portfolio. Before I start investing in this fund, I like to take a look at the reports. And also, Covid-19 cases are rising in Europe as of writing this post. This fund pays half of the dividend of VYMI, with a dividend ranging from $0.26-0.35 per share. I’ve seen the fund paying up to $1.11 per share a few times within the last five years.
That’s all for now, I hope you enjoyed this long post here.
WARNING: Do not take this advice and put all your eggs in the basket on a single stock or fund that I mentioned. Please do your research and due diligence. I don’t want an e-mail with: “Hey asshole! I put all my money in a stock you mentioned in a blog, and the CEO (or Fund Manager) got caught naked with a 7-year-old boy in Thailand.”