Saying on Sunday that the coronavirus surge in Nevada is running at wildfire levels, Governor Steve Sislak announced new restrictions to start on Tuesday and that will run for three weeks. The new rules will require casinos, amusement and theme parks, arcades, bars, and restaurants to reduce their capacity to 25% from the current 50%. What I think is most interesting to investors, though, is the reaction of stocks with Las Vegas exposure to the news.
The returns for 2018 and 2019 for my Dividend Portfolio show the challenge facing dividend income investors during this period of extremely low interest rates.
In 2018 my Dividend Portfolio showed a yield on 3.60%. That produced $6,483 in dividend income that year. (In this portfolio I put an equal $10,000 into each position and rebalance each year.) The goal of this portfolio is to beat the yield on the 10-year Treasury. On January 1, 2018 the yield on the 10-year Treasury was 2.58%. In 2019 my Dividend Portfolio showed a yield of 4.90%. I held fewer stocks in that portfolio that year but I still managed to produce $6,365 in dividend income that year. On January 1, 2019, the yield on the 10-year Treasury was 2.71%. But as THEY always tell us, there's no free lunch in the financial markets.
On the night of November 18, I made Duke Energy (DUK) my second pick in my Special Report: "Dividend Stocks that are beating the Risky Rockets" on my JubakAM.com subscription site. On November 19, I'm added these shares to my Dividend Portfolio. Duke Energy embodies many of the trends currently driving utility stocks higher.
This morning on my way back from the farmers' market, I passed a Whole Foods Market selling small Christmas trees for my "holiday table."It's November 20. Thanksgiving is NEXT week. Christmas is more than a month away.You may be noticed other signs of retailers jumping the seasonal gun.