What's changed in Genevieve's portfolio this week:

1. Genevieve’s Corner

PORTFOLIO SHIFTS THIS WEEK:

This week, I made substantial adjustments to my investment portfolio, primarily reducing my position in the high-yield cash ETF and reallocating the funds into a selection of my preferred stocks. These changes account for approximately 7-8% of my overall portfolio. Now, let's dig in:

1. Trimmed Horizons High-Interest Savings (CASH-T), yielding +5.14%, as I anticipate rate cuts in 2024. This ETF previously constituted approximately 20% of my portfolio. With the potential influx of a RECORD $5.9 trillion in money market funds into stocks following anticipated FED rate cuts, I see a strong tailwind for the S&P 500 this year.

2. Added to Visa (V-US): “If you could own a royalty on people spending money like Visa or Mastercard, it’s the greatest business in the world.” - Bill Ackman

   With a beat on earnings fueled by robust consumer spending and credit card usage in Q4, analysts have raised their target prices. Looking ahead, Visa management is confident in expecting "low double-digit" revenue growth and diluted earnings per share to grow in the "low teens" for the upcoming year.

3. Added to Union Pacific (UNP-US) In Q4, Union Pacific reported earnings that surpassed expectations, driven by stronger carloads and increased efficiencies. Analysts responded by raising their target prices. The new CEO, who assumed leadership in 2023, has prioritized improving service and achieving the best margins among North American railroads. Early signs indicate improving margins, signaling a positive trajectory for the company.

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Stay tuned for shifts next week!

Cheers,

Genevieve Roch-Decter

2. Matt Allen’s Corner

6 STEPS TO MAXIMIZE DIVIDEND INVESTMENTS

Hi Everyone! Today, I’m highlighting one of our newest sections in GRIT VIP, Dividends! Below, I share a snippet of my newest article, 6 Steps To Maximize Dividend Investments.

1. Dollar-Cost Average 💵

This approach involves regularly investing a fixed sum of money into dividend-paying stocks, regardless of the market's fluctuation. By doing so, investors can mitigate the impact of market volatility on their investment portfolio.

The primary advantage of dollar-cost averaging is that it allows investors to purchase more shares when prices are low and fewer when prices are high, leading to a lower average cost per share over time. This method is particularly beneficial for dividend investments, as it can enhance the overall yield of your portfolio. As you accumulate more shares, your dividend income potentially increases, even if the dividend per share remains constant.

Moreover, dollar-cost averaging disciplines investors to stay committed to their investment plan, avoiding the pitfalls of trying to time the market. Market timing is often risky and can lead to missed opportunities, especially in the case of dividend stocks, where consistent investment is key to maximizing returns.

This strategy is especially suitable for investors looking to build their portfolios steadily over time. ⏰ By investing a set amount regularly, you can grow your dividend income steadily, benefiting from the compounding effect of reinvested dividends. Thus, dollar-cost averaging is a powerful tool in the arsenal of any dividend investor, providing a systematic approach to building wealth and maximizing dividend returns.

2. Dividend Reinvestment Plans or DRIPs 

DRIPs are efficient for investors looking to compound their wealth over time. These plans allow you to reinvest your dividend earnings automatically into the company’s stock instead of receiving them as cash payouts.

One of the main advantages of DRIPs is the potential for compound growth. 📈 When dividends are reinvested, they purchase additional shares of the stock, which in turn will generate their dividends. Over time, this reinvestment cycle can lead to exponential growth of your investment portfolio as the number of shares you own—and consequently, your dividend income—increases.

Another benefit is the convenience and cost-effectiveness of DRIPs. Many companies offer DRIPs with no or low transaction fees and sometimes at a discounted price per share, making it a cost-efficient way to increase your holdings. This automatic reinvestment also removes the emotional aspect of investing, helping you stick to a long-term growth plan without being swayed by short-term market fluctuations.

Upgrade to GRIT VIP to access this full article, plus dozens of others! 📚

Cheers,

Matt Allen

3. Comin’ Up

EARNINGS AND ECONOMIC DATA

💰 Earnings:

Monday: Ryanair

Tuesday: Microsoft, AMD, Alphabet, Starbucks

Wednesday: Mastercard, Boeing, Qualcomm

Thursday: Apple, Amazon, Meta

Friday: Exxon, Chevron

📈 Major Economic Events:

Monday: N/A

Tuesday: Job openings

Wednesday: Employment cost index

Thursday: U.S. productivity

Friday: Nonfarm payrolls

The author of this newsletter owns ETF’s (exchange traded funds) that may hold ownership interests in the companies discussed in this newsletter as of the published date of this newsletter.