Tuesday, January 22, 2019

My Dividend Growth Investing Update for December 2018

Portfolio Update - January 2019

Today I am sharing my long-term dividend growth portfolio at the beginning of January 2019. I am new in investing with very little experience. I have started investing last year in June 2018. Since then I am investing in dividend paying companies who have records of increasing dividends yearly. I am collecting the dividends and reinvesting them in purchasing stocks. My main trading platform is Robinhood. However, in future, I have a plan to move to a well-established brokerage. Because I am new in this area any suggestion from you will be helpful for me. Initially, I invested in some stocks without going into deep so that's why I am balancing my portfolio by selling those stocks. below is my current portfolio:

Portfolio Breakdown:

The following pie chart shows the breakdown of my stocks allocation by sector based on Morningstar. The pie chart shows that my highest investment is in the financial sector (26%) followed by the consumer sector with 23%. My third biggest holdings are in the Technology sector (16%) which is followed by Healthcare (12%), Industrial (9%), and in the Communication sector (8%). I have invested a small percentage in Basic materials, Real Estate, and in the Energy sector with each around 2 to 3%.

Portfolio Performance Comparison:

My portfolio performances compared to the Morningstar US Market Index and S & P 500 TR index are shown in the following figures. The comparison charts show that my portfolio suffered 9.58% loss while Morningstar US Market and S & P 500 lost 9.4 and 9.03% respectively. My portfolio performed slightly lower than the two indexes. 


                                                                                                                        Source: Morningstar

Dividend Meter:

In December, my projected annual dividend increased from $773 to $846. I have purchased shares of Apple, JP Morgan, Bank of America, Main Street Capital, Gladstone Investment, and The Kraft and Heinz. 
Prepared using Google Sheet

My forward yield is 3.06 while my Yield of Cost is 2.94. Because of the market crash in December, my forward yield is higher than the YOC. 

Prepared using Google Sheet

Dividend Growth Performance:

The charts below show the history of my monthly dividends received since I started to invest. December 2019 is my highest payments through dividends. I have received $82 in dividends. Last year during the same month I received only $5. In the beginning, I invested in non-dividend stocks such as Micron, Paypal, Facebook, Alibaba, JD etc. That's why my dividends were low. But I have changed my mind to invest in long-term dividend growth stocks.


This graph shows my projected annual dividend income.
Stocks Purchased in December:
In December, I purchased Apple stocks at $149.52 on 24th December 2018. I also purchased Bank of America at $23.6, JP Morgan Chase at $96.32, Main Street Capital at $33.96, The Kraft and Heinz at $49.52, and Gladstone Capital at $8.92.

Stocks Sold in December:
In this month I have sold all of my positions in Cypress Semiconductors (CY) and Ally Financial (ALLY).

My Watchlist:
I don't have any utility stocks in my portfolio. So I am planning to add 1 or 2 utility stocks. I am closely watching Southern Corp (SO) and NextEra Energy (NEE). I am also planning to add my position in Johnsson and Johnsson (JNJ) and Microsoft (MSFT) in this month. My target price for JNJ is $120 and for Microsoft $90. I am also watching PepsiCo (PEP). I am planning to add my position in PEP around $100.

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