Sunday, August 16, 2020

How to become rich by investing in Dividend paying stocks - Portfolio Update

 Portfolio Update - July 2020

Today I am going to show the status of my portfolio at the end of July 2020. Every month I am investing 10% of my salary. Out of that 10%, I invest 80% of it into dividend-paying stocks, 10% in non-dividend paying stocks, and 10% in Cryptos. I am not investing aggressively. This month I did not buy any stocks. I am saving cash. I am planning to buy my first house so maybe I will have to sell some of my holdings to pay for the downpayment. The following table shows my current portfolio distribution:

The following pie chart shows the same distribution and currently, Apple (AAPL) is my maximum holding followed by The Home Depot (HD), Abbvie (ABBV), and 3M (MMM). Recently, the price of AAPL, HD, and MSFT moved to an all-time high and because of this my position in these stocks increased and outpaced MMM and JNJ from the top 5 holdings.

The sector distribution of my portfolio is shown in the following pie chart. The sectors are based on Yahoo Finance. Currently, my highest position is in the tech sector followed by healthcare and consumer cyclical. Recent surge in Apple and Microsoft stock pushed the tech sector to the top.

The following treemap shows the sector distributions and the stocks under each sector.

I keep track of my portfolio on the Tipranks website and the figure below compares my portfolio performance against the S&P 500. In most of the cases, my portfolio beat the market. This month my performance is lower than the S&P 500.

My performance as a portfolio manager is also impressive. At the end of July 2020, I was ranked 4112 out of 36,039 portfolio managers in the TipRanks which is at the top 11.4%. My portfolio has gained 65% since I started investing in 2017. My Sharpe ratio is 1.84 while the average ratio among the TipRanks investors is 0.66.

My 12-month returns (TTM) is 23.54% and YTD return is 9.31%. I am investing in stocks with a long term vision. 

The table below shows the dividends that I received in July 2020. I have done DRIP of all the dividends that I received.

The following table shows the detailed performances of my portfolio. The current price in the table is based on the price on July 31st, 2020. In the chart, I have shared my current positions, annual income through dividends, total received dividends from each company so far, cost basis, YOC, current yield, and finally the total gain or loss including the dividend income. My top 5 performers based on gain so far are AAPL (156%), MSFT (147%), MA (109%),  PG (84%), and V(74%). I am in loss with all of the energy stocks.

The following treemap shows my gains in every sector under each stock. I have a huge gain in the tech sector followed by financial, and consumer cyclical. 

Tuesday, August 11, 2020

Monthly Dividend Update - July 2020

 Monthly Dividend Update - July 2020

    Hello everyone, today I am sharing my updated dividend growth portfolio at the end of July 2020. I always keep track of my investment portfolio in google sheet. It helps me to understand my portfolio performance so that I can make the right decision of my trades and in which direction my portfolio is going. I am not investing to retire early that's why I am investing only 10% of my salary for investing. My main investing strategy is to invest in dividend-paying stocks however, I also invest a very small percent paying stocks such as GOOGL, AMZN, TSLA, FB, etc. I also invest in cryptocurrencies mostly Bitcoin and Ethereum. So monthly, 80% of my investment goes to dividend-paying stocks, 10% in non-dividend paying stocks, and 10% in cryptos. All of my investments are for the long term. I don't sell stocks that often. In July, I did not purchase any stocks. I think there will be a drop in the market soon as the election is coming. So its better to pile up cash. I have received only $38 in dividends. The amount dropped due to the selling of my entire JPMorgan (JPM) stocks. JPM is a great stock to hold for longer time but I am thinking its not a good time to hold bank stocks. This month I have received dividends mostly from PPL Corp (PPL), Coca-Cola (KO), and Legget & Platt (LEG). I am currently doing DRIP to all of my positions except for NAT stocks.

    The following chart shows the dividends received monthly from my portfolio. The chart indicates the growth of my monthly dividends with time. If I keep investing in these stocks, my income will only grow with time.

    The following chart compares my monthly dividends on a yearly basis. In the last month, I have received $38 while in the same month in 2019 I received $48. My income dropped in this part of the quarter because I have sold my positions in JPM, IRM, and MPW stocks.  

    The next chart shows the total amount of dividends received on a quarterly basis. My previous two years have seen an increase in dividends every quarter. This year it may decrease as I have sold some stocks such as my bank and REIT positions such as BAC, JPM, MPW, and IRM. The companies have started to report their Q2 earnings and the reports are not quite good. However, the market is continuing its bull run resulting very high PE and Payout Ratios. I am expecting a market correction then I will invest a good amount of money in the market.

    On a yield basis, the current yield of my overall portfolio is 2.94% and my yield on cost (YOC) is 4.04%. The YOC is higher than the current yield because the companies in my portfolio increase their dividend payouts on a yearly basis. So for the longer run, the YOC will only keep going up unless any company cut their dividends. 

    From the following curve, we can see a comparison of the current yield vs. the YOC and it is clear that the YOC is slowly increasing with time.

    The chart below shows the average dividend income received monthly and the average amount of dividends received monthly. I am slowly increasing my passive income and if I continue to invest in the dividend-paying stocks it will only grow with time.

    The chart and table below summarize my dividend distribution in the portfolio. The most percentages of dividends I am receiving are from Abbvie (ABBV), At&t (T), and 3M (MMM). They are the source of almost 30% of my total dividend income. I have to diversify my position that's why I will not add any more stocks into these three companies. 

    The following treemap shows the dividends I am receiving from individual stocks and also compares between the sectors. I am getting the highest amount of dividends from the health sector followed by the industrial sector and consumer cyclical.

    The following table shows the dividends that I received from my positions in each month. This chart is very helpful to track my monthly income through dividends.

    The next table shows the total amount of dividends received in 2020 from my stocks positions. In July I have received $38 and so far in 2020, I have received $617 in dividends.

    The next table shows my dividend growth performance in the year. Out of my 34 stocks 18 of them increased dividends, 4 of them did not raise any dividends, and only BP cut their dividends by half. They raised the dividends in Match however, due to the pandemic they are forced to cut the dividend to half.