Sunday, January 17, 2021

Stocks that will generate passive incomes - Portfolio update December 2020

Portfolio Update - December 2020

Today I am going to share the status of my portfolio at the end of December 2020. I invest in dividend paying stocks mostly, however I also invest a small portion in non-dividend paying stocks like Amazon (AMZN), Google (GOOG), Facebook (FB) etc. I also invest in cryptos but not at this price. I am selling to take a huge profit. I will use those money to buy stocks. The following table shows my current portfolio distribution:

The following pie chart also shows my portfolio and you can see that currently Apple (AAPL) is my largest holdings followed by the Vanguard High Yield (VYM), and Abbvie (ABBV). I added AAPL in 2018 and after that the price skyrocketed. That is why it is my largest holdings. VYM is part of my retirement fund. 

The sector distribution of my portfolio is shown in the following pie chart. I have selected the sectors based on Yahoo Finance. Currently my highest position is in the tech sector followed by the healthcare, and consumer cyclical. In the tech sector, the prices of AAPL, MSFT, and TXN rose sharply that's why percentage in the tech sector on the top.

The following treemap shows the sectors that I am holding the most and also the shares under each sector. I like the tree maps. It helps to understand the portfolio much better. I am holding the most in the tech sector followed by the healthcare.

I always keep track my portfolio on the Tipranks website and the figures below compares my portfolio with the S&P 500 in the last 12 years. In the recent months my portfolio is performing similar to S&P 500.

My performance as a portfolio manager is also impressive. At the end of December 2020, I was ranked 6,720 out of 51,587 investors in tip ranks which is at the top 13%. My portfolio has gained 89% since 2017. My sharpe ratio is 2.41 while the average ratio is 1.35.

My 12 months return (TTM) is 15.77% and the last 6 month return was 19.79%. All of my investments are for a longer term. So it will only grow with time.

The table below shows the dividends that I received in December 2020. I have done DRIP of all the dividends that I received. I have received $168.68 in dividends in the last month.

    The following table shows the detailed performance of my portfolio. The current price in the table is based on the price on December 31st 2020. In the table, 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 (218%), MSFT (168%), MA (141%), STOR (102%), and V (100%). The only stock that I am in loss is CVX (-2.9%). However, if I look for long term then energy sector has good potential to move up.

    The following treemap shows my gains in every sector under each stock. I have a huge gain in the tech and financial sectors. In tech I am gaining in Apple (AAPL) and Microsoft (MSFT). In the consumer sector I am gaining mostly from Starbux (SBUX), in the financial sector Mastercard (MA) and Visa (V), in the industrial sector its Caterpiller (CAT), in Procter & gamble (PG) in the consumer defensive sector, Store Capital (STOR) in the REITs, and in the health sector I am gaining mostly in Abbvie (ABBV) and Bristol Myers Squib (BMY).

Monday, January 4, 2021

Monthly Dividend Update - December 2020

 Monthly Dividend Update - December 2020

Hey what's up guys. Today I am going to share my updated dividend growth portfolio at the end of December 2020. In December, I have sold my entire position in the tanker company Nordic American Tanker (NAT) and initiated new position in Kimberly Clark (KMB). This is a great company for long term play and definitely a recession proof stock. I am slowly growing my positions in the dividend paying stocks. The ETFs that I am holding are part of my retirement account. In the future I am planning to add a few VOO shares in the retirement portfolio. The table below shows the dividends that I received in December 2020.

     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 grow with time. This part of the quarter gives me the highest income. My income from the last quarter dropped because NAT lowered their dividends 80%. They pay dividends cyclically. I have sold all of my positions in NAT.

     The following chart compares my monthly dividends on a yearly basis. In the last month, I have received $168.68 while last year in the same month I received around $120.

     The next chart shows the total amount of dividends received in each quarter and compares the total amount of dividends with the previous years.

On a yield basis, the current yield of my overall portfolio is 2.53% however my yield on cost (YOC) is 3.84%. The YOC will continue to increase because the dividend paying stocks always increase their dividends yearly so the YOC will only increase with time. On the other hand, the current yield depends on the market. If the market is in bull mode then the yield will drop and it will increase when the market is in bear mode.

     The following figure shows the YOC and current yield comparison with time. My YOC is gradually increasing while the current yield fluctuated in the same range which is dependent on the market condition. Currently the market is in bull mode so the current yield is dropping but the YOC is increasing because of the dividend increase from the companies. 

     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 summarizes my dividend distribution in the portfolio. The most percentages of dividends I am receiving are Vanguard High Yield (VYM), Abbvie (ABBV), At&t (T), Johnson & Johnson (JNJ) etc. They are the sources of 35% of my total dividend incomes. I have to buy other dividend paying stocks to balance the dividend distribution.


     The following tree map shows the percentage of dividends that I am receiving from the individual stocks and also compares between the sectors. It helps me to understand which sectors are paying me the most in dividends. The map shows that I am getting the highest amount of dividends from the health sectors followed by the ETFs 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 December 2020, I have received $168.68. In 2020, I have received $1190 in dividends.

     The next table shows my dividend growth performance in the year. Out of all of my positions, none of my holdings cut their dividends surprisingly. Only 4 of them did not raise their dividends. Among them At&t and Leggett & Plat did not raise who has good record of increasing dividends.