Sunday, February 14, 2021

Stocks that will give you peace in your retirement

  Portfolio Update - January 2021

Today I am going to share the status of my portfolio at the end of January 2021. My plan is to gradually invest in the stocks that pay dividends and increase the dividends in every year. Investing in dividend stocks is kind of boring but it will help your wealth grow effectively with time with less risk compared to non-dividend paying stocks. They perform good when the market foes to bear mode. Because I am young so I have decide to invest 20% of my invest into aggressive stocks and in the cryptos. I invest a small portion in non-dividend paying stocks like Amazon (AMZN), Google (GOOG), Tesla (TSLA) etc. I also invest a small percentage in the cryptos. I mostly invest in Bitcoin and Ehteruem. Other notable cryptos that I am invested in is Binance Coin (BNB), Chainlink (LINK), (CRO), and VeChain (VET). Recently I have sold some of the cryptos to take profit. Currently I am only buying USDC. These risky positions will help me to build my wealth faster than the dividend paying stocks considering my age. When I will be close to my retirement I can sell these positions and will be able to buy a lot of dividend paying stocks for the retirement income. The table below shows my current portfolio distribution:

The following pie chart also shows my portfolio and you can see that currently Apple (AAPL) is my largest holding followed by Vanguard High Yield (VYM), The Home Depot (HD). The two ETFs that I am holding they are actually from 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 percentage of portfolio are in the tech sector as they are performing superbly for the last few years. My next two largest holdings are in the healthcare and ETFs. 

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

I also keep updated my portfolio in TipRanks where I can track my overall gain of my capital since I started to invest in 2017. So far my capital gain is 84.89% and my Sharpe ratio is 2.28. I am ranked among the top 15% of the total investor in the website.

My 12 month return (TTM) is 13.29% and the last 6 months return is 11.99%. I am investing for longer term. I have no intention to sell them unless if I need for any emergency.

The table below shows the dividends that I have received in January 2021. I have received only $23 because I have sold a good number of stocks to purchase my first home. However, I have purchased KMB, MRK, and PPL recently. So my income at this period of the quarter will increase. 

On average I am currently earning around $110 monthly in dividends totaling $1329 a year. If I continue to invest regularly then it will keep growing and the companies will keep increasing their dividends every year. This will compound the income and after few years I will start to see snowball effect. This is the magic of investing in dividend paying stocks.

The following table shows the detailed performance of my portfolio. The current price in the table is based on the price on January 31st 2021. 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 in terms of gain are AAPL (216%), MSFT (179%), MA (114%), CAT (86%), and STOR (85%). I am only loosing in CVX (-1.84%) and recently purchased C (-3.37%). The total gain of my current holdings are 48%. 

The following tree-map shows my gains in every sector under each stock. I have a huge gain in the tech, consumer, industrial, and financial sectors. In the tech I have big gain in AAPL and MSFT. In the consumer sector I have gain mostly in SBUX and HD. In the industrial sector I have big gain in CAT stock. I am also gaining a lot in MA, V, STOR, and PG.

Saturday, February 6, 2021

Monthly Dividend Update - January 2021

 Monthly Dividend Update - January 2021

Hey guys, today I am sharing with you my dividend status of my portfolio at the end of January 2021. In January, I was very active in buying stocks. I have initiated my positions in General Mills (GIS), Hormel Foods (HRL), and Citi Bank (C). I have also purchased Kimberley Clark (KMB) and PPL Corp (PPL) stocks in my portfolio. I have also purchased Vanguard High Yield (VYM) in my retirement portfolio. As I have written in my previous blogs that I invest 80% in dividend paying stocks, 10% in non-dividend paying stocks, and the rest 10% in the Cryptos. At this current condition, I am not adding any cryptos. I am investing that money into non-dividend paying stocks. The table below shows the dividends that I received in January 2021. This month my income was too little as I sold a good number of stocks to get cash to buy my first home. 

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 and hold in these great companies my income will continue to grow with time. 

The following chart compares my monthly dividends on a yearly basis. In the last month, I have received only $23 while last year in the same month I received around $60. It dropped significantly because I sold some of my major holdings such as JP Morgan (JPM), Medical Properties (MPW), and PPL Corporation (PPL).

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 yield basis, the current yield of my overall portfolio is 2.68% however, my yield on cost (YOC) is 3.82%. 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 yield will drop and will increase if the market is in bear mode. The later condition will give you buying opportunity.

The following figure shows the YOC and current yield comparison with time. My YOC is gradually increasing with time while the current yield fluctuated in the same range which depends on the market condition. On the other hand the YOC increases with time because most of the companies increase their dividends yearly and it does not fluctuate with the market condition.

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 the table below summarizes my dividend distribution in the portfolio. The most percentages of dividends I am receiving are from the Vanguard High Yield (VYM), Abbvie (ABBV), At&t (T), Johnson & Johnson (JNJ), and Home Depot (HD) etc. They are the 40% of my total dividend incomes. 

Dividend Source in the table format:

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 consumer defensive, 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 so far in 2021. In January, I have received a small amount of dividends but in the next cycle I will receive more dividends because I invested in KMB and PPL.

The next table shows my dividend growth performance in the year 2021. Last year, none of my holdings cut their dividends. Only 4 of them did not raise their dividends other than that all of them raised dividends.