Monday, March 29, 2021

How much money I am getting from my Dividend Stocks portfolio

 Portfolio Update - February 2021    

Hey guys, today I am going to share with you how much money I am getting from my dividend investment portfolio. I maintain three different portfolios. The 80% of my investment goes to this portfolio. Other 10% goes to aggressive investment like TQQQ, QLD, UPRO, and ARK funds. The rest 10% goes to crypto. I have sold 50% of my crypto holdings and took some mind-blowing profit. Now comes the headache of estimated tax filing for quarter 1. Ok lets dig into my dividend stock portfolio. In this portfolio I invest into stocks which has record of paying dividends and increase the dividend rate every year. Investing in dividend paying stocks are sometimes boring but it helps to grow your wealth gradually. By investing in more dividend stock your income will increase in two different ways. Investing in dividend stocks will increase your income and the second source of increase is the dividend rate increase. The dividend stocks in my portfolio increase their dividends on average 4% per year. So if you think about longer term with a larger investment this increase every year will boost your income significantly. By following this rule, Warren Buffett is earning $3.8 billion per year in dividends according to NASDAQ website. Now lets jump into the stocks in my portfolio:

I own 41 stocks in my portfolio where AAPL is my highest position followed by Vanguard High Yield (VYM), Abbvie (ABBV), Home Depot (HD), etc. The top 10 holdings in my portfolio represents 54% of my portfolio. The following pie chart also shows my portfolio.

 I diversify my portfolio by investing in different sectors. Warren Buffett famously said that "Don't put all your eggs in the same basket". If the basket falls then all of your eggs will be broken. You have to put eggs in different baskets so that if one basket fells other eggs will not be broken. Its very important to diversify your portfolio in different sectors. The following pie chart shows the sector distribution of my portfolio.

The sectors are selected based on yahoo finance. My highest position is in the tech sector (19.4%) followed by the healthcare (15.7%), consumer defensive (15.6%), ETFs (14%) etc.

The following tree map shows the stocks that I am holding the most under each sector. I really like tree maps as it gives me more in depth about my portfolio. 

For example, the previous pie chart was showing that my highest holdings are in the tech sector but it was not showing which stocks I am holding the most under the tech sector. The tree map shows that my highest position is in the tech sector and AAPL is the highest position in the sector followed by MSFT and CSCO.

The table below shows the dividends that I have received in February 2021. I have received $104.62 in dividends mostly from ABBV, T, AAPL, and BMY. 

On average I am currently earning $119 per month in dividends totaling $1479 per year. If I continue to invest regularly then it will keep growing and the companies will keep increasing 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 dividends paying stocks.

The following table shows the detailed performance of my portfolio. The current price in the table is based on the price on February 28th 2021. In the table, I have shared my current positions, annual income through dividends, total received dividends from each company's far, cost basis, YOC, current yield, and finally gain or loss with including the income from dividends. My top 5 performers are AAPL (190%), Microsoft (179%), MasterCard (140%), Caterpillar (122%), and Starbux (100%). 

The chart below shows the gain vs. tickers. The stocks that I am losing are mostly new investments. The least growth stocks that I am holding for long time is At&t (T) and Ppl (PPL). 

The following tree-map shows my gains in stocks under each sector. I have a huge gain in the tech although the techs are down a bit at the recent times. In the tech my highest gains are from AAPL and MSFT, in the industrial sector the highest gain is from Caterpillar, in financial sector its Mastercard, in the consumer cyclical SBUX, In the consumer defensive Procter & Gamble, In the Healthcare its ABBV, in the energy sector its Exxon Mobil, and in the real estate its Store capital.

Friday, March 12, 2021

Monthly Dividend Update - February 2021

 Monthly Dividend Update - February 2021

Hey Guys, today I am going to share my dividend status of my portfolio. I am maintaining three different portfolios. The other portfolios are based on aggressive growth portfolio which has much higher risk but will have chance to get much higher return and the last portfolio is for the cryptos. 80% of these investment goes to my dividend portfolio and the 10% for the aggressive growth and crypto portfolio. In February, I have added PepsiCo ($PEP) $PPL, Merck ($MRK), and Unilever (UL) in my dividend portfolio. In my retirement account I have added Vanguard High Yield ($VYM). The table below shows the dividends that I have received in February 2021. This month my major incomes are from ABBV and T. I have also earned from AAPL and BMY.

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 $104.62. Last year, I received around $80 in the same month. 

The next chart shows the total amount of dividends that I have received quarterly. My income is gradually increasing in every year.

On yield basis, the current yield of my overall portfolio is 2.72% however, my yield on cost (YOC) is 3.77%. 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 but will increase if the market is in bear mode. The later condition means its a buying market. That's why I always hold cash to utilize the 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. This chart helps me to understand my monthly dividends and total yearly projected dividends. I am slowly investing in dividend paying stocks and if I continue to do like this income will continue to grow. 

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), and Kimberly Clark (KMB). They are 35% of my total dividends that I receive yearly. 

Dividend sources in the table format:

The following tree-map shows the percentages of dividends that I am receiving from the individual stocks and also compares between the sectors. it help 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 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 February, I have received $104 which is the highest so far in this part of the quarter.

The next table shows my dividend growth performance in the year 2021. last year, none of my holdings cut their dividends.