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. 

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.

Monthly Dividend update June 2020

Monthly Dividend update June 2020

    Hello everyone, today I am sharing my updated dividend growth portfolio at the end of June 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 saving monthly 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 in non-dividend paying stocks such as GOOGL, AMZN, TSLA, and FB and also in cryptocurrencies. I invest 80% in dividend-paying stocks, 10% in non-dividend paying stocks, and 10% in the crypto. All of my investments are in the long run. I don't sell stocks that often. In June, I have received $133.99 in dividends. Out of 35 stocks in my portfolio, 17 of them pay dividends in this part of the quarter. The highest amount of dividend I received from 3M (MMM), then followed by The Home Depot (HD), and Johnson & Johnson (JNJ). The following table summarizes the total amount of dividends that I received in June 2020. I am currently dripping 95% of my stocks except for NAT stocks.

        

Jun , 2020
HD	$15.00
JNJ	$15.15
PFE	$13.30
HON	$7.20
KHC	$10.00
EMR	$7.04
MCD	$12.54
MSFT	$5.61
D	$4.93
MMM	$23.57
PEP	$3.07
V	$1.50
SO	$3.20
CVX	$5.29
O	$1.88
DUK	$2.84
XOM	$1.87
	$133.99

           

    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 $133.99 while in the same month in 2019 I received $83. My YOY growth is 60%.

    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 stocks (JPM and BAC). Currently, I am holding cash because I am thinking the market is overpriced compared to the current economic conditions. The current PE and payout ratio is kind of meaningless as many companies are struggling in the current situation to survive and in my opinion, the PE and payout ratios will significantly increase when the companies will start to report their Q2 earnings from July 2020. 

    On a yield basis, the current yield of my overall portfolio is 3.13% and my Yield on Cost (YOC) is 4.05%. 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, this 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 Abbv(ABBV), at&t (T), and 3M (MMM). They are covering almost 30 % of my total dividend income. I have to diversify my position that's why I will not add any more stocks from these 3 companies. I will look to add more stocks of The HomeDepot (HD) and Johnson & Johnson (JNJ).

    

 

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 June I have received $133.99 and so far in 2020, my income is $577.

 

The next table shows my dividend growth performance in the year. Out of my 35 stocks, 21 of them already increased their dividends this year. No dividend cut so far. However, The Kraft & Heinz (KHC) and Exxon Mobil (XOM) did not raise their dividends.

Portfolio Update - March 2020

Portfolio Update - March 2020

Today I am going to share my portfolio at the end of March 2020. This month we entered the bear market and my portfolio nose dived and I had to sell all of my remaining position of Delta Airlines (DAL) and also I have lowered my positions in the British Petroleum (BP) and Exxon Mobil (XOM) to raise some cash to buy some great stocks those I was waiting for an entry point for quite a long time. In February, I have sold all of my positions in Bank of America (BAC) at $34.5, 3/4 th of my JP Morgan (JPM) at $103, and Delta (DAL) at $46. I invested in DAL for a long time but I have decided to seel all because it will take them years to recover and the dividend is not going to come soon. because I am a dividend growth investor so I don't need to be invested for long in this stock. I was so lucky that I made a quick decision to sell most of my positions at $46. I sold my last few positions at $25. I raised a lot of cash in February by selling the stocks and I was holding around 10% cash in my brokerage account. I was so much active in the market around mid March and I think I made some great investment for the longer term. With those money I have opened my position in Starbux (SBUX) at $52, Disney (DIS) at $92, Cater Pillar (CAT) at $97, Realty Income (O) at $47, Store Capital (STOR), Duke Energy (DUK) at $74, and Southern Co (SO) at $44 in March. I have also added McDonald's (MCD) at $130, Cisco (CSCO) at $37, Leggett & Platt (LEG) at $23, Johnson & Johnson (JNJ) at $123, Emerson (EMR) at $46, Honeywell at $117, 3M (MMM) at $138, PPL at $26, and At&t (T) at $27. At the end of this blog you will see my overall portfolio. Below is the table that shows my portfolio distribution:

The same table is shown as a pie chart. I have invested in Apple (AAPL) in 2018 December and since then it sky rocketed. I am adding any more AAPL as I am holding more than 10% in my portfolio. I am also not going to invest in MMM anymore. I will add more positions in JNJ, HD, and MCD if I get them cheap. Microsoft(MSFT) is looking expensive right now. I will also add more DIS, CAT, and HON. I am also keeping an eye on O, STOR, DUK, and SO stocks.

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 health sector with 20% of my portfolio. I just invested in JNJ this month but the increase is because I have lowered my positions significantly in the financial and the energy sector. My second highest sector is the technology sector with 18%. The technology performed better in March and I have added more CSCO stocks. 

I always update my transaction in 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.

My performance as a portfolio manager is also not bad. At then end of March I was ranked 1530 out of 24989 managers which is at the top 6%. My portfolio has gained 26.05% since I started to invest since 2017 August. Last month my gain was 69%. Last months bear market brought my gain down to 26%. My sharpe ratio is 0.81 while the average tiprank managers is -0.27.

My 12 month returns (TTM) is -6.07% while the YTD return is -19.5%. There may be more down turn in my portfolio but I am investing for long term so I should not be worried about this roller-coaster type movement.

The meter below shows my projected income in terms of dividends. On 31st March 2020, my projected income through dividends were $1118.99. It dropped from my last month because I have sold some high yield oil shares and holding cash. This income may drop more because some of the companies may cut their dividends.

My current yield on cost (YOC) is 3.84% while my current portfolio yield 3.54%. Because I am investing in dividend growth stocks so my YOC will continue to grow with time while the current yield depends with the market volatility. The yield will go up when the market is down and the vice versa.

The following figure shows the comparison of my current yield and YOC with time. Because the market dropped a lot, that's why the current yield is going up. This signals a buying opportunity in the market. For the longer term, if I keep investing in dividend growth stocks, my YOC will keep growing with time.

The following chart shows my growth in projected annual income with time. It is slowly but steadily increasing and this month I have received my highest earning so far through dividends.

The table below summarizes the dividends that I received in March 2020. This month I have received $144.16. My highest paying dividend paying stock for this part of the quarter was BP. Then MMM, HD, JNJ, XOM, and PFE. 

The following table shows the detailed performances of my portfolio. The current prices are based on March 31st, 2020. In the chart, I have shared my current positions, annual income through dividends, total received dividends from each companies so far, cost basis, YOC, current yield, and finally the total gain or loss including the dividend income. The top 4 stocks that I gained the most so far is MSFT 91%, MA 64%, PG 55%, and AAPL 54%. Currently, I am in the downside in all the oil stocks. I am more than 30% down in XOM, BP, and CVX.

Monthly dividend update - March 2020

March 2020 - Monthly Dividend Update

Hello everyone, I am updating my dividend portfolio in March. I always keep a record of my dividend investing in google sheet. It helps me to understand my portfolio performance so that I can make the right decision of my trades. This will also give me an idea about my future performance. I also love to share my portfolio with everyone. In March 2020, I have received a total of $144.46 in dividends. This month was the best month for me in terms of dividend-paying. Most of my dividend paid stocks actually pay dividends at this part of the quarter. I have received $18 from BP, $17.67 from MMM, $15 from HD, and $12.35 from JNJ. This month my YOY dividend growth is 37.7%. Last year this month I received $106 in dividends. I am expecting dividend cuts from some of the positions that I am holding especially from the oil stocks that I am holding. The Kraft and Heinz may also cut the dividend. Other than that I am not expecting any dividend cut from any of my stocks that I am holding.

Dividends Received in March 2020

The following chart shows the dividends received monthly from my portfolio. The chart clearly indicates the growth of my monthly dividends with time.

Monthly dividend received since June 2017

The following chart compares my monthly dividends on a yearly basis. In the last month, I have received $146 while in the same month in 2019 I received $106 which is 37.7% YOY growth in income through dividends.

Comparison of Monthly dividends received in each year

The next chart shows the total amount of dividends received on a quarterly basis. My previous two years had seen an increase in dividends every quarter. This year I am also expecting a similar increase in dividends. At the end of the first quarter, I have received a total of $292.84. Last year in quarter 1, I received $235.01. So its a 24% YOY increase on a quarterly basis.

Dividend Income on a Quarterly Basis

On a yield basis, the current yield of my overall portfolio is 3.54% while my yield on cost (YOC) is 3.84%. My current yield increased because of the market crash. The yield is dependent on market performance. In the bear market, the yield always goes up while the YOC increases on a yearly basis because of the dividend hike each year. 

YOC vs. current yield 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 following 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) stocks. In the next few weeks, I will add some Home Depot (HD), Johnson & Johnson (JNJ), Disney (DIS), Caterpillar (CAT), and Honeywell (HON) stocks. I will not add ABBV and T anymore because I am receiving 11 and 9% of my dividends from these two stocks respectively.

The following table shows the dividends that I received from my positions in each month. In March 2020, I have received dividends from mostly BP, HD, MMM, and JNJ.

The next table shows the total dividends received in 2020 from my positions. In March, I have received $146 and the chart will help me to keep a record of my yearly income.

The next table shows my dividend growth performance in 2020. Out of my 37 stocks, 17 of them already increased their dividends while no one cut their dividends yet. I am expecting that BP, XOM, and KHC may cut their dividends significantly. Mastercard (MA)  increased 21%, ABBV 10%, Home Depot (HD) 10%, Bristol-Myers (BMY) 10%, and Comcast (CMCSA) 10% in the current year which indicates a solid increase on my passive income.