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 December 2019

December 2019 - Monthly Dividend Update

In December 2019, I have received a total of $119.65 in dividends. The chart below shows the amount of money received in dividends each month in 2019. This month was the highest amount I received since I started to invest. This month my dividend increased from $101.56 to $119.65 which is a 17.8% increase compared to the last quarter (September). The increase is due to the addition of Exxon Mobil (XOM) in my portfolio. I have also purchased a few stocks of Johnson & Johnson (JNJ), 3M (MMM), and Emerson Electric (EMR). Other than that my income also increased because of the dividend increase from Pfizer (PFE), Microsoft (MSFT), McDonald's (MCD), and Visa (V). On the other hand, I have sold half of my positions in Honeywell (HON). Because of this, my dividend decreased a little bit. 

The next table shows the total dividends received in 2019 from my portfolio. In total, I have received $968.59 in the year. Last year I received $422 in dividends. So this year I have doubled my income.

The next table shows my dividend growth performance in 2019. The last column of the chart shows the change in dividends compared to the previous year. The box marked green indicates the percentage of dividends increased in the current year while the box with red means a decrease in dividends this year. In the last month, I got dividend raise from Bristol-Myers (BMY) 9.8%, Dominion Energy (D), 2.5%, Iron Mountain (IRM) 1.23%, Mastercard (MA) 21.2% and At&t (T) 2%. The increase in dividends raised $8 income in a year. In 2019, I got raised from all the companies except The Kraft & Heinz (KHC).

The chart and table below summarize my dividend distribution in the portfolio. The most percentages of dividends I am receiving are from ABBV and T. I need to diversify my dividend income. I am receiving most of my dividends from a few companies. Specifically, I am worried about KHC. They may cut the dividends again this year. Currently, it is 5.4% in my portfolio. So like last year it may significantly lower my income.

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

The following chart compares my monthly dividends on a yearly basis. In the last month, I have received $119.65 while in 2018 in the same month I received $82.36 which is 45.28% YOY growth.

The next chart shows the total amount of dividends received on a quarterly basis. This year, the first three quarters remained the same. However, This quarter my income increased compared to the last quarter.  This quarter my income is $270.17 which is 17.07% growth. Again, compared to 2018 Q4 it increased by 42.47%. 

My current yield is 2.93% and my yield of cost (YOC) is 3.75%. This month my YOC increase because of my investment in new stocks which has high yields and also due to the increase in dividends to a few positions in my portfolio.

My projected annual dividends in December 2019 is $1174.76. This month I got a $100 increase in yearly income through dividends. I have added three new positions in my portfolio. I will write about those new additions in my next blog.

The chart below shows the average dividend income received monthly. My average income is almost reaching my first goal of receiving $100 monthly.

Bumped app review - Get free fractional stocks from the selected brands that you shop

Bumped app review

Bumped is a new start-up company that gives fractional shares of a company as a reward if you spend your money on that brand.  They are testing as beta and currently, the signup process is invite-only. I waited for 7 months on the waiting list to get the invitation. Because they are in the beta stage so there are not enough brands to select in the portfolio and they give the brands randomly so you may not get the brands that you love. But I am enjoying the app because the fractional shares that I will get is a bonus addition.

You can sign in using the link. The link: Sign up. After the signup process, you have to connect your credit cards and bank accounts in the app and they will monitor your expense and will add the fractional shares of the company that you have in your portfolio. Under the loyalties, you will get the options for the selection of a company or brand. Unfortunately, they have selected the brands for me randomly. That was the only thing I did not like in the app. I am really disappointed that I haven't got Walmart in my option. I shop a lot at Walmart.

I have got 9 categories to select. They are

1. Club Warehouse
2. Coffee
3. Convenience store/ gas
4. Entertainment
5. Grocery
6. Personal Care
7. Quick Eats
8. Ride Sharing 
9. Vineyard

Under the club warehouse, I have got Sam's Club and with that, I can get 1% shares of Vanguard Total Index (VTI). I sometimes shop in Sam's but I am not planning to renew my membership when it expires. So this will be useless after the membership expiration.

My second category is the Coffee category. Here you have the option to choose from various coffee shops. I decided to choose Dunkin Brands. I don't drink coffee that much so this category will also not help me. maybe twice a year I go to the Dunkins to buy donutes.

The next category is the one I will get the reward on a regular basis. They gave me the option to select an energy company. I choose Chevron (CVX), as it is just next to my working place. The downside is that I will get only 0.5% of my spending on gas. So definitely, I will not get enough stocks of CVX for the long term.

The following category I got, is named as Entertainment. Unfortunately, I don't spend money on Netflix or Spotify. I use sling tv and I don't have it in my account. So that is a disappointment. I am a complete Xfinity customer. I use their internet, tv and mobile service. Hopefully, they will add Comcast (CMCSA) stock into their portfolio. I have selected AMC but I don't actually watch movies in the hall. I sometimes rent movies from youtube movies which cost me only $3.99.

The Grocery category is totally useless for me as there is no Kroger near my place. Hopefully, they will add more brands under this category.

Another useless category for me is personal care. I never went to these brands for shopping.

The next category is a good one for me as I sometimes go to Mcdonald's for eating. My kids also love to eat in Mcdonald's and I personally own MCD stocks in my portfolio. I will get 3% MCD shares when I spend money in MCD. That's a good pick for me.

I also got ride-sharing UBER and LYFT to choose from. I have selected UBER but I don't use that much. I live in downtown Miami, FL and there are tri-rails and metro buses available. The last Vineyards is of no use for me as I am non-alcoholic.

Sign-up Bonus:

Ok, this is interesting. As I have read some blogs about Bumped and I have never seen that anyone got any sign-up bonuses. I have got in total $25 worth of stocks from Exxon (XOM), Chevron (CVX), and McDonald's (MCD). So on the very first day the value of my portfolio is $25.12 with $10 worth shares of XOM & CVX, and $5 worth of MCD.

The first reward I got is from Chevron. This station is near my working place and I got $0.09 worth of CVX share which is nothing but if you continue to use this app and reinvest the dividends it will grow definitely and always consider this in mind that these are free stocks.

Conclusion:
I would say this is a great and unique idea from Bumped. I think this will help both the customers and the companies. I would be very happy if they keep adding more brands with time. What I am missing is Walmart, eBay, Amazon, BestBuy, Google, and Comcast stocks from them.