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.

My Dividend Growth Investing Update for December 2018

Portfolio Update - January 2019

Today I am sharing my long-term dividend growth portfolio at the beginning of January 2019. I am new in investing with very little experience. I have started investing last year in June 2018. Since then I am investing in dividend paying companies who have records of increasing dividends yearly. I am collecting the dividends and reinvesting them in purchasing stocks. My main trading platform is Robinhood. However, in future, I have a plan to move to a well-established brokerage. Because I am new in this area any suggestion from you will be helpful for me. Initially, I invested in some stocks without going into deep so that's why I am balancing my portfolio by selling those stocks. below is my current portfolio:

Portfolio Breakdown:

The following pie chart shows the breakdown of my stocks allocation by sector based on Morningstar. The pie chart shows that my highest investment is in the financial sector (26%) followed by the consumer sector with 23%. My third biggest holdings are in the Technology sector (16%) which is followed by Healthcare (12%), Industrial (9%), and in the Communication sector (8%). I have invested a small percentage in Basic materials, Real Estate, and in the Energy sector with each around 2 to 3%.

Portfolio Performance Comparison:

My portfolio performances compared to the Morningstar US Market Index and S & P 500 TR index are shown in the following figures. The comparison charts show that my portfolio suffered 9.58% loss while Morningstar US Market and S & P 500 lost 9.4 and 9.03% respectively. My portfolio performed slightly lower than the two indexes. 

                                                                                                                        Source: Morningstar

Dividend Meter:

In December, my projected annual dividend increased from $773 to $846. I have purchased shares of Apple, JP Morgan, Bank of America, Main Street Capital, Gladstone Investment, and The Kraft and Heinz. 

Prepared using Google Sheet

My forward yield is 3.06 while my Yield of Cost is 2.94. Because of the market crash in December, my forward yield is higher than the YOC. 

Prepared using Google Sheet

Dividend Growth Performance:

The charts below show the history of my monthly dividends received since I started to invest. December 2019 is my highest payments through dividends. I have received $82 in dividends. Last year during the same month I received only $5. In the beginning, I invested in non-dividend stocks such as Micron, Paypal, Facebook, Alibaba, JD etc. That's why my dividends were low. But I have changed my mind to invest in long-term dividend growth stocks.

This graph shows my projected annual dividend income.

Stocks Purchased in December:

In December, I purchased Apple stocks at $149.52 on 24th December 2018. I also purchased Bank of America at $23.6, JP Morgan Chase at $96.32, Main Street Capital at $33.96, The Kraft and Heinz at $49.52, and Gladstone Capital at $8.92.

Stocks Sold in December:

In this month I have sold all of my positions in Cypress Semiconductors (CY) and Ally Financial (ALLY).

My Watchlist:

I don't have any utility stocks in my portfolio. So I am planning to add 1 or 2 utility stocks. I am closely watching Southern Corp (SO) and NextEra Energy (NEE). I am also planning to add my position in Johnsson and Johnsson (JNJ) and Microsoft (MSFT) in this month. My target price for JNJ is $120 and for Microsoft $90. I am also watching PepsiCo (PEP). I am planning to add my position in PEP around $100.

My Dividend Growth Portfolio Update - November 2018

Dividend Growth Update - November 2018

I am sharing my dividend growth portfolio at the beginning of December 2018. Since then I have gradually invested in stocks which have proven records of paying dividends and most of them increase their dividends yearly. I am reinvesting all the dividends. My main trading platform is Robinhood. You can join for free and if you sign up following the link both you and me will get a free share. In my first referral, I received one JP Morgan Chase stock (Ticker: JPM). Below is my current portfolio holdings:

Portfolio Breakdown:

The following pie chart shows the breakdown of my stocks allocation by sector. I have chosen the sectors from Morningstar. The pie chart shows that my most investment is in the financial sector (25%), then the second majority is in the consumer sector with 24%. My third biggest is in the Technology sector (13%) which is followed by Healthcare (12%), Industrial (10%), and in the Communication sector (9%). I have invested a small percentage in Basic materials, Real Estate, and in the Energy sector with each around 2 to 3%.

Portfolio Performance Comparison:

My portfolio performances compared to Morning Star US Market Index fund in the following figure. The comparison shows that the performance is better than the index fund.

The following figure compares my portfolio with S & P 500 TR. The figure shows that my performance is exactly the same in the month of November 2018.

Source: Morning Star

Dividend Performance:

The chart below shows the performance of my dividends received from my holdings.

Source: Morningstar and Seeking Alpha

Dividend Meter:

In this month my annual dividend income decreased a little bit because I have sold some dividend shares and holding cash in order to buy some great dividend stocks with a big discount. The market was crashing in November especially tech stocks so I decided to lower my position in Western Digital (WDC) and Cypress Semiconductor (CY). Although I doubled my Apple (AAPL) position in this month. So my current annual dividend income is 773$ and my target is to get 70,000$ annually. Still, a long way to go. As I am young, I have a lot of time left to achieve this goal.

 Dividend Meter prepared using Google Sheet

My current yield is not that high. I believe that I should move it to 3%. However, I am planning to increase my yield on cost (YOC). That's why I have purchased some low yield stocks who has lots of potentials to grow the dividends. These stocks are Mastercard (MA), Visa (V), Microsoft (MSFT), Apple (AAPL), Southwest Airlines (LUV) etc. These stocks recently raised their dividends really aggressively. Thinking about long-term, I really have a great chance to raise my YOC.

Company Performance:

The table summarizes the performances of my stocks those I am currently holding. I am observing Colgate-Palmolive (CL) and Ally Financial (ALLY). I am not interested to hold them for long term. I will sell them when the market is bullish mode. 

Source: Morningstar & Seeking Alpha

Stocks Sold in November:

I sold some tech stocks in November. I sold 50% of my investment in Cypress Semiconductors (CY) and Western Digital (WDC). I have also sold all of my General Electric (GE) shares. I suffered 52% loss in GE. My worst investment ever.

Stocks Bought in November:

With that money that I got from selling, reinvested again in Apple (AAPL). I doubled my holdings in AAPL. I also initiate investing in Cedar Fair (FUN). In the coming months I am planning to invest in The Kraft & Heinz (KHC) and in JP Morgan (JPM) and Bank of America (BAC).