Portfolio Update - January 2020

Portfolio Update - January 2020

Today I am sharing my portfolio at the end of January 2020. This blog was written two weeks ago. I was very busy in the last few days so at the current situation of the market the prices of the stocks has a big difference. I will update my current portfolio as soon as possible. As of January I was holding 33 stocks. This month I have sold all of my positions in L Brands (LB). I sold them at $23.4 at the end of January which I bought at $17.4 in November 2019. I got 35% profit in just 2 months of holding. The chart below shows my current portfolio and sector distribution of the portfolio.

The pie chart below shows diversity. The chart indicates a well-diversified portfolio with Apple (AAPL) is my highest position. I bought them in December 2018 and since then it keep increasing. My other top holdings are JP Morgan (JPM) 5.9%, Home Depot (HD) 5.6%, Abbvie (ABBV) 5%, and J&J (JNJ) 4.8%. 

The sector distribution of my portfolio is shown in the following pie chart. The sectors are based on Yahoo finance. My highest position is in the consumer sector with 19.9% (combined). My next large sectors are the technology, financial, and health sectors with 16% each.

I always update my trades in the tipranks website. The figure below compares my portfolio performance against the S&P 500. Most of the cases my portfolio beats the market.

My performance as a portfolio manager is also good. I am ranked 725 out of 23,372 investors which is in the top 3%. My portfolio has gained 69% since I started to invest in the market in 2017 and my sharp ratio is 3.04 while the average is only 0.99. The sharpe ratio is "A measure of your returns and associated risk you take on compared to returns of risk-free assets".

My 12 month returns (TTM) is 30.84% while the YTD return is 7.97%. At the time of writing of the blog the market tumbled almost 10%. So this chart does not count the last 2 days drop.

The meter below shows my projected income in terms of dividends. On 31st January 2020, my projected income through were $1214.38. I have accomplished my first target of earning $100 monthly through dividends. My dividend income increased 3.4% compared to the last month. I have added some oil stocks in this month such as British Petroleum (BP), Chevron (CVX), and Exxon Mobil (XOM). All the oil stocks are down big and I am bullish about the future outlook of this sector. On the other hand I have sold my positions in Gaps (GPS) and L Brands (LB). I have got some nice profit from these two stocks in just 2 months of investment.

My current Yield on cost is 3.78% while my current portfolio yield is 2.99%. 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 the YOC with time. My YOC is higher than the current yield because of the bullish market. For 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 it reached to my first goal of earning $100 per month.

The table below summarizes the dividends that I received in January 2020. This month I have received $62.34. My highest paying dividend paying for this part of the quarter is from Jp Morgan Chase ($16.24).

The following table shows the detailed performances of my portfolio. The current prices are based on January 31st 2020. So the prices do not reflect the current price in the market. In the chart, I shared my current positions, annual income that I will receive in a year, total recieved dividends from the companies, and finally the gain or loss for each company. Please note that I have added the total dividends received to calculate the gain or loss for each company. The top 3 stocks in terms of gain are Mastercard (MA), Microsoft (MSFT), and Apple (AAPL).

Monthly dividend update - January 2020

January 2020 - Monthly Dividend Update

In January 2020, I have received a total of $62.34 in dividends. The table below shows the amount of dividends that I have received from the companies. This part of the quarter I receive the least amount of dividends. My highest paying company is JP Morgan (JPM) stock then followed by Medical Properties (MPW). This month my YOY is only 13%. I have added a few stocks of PPL corp and added GAP Inc (GPS) for a short time. Because of the addition, my dividends increased from the last quarter. 

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 $62.34 while in the same month in 2019 I received $54.7 which is 13% YOY growth in income through dividends.

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. 

On a yield basis, the current yield of my overall portfolio is 2.99% while my yield on cost (YOC) is 3.78%. For a dividend investor like me, YOC is an actual yield than the current yield. The current yield varies with the market condition. The bull market moves the yield lower and vice versa for the bear market. However, the YOC only increases with time if you invest in dividend growth stocks. If you only invest in these types of companies your YOC will only increase with time. 

My projected annual income in January 2020 is $1214.38. This month my dividend income increased by $40 in total. This is the first time my annual income crossed $1200 limit which was my first goal to earn $100 monthly from dividend income. That's a real passive income. I will keep investing every month and just imagine how much my monthly income will grow as time passes by.

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. At the time of retirement, I don't need to rely only on my social security income.

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 also invested in BP this month so my 3rd highest paying dividend stock is BP. I am planning to add more BP this month. I am also worried about the Kraft & Heinz (KHC) stock. They lowered their dividends last year and some analysts are saying that they will again lower the dividends. If they again decrease then my income will be lower. Its dividend safety score is only 29 so there is a high chance that they will cut their dividend again. So I am planning to make my position to less than half and will buy BP with that money. 

The following table shows the dividends that I received from my positions in each month. In January 20 I have received dividends from JPM, MPW, IRM, and PPL mostly. 

The next table shows the total dividends received in 2020 from my positions. So far this month I have received $62.34. This 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 33 stocks, 10 of them already increased their dividends. Bristol-Myers Squibb (BMY) and Chevron (CVX) increased their dividends 9.8 and 8.4% respectively compared to the last years 4 and 6% increase. ABBV, Mastercard (MA), and Comcast (CMCSA) also increase their dividends 10.3%, 21.2%, and 9.5% respectively.

Portfolio Update - December 2019

Portfolio Update - December 2019

Today I am sharing my portfolio at the end of December 2019. I am holding 34 stocks in my portfolio. This month I have opened 4 new positions in my portfolio. I have initiated my positions in British Petroleum (BP), L Brands (LB), and Gap Inc (GPS). I am long on BP but I am not long on LB and GPS. I am expecting a short term gain from LB and GPS. They are pretty much down in December and in my opinion, I think they are undervalued. In the coming earnings time, I am expecting a big jump in these two stocks. I am also holding cash because at the current situation of the market it's really hard to find an undervalued stock. The chart below shows my current portfolio and sector distribution of my portfolio.

The pie chart below shows diversity. The chart indicates a well-diversified with Apple (AAPL) is my highest position. Apple's recent surge increased my holding percentage a little high. My next big holdings are JP Morgan (JPM), Abbvie (ABBV), Home Depot (HD), and 3M (MMM).

The sector distribution of my portfolio has been shown in the following pie chart. The sectors are based on Yahoo Finance. My highest position is in the consumer sector with 21.5% combined (both consumer and defensive). My other largest sectors are the healthcare, financial, and technology sectors respectively. 

The meter below shows my projected income in terms of dividends. On 31st December 2019, my projected income through dividends were $1174. I have set my first target to $100 per month form dividends which is $1200 per year. Compared to last month my dividend increased from $1079.89. The increase is due to my investment in higher yield stocks such as. Gap Inc (GPS), L Brands (LB), and British Petroleum (BP).

The current yield of my portfolio is 2.93% while my Yield on Cost (YOC) is 3.75%. Because of my investment in high yield stocks, my income increased 0.05% compared to the last month.

The following figure shows the comparison of my current yield and the YOC with time. It shows that the YOC of my portfolio is going up while my current yield is below the YOC. Because I invest in dividend growth stocks that's why my YOC will keep increasing with time. However, current yield depends on market volatility. If the market is up the yield drops and if the market is down then the yield increases.

The following chart shows my growth in projected annual income with time. It is slowly but steadily increasing and reaching to achieve my first goal.

The table below summarizes the dividends that I received in December 2019. This month I have received the highest amount of dividends. The increase is due to the addition of MMM and JNJ stocks and dividend increases from JNJ, MSFT, V, and MCD.

The following table shows the detailed performances of my portfolio. The current prices are based on December 31st, 2019. So the prices do not reflect the current price in the market. In the chart, I have shared my current positions, annual income that I will receive in a year, total received dividends from the companies, and finally the gain or loss for each company. Please note that I have added the total dividends received to calculate the gain or loss for each company. My biggest gain so far is MSFT, MA, AAPL, V, and PG. I am invested in a long term in all the companies.

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.