Portfolio Update August 2019

My portfolio update in August 2019

Today I am updating and sharing my portfolio for the month of August 2019. I am a little bit late of updating my portfolio this month. All the prices in the blog are based on September 1st, 2019. Currently, I am holding 29 stocks. This month I have added Exxon Mobil (XOM) for the first time. The price of the stock dropped to $66 and I couldn't resist myself to initiate my position into this company. My yield on cost (YOC) is 5.82% and my average cost is $67.2. Other than that I have also added Abbvie(ABBV), Emerson Electric(EMR), 3M (MMM), Kraft & Heinz(KHC), Pfizer (PFE), Albemarle (ALB), and Johnsson & Johnsson(JNJ) stocks. I have also sold half of my positions of Comcast (CMCSA), Master Card(MA), Visa(V), and Honeywell(HON). The reason I sold these stocks because I am preparing for recession and I have decided to buy only high dividend-paying stocks. MA, V, and HON are quite expensive right now that's I sold half of them and currently holding cash.

Below is the pie chart of my portfolio diversity based on sectors from Morningstar. last month I have added mostly in the health and the industry sectors. In the coming month, I am planning to add a utility stock in my portfolio. Unfortunately, most of the utility stocks are expensive. This month my holdings in the financial sector dropped from 23% to 17% due to the selling of MA and V.

The chart below shows my portfolio diversity and you can see that Apple(AAPL), Home Depot(HD), and JP Morgan(JPM) are my majority holdings. 

The plot below shows my projected annual income in terms of dividends. On August 31st my projected income through dividend was $1010.42. I have set my target to earn $100 per month through dividends which is $1200 per year. In the previous month, my yearly income was $955.32. So in one month, my income increased  $55.1 which is 5.76% increase in one month.

The current yield of my portfolio is 3.12% and the yield on cost (YOC) is 3.51% which has a healthy increase compared to the YOC of last month (3.3%).

The figure below shows the comparison of my current yield and YOC with time. The curve shows that my YOC is higher than my current yield. Current yield depends on the dividend rises or drops and also on the bear or bull market. If the market is in bull mode then the yield will drop and in the bear market the yield goes up. The yield on cost depends on the dividend rise and cut. So for long term scale YOC will gain and goes well above the current yield. 

My projected annual income through dividends with time is shown in the following chart. My income is growing every month.

The table below shows the dividends that I received in the month of August 2019. My month was mainly dominated by the divies from ABBV and T.

The following chart summarizes the performance of my stocks. The prices are based on August 31st 2019. So the prices will not be accurate with the current market price. From the chart you will see my biggest gained stocks are Mastercard(MA), Visa(V), Microsoft(MSFT), and Procter and Gamble (PG). My lossing stocks are Kraft & Heinz (KHC), Abbvie (ABBV), and Albemarle (ALB).

Dividends Received in August 2019

Dividends Received in August 2019

In August 2019, I have received in total $81.24 in dividends. The chart below shows the dividends that I received in August 2019. In this month I have received dividends from my top 2 dividend-paying stocks At&t (T) and Abbvie (ABBV). In total, I have received $44 from these 2 companies. Other than that I have received dividends from Apple (AAPL), Delta Airlines (DAL), Procter & Gamble (PG), and Bristol Myers Squibb (BMY). DAL raised 15% dividend and I got $1.05 higher than 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 August 2019, I have received $81.24 while in 2018 at the same month I received $70.25 which is 15.64% YOY increase.

The following chart shows my dividends amount on a quarterly basis. There's a double increase in my dividends compared to the same quarter last year. 

The next table shows my dividend growth performance so far 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 year 2019 while the box marked red means a decrease in dividends this year. In the last month, Medical Properties (MPW) increased their dividends 4.04%. So far only one stock in my portfolio cut the dividends. Other than that all the companies raised their dividends. This quarter HON, MCD, MSFT, T, TXN, and V will raise their dividends.

The table next shows the monthly dividends received so far from each company and the table also shows my year to date income from dividends which is $596.86.

My projected annual dividends in August 2019 is $1010.42. My first goal is to earn $100 monthly from dividends which $1200 a year. I am very close to that goal. I will keep investing in dividend stocks monthly and reinvesting the dividends.

The chart below shows my dividend distribution in the portfolio. The most dividends I am receiving is from ABBV (10.6%) followed by T (9.1%). 

Stocks bought and sold in August 2019

In August 2019, I have sold some of my low yield stocks. I am preparing myself for recession and I have decided to lower my positions in low yiled dividend stocks and investing in high yield stocks so that I can get some appreciation when the market will be down. Below is the chart which shows the stocks that I sold. I made my position to half for the stocks below.

I am long with HON, MA, and V. However, the prices are quite high now so if any recession comes by next year they will drop a lot. I will then take the opportunity to add more MA, V, and HON. I have took a good profit from these stocks. 

I have added a few stocks which are really in good discount and also pay dividends with high yields. I have purchased MMM, ABBV, PFE, JNJ, EMR, KHC, and ALB stocks. This month I have initiated my position in Exxon Mobil (XOM) for the first time.

My dividends reduced $36.4 due to the selling of those stocks. However, I increased my dividends $84.7 from purchasing new stocks in August 2019.

I have increased $28 and $16 by adding MMM and KHC respectively.

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).