DGI Portfolio Monthly Report for 2015-10

By | November 2, 2015


This post is a status update for my Dividend Growth Investing (DGI) Portfolio. The goal of this portfolio is to build a stream of steady and growing passive income to achieve financial freedom. The strategy is to buy companies with dividends that are sustainable and increasing over time. All the dividends are automatically re-invested back in the same companies. This portfolio will be reviewed on a regularly basis to ensure that the holdings are aligned with the goal of the portfolio.

Portfolio Holdings:

Symbol Current Price Quantity Current Value Dividends (per share) Dividend Yield (%) Annual Dividends Prorated Monthly Dividends
CVX 90.89 101.391 $9,215.43 1.07 4.71% $433.95 $36.16
VZ 46.87 202.357 $9,484.47 0.565 4.82% $457.33 $38.11
T 33.53 202.706 $6,796.73 0.47 5.61% $381.09 $31.76
JNJ 101.01 100.805 $10,182.31 0.75 2.97% $302.42 $25.20
GSK 43.06 0 $0.00 0.58 5.39% $0.00 $0.00
O 49.46 200.788 $9,930.97 0.1905 4.62% $459.00 $38.25
OHI 34.52 504.546 $17,416.93 0.56 6.49% $1,130.18 $94.18
POT 20.24 200 $4,048.00 0.38 7.51% $304.00 $25.33
IBM 140.12 100 $14,012.00 1.3 3.71% $520.00 $43.33
MIC 79.55 150 $11,932.50 1.11 5.58% $666.00 $55.50
Total $93,019.35 $4,653.97 $387.83

Note: Cash balance not shown here.

Dividend Payouts This Month:

GSK 10/5/2015 $115.37
O 10/15/2015 $38.10

Monthly Total: $153.47

Lifetime Cumulative Dividends Received: $$706.14
*This is the total dividends received since the inception of this portfolio in June 2015.

Account Balance
Beginning Balance: $96,381.71
Ending Balance:      $99,790.26
Net Gain/Loss:       +$3,408.55 (+3.5%)


Portfolio Update

Welcome to another monthly report for my Dividend Growth Investing (DGI) Portfolio. This post provides an update to everyone about the holdings and performance of this portfolio.

The total original funding for this portfolio is $100,000, which is is a nice and even number to start off a portfolio. I added 2 columns to the table above to show the dividends and the yield. This will help show the amount of the dividends that are paid by each company and the current yield for each company.

I’m running this portfolio like how a fund manager run a fund or hedge fund. If this fund were to be classified, it would be in the Growth and Income category, because it seeks current income and also growth for the fund. I will look for stocks that fit in this portfolio’s strategy, review the portfolio on a regular basis and make adjustments as necessary. The results will be published here on Growing Money every month.

My focus in this portfolio is on dividend growth. I seek companies that has a healthy balance sheet and a competitive business advantage in the market, thereby protecting my principal investment. The dividend growth will help build a great stream of income for the long term. If the dividends are sustainable and increasing over time, then naturally, the stock prices should follow and the total returns should be wonderful. This is a long term investing plan, a marathon and not a sprint, so do not expect any flashy words or colorful signs in these posts. It’s going to be a slow and steady climb to the top of the mountain.

My strategy for this portfolio is a stable, consistent dividend stream with growth. I’m still in the process of trying to align all my holdings to this strategy. I’m looking for companies with a history of dividends that does not fluctuate, and it should show a history of increase each year. Aside from GSK, all my other stocks in the portfolio fit this model.

As part of realigning my portfolio, I have decided to sell GlaxoSmithKline plc (ADR) (NYSE:GSK) in October, because I felt it did not fit the portfolio’s model for consistent income. Their dividends were not consistent on a quarterly basis and they charged a dividend conversion fee, because it’s a foreign company. The fee was not large, but it was just another reason to sell GSK and keep my monthly income more predictable. Fortunately, I sold GSK for a small profit, and better yet, I would no longer need to pay the conversion fee.

After I sold GSK, my prorated monthly dividends subsequently decreased, but I had extra cash on hand. I used the freed up cash to take advantage of market dips and added to stocks that I thought was still undervalued. I added to OHI and increased my holding of OHI to 500 shares. OHI has a great history of dividend growth, and their pattern has been to increase their dividend by one cent every quarter. They recently announced an increase on their dividend again, from 55 cents to 56 cents, payable on Monday, November 16th, bringing the current yield to 6.49%. What an amazing company! I love their dividend growth model and I think OHI is a great investment for the long term.

Short Term Goal
My short term goal is to have $2,000 in dividend income a month on a prorated basis from this portfolio by the year 2020. This is an aggressive goal but it is necessary to lay the foundation for my ultimate goal of financial freedom. I will need to plan ahead and make all the right moves. I will make adjustments that are necessary to steer towards this direction. Currently, my monthly passive income for this portfolio is at $387.83, so I still have a long way to go. These monthly updates will be constant reminders for me to keep me focused on my goal. By making this portfolio opened to the public, I will show my moves to everyone and hold myself accountable. Good luck to me!

Happy investing!!


Leave a Reply

Your email address will not be published. Required fields are marked *