DGI Portfolio Report for December 2015

By | January 11, 2016

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.



Account Balance
Beginning Balance: $99,779.81
Ending Balance: $100,082.53
Net Gain/Loss: +$302.72 (+0.0%)

Portfolio Holdings:

Symbol Current Price Quantity Current Value Dividends (per share) Dividend Yield (%) Annual Dividends Prorated Monthly Dividends
VZ 46.22 204.809 $9,466.27 0.565 4.95% $462.87 $38.57
T 34.41 205.55 $7,072.97 0.47 5.51% $386.43 $32.20
JNJ 102.72 101.553 $10,431.52 0.75 2.92% $302.42 $25.20
O 51.63 202.378 $10,448.77 0.1905 4.57% $460.85 $38.40
OHI 34.98 611.586 $21,393.27 0.56 6.66% $1,369.95 $114.16
IBM 137.62 100.932 $13,890.26 1.3 3.70% $520.00 $43.33
MIC 72.60 302.978 $21,996.20 1.13 6.12% $1369.46 $114.12
Total $94,699.26 $4,880.86 $406.74

Note: Cash balance not shown here. Dividend yield is as of writing the post.

Dividend Payouts This Month:
JNJ    12/8/2015    $75.60
CVX    12/10/2015    $1.49
IBM    12/10/2015    $130.00
O    12/15/2015    $38.40

Month Total: $245.49

Lifetime Cumulative Dividends Received: $1,730.32
*This is the total dividends received since the inception of this portfolio in June 2015.


Portfolio Update

Welcome to another monthly report for my Dividend Growth Investing (DGI) Portfolio. This post provides an update on my holdings, performance, plans and thoughts for this portfolio. I started this portfolio with an initial funding of $100,000, which is is a nice and even number. I’m running this portfolio like a fund manager who runs a dividend growth fund. I will look for stocks that are a great fit for this portfolio, review the portfolio on a regular basis and make adjustments as necessary. Of course, I reserve the right to make any exceptions to buy or sell a stock. The results will be published here on Growing Money every month. I seek companies that have a healthy balance sheet and a competitive business advantage in the market, thereby protecting my principal investment. The dividend growth will help build a stream of growing 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.

CVX – If you look at my holdings above, you’ll notice that I no longer have any CVX holdings. I have decided to liquidate the few shares that I was left with after my option got exercised. The few shares were a result of the dividends that was reinvested. The interesting thing to do note is that those few shares also created dividend for me, but all those fractional shares will be liquidated too. I think that oil will be continued to be challenged in 2016 therefore I have decided to sell all shares of CVX and will not buy any oil stocks in this portfolio until I can see a good investment. My initial purchase for CVX shares was around $100 and my sell price was around $80, I took a loss on CVX shares.

POT – Another stock I sold is POT. Like oil, potash is getting hammered really bad. The other thing is that I also do not want to pay a fee on foreign dividends, so I have decided that this is not the proper dividend stock for my portfolio. My initial purchase for POT shares was around $24.70 and my sell price was around $17.50, so I took a loss on POT shares.

MIC – I added 100 shares to my MIC holdings after selling my POT shares. MIC shares were getting crushed and I thought it may be a good time to add on the dips.

Overall, I feel more confident with the current holdings, especially AT&T Inc. (NYSE:T). Initially, I had thought of selling AT&T, but doing some analysis on the company, I think their footing will be stronger after the acquisition of DirecTV. They have raised their dividend by a penny and they will use rest of the cash to pay down debt, which is a smart move for the company. I think once they have the debt under good control, then they can make bigger increases on the dividend increase.

Short Term Goal – Year 2020
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, which is financial freedom. I need to plan ahead and set up the ground for more income growth. I will make adjustments that are necessary to steer towards this direction. Currently, my monthly passive income for this portfolio is at $406.74, so I still have a long way to go. These monthly updates will be constant reminders for me to stay focused and work hard on my goal. By making this portfolio opened to the public, I will hold myself accountable and show my every thought and move to everyone. Good luck to me!

Happy investing!!



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