DGI Portfolio Report for January 2016

By | February 15, 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 dividends to achieve financial freedom. The strategy is to buy strong and healthy 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 this portfolio.

This report 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.

Account Balance
Beginning Balance: $100,082.53
Ending Balance: $95,766.89
Net Gain/Loss: -$4,315.64 (-4.3%)

Portfolio Holdings:

Symbol Current Price Quantity Current Value Dividends (per share) Dividend Yield (%) Annual Dividends Prorated Monthly Dividends
VZ 49.97 204.809 $10,234.30 0.565 4.52% $462.87 $38.57
T 36.06 205.55 $7,412.13 0.47 5.32% $386.43 $32.20
JNJ 104.44 101.553 $10,606.19 0.75 2.87% $302.42 $25.20
O 55.79 203.117 $11,331.89 – 0.1905 4.27% $460.85 $38.40
OHI 31.71 611.586 $19,393.39 0.56 7.19% $1,369.95 $114.16
IBM 124.79 100.932 $12,595.30 1.3 4.17% $520.00 $43.33
MIC 67.06 302.978 $20,317.70 1.13 6.74% $1369.46 $114.12
Cash $6,621.99
Total $95,766.89 $4,882.55 $406.88

Note: Dividend yield is as of writing the post. Options are not shown in this table.

Dividend Payouts This Month:
O 1/15/2016 $38.65

Month Total: $38.65

Lifetime Cumulative Dividends Received: $1,768.97
*This is the total dividends received since the inception of this portfolio in June 2015.

 

Portfolio Update

The stock market had a very bad start of the year in January and had major selloffs. I had lost more than $4K in one month, therefore I feel I will need to tweak my portfolio for more safety in case of more stormy weather ahead.

POT – Potash Corporation of Saskatchewan (USA) (NYSE:POT) has been selling off along with the rest of the commodities market. I’m glad that I had sold POT earlier, albeit still a little late. Recently, POT has announced a dividend cut and when a company cuts dividend it’s usually not a good sign. Unfortunately, I have learned the hard way from many past mistakes, such as LNCO, SDRL, KMI, etc. Therefore, whenever I see a company cut dividends, it’s a big sign to sell.

MIC – Macquarie Infrastructure Corp (NYSE:MIC) has been selling off along with the oil prices. I had recently added an extra lot of 100 shares to my MIC holdings and I’m starting to second guess myself. MIC may have more ties to oil and debt than I initially thought. Now, I’m stuck holding on to very depressed shares. Of all my holdings, MIC is my biggest concern. I will wait and see how these shares pans out in the near future. If they cannot sustain their dividends, then this would be a big issue for me.

IBM – International Business Machines Corp. (NYSE:IBM) has been selling off along with the rest of the stock market. IBM is still in the midst of turning their gigantic business around. It will take them some time, but I think they’re making good process. They have recently acquired a few digital marketing/advertising companies and I believe these acquisitions will benefit them in the long run. We shall see. In the mean time, I will continue to collect their dividends.

O – Realty Income Corp (NYSE:O) is known as The Monthly Dividend company and it is for a good reason. They do not only provide a dividend payout each and every month, but they also increase the payouts on a regular basis. Their management is great and their business model is solid. This stock has become a safe haven during the global market selloff. Their dividends are solid.

OHI – Omega Healthcare Investors Inc (NYSE:OHI) has not been doing so well lately. There are concerns about their tenants being dependent on government subsidy that may not last. However, I feel OHI is undervalued now after being sold off. I think OHI’s share prices will bounce back. In the mean time, I will continue to collect their generous dividends.

AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) have been performing very well recently. A few months ago, I had thought of selling T and VZ because I thought their dividend growth was not attractive, however after some a second thought, I realize that they are very strong companies and have a solid business model, so I would hold on to them for solid dividend payouts. It turn out to be a good move, because T and VZ hold up very well in this global market crisis. In fact, they do so well, their stock prices have increased despite many other stocks falling hard. Also, I can see that T and VZ are looking to diversify their business. Their revenue stream is solid as far as I can see. I think I can sleep well holding these two stocks.

Short Term Goal – Year 2020
My short term goal is to have $500 in dividend income a month on a prorated basis from this portfolio by the year 2020. I have adjusted the short term goal to make it more realistic for myself and also to prevent myself from making any irrational moves. I will make adjustments that are necessary to steer towards this direction. Currently, my monthly passive income for this portfolio is at $406.88, so I still have some 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!!


 

One thought on “DGI Portfolio Report for January 2016

  1. Pingback: Macquarie Infrastructure’s (MIC) Q4 2015 Results Earnings Call Transcript | Growing Money

Leave a Reply

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