DGI Portfolio Report for November 2015

By | December 7, 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 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.

First, I want to note that I changed the heading format again. I think this heading format would be the most concise and I spelled out the month for those readers who want to easily identify the month with words. Also, I changed the layout a little bit and moved the Portfolio Update section to the top of the post. I’m still working on what information to show and which ones not to show. Please feel free to provide your suggestions and let me know what you like me to include in my monthly reports.

CVX – One of the things to note is that almost my entire position in CVX is gone. I had sold a DEC 18 15 $80 covered call on CVX a few months ago when oil prices crashed, but CVX has recovered nicely from its lows and the option was assigned by the buyer my call. Therefore, I’m left with the fractional shares now, which was bought from the dividend reinvestment. I will wait to see if it’s worthwhile to pick up the CVX shares again, given the current oil market conditions.

OHI – I picked up another 100 shares of OHI at $34.50 after the stock dropped due to the mention of Fed’s interest rate hike in December. I’m bullish on OHI and I think it will be a long term winner so I do not mind accumulating more shares of OHI.

POT – I realize that POT’s dividend incurs a charge of Foreign Tax of 15%. That is not a fee I want to pay every time I receive my dividend. This reminds of of GSK’s dividend, where I also had a Foreign Tax. I will look to liquidate POT like I did with GSK. Moreover, I think the potash industry will suffer for a longer time than we all had anticipated, similar to gold and oil. The only unfortunate thing is that my position in POT is currently suffering a 23% loss right now so if I sell it, I will realize a big loss on my account.

IBM – I am bullish on IBM and I think it is making a lot of changes to their business model that will one day prove to be a leader again. It will take some time for them to turn around this big ship, but they will eventually do it. In the mean time, I will continue to collect their dividends and as long as their dividend growth is sustainable, I will continue to hold their shares.

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 $394.54, 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!!


Portfolio Holdings:

Symbol Current Price Quantity Current Value Dividends (per share) Dividend Yield (%) Annual Dividends Prorated Monthly Dividends
CVX 89.71 1.391 $124.79 1.07 4.77% $5.95 $0.50
VZ 45.7 204.809 $9,359.77 0.565 4.95% $462.87 $38.57
T 34.11 205.55 $7,011.31 0.47 5.51% $386.43 $32.20
JNJ 102.91 100.805 $10,373.84 0.75 2.92% $302.42 $25.20
O 50.01 201.598 $10,081.92 0.1905 4.57% $460.85 $38.40
OHI 33.64 611.586 $20,573.75 0.56 6.66% $1,369.95 $114.16
POT 18.93 203.02 $3,843.17 0.38 8.03% $308.59 $25.72
IBM 140.37 100 $14,037.00 1.3 3.70% $520.00 $43.33
MIC 73.81 202.978 $14,981.81 1.13 6.12% $917.46 $76.46
Total $90,387.35 $4,734.53 $394.54

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

Dividend Payouts This Month:

VZ 11/2/2015 $114.33
T 11/2/2015 $95.27
POT 11/3/2015 $76.00
O 11/16/2015 $38.25
OHI 11/16/2015 $228.84
MIC 11/18/2015 $226.00

Month Total: $778.69

Lifetime Cumulative Dividends Received: $1,484.83
*This is the total dividends received since the inception of this portfolio in June 2015.

Account Balance
Beginning Balance: $99,790.26
Ending Balance:      $99,779.81
Net Gain/Loss:       -$10.45 (-0.0%)


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