Dividend Growth Investing (DGI) Portfolio Update for August 2015

By | September 7, 2015

Dividends

This post is a monthly update to track the performance of my DGI Portfolio. The goal of this portfolio is to build a growing stream of passive income to achieve financial freedom. The strategy is to buy companies with dividends that are sustainable and increases over time. All the dividends are automatically re-invested in the stocks to buy more shares of the same companies.

 

 

 

Portfolio Holdings:

Symbol Current Price Quantity Current Value Annual Dividends Prorated Monthly Dividends
CVX 76.72 100 $7,672.00 $428.00 $35.67
VZ 44.82 202.357 $9,069.64 $445.19 $37.10
T 32.58 202.706 $6,604.16 $381.09 $31.76
JNJ 91.36 100 $9,136.00 $300.00 $25.00
GSK 39.72 200 $7,944.00 $464.00 $38.67
O 43.39 200 $8,678.00 $456.00 $38.00
OHI 32.35 404.546 $13,087.06 $890.00 $74.17
ED 60.88 150 $9,132.00 $390.00 $32.50
Total $71,322.87 $3,754.27 $312.86

Note: Cash balance not shown here.

Dividend Payouts This Month:

Symbol Date Amount
T 8/3/2015 $94.00
VZ 8/3/2015 $110.00
OHI 8/19/2015 $166.67

Monthly Total: $370.67

Total Dividends Received (Cumulative): $370.67
*This is the total dividends received since the inception of this portfolio.

 

Account Balance
Account Balance at start of month: $59,372.44
Account Balance at end of month: $56,862.13
Net Gain/Loss for month: $-2,510.31 (-4.22%)

Added $20,000 deposit, new balance is $76,862.13

 

Funding Status: 80% Funded
I have added another $20,000 to the portfolio this month. And now the total deposit to this account is $80,000, which is 80% of the planned $100,000. In September, I will allocate another $20,000 to this portfolio to make this fully funded with a total of a $100,000 deposit.

Portfolio Update
Since the dividends are a bigger focus, I have moved the dividends income to a higher spot in the blog post and moved the portfolio balance lower. I’m not even sure if I should list the portfolio balance since it’s not a key focus of this portfolio investing.

August has certainly seen an extremely volatile market, with daily movements of greater than 300 points in both directions, and on August 24, the stock market had a plunge of 1000 points in the DOW. The biggest sector that was hit is the oil sector. My CVX holding is the biggest loser in this oil crisis. Fortunately, I bought a PUT option in CVX to help mitigate some risk and sold it for a small profit. Nevertheless, my CVX holding is still down a lot from my purchase price of around $100.

The global slowdown has also affected the US stock market and my portfolio holdings. However, I believe the stocks I have are very strong companies and will survive global selloff in the long term. In the mean time, I will collect their dividends, which I think are safe.

I took advantage of the market drops and purchased two of my favorite companies, Realty Income Corp (NYSE:O) and Consolidated Edison, Inc. (NYSE:ED). In hindsight, I could have waited a little bit and bought these companies for cheaper, but I didn’t want to miss the opportunity to own them. Even thought I could have bought them at better prices, I feel it’s not bad to own them and collect dividends now. Over the long run, O and ED should rebounded in stock price. But most importantly, O and ED are known for their dividend growth and will play an important role in my portfolio. I also added 100 shares of OHI. I feel that OHI is a very strong company and it’s a good opportunity to pick up more shares. OHI also has a great dividend growth and yield, so I could not pass up that opportunity.

I’m excited that I finally get to see dividends come in for this portfolio. I have collected a total of $370.67 in dividends this month and those dividends are automatically re-invested in their respective stocks. These re-invested dividends will help buy more shares of the companies and having more shares will allow me to collect more dividends in the future. This compounding effect will help me build a growing stream of passive income.

Currently my monthly passive income for this portfolio is at $312.86. I believe this number will increase over time due to the repurchase of shares in those companies and also when there are dividend increases, this number will also get adjusted upward. My goal of reaching $2,000 in dividend income a month by the year 2020 may actually be possible if things go my way. Of course, we will see in time. Once I have more data, I can plot the trajectory of growth in this portfolio. I think I’m off to a good start for now.

Happy investing!!

 

 

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