- Tax return transfered to the car loan (only one more month to go!)
- $246.69 in dividends for March 2017
- +$40.64 added to annual income
The market has been on a tear since Donald Trump has taken office and my portfolio is no different. Below is a screenshot of my gains for the month of February and there’s no way you can hate against it. While not all my stocks have done amazing, there’s definitely been quite a few that have stood out.
To name just a few:
|AAPL is up 16%||CSCO is up 11.5%|
|BA is up 12%||PFE is up 11%|
|CAH is up 13%||V is up 7%|
Of course, short term gains don’t mean too much when we’re looking at establishing a high quality dividend portfolio, but it’s still brings a smile to my face when I see my balance go up over $1,200 bucks in a month. Can this bull market continue or will we see it regress? Only the shadow knows…
As usual, I auto-deposited $200 each pay period into my Robinhood account. This sets me up to have $400 every month to purchase high quality dividend stocks without having to put up any effort.
I also added a one time deposit of $625 for the month. This is $375 more than my stated Goals for 2017. I’m also working towards paying off my car loan this year. I’m hoping my tax rebate this year will pay for the majority of the car off. This will let me take the payment I would normally use for the car payment and use that money to purchase even more high quality dividend stocks.
Total: $200 + $200 + $625= $1,025
|VZ||10 shares @ $0.58 =||$5.78|
|T||25 shares @ $0.49 =||$12.25|
|CVS||7 shares @ $0.50 =||$3.50|
|SDIV||101 shares @$0.12 =||$12.17|
|OHI||20 shares @ $0.62 =||$12.40|
|PG||6 shares @ $0.67 =||$4.02|
|AAPL||5 shares @ $0.57 =||$2.85|
|CAT||5 shares @ $0.77 =||$3.85|
|HCN||15 shares @ $0.87 =||$13.05|
|CLDT||150 shares @ $0.11 =||$16.50|
|Total for February:||$86.37|
Not too bad for passive income.
Let’s go ahead and talk about about this month’s purchases now.
I mostly DRIP’d the companies that paid out dividends to me this month. I opted not to DRIP a few of the REIT’s this month since my position in them is pretty high and I’m getting a little low on cash in the account. Also the same with AAPL since they’ve been skyrocketing lately on the news that Berkshire bought even more shares. Oh well, let’s see what I purchased.
CVS is a well known pharmacy company that operates retail drugstores, online retail pharmacy websites and its retail healthcare clinics.They’re currently trading at a P/E Ratio of 17 after a recent dip on news that they lost a contract. I still believe that CVS is here to stay and they are currently paying a 2.4% dividend yield. They have a 32 year history of paying dividends and are currently classified as a Dividend Contender with 14 years of increasing dividends. They currently sit around a 42% EPS payout ratio which means that the dividend is pretty safe. They also have a 5 year dividend growth rate of over 27%! The board just announced an 18% increase to the annual dividend which means each share of CVS returns $2.00 in dividends a year. This adds $1.72 to my annual income!
Most people know AT&T since it’s a Dividend Champion with 33 years of increasing dividends. They currently sit around a 4.6% dividend yield with a dividend growth rate of 2.2% While not the most aggressive dividend stock, they are by far a pretty reliable. Things to watch out is they’re over 80% on their EPS payout ratio. This adds $1.96 to my annual income!
Another communications stock? Yep, it’s alright to buy shares of companies that are in direct competition with each other. I don’t think VZ or T are going anywhere anytime soon. Verizon also sits at a 4.6% dividend yield and is considered a Dividend Contender with 12 years of increasing dividends. They sit at a slightly higher Dividend Growth Rate of 3% compared to T but their EPS Payout Ratio is at a more comfortable 67%. This adds $2.31 to my annual income!
Exxon Mobile is a 34 Year Dividend Champion currently sitting at a 3.6% dividend yield with a 3-year DGR of 6.6% Their eps payout ratio is higher than I’d like to see from them but they still keep paying out the dividend. This adds $3.00 to my annual income!
GILD is a biotech company that just recently started paying dividends. They dipped pretty hard recently so I decided to add some more shares. They currently sit at a 3% dividend yield. This is one of my more riskier plays so I don’t recommend going in them if you’re a beginner. This adds $20.80 to my annual income!
PG is a 60-Year Dividend Champion that currently sits at a 2.9% dividend yield. There’s a reason why PG sits on top of a lot of dividend bloggers “always buy” lists. They’re a solid company that is worthy of anybody’s portfolio. This adds $2.68 to my annual income
OHI is a 14-Year Dividend Contender with a dividend yield of 7.5%. The have an average DGR of 8% but are high when it comes to EPS Payout Ratio. I’ll have to keep an eye out for them as well. This adds $2.48 to my annual income
This was a DRIP’d purchase of a 23-Year Dividend Contender. Their yield sits just over 3% with an average DGR of 9.6%. Their payout ratio is higher than I would like as well. But this adds $3.08 to my annual income.
All these stock purchases have added a grand total of $38.03 to my annual income.
We’ve added $38.03 to my annual income in this month alone. While the majority of my purchases were just DRIP’s, I’m still happy with the outcome. The portfolio won’t be exciting for a few months until the car gets paid off, but after that the sky is the limit!
I hope everybody else had a good month. See ya next time!
It’s time once again to take a look at my Dividend Portfolio and see how we fared for January 2017. A lot has happened in the United States the last few months and perhaps the biggest piece of news is that Donald Trump has been inaugurated as the 45th president of the United States. While this brings a bunch of uncertainty to the table, we should all hope for the best and that his campaign slogan, “Make America Great Again”, does in fact come true and I wish him the best.
This month marks the first month where I started to manually DRIP my dividend payouts back into the companies in order to compound my future returns in hopes of one day being able to quit my full time job and concentrate on the things that I would love to do.
Let’s take a look at what happened to the dividend portfolio last month!
Twice a month, I usually tell my Robinhood App account to auto-deposit $150 from my checking account. I decided my goal for this year was to try and put more money into my dividend portfolio, so I went ahead and upped my auto-deposit amount to $200. So every month, the Robinhood App will autodeposit $400 from my checking account. I also managed to put an additional $500 into the account this month, $250 more than my stated Goals for 2017.
Total: $200 + $200 + $500= $900
|SDIV||100 shares @ $0.12 =||$12.05|
|MAIN||77 shares @ $0.18 =||$14.25|
|STWD||40 shares @ $0.48 =||$19.20|
|CAH||20 shares @$0.45 =||$8.98|
|CSCO||17 shares @ $0.26 =||$4.42|
|CLDT||149 shares @ $0.11 =||$16.39|
|Total for January:||$75.29|
While it’s not as good as the monstrous income that I received last month, I can’t complain at all about receiving free passive income to the tune of $75.29. Of course, I went ahead and reinvested the dividends back into the companies to keep the return compounding in the future. This means I spent some more cash in my account to round up to full shares.
The only dividend that I didn’t reinvest was MAIN since I sold out of that last month. In its place, I went ahead and contributed MAIN’s dividend to buying a share of GE.
Let’s go ahead and talk about about this month’s purchases now.
I purchase a few new stocks in January and manually DRIP’d the companies that paid out dividends to me this month.
CVS is a well known pharmacy company that operates retail drugstores, online retail pharmacy websites and its retail healthcare clinics.They’re currently trading at a P/E Ratio of 17 after a recent dip on news that they lost a contract. I still believe that CVS is here to stay and they are currently paying a 2.4% dividend yield. They have a 32 year history of paying dividends and are currently classified as a Dividend Contender with 14 years of increasing dividends. They currently sit around a 42% EPS payout ratio which means that the dividend is pretty safe. They also have a 5 year dividend growth rate of over 27%! The board just announced an 18% increase to the annual dividend which means each share of CVS returns $2.00 in dividends a year. This adds $14.00 to my annual income!
With Robinhood, buying one share of a stock with no trading fees is 100% doable. This means manually DRIPing is something that can be done if you don’t mind paying the extra capital to round it up to a full share. I went ahead and purchased one more share of SDIV, a dividend ETF. Currently, SDIV is giving a 7.3% yield. This adds $1.57 to my annual income!
Another DRIP’d purchased that comes from Cardinal Health. The dividend yield sits at 2.3% and returns $1.80 per share a year. This Dividend Contender currently sits around a P/E ratio of 18 and has been paying increasing dividends for 20 years. At an EPS payout ratio of only 43%, this stock has plenty of oomph to keep raising their dividends over the years. CAH has a 5-year dividend growth rate of 15.3% too! This adds $1.80 to my annual income!
DRIP’d. CSCO provides technology and services to its customers including cloud, video, mobility, security, collaboration and analytics. They currently sit around a P/E ratio of 14 and has been paying increasing dividends for the last 6 years. They have also been aggressively growing their dividend with their 1/3/5 year DGR at 20%/15%/40% respectively. Their EPS payout ratio currently sits at 49% with plenty of room to grow. I accidently bought 2 shares of this stock, oh well. This adds $1.04 to my annual income
CLDT is a REIT that specializes in premium-branded upscale extended-stay and select-service hotels. I’ve recently trimmed some shares of CLDT in the past due to being over extended but I’ve had nothing but success with them so I’m not too worried about grabbing an extra share. They currently sit at a 6.4% div yield and are classified as a Dividend Challenger with 7 years of increasing dividends. As a bonus, they pay out monthly in 3 month spurts. This adds $1.32 to my annual income.
GE is an industrial company that makes aircraft engines, power generation and oil and gas production equipment to medical imaging, financing and industrial products. They’re currently returning a 3.1% dividend yield and have a rocky past with being removed recently from the Dividend Challengers list for not increasing their dividend. While they don’t fit my dividend criteria, they still have been paying dividends for the last 54 years. This adds $2.88 to my annual income.
SBSI is a rather unique stock that not only pays dividends in the form of cash quarterly, but they also pay out a dividend in stocks in the form of a 21:20 split every year in April. At on top of that they have been paying a special dividend in the last quarter of the year, the return on them have been amazing. They are a Dividend Contender has been increasing dividends for the last 22 years. They’re currently sitting at a P/E ratio of 19 and have a 2.7% dividend yield with an EPS payout ratio of 53%. This adds $30.00 to my annual income.
GILD is a biotech company that focuses on the discovery, development and commercialization of medicines in areas of unmet medical needs. They’ve had a rough year and the price has driven the dividend yield to 2.6%. They are also new to the dividend game since they only just started in June of 2015. This is one of my more risky dividend plays. This adds $18.80 to my annual income.
I’ve jumped in and out of TGT in the last year mostly due to the retail sector being hit pretty hard lately. I decided that it was a good time to get into this Dividend Champion. They have 49 years of increasing dividends! Add on to that they have a 3/5/10 year DGR of 13%/16%/18% respectively. Currently, they sit on a EPS payout ratio of 44% This adds $36.00 to my annual income!
QCOM is a a digital communication company that has recently been hit pretty hard due to a pending lawsuit where the company dropped 12% in a day. I figure it was a good time to take a bite. They currently trade at a P/E Ratio of 16% and offer a dividend yield of 3.9%. They are a dividend contender with 14 years of increasing dividend and currently sit at a 3/5/10 Dividend Growth Rate of 16%/19%/16% respectively. With an EPS Payout ratio of 54%, QCOMM still has room for more growth. This adds $57.24 to my annual income!
STWD is a REIT that I got into last year and have been very happy with in terms of growth and yield. The one share purchased is DRIP’d from their dividend. Since I’ve purchased them, the share price has gone up almost 20% with 4 dividend payments of $0.48 a share. While they don’t raise their dividend every year like other stocks, they are at least consistent with a dividend yield of 8.5%. I don’t recommend them right now since they don’t follow our goals but I’m going to stick with them until they do something I don’t like. This adds $1.92 to my annual income.
All these stock purchases have added a grand total of $166.56 to my annual income.
We’ve added $166.56 to my annual income in this month alone. This is outstanding and I wish I can keep up this pace for the entire year. I hope with frugal living and passive income from alternate sources, that I can continue to add more into my account in order to keep purchasing more high quality dividend growth stocks. I hope everybody else had a great month and I’ll see you next time!
The year has finally ended and I thought it would be a good to take some time and look back at the dividend portfolio to see exactly how it performed; if there were any big clear winners or clear losers and if there are any lessons to be learned from it all.
Let’s first start our look at the overall market indexes. The S&P 500 had a positive 10% increase for the year with The Dow up over 13%. Even if you remove the post-election surge in November, the market still has a positive return for 2016.
Portfolio wise, my return has been 14.72% for the year with the majority of the returns coming from stock growth. I was lucky enough to purchase a lot of high quality dividend paying stocks on some dips and they have rebounded and have went even higher. The bulk of my return has been since the Trump rally in November however. Before that, i was up about 5%. The following image shows the graph in the Robinhood App on the yearly scale.
Let’s take a look with how much of the return is from dividends vs stock growth. The following image is just a spreadsheet where I keep track of dividends paid out on a monthly basis.
At almost $1k in dividends being paid out to my account, this accounts for over 20% of my yearly return. Not too shabby for passive income.
The biggest winners, growth wise, of my portfolio are MAIN, STWD, T and JNJ.
I first started my position in MAIN in December of last year and have been collecting their monthly dividends ever since. They pay 18 cents a share normally, but add on top of that they also paid a special dividend in June and December of this year, then we can see why MAIN is a fun stock to own. They have had a big year in growth as well since I’m up 26.17% on it. At the time before this is posted, I have sold my position in MAIN to lock in the growth. I hope to maybe get back into it once it’s closer to it’s fair price.
STWD is another stock that I didn’t realize would perform so well when I first bought it in March 2015. It still has a dividend yield over 8% and I’ve received three dividend payments of 48 cents a share. On top of that, it’s also returned 21.3% growth. STWD is another stock that I need to revisit because I’m not sure if the dividend is sustainable. Most analyst have STWD as a hold right now and I believe I will follow that advice for the time being.
T is a telecommunications giant that’s been a dividend champion for 33 years. What’s also impressive is the 25% total return I have as well as the three dividend payments I received since owning it back in January 2015. The stock still has a PE Ratio under 20 and gives a dividend yield of 4.5%. My only regret is not buying more. Hindsight.
JNJ is another monster in the dividend champion list that has been raising dividends for 54 years. Since I’ve purchased them in January 2015, they have given my portfolio a 19.7% return, as well as four dividend payments. Right now, I believe they are fairly valued and I’m looking to buy more if it happens to dip on any amount. A lot of people have been talking about JNJ being one of the “Always Buys” and I can’t find any fault with that.
The biggest lost of the portfolio came from when I finally sold off my position of CSIQ. It had dropped radically and before I pulled the trigger to dump it, I had lost over 1k. This was before I was committed fully to the DGI brotherhood. But it was definitely a lesson that I needed to learn.
Overall, I’m happy with my dividend portfolio. I managed to cobble together a collection of stocks that have beaten the index for the year, which is no easy feat. I have a lot planned for Dividend Noob in the next year, so please stay tuned!
The goal of my dividend growth stock portfolio is simple and I contribute to it every month in order for it to continue returning passive income straight to my account. It currently returns over $1,500 a year and I, in turn, use that money to purchase additional shares of good, strong companies. This creates a snowball effect that piles up bigger and bigger the longer it happens. You might have heard of Dave Ramsay’s Debt Snowball? Well this is even better!
The biggest news item for the month of November was the United States Presidential Election where Donald Trump won the majority of the Electoral College votes but failed to win the popular vote. This will be the fifth person to become president despite losing the popular vote in America. This has caused a pretty divisive split between Americans and we’re far from seeing the last of the fallout due to it. But this blog isn’t about politics, it’s about making passive income in the form of dividend growth stocks!
Let’s see what happened to the portfolio for the last month and I’ll try and give you my thought process for why I did things.
In order to help increase the funds available to purchase high quality dividend stocks, I set up for my Robinhood account to pull $150 from my checking account twice a month(7th and 21st). I set up the withdrawal dates to coincidence on the dates that my paycheck clears into my account. This sets me up with $300 a month without having to do a thing.
I also scheduled a $500 deposit at the beginning of November. One of my goals was to keep adding additional funds to the account every month, on top of the $300 that’s auto-deposited. The amount of money is different every month and depends on how much free cash I have after bills are paid. $500 is a great amount and I continue to strive to meet and or beat this every month!
The next deposit was a speculative decision based off the presidential election. If you followed any of the media concerning the election, many media outlets said the stock market would “crash” or dip hard on a Donald Trump victory. If the stock market did dip then I would be in a good position if I had extra funds in my account to purchase stocks. I transfered $8k from my savings account over into my Dividend Portfolio in case it did happen. After Donald Trump won the election, the stock market ended up rallying and going to new highs which trumped my plans on buying these dividend champions on sale. Oh well.
.Total: $150 + $150 + $500 + $8,000 = $8,8000
It was a pretty weak month in terms of dividend payouts with the portfolio only returning $55.67 in income. The following table lists them out.
|T||25 shares @ $0.48 =||$12.00|
|AAPL||5 shares @ $0.57 =||$2.85|
|SDIV||100 shares @ $0.12 =||$12.05|
|MAIN||77 shares @ $0.18 =||$14.25|
|CLDT||132 shares @ $0.11||$14.52|
|Total for November:||$55.67|
One of my goals in the future is to start looking at good quality dividend stocks that pay their dividends on the weaker months.
I purchased quite a bit in November.
At a dividend yield of 2.06% and a p/e ratio around 13, I thought it was a decent entry point to start my position in AAPL. There were plenty of opportunities to pick up AAPL at the lower price but I was always cautious on their ability to deliver innovation. It’s hard to bet against this giant though and I decided to start a small position for the long term. I’ll be buying a few more shares on the dips as it transitions into a dividend growth stock (hopefully). This position adds $11.40 to my annual income.
Chatham Lodging Trust is an equity real estate investment trust with the majority of their holdings in upscale extended-stay hotels. One of the highlights of this REIT is the high yield (~7%) and that they pay dividends on a monthly basis. It trades around a Price/FFO ratio of 8.5 times. Hotels tend to not do very well during recessions and with the market at an all time high, I’m going to have to keep an eye on it but I’m pretty confident in them for the time being. This position adds $110.88 to my annual income!
Omega Healthcare Investors is another REIT that invests in long-term care facilities located in the U.S. and U.K. The prime factors in my decision to purchase shares were the solid 14 years of increasing dividends, the current yield of 8.28%, and the latest price drop due to earnings. This position adds $24.40 to my annual income!
The Southern Company generates and distributes electricity through coal, nuclear, oil, gas and hydro resources in the AL, GA, FL and Miss. They currently sit at a p/e ratio of around 17 with a current dividend yield of 4.78%. They are new to the dividend payout game and had only just started paying out in 2013. Energy sector has been getting hit pretty hard lately so I felt it was a good time to add to my position on the dip. This position adds $13.44 to my annual income!
National Grid plc is another energy stock that distributes electricity and natural gas to the U.K and the U.S. It currently sits at a dividend yield of 5% and just like SO, has been paying dividends since 2013. This position adds $29.60 to my annual income!
DUK is another energy stock that’s been getting hit pretty heavily lately which drove it’s p/e ratio to 17.7 and yield to 4.6%. I used my auto-deposit cash to purchase these shares. This position adds $10.26 to my annual income!
I sold out of my shares of TGT after a big bump after earnings to lock in profits. It’s since skyrocketed even higher and I’m a little jealous that I pulled the trigger too early. Oh well, at least i made a decent chunk of profit from it regardless. This reduces my annual income by $60.00.
You can always view my current portfolio.
That’s it for the month of November! Coming up next month is Christmas and the spendthrift nature of the entire month. Here’s hoping I have some amount of money left at the end in order to keep adding to my portfolio!