Bert’s June Investment Report

We have now reached and crossed over the halfway mark of 2014.  I can’t believe it!  Time flies by and I feel like you seem to lose track of time as you go through the motions of adulthood.   With that in mind,  it is time once again to assess how my portfolio performed during the month of June and to revisit the goals that I set for myself at the beginning of the year.

Dividends June is one of my favorite months of the year for my portfolio because of all the dividends that are paid during the month.   These dividends and other forms of capital contribution pushed my portfolio over the $40,000 mark (I wrote about this last week, so I won’t elaborate too much about this during my investment summary).   In total, I received a record $205 in dividend income during the month.   This is exponentially greater than June 2013, which netted me a total of $20.19! As strange as this sounds,  I guess I have never truly taken a step back to look at how much my investment portfolio has grown in a year.  Seeing my actual (not projected) dividend income increase 10X from the prior year is just one of many ways to highlight this growth.  To get back on track, where did my dividend income come from this month?  The largest dividend payment was from the mutual fund that I selected for my employer’s Roth 401(k) plan, VWNAX.  This fund paid $69 in income this month.  This fund is always fun to monitor and it adds an extra layer of suspense since the fund only pays dividends twice a year (June and December).  Let’s just say I was checking every day to see if the company had released their dividend for the first half.  After a month of waiting on my seat for the declaration the company announced a dividend of $.8340, an increase of $.189 from the June 2013 dividend.   Not too shabby for one of my largest investments.   Other than this investment,  the other major contributors to my dividend income were from the oil, utility, and REIT industries.   Luckily for me the three largest dividend payers (VWNAX, BP, and FE) are all held in a Roth account and are tax-free.   See a detailed breakdown of the dividends I received during the month. June 2014 Dividend IncomeInvestment Activities Outside of a busy month for my 401(k),  I did not have any purchases or sales during the period.  Instead,  my portfolio was only impacted by dividend income, an employer contribution, and appreciation.  After removing the increase from dividends and the employer contributions,  my portfolio appreciated $341.07 or .9% during June.  This increase  was below the S&P for the period, which increased 1.90%.   While this was due primarily to one laggard in my portfolio, ARCP,  I still is disappointing that I was below the market.   It shows that I sill have some work/learning that needs to be done in order to have a portfolio that can out-perform the market in most months (I know you cannot beat Mr.  Market in the long run, I am just trying to hang with him most months and out-perform him some months).  Luckily,  I can promise that the month of July won’t be as boring for June.  Let’s just say I have a couple of purchase up my sleeve.  Stay tuned!

Goal Updates

As the portfolio has been updated in our Dividend Portfolio section, we have come to update you on the following goals for Bert: Forward

Annual Dividend Projection$1,605 or 91.7% towards the dividend goal of $1,750.  As of now, I am projected to surpass this goal by the end of the year based on my planned 401(k) contributions, remaining Roth IRA investments, and increase in current dividends.  Let’s hope this pans out as anticipated!  However, I am very happy with my current progress.

Market Value$40,268 or 100.7% towards the $40,000 goal!  As I have discussed, I crossed the $40k mark earlier this month.   Now the fun part begins,  I get to re-establish my goal and set a new target for 12/31/14.  For the remainder of the year,  I will receive about $700 in dividends, contribute $1,300 to my employer’s Roth 401(k), and max-out the remainder of my Roth IRA contributions (which has about $3,300 remaining for the year).  After considering these investments,  that would push my Market Value towards $45,500.  I was considering a new goal of $47,500, which would be a comfortable goal to hit.  But that’s not what the Diplomats are about!  We are all about pushing ourselves to accomplish challenging but realistic goals.  I am pushing myself to have a market value of  $50,000 by 12/31/14.  That is effective immediately.  Hopefully the second half of 2014 treats me as well as the first half.

Dividend Yield  of Total Portfolio: 3.99%.  This is just below my goal of 4.00%, but this is subject to change throughout the year.

Roth IRA Contributions: One of my goals is to maximize the utilization my Roth IRA by investing in high yielding stocks that have a dividend yield greater than my portfolio average.  I do not have any updates for this goal since I did not make any purchases during the year.

I am looking forward to another fun month in July.  Hopefully everyone has a great month and we will all have exciting July summaries!

~Bert

Read Lanny’s June Investment Report Here

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6 thoughts on “Bert’s June Investment Report

    • Henry,

      Thanks for stopping by. I know $50k will be a challenge for the rest of the year, but that is part of the fun of building your portfolio! Best of luck with your journey to $150k this year.

      Bert

    • DM,

      Thanks for stopping by and the kind words! It was awesome seeing my dividend income cross $200 for the first time. I can’t wait for the day when my off month’s are bringing that in; but I still have some work to do for that!

      Best of luck to you as well in the second half.

      Bert

      Cheers

  1. Hi Bert,

    Congrats on a great month! I like how you roll by adjusting your goals to a more challenging level.
    I think you can seldom go wrong with a Vanguard fund as they have very low expense ratios. Is there any reason you chose VWNAX in particular?

    Keep up the financial diplomacy towards independence!

    • Dividend Life,

      Thanks for stopping by and the kind words. Our employer plan has a limited number of funds that you can select that are not your “Target Retirement XXX” fund. I wanted to select a mutual fund that was focused on large-cap dividend paying stock, VWNAX provided the highest yield without over allocating in your traditional high yielding industries (oil, utilitites, etc.). I think I would have made a diiferent choice if we were allowed to select from Vanguard’s full portfolio of fund. But I sholdn’t complain, I’m very happy with the funds performance.

      Thanks again!

      Bert

      Bert

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