I keep a copy in PDF of my portfolio every quarter, and have a deeper dive at 12/31, but this also provides a blog’d example of where I stand, so I can always refer back on the site the historical position of my portfolio. As we have done in the prior year, this post will be a review and re-cap overall of my portfolio, the contributions, dividend going forward, dividend received, what I can analyze from the current position, etc.. It’s always fun to see what the year compiled into one snapshot of all of the hard work that goes into it. I am excited to see where it stands and what can be done going into this new year! Let’s dive on in.
Last year’s post on the portfolio review, I was talking about the market dropping, the yield being high and quite a few big new names in my portfolio. So incredible how each full year is ENTIRELY different. It’s what keeps the investing portion of life interesting – no predictions accepted : ) I’ll provide the brief snapshot of 10 attributes on my portfolio, as you’ll see below, and then do an even more analysis surrounding my thoughts of how that came to be and what will 2017 bring from an actual action stand point. Here comes the 2016 review of my portfolio:
- Contributions (Including Retirement, H.S.A. dividends reinvested) YTD 2016 (not including 401(k) match): $45,229.41 (Average of $3,769.12; up $665.56 per month from last year)
- Portfolio Market Value as of 12/31/16: $235,056.30 (Up $70,731.99 or 43.04%; more than 2x as much as Prior Year)
- Portfolio Estimated Income for 2017 as of 12/31/16: $8,066.78 (Up $1,561.81 or 24.01%)
- Portfolio Yield (Overall): 3.43% (Down 53 basis points from 12/31/15)
- Portfolio Yield Individual Account: 3.50% (Down 54 basis points from 12/31/15; talk about appreciation)
- Portfolio Yield Retirement Accounts: 3.40% (Down 42 basis points from 12/31/15)
- Portfolio Yield on Cost (Overall): 4.69% (Down 17 basis points from 12/31/15)
- Positions in my Individual Account: 37 (Up 1 net new positions)
- Positions, including 3 mutual Funds and 1 ETF, in Retirement Account & HSA: 13 (Up 3 new positions)
- Total Dividend/Distributions Received in 2016: $7,406.43 (Up $1,271.77 or 20.73%)
What does all this information mean – one may be asking? Well, I figured I can start from the top and work my way down. Total contributions sky rocketed from prior year! This partly has to do with my full automation tax-strategy of maximizing my 401(k) and my Health Savings Account (HSA). This allowed me to stay fully invested throughout the year, the ups and slight downs, as well as catching the big post-election appreciation. Further, due to more dividend income received – the power of dividend reinvestment, was in full effect. My December 2016 dividend income alone was almost $1,700! Talk about wild dreams.
Ah, then you have market value. The market value of my portfolio compared to the year end last year is up a WHOPPER $70,732… are you kidding me? I’m closing in on $250K and it’s becoming quite alarming how fast this is ramping up. When I calculated my performance this year and backing out my 401(k) match from my employer, I had a 15.52% performance on the year. See below, the S&P’s YTD performance of +9.54%. Therefore, I managed to perform slightly better; here are the previous 2 S&P 500 years:
Tough year on the finding the right investment front, with the increase in the stock market. I was able to buy quite a bit of Target (TGT) and T. Rowe Price (TROW); two great dividend aristocrats. Don’t worry, I won’t leave my Citizens & Northern purchases to go unsaid, thank you community banks : ) However, all was fairly quiet, but the maximization of the accounts noted above took quite the punch.
Hitting my goal of forward dividend income. As I explained in my 2016 goals conclusion article, I was able to hit my projected $8,000 dividend income goal. In fact, I even recently an article talking about how I Crushed It! This came with a few difficulties, however. First, I had to overcome Kinder Morgan’s (KMI) dividend cut from 2015 towards the end. Then 2016 rang in the new year with BHP Billiton (BBL) slashing their dividend as well down to the bone… good thing they didn’t go any further than that. So when I really look at the dividend income, I actually took steps back in the earlier part of the year, so that add of $1.5K for the year in forward income, really was closer to $1.7K. But hey – I am over $8k going forward comfortably and have already made a purchase of Procter & Gamble (PG) this year to start adding more pad to get towards $10,000 in forward income! Let’s Go!!!
My yields overall have decreased. This is very easy to point out – stocks just increased that much more this year, however, I will note that dividend increases weren’t quite as strong. And actually… when going to multpl.com… it was only a “resounding” 6%, when it was much higher in the past. Further, due to my purchases in S&P 500 mutual funds, with their lower yield, my Yield on Cost, decreased, this should get better with time now. .
Similar to last year, I went into the year expecting to receive $6.5K. Okay…okay, I knew with reinvestment & growth, plus some purchases, it would be more, but I ended up receiving almost $900 more than expected, which is fricken awesome. Going forward in 2017, I am set to receive on average, $672. Just unbelievable. So lucky. This portfolio is speeding up and almost has a few gears of it’s own now. Ah… the dream of one day just having a self-fulfilled dividend growing & reinvested portfolio. Ultimately, I can’t wait to turn my portfolio drip feature to off. Obviously, the plan is always sooner than later.
2016 Portfolio Conclusion & Summary
How do I conclude in my portfolio of 2016? All in all – tough year of always having consistent capital and even when I did – it was always hard to find the right company to own more shares in. I employed a few new tax-advantaged strategies, and no pun intended, that produced dividends evidenced by my last month’s dividend income. Either which way, I’m pumped to place my portfolio in the best position possible, using the dividend diplomat stock screener to review companies for investment, keep a keen eye on the aristocrats that are a foundation staple in a portfolio, or my top 2017 dividend stocks to consider – any which way that I can bolster the walls of the portfolio.
With all this being said – what do you see in my portfolio? How did you do? What actions will you take into 2017 going forward? Looking forward to hearing from everyone and thank you again for coming by! Hope everyone is having a great start to the new year and are ready for the horizon of the upcoming year. Good luck and talk soon!