Lanny’s Q1 Dividend Portfolio Update

Now that the first quarter is behind us, it’s time to check in on where I currently am at with my dividend portfolio.  I want to share the current state of my dividend portfolio, related to market value, forward-looking dividends, yield and yield on cost.  Additionally, I’ll describe the activities; such as, contributions, dividends received to date and the like.  I thought this may give a great snapshot of where I currently am, the progress into this year and if I like the trajectory for the year.  Time to check out the state of my portfolio!

Dividend Portfolio – Market Value

My dividend stock portfolio, at the end of quarter 1, was worth $333,203.55!  Talk about doing a double take.  This was only a $4.9K increase from the year-end amount of $328,282.81.  How is that possible if I’m maximizing my 401K, receive and invest dividends, maxing out my HSA, as well as am making a purchase here and there?  The stock market is the answer.  The market was down on a year-to-date basis, which also meant mine was down on a year-to-date basis.  However, who cares about market value, as long as you’ve invested into high quality, dividend-paying companies?  I sure don’t, but it is information that I want to share with you.  Some days I’ve been down $5,000-$10,000.  Do I sweat at all?  Not one drip.  The one thing it makes me realize, is just how big this pot has gotten, where the swings appear that much bigger!  I love the price being lower, to allow for better reinvestment and opportunities for purchases.

Dividend Portfolio – Dividend Income (Projected)

Yes, the paragraph and discussion we all want to read and that I love to share!  Hard savings, time and persistence work so damn well as a dividend investor, I know how lucky that I am.  My forward income, at the end of quarter 1, stood at $10,375.05.  Over the $10,000 mark!  That was my goal last year, and a dividend cut, as well as not as many purchases – prohibited me from reaching it.  Well, not only did I cross it, but am already over $375 over the mark!  This was an increase of $641.12 added from December 31st.  How did I get there?

Dividend Portfolio – Activity

Below are partly for the reasons in the increase in forward-looking dividend income.  These are a few events at play when you are a dividend investor and the facets that can increase that income, as you march towards financial freedom.

1.) Dividend Reinvestment – I just about had $1.5K of dividend income from March, not to mention two other months worth, and quarter 1’s total was $2,303.32.  This reinvested at around 3.10%, on average, which adds a solid amount of forward income from reinvestment alone.

2.) Maximizing the 401(k) and HSA – $5,221.95 went into two mutual funds VINIX and VITSX, which are two low-cost Vanguard mutual funds offered by my retirement plan and health savings account provider at work.  This was easily invested at approximately 2.00% (conservative) and added a nice chunk to the forward income, as well.  See my 2018 tax benefits to the tax-advantaged savings accounts and how you can benefit/things to look out for.

3.) Dividend Stock Purchases – Outside of the items from #2 above, $4,958.20 was invested.  Which investments were made?  One purchase to add to my current position of Realty Income (O) in the amount of $1,985.20 (within my Roth IRA account).  Then, two purchases were made to create & add to Dominion (D) with a total of $2,973.00.  Given I wrote about these dividend stock purchases, the total amount added here was $245.65 to the forward dividend income.  A 4.95% yield on the total purchases is never too shabby, but obviously isn’t the norm!

4.) Dividend Increases – This year, as Bert has explained previously, was crazy (specifically in month 1 and 2) relating to dividend increases, which were highly attributable to tax reform/lower tax rates for 2018.  Including Realty Income’s March dividend increase that added a couple of quarters, $194.00 was added to my forward looking income so far!

Dividend Portfolio Q1 Conclusion

The portfolio page is updated to reflect this and wow, what a quarter it has been.  Capital continues to be deployed, though I wish I had more, and a $641 add in quarter 1 is perfect/I’ll take it.  Annualizing the $641 equates to $2,564 projected to be added for the year.  If I continue at this rate, I could reach $12,298, based on last year’s ending figure.  However, those were with fairly high yielders for the purchases this year and not sure if that’s reasonable to believe I can continue those up.

If the market continues to read south, this allows for great opportunities for dividend investors.  There are many wonderful companies that are coming down with the entire market and it’s showing undervaluation/signs of undervaluation.  April is also a heavy dividend increase month, hence Bert’s expected increase article, which will help the portfolio.

How about you?  How was your first quarter?  On the right track?  Like the results you produced?  Any takeaways/lessons from the 90 day period?  Excited to read your feedback, much appreciated and talk soon!  P.S. – WINTER SUCKS!

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21 thoughts on “Lanny’s Q1 Dividend Portfolio Update

    • Stockles –

      Hahaha, your line made me laugh. I don’t feel like that though. What’s wild, is starting this blog 4 years ago. That explains how far the DD and my own portfolio have come – a long fricken way. We all can do this.

      -Lanny

  1. Fishing from the same pond Lanny and added to some of the same companies as you during the 1rst quarter. The correction and volatility the market has been going through has offered up some new and nice opportunities as you mention. Tom

    • Tom –

      Thank you for the comment, means a lot! And PUMPED that we are sharing so many of the same stocks.

      Now look at the market, aaha. Back in green and earnings haven’t been too bad. It’s a wild one, and didn’t realize I needed to keep my stomach in check for this roller coaster ride.

      -Lanny

  2. Amazing Lanny! Congrats on breaking the 10K mark in dividend income. The value of my portfolio is down since the market correction, however, my forward yearly dividends are at an all-time high! I am inching closer to the 9K mark in annual income. Can’t wait! Keep up the great work Lanny! 😀

    • MDD –

      It felt really nice, but as you know, it doesn’t end there. My portfolio is finally back in the positive YTD, its been a VERY wild one. Also – KMI just announced their 60% dividend increase – aka oh HELL yeah.

      And wow… $9k. You’ll be at 5 digits in no time MDD!

      -Lanny

  3. Great update! Congrats on your progress.Hitting that mark is impressive – it’s a great feeling.

    Thanks also for the continued updates – it’s very motivating to continue to work toward increasing that forward dividend income (especially in our taxable account).

    – Mike

    • Mike –

      Thank you so much. I really do appreciate the comment.

      I love giving updates, keeps me in check, motivates the reader, motivates me and keeps us all going!

      ANd you are gosh damn right on the taxable account… that’s the first to tap, right?!

      -Lanny

  4. Swings of $5-$10,000 – pretty remarkable stuff if you think about it. Thats more than I make in a month – 160 hours of my life – and the market can giveth or taketh away in one day! haha

    But like you said, the dividend checks keep rolling in and that is what its all about!

    Great work Lanny

    • ADD –

      Yep, wow, just wow. So much time equated to the swings, interesting.

      As long as the companies are sound, have a moat in the payout ration and somewhat in their business – I’ll sleep at night. It’s crazy seeing the swings… PM today… woof.

      -Lanny

    • Gremlin –

      Hilarious. It’s weird. Time, goes by, so fast… I can’t believe how long I’ve been investing for. I know the snowball is bigger than I could have imagined then and it’ll be bigger than I could ever imagine years from now.

      -Lanny

  5. WOW congrats on the crossing the 10K mark of forward dividend. It’s nice to have market corrections from time to time. The yield on cost is a lot more attractive that way. I just picked up utility stock for 20% discount compared to last year and they also increases dividends. Double win-win!!

  6. Great work there all thru Q1. After filing my last year’s return I have finally decided to max out my HSA contributions too. So far, I have been maxing just my 401k but I am in the same boat as yours this year.

    Great purchases. I don’t own O but I do have some D that was bought during Q1 as well. $10k in dividends this year is awesome :).

    Good Luck,
    TDK.

  7. The fact that market variations has a sizable impact on your net worth is itself a positive indication. I am still building my portfolio and new capital infusion can easily take care of market drops. Nicely done Lanny. Congrats!

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