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!