Saturday, April 16, 2022

Six Month Review!

Happy Easter weekend to everyone!  

It was six months ago I began this investing journey and started Dividend Town!

I had always liked the idea of a dividend growth strategy and wanted to try it out myself. With all the great online resources, I felt very comfortable that I wasn't doing anything 'wild and crazy' and would manage it responsibly. Thankfully my wife was supportive as well.

So after six months, how is the Dividend Town portfolio doing? 


Overall Performance: (Tracked at Weekly Progress Tracker

  • Total Performance from Portfolio Inception: 5.88%
  • S&P Performance from Portfolio Inception: -1.76%
  • DJIA Performance from Portfolio Inception: -2.39%
  • NASDAQ Performance from Portfolio Inception: -10.38%

From October to mid-January the portfolio beta was ~0.80 - 0.85 and then down shifted to more energy, consumer defensive and utilities with large risk on the horizon. Currently the portfolio sits at ~0.59 beta, and I'll reevaluate sector / asset class weighting more during a rebalancing later this month. I do not expect much to change however.


Projected Annual Dividend Yield: Started at $7,944 and currently sitting at $9,279. 

Cumulative Dividend Income:

In six months we've made $3,640 in dividend income. This is roughly ~0.9% of the value of the portfolio. I know it seems silly, but it's pretty cool that in six months I've paid for almost 1% of the portfolio value. 


Cumulative Option Income:

I'm positive that I can get into the black in another 2-3 months with consistency. If I look back at the options history, the times I've done poorly were when I made stupid bets or got greedy. Overall, selling covered calls work so that's where I'll focus in the future. Currently underwater $1,429.  


Top 5 Equities (Tracked at Portfolio):

  • $CVX: Up 56.3% (Yield on Cost 5.17%)
  • $KR: Up 49% (Yield on Cost 2.15%)
  • $ABBV: Up 46.9% (Yield on Cost 5.10%)
  • $SRE: Up 32.5% (Yield on Cost 3.54%)
  • $PFE: Up 28.3% (Yield on Cost 3.87%)
  • Other notable stocks with over 20% growth are: $COST, $LMT, $DG, $ALL, $NJR & $ATO
Bottom 5 Equities:
  • $SHOP: Down 59.3%
  • $NIO: Down 51.7%
  • $DOUG: Down 33.2%
  • $WSM: Down 27.8%
  • $TROW: Down 23.1%
Dividend Growth Pace:

If we look at the historical Dividend Growth over the last few years, we see ~7.0% growth per year. The majority of the portfolio is invested in high-quality companies that routinely raise their dividend each year. So while the past doesn't project the future, this gives a good indication of the portfolio's historical ability to generate dividend growth reliably.  


I mentioned to my wife today how much I enjoy doing this. There's a certain comfort of managing your own investment decisions and producing results. I also enjoy being transparent and tracking the results. I spent a lot of time on Div Gro prior to starting, and his transparency and accountability have been inspiring. Over the next 10 years, I hope the transparency of my portfolio and everything I learn helps others as well.  

Enjoy your weekend!

2 comments:

  1. Welcome and looks like you're well on your way. That's a solid amount of dividend income for just 6 months and the best part is that it should keep growing on its own as well as with your new investments. Out of curiosity what are you using for that Dividend Growth chart? With options I've always done best with the simple approaches of just selling puts/calls. Keep it up and can't wait to see your progress!

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    1. Hey Passive, sorry for the VERY slow response. I'm using a homemade Google Sheets spreadsheet for all my tracking. Easy to update each week.

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