On December 18, 2019, 21 shares of MSM were purchased. The cost, including fees, was $1,582.56. For an average cost per share of $75.36.
For October 2019, the Divs4Jesus Portfolio received dividend income from five different companies (EVC, AVGO, MO, GNTX, and CMCSA). The total was $97.56. This was a 42% increase from October 2018 where the total was $68.57. It was great to see an increase even as we lost the income from GME’s dividend suspension and TROW which was paid out in September this year instead of October. The increases were attributed to DRIPing and/or dividend increases from EVC, GNTX, and CMCSA; plus new payments from AVGO and MO. After two months in in negative for year over year growth, we are glad to see a strong increase for October.
We are hoping to close out the year strong and still beat out last year’s total. Originally we were targeting to crack $2,000.00 at the beginning of the year however, we will be content with surpassing 2018’s total in light of the fact both VALE and GME suspended their dividends in 2019. Those two stocks accounted for 62% of the total income generated in 2018. So losing 62% of our income, but still coming out ahead will suffice for now. Further, it will be a giant boost to the portfolio once these stocks resume payments (likely for VALE not likely for GME anytime soon).
On July 30, 2019, 10 shares of SNA were purchased. The cost, including fees, was $1,552.65. For an average cost per share of $155.27.
For June 2019, the Divs4Jesus Portfolio received dividend income from nine different companies (F, V, SWKS, WBA, TSN, NWL, LYB, PRU, & AEG). The total was $121.60. This was a 48% increase from June 2018 where the total was $81.99. The increase was due both to new stocks added to the portfolio since last year, as well as repeat payments from F, V, and TSN. The 48% increase is great to see since the Portfolio had another dividend suspension this month. GME has suspended its dividend indefinitely as it tries to figure out a path for the future. The Divs4Jesus Portfolio has now lost its two biggest dividend paying stocks; GME and VALE. GME’s looks gone for the foreseeable future, but I hope to see VALE’s resumed before the end of the year if it gets its dam and safety issues under control. The good news is even without these two top payers the portfolio is ahead of where it was last year. Through continued diversification we still hope to top our total dividends from 2018. Let’s see how the second half the year turns out for the Divs4Jesus portfolio.
On May 28, 2019, 35 shares of AOS were purchased. The cost, including fees, was $1,535.40. For an average cost per share of $43.84.
February 2018 was the first month the Divs4Jesus Portfolio received a dividend payment. The payment was $7.26 from one company, OHI, and was the only amount received that month. Fast forward one year and for February 2019 the D4J Portfolio received a total of $84.26 in dividend payments. This time the payments came from three separate companies: CIM; T; and OHI. A total increase of $77.00 over the prior year’s amount and a massive 1,060.61% increase on a percentage basis. Of course, this is almost completely due to additional capital contributions over 2018 and will surely level off to much smaller increases in the future, but it’s a good motivator to show that sticking to a routine and a savings strategy can produce solid returns.
In fact, OHI’s dividend payment was $0.47 greater than the year before or a 6.47% increase year over year. This was despite that fact that there was no increase in dividends payments. The increase was simply due to DRIPing the dividend payments throughout the year, which D4J didn’t actually institute until May 2018. AND YES – this is not a “true” growth increase as dividend payments from OHI were ‘money in hand’ to do as we please… so investment of the “new” OHI capital should not be looked at as growth. However, we track the DJ4 account using the three Cs: 1. YIELD ON CASH – dividends vs the actual dollar amount contributed into the D4J Portfolio; 2. YIELD ON COST – dividends vs the actual dollar amount transferred into the D4J Portfolio + the cost of all DRIP purchases and 3. YIELD ON CURRENT – dividends vs current market value of the D4J Portfolio.
And we are always happy to see our Yield on Cash increasing.
On February 25, 2019, 14 shares of TXN were purchased. The cost, including fees, was $1,537.01. For an average cost per share of $109.79.
On January 23, 2019, 35 shares of MO were purchased. The cost, including fees, was $1583.35,. For an average cost per share of $45.24.
One Year – Portfolio Review
As, some of my readers know, I didn’t start this blog until March of this year, but the thoughts for Divs4Jesus started back in September/October 2017. Officially, the first purchase for the Divs4Jesus Portfolio was made on November 6th 2017. I purchased 11 shares of OHI for $319.57.
My next purchase was the mining stock, VALE, in December. I went full tilt with the purchase, meaning it was a significant amount of money (approx. 10x my monthly deposit amount) and it all went in one spot. However, I had been tracking VALE for a while and liked what the company was doing to reduce debt and reorganize itself. Looking back now, a year later, it was a great bet. In fact, my best performer of the year at close to 30% return (dividends included).
The goal of this account though is steady, growing income. Unfortunately, due to the cyclical nature of the mining business I can’t expect to rely on this higher beta stocks that will ebb and flow with the economy. As such, I’ve spent rest of the first year diversifying the portfolio. I’d like have at least 33 different stocks so my risk is more spread out. To accomplish this, I’ve made it a goal to purchase a different stock every month. So far, I’ve accomplished this. Doing so has brought VALE down from 99% of the portfolio to around 45%. Ultimately, I think I’d like my portfolio not to be weighted more than 10-15% in any one stock. So, there’s still a long way to go to get VALE down to those percentage amounts.
As for the other purchases I’ve made throughout the year, I have my own set of values I use to screen the stocks, but am flexible if I think there’s a good deal to be had in any one month. Typically, I look for undervalued stocks, with low or manageable debt levels, who pay a dividend with a low/safe payout ratio. I do take risks on turnaround stories, VALE is a good example, but I’d say GME and NWL are also bets on turnaround or buyouts. I won’t go through every stock I know in this post, but I hope to one day do a write up on the purchases explaining why I’ve decided to make the purchase I did. Maybe I’ll even go back and do a good write up on the stocks currently in my portfolio as well. Let me know if you readers would like to see that.
As noted above, I have my own rating system I use to influence my picks. However, I also use a number of online screeners as well to help pick my stocks. In the future, I will have a couple posts detailing my screening process. I also may one day show you my own rating system, but for now I want to test it myself and see how useful it is before I profess its value to you guys!
Charting my performance
Below is a chart that has tracked my progress since the beginning, Nov 6, 2017, through November 6, 2018. In general, I don’t really care day to day whether I’m up or down, but ultimately, my goal is to not only achieve quality dividend returns, it’s also to at least match the broader market indexes. Well preferably to beat them. I think if I can accomplish such a feat I’ d consider it ‘money well invested.
So, as you can see from the chart below, since my first purchase I’ve had a positive unrealized return of 13.30% on my investments without taking into consideration dividend returns (only capital appreciation). The wild swings are mostly due to the high percentage of my portfolio which is invested in VALE. But I’ve slowly been diversifying away from such a high concentration, so over time hopefully the swings will be more muted. However, as we all know, the markets also been much more volatile than in the past few years, so only time will tell.
The steady climb in account value is due both to capital appreciation on the stocks as well as monthly capital contributions. Right now, I’ve averaged somewhere around $1,500.00 a month in contributions. Which typically go to the purchase of one new stock.
2.23x greater return than the S&P500 over 1 year
The one item that really stands out for me and gives me hope that I’m doing something right is that throughout my first year I’ve either beaten or stayed even percentage wise vs the S&P500. As of November 6, 2018, my total percentage return stands at 13.30% since inception (and that doesn’t include any dividend income!). The S&P500 over that same period has only returned 5.96%. 2.23x greater return than the S&P500. While I don’t expect to more than double the S&P 500 every year, I’m glad some of my bets paid off well in my first year. This provides a ton of motivation going forward.
I will do a separate post to analyze/summarize the dividends I’ve received after the end of the calendar year. I might also update this post so my YOY will be in sync with the calendar year as well.
Lastly, thanks to everyone whose stopped by and read my posts and commented with their thoughts. It’s much appreciated. I hope you’ve found some value in my posts. Cheers!