Wednesday, April 12, 2017

March 2017 Portfolio Summary

I will report March's summary using data I have today on April 12, 2017. The growth so far this Q1 has been high due to the growth in the market and bonuses or nonrecurring sources. I am currently ahead of schedule for 2017 so a market correction will be fine by me to scoop up better dividend yields.

The goal of this portfolio is income replacement. I will one day use the passive dividend checks I receive every month from my various holdings to pay for my daily living expenses, whether it be housing or food or travel or entertainment. Everything will eventually be covered without me having to work. My plan is also to have this income stream grow independently without me having to contribute. Each of these companies are expected to increase their dividend payouts year after year. And many of these companies have consistently done so no matter the economic environment. As of today, I contribute heavily into the portfolio month after month. Hence, most of the dividend growth is caused by my contributions. In the future however I expect the portfolio to grow the income by itself at a rate of 10% y/y with dividends reinvested (so a $100,000 income becomes $110,000 the next year and then $121,000 the next and $133,100 the next, and so on).

I hold mainly defensive companies that provide products and services we use everyday no matter what. Whether we are unemployed, sick, or in a recession, people will likely buy products or services from the companies that I own. These are things like credit card payment services (Visa), toilet paper, food, water, electric utilities, off the shelf medicine, toothpaste, shampoo, and household/industrial cleaning products. This ensures that the companies can successfully pay their dividends safely every year.

I am a technical professional working in the bay area. Before accounting for taxes, I strive to save and invest 70-80% of my income (before tax salary - living expenses) / (before tax salary). Since I am single and in my 20s (no mortgage or family finances yet), I am able to grind through and grow this portfolio very quickly. I think time is my most valuable asset, not so much the income I can generate. Compounding from investment income and returns is a much faster way to grow wealth I think than having a higher income once you factor in time. Compounding as a function of time is exponential while accruing income by spending one's hours is only a function of linear growth with time as the variable. So I tried to get started in investing right after I graduated from university.

My goal is to reach $1,000,000 by age 31-33, depending on market fluctuations. By then the portfolio should be spitting out $25,000 in passive income every year or $2083 a month. I expect this $1M portfolio to be able to passively grow the income at 10% a year with dividends reinvested, or ~$2500 for the first couple years after hitting $1M. The portfolio shown below has been the result of my work over a period of 3-4 years. I started from $0 and so far I am a third of the way towards my goal of $1M dollars.

Currently my portfolio receives $7500 annually in passive dividend income. This number can be even higher if I did not have nearly $65,000 in cash. I plan to deploy more cash to boost my dividend income in the future, but deals are hard to come by in today's expensive market.

Name Ticker Sector       Value   Weight        Divies      Yield S&P Fin VL Fin VL Safety
Altria Group Inc MO Staples $47,690.86 13.65% $1,614.40 3.3851% A- B+ 2
Philip Morris International Inc PM Staples $18,219.49 5.22% $668.25 3.6678% A B++ 2
Home Depot Inc HD Discret $14,058.50 4.02% $337.71 2.4022% A A++ 1
Johnson & Johnson JNJ Health $12,278.75 3.51% $316.31 2.5761% AAA A++ 1
Realty Income Corp O REIT $12,070.38 3.46% $497.28 4.1199% BBB+ A 2
PepsiCo PEP Staples $11,643.28 3.33% $313.67 2.6940% A A++ 1
Visa Inc V Financial $11,248.78 3.22% $83.56 0.7428% A+ A++ 1
Starbucks Corporation SBUX Discret $10,707.64 3.07% $166.50 1.5549% A A++ 1
Ross Stores Inc ROST Discret $10,484.73 3.00% $104.99 1.0014% A- A 2
General Mills, Inc. GIS Staples $9,485.33 2.72% $317.17 3.3438% BBB+ A+ 1
Kraft Heinz Co KHC Staples $8,458.44 2.42% $223.50 2.6423% BBB- A 2
Kimberly-Clark KMB Staples $8,391.16 2.40% $245.48 2.9254% A A++ 1
Becton Dickinson and Co BDX Health $8,073.55 2.31% $128.28 1.5889% BBB+ A++ 1
McCormick & Company MKC Staples $7,365.15 2.11% $138.92 1.8862% A- A+ 1
Church & Dwight CHD Staples $7,068.07 2.02% $101.76 1.4397% BBB+ A+ 1
3M Co MMM Industrial $6,694.87 1.92% $165.55 2.4728% AA- A++ 1
Mastercard Inc MA Financial $6,397.49 1.83% $50.22 0.7849% A A++ 1
The Coca-Cola Co KO Staples $5,270.43 1.51% $182.85 3.4693% AA- A++ 1
Dominion Resources, Inc D Utilities $4,646.72 1.33% $181.12 3.8978% BBB+ B++ 2
Automatic Data Proc, Inc ADP Tech $4,405.58 1.26% $98.39 2.2333% AA A++ 1
McDonald's Corporation MCD Discret $4,273.60 1.22% $122.48 2.8659% BBB+ A++ 1
TJX Companies Inc TJX Discret $4,173.15 1.19% $56.37 1.3508% A+ A++ 1
Xcel Energy Inc XEL Utilities $4,042.74 1.16% $130.59 3.2301% A- A+ 1
NextEra Energy Inc NEE Utilities $3,942.24 1.13% $119.80 3.0390% A- A 2
Air Products & Chemicals, Inc APD Materials $3,869.16 1.11% $107.78 2.7855% A A+ 1
Procter & Gamble Co PG Staples $3,754.84 1.07% $112.06 2.9844% AA- A++ 1
Hormel Foods Corporation HRL Staples $3,540.70 1.01% $70.19 1.9825% A A 1
Stryker Corporation SYK Health $3,452.47 0.99% $44.94 1.3018% A A++ 1
AT&T Inc T Telecom $2,995.53 0.86% $145.65 4.8623% BBB+ A++ 1
Southern Co SO Utilities $2,843.07 0.81% $129.18 4.5436% A- A 2
Colgate-Palmolive Co CL Staples $2,627.44 0.75% $57.04 2.1710% AA- A+ 1
Abbott Laboratories ABT Health $2,622.52 0.75% $63.79 2.4323% BBB A++ 1
Medtronic plc MDT Health $2,268.88 0.65% $48.69 2.1460% A A++ 1
Verizon Communications Inc VZ Telecom $2,165.93 0.62% $102.74 4.7433% BBB+ A++ 1
Clorox Co CLX Staples $1,939.90 0.56% $46.14 2.3787% A- B++ 2
Bard (C.R.) Inc BCR Health $1,809.03 0.52% $7.53 0.4160% A A+ 1
The J. M. Smucker Company SJM Staples $1,771.33 0.51% $41.59 2.3480% BBB A++ 1
WEC Energy Group, Inc. WEC Utilities $1,485.75 0.43% $50.96 3.4301% A- A+ 1
Aqua America Inc WTR Utilities $1,030.18  v    $24.22 2.3511% A+ A 2
Misc Type ……….. Partial Totals Weight Yrly Dividends  Avg Yield …..832 …..9 …..82
Equity Stocks $279,267.71 79.94% $7,417.63 2.6561%
Investable US Dollars $40,848.75 11.69%
House Savings Cash US Dollars $24,645.12 7.05%
Miscellaneous Assets $4,567.00 1.31%
. .. Equity + Misc Weight …..2 ….. …..222 …..2222 …..223
Total $349,328.58 100.00%


  1. YD, great analysis and write up! Having $1mil by 33 would be quite the accomplishment (financially at least!). How old are you? I'm 31 and think that 33 for $1mil may be a possibility, but most likely not. I'm also curious to know about how much you contribute (new capital) each month? I do about $2-3k on good months, so I imagine my growth is much slower than yours. Thanks for sharing, look forward to hearing back,


  2. This is one of the more in-depth analysis I have seen. Thanks for sharing all the details. Appreciate your thoughts on this.

  3. Nice portfolio with nothing but stable dividend payers that should bring you income for years to come. Also, love the charts and graphs...Keep up the great work! Best wishes and continued success on your journey! AFFJ

  4. Hey Y/D

    Great analysis! Always enjoy and learn something from your blog.

    I got another quick question for you...

    I'm looking to add some utilities (probably just two) to my portfolio for low volatility high dividend stocks. I'm looking at ED & SO.

    From what I've been reading (Sure Dividends website as well as some others) these two look really good and I like them.

    I'm just curious why you don't have ED in your portfolio and why you chose the ones that you did, with D & XEL being your top two?

    Anyhow keep up the great work your doing with your investing. I know you'll reach your goal of $1 million by the time your 31 - 33

    Thanks again

  5. Great and informative post & analysis. I like seeing your progress.

    My compliments for your grind and start at such a young age. I wist I had known about this when I was 10 years younger. Keep it up!