Friday, March 8, 2019

February 2019 Portfolio Summary

For February I will make a quick post about how I did recently. The market has been propelling higher but recently there has been some pull back. Right now prices are really bad for buying as it's expensive. I hope prices will settle back down which they seem to be doing. I will not be buying any new positions for the next month as there are some uncertainties that I may need the cash for such as tax filing and traveling. I estimate by mid April I will have a lot of cash to invest and hopefully by then the market has declined.

I will change up the way I do my reporting this month and show my results first. Here is how I am doing now:

With the overall market climbing higher and higher plus my periodic income contribution and dividends, my portfolio is making a rapid ascent upwards. Since the portfolio has over $600K in capital, even small percentage moves to the upside will be many thousands of dollars added on paper, in the last few weeks my portfolio has had 5 figure gains just from the market moving a few percentages higher. It's good seeing that the money can now do work on its own. Notice how in the beginning from 2014-2016 the line was mostly straight and predictable, that's because that growth was mainly from my periodic income contributions as the portfolio was too small to support itself back then.

The dividend income continues to climb. I am at $17285 a year in dividends right now. I believe I can hit over $20,000 in annual dividends before the end of Q3 this year. There were several huge dividend increases announced recently in my portfolio. Home Depot had a 32% dividend hike, Mastercard 32%, NextEra Energy 12.6%, Dominion 10%, Abbott 14%. There are also a lot in the 5-8% range. Overall I feel very confident for 2019 and am estimating a 2.8% average yield and 10% hike for a total return of 12.8% income growth. I paste below the past years' portfolio results to show for reference, 2018 was a exceptional year because of the tax cut which caused companies to increase their dividends a huge amount.

Year Dividend Growth Dividend Yield Total Income Growth
2014 10.30% 2.81% 13.11%
2015 9.68% 2.94% 12.62%
2016 10.11% 2.76% 12.87%
2017 9.49% 2.62% 12.10%
2018 13.20% 2.76% 15.96%

Not all was smooth sailing in February though. My position in Kraft Heinz tanked after they slashed the dividend by 36% and huge write-offs and a bad earnings call. I have not had a dividend cut in many years. I have sold my position in KHC last month and added to Boeing (BA) which announced a 20% dividend hike for March, it is time to cut the losses and move on to preserve the income. Boeing is almost 5 figure in size in my portfolio now, and is a new position I plan to hold forever, I will hold it as a supporting position as it's cyclical in nature. The overall portfolio income did not get affected by KHC's dividend cut because KHC was less than 1% of the portfolio and my other positions are continuously increasing their dividends this year and I have added significant capital into the portfolio earlier this year.

Below are some charts of the various metrics I follow. The dollar continues to be very expensive. The overall market (S&P500) has recently peaked and falled back recently on uncertainty from the China and USA trade discussions. It should be noted that China's Shanghai index (CSI300) is shooting up really hard. I find the Chinese market very volatile and casino-like, however the move up seems to be a positive indicator from the Chinese side that they will reach a good deal with the Americans. The 30 year remains around 3% and oil is continuously depressed.

Below is the holdings in my portfolio. I now have 30 positions that are in the 5 figure size. When I started investing 5-6 years ago, 5 figures was my entire portfolio size and I thought it was a lot of money. Now, the portfolio continues to grow more positions into that size, and one day I believe several of these will grow to 6 figure sizes.

I'm planning on selling my spinoff positions at the bottom of my portfolio as they are too small for me to consider.

Name Ticker Sector       Value   Weight        Divies      Yield S&P Fin VL Fin VL Safety
Johnson & Johnson JNJ Health $36,181.85 5.70% $942.24 2.6042% AAA A++ 1
Altria Group Inc MO Staples $34,220.72 5.40% $2,000.48 5.8458% BBB B++ 2
Visa Inc V Financial $33,867.37 5.34% $230.66 0.6811% A+ A++ 1
Philip Morris International Inc PM Staples $33,297.61 5.25% $1,745.86 5.2432% A B++ 2
Home Depot Inc HD Discret $25,864.24 4.08% $770.92 2.9807% A A++ 1
NextEra Energy Inc NEE Utilities $25,796.00 4.07% $686.32 2.6606% A- A+ 2
PepsiCo PEP Staples $25,243.48 3.98% $806.66 3.1955% A A++ 1
Becton Dickinson and Co BDX Health $22,790.56 3.59% $284.57 1.2486% BBB A++ 1
Mastercard Inc MA Financial $20,973.80 3.31% $124.48 0.5935% A A++ 1
Realty Income Corp O REIT $20,973.76 3.31% $818.90 3.9044% A- A 2
3M Co MMM Industrial $18,659.77 2.94% $537.78 2.8820% AA- A++ 1
Ross Stores Inc ROST Discret $18,320.03 2.89% $202.21 1.1038% A- A 2
Air Products & Chemicals, Inc APD Materials $17,995.11 2.84% $464.78 2.5828% A A+ 1
Xcel Energy Inc XEL Utilities $17,589.54 2.77% $513.24 2.9179% A- A+ 1
Clorox Co CLX Staples $17,109.44 2.70% $418.18 2.4441% A- B++ 2
McCormick & Company MKC Staples $16,835.26 2.65% $283.01 1.6810% BBB A+ 1
Procter & Gamble Co PG Staples $16,333.38 2.58% $475.33 2.9102% AA- A++ 1
WEC Energy Group, Inc. WEC Utilities $15,230.80 2.40% $467.85 3.0717% A- A+ 1
Illinois Tool Works Inc. ITW Industrial $14,930.91 2.35% $424.32 2.8419% A+ A++ 1
Automatic Data Proc, Inc ADP Tech $14,571.16 2.30% $306.11 2.1008% AA A++ 1
Kimberly-Clark KMB Staples $14,163.50 2.23% $506.63 3.5770% A A++ 1
AT&T Inc T Telecom $13,397.41 2.11% $913.46 6.8182% BBB A++ 1
Church & Dwight CHD Staples $12,690.54 2.00% $176.35 1.3896% BBB+ A+ 1
The Coca-Cola Co KO Staples $12,129.24 1.91% $428.59 3.5336% AA- A++ 1
Dominion Energy, Inc. D Utilities $11,196.55 1.77% $540.12 4.8240% BBB+ B++ 2
Stryker Corporation SYK Health $11,122.08 1.75% $123.67 1.1119% A A++ 1
Colgate-Palmolive Co CL Staples $11,066.66 1.74% $284.54 2.5712% AA- A+ 1
TJX Companies Inc TJX Discret $10,480.70 1.65% $157.97 1.5072% A+ A++ 1
Microsoft Corporation MSFT Tech $10,181.99 1.61% $169.72 1.6668% AAA A++ 1
Starbucks Corporation SBUX Discret $10,140.24 1.60% $206.80 2.0394% A A++ 1
Boeing Co BA Industrial $9,296.32 1.47% $180.84 1.9453% A A++ 1
General Mills, Inc. GIS Staples $7,802.88 1.23% $329.60 4.2241% BBB A 1
Abbott Laboratories ABT Health $7,532.08 1.19% $125.53 1.6667% BBB A++ 1
Honeywell International Inc. HON Industrial $7,225.78 1.14% $155.43 2.1511% A A++ 1
McDonald's Corporation MCD Discret $7,121.55 1.12% $183.05 2.5704% BBB+ A++ 1
General Dynamics Corporation GD Industrial $6,748.78 1.06% $150.93 2.2364% A+ A++ 1
Medtronic plc MDT Health $6,731.68 1.06% $147.82 2.1959% A A++ 1
Resideo Technologies Inc REZI Industrial $95.20 0.02% $0.00 0.0000%
Garrett Motion Inc GTX Industrial $46.76 0.01% $0.00 0.0000%
Misc Type ……….. Partial Totals Weight Yr Dividends  Avg Yield …..832 …..9 …..82
Equity Stocks $615,954.73 97.11% $17,284.95 2.8062%
Investable US Dollars $11,966.71 1.89%
Miscellaneous Assets $6,355.00 1.00%
. .. Equity + Misc Weight …..2 ….. …..222 …22 …..223
Total $634,276.44 100.00%

My sector allocation is focused on consistent predictable businesses. A lot of these don't grow quickly but offer high yield and are more defensive in nature. Staples, Utilities, and Healthcare are where I like to focus my portfolio. I add more to Industrials and Financials and Discretionary and Tech to offer some additional growth.

Below shows the holding size relative to one another. I try to keep each of my positions not too large in order to have good diversification. If one of these positions goes bankrupt or cuts their dividend, the impact to me will not be significant. Diversification hurts returns but helps protect on the down side. Since I do not need the very large returns to beat the market to meet my goals, I prefer diversification as preservation of wealth and the dividend income is more important to me than growing very fast.

In recent days, the market has tapered off its gains and has started a downward trend. This likely will eventually create additional buying opportunities like we saw in Q4 2018. When that time comes I will have my cash ready.



  1. Great stuff YD and a very thorough review! It's amazing what commitment to an investment plan can do for your over time. That's some serious capital that you've built up in some excellent companies. Building up positions is something I need to get a lot better at. All the best in March!

  2. Nice summary and you are no doubt making some great progress towards your goals.