Thursday, August 27, 2020

Assets top $1,000,000 mark

Yesterday was a big day for me, my portfolio crossed a very critical milestone, a milestone that I had set out to do when I was much younger. I am now still 30 years old, and will think about what I should do next in my life as a goal. I probably should make a very flashy post here, but I just feel the same. Nothing super exciting, nothing is remarkably different after becoming a millionaire. Everything feels the same, but there is a sense of security, and peace, and independence after hitting this milestone.

I had set out when I was 19 to earn my first million by the time I was 30. This led to a sequence of events that led me to the study of my area of expertise and then the industry where I am at now, and then my current profession, and then my financial decisions that I made in my life over the years.

It is the end of August. The end of the month pay checks came in, the dividend checks got added up, and the recent run up in the general indexes in the USA markets (especially the technology NASDAQ sector) has pushed my total net worth up to a bit over $1,000,000 USD.

To be precise, on the market close of 8/27/2020 eastern time, my portfolio in total sat at the following amount in US Dollars:

$1,000,528.01

Now, this value is on paper, it can move up and down, depending on market fluctuations. Usually in the past when I have hit a target like $100K, then $250K, then $500K, I will tend to continue surpassing it as I continuously invest more and more, even if the market dips. Even with the recent COVID19 outbreak (the largest dip I experienced so far), and past recession scares, I have propelled forward higher, eventually, by continuing my structured investment approach and not selling on panic, in fact I usually continue adding more and more during panics.

I have not invested in any real new opportunity because the markets continue to propel higher. I am content with just sitting on my existing positions. My total cash is now around $30,000 USD across various accounts. This provides a decent emergency fund or cash to buy additional positions if the market contracts 10-20%.


To be fair, a lot of the recent jump up in the last week is from the market capital appreciation upwards. Which may or may not last. I bought a lot at the fall and the bottom of the COVID19 scare, this helped boost capital appreciation for some positions in the last few months. 

Since prices are already very elevated after the Fed liquidity injection after COVID19, we are at valuation levels we have not seen for a while. The markets are inflated at the moment due to the high money supply and low yields, and it's being shadowed by the effects of the COVID19 on the worldwide economy. 

The S&P500 has crossed the previous all time highs in the last few days, and the NASDAQ has shot past previous tops to new levels, and technology companies have severely outperformed everything else. I do not own much technology stocks (besides MSFT) so I am lagging behind the NASDAQ, but I am content with my performance and dividend stability from my investment selections. I have picked what I understand and what I am comfortable with. I think it's good to be happy with what one has, profit is better than no profit, playing catch up and envy and comparing results to another person's never leads to a good ending.



Below I highlight the portfolio breakdown. Home Depot has crawled to #2. Visa is #1 still. Microsoft is growing very quickly and may top $30K soon. 

Name Ticker Sector       Value   Weight        Divies      Yield SP Fin VL Fin VL Safety
Visa Inc V Financial $57,170.88 5.71% $325.10 0.5686% AA- A++ 1
Home Depot Inc HD Discret $42,560.14 4.25% $884.73 2.0788% A A++ 1
NextEra Energy Inc NEE Utilities $42,241.06 4.22% $848.21 2.0080% A- A+ 1
Johnson & Johnson JNJ Health $41,710.20 4.17% $1,101.51 2.6409% AAA A++ 1
Clorox Co CLX Staples $40,402.98 4.04% $776.24 1.9212% A- A 2
Altria Group Inc MO Staples $37,129.23 3.71% $2,851.52 7.6800% BBB B++ 3
Philip Morris International Inc PM Staples $34,250.58 3.42% $2,003.66 5.8500% A B++ 3
Mastercard Inc MA Financial $33,828.15 3.38% $152.04 0.4494% A+ A++ 1
PepsiCo PEP Staples $33,672.48 3.37% $995.09 2.9552% A+ A++ 1
Realty Income Corp O REIT $33,186.14 3.32% $1,484.62 4.4736% A- A 2
Air Products & Chemicals, Inc APD Materials $30,542.75 3.05% $559.21 1.8309% A A+ 1
Microsoft Corporation MSFT Tech $29,969.90 3.00% $269.83 0.9003% AAA A++ 1
McCormick & Company MKC Staples $26,692.04 2.67% $322.20 1.2071% BBB A+ 1
Xcel Energy Inc XEL Utilities $26,373.97 2.64% $660.98 2.5062% A- A+ 1
Kimberly-Clark KMB Staples $25,871.16 2.59% $708.89 2.7401% A A++ 1
Becton Dickinson and Co BDX Health $25,223.62 2.52% $323.26 1.2816% BBB A++ 1
Procter & Gamble Co PG Staples $24,356.61 2.43% $557.38 2.2884% AA- A++ 1
Automatic Data Proc, Inc ADP Tech $24,279.89 2.43% $626.76 2.5814% AA A++ 1
Abbott Laboratories ABT Health $23,952.88 2.39% $309.93 1.2939% A- A++ 1
Illinois Tool Works Inc. ITW Industrial $23,743.35 2.37% $511.51 2.1543% A+ A++ 1
WEC Energy Group, Inc. WEC Utilities $22,278.14 2.23% $610.33 2.7396% A- A+ 1
3M Co MMM Industrial $21,286.48 2.13% $762.83 3.5836% A+ A++ 1
Church & Dwight CHD Staples $21,152.05 2.11% $211.30 0.9990% BBB+ A+ 1
The Coca-Cola Co KO Staples $20,870.91 2.09% $709.69 3.4004% A+ A++ 1
Ross Stores Inc ROST Discret $19,624.89 1.96% $0.00 0.0000% A- A+ 2
AT&T Inc T Telecom $19,204.56 1.92% $1,335.97 6.9565% BBB A++ 1
Stryker Corporation SYK Health $18,974.03 1.90% $222.43 1.1723% A- A++ 1
General Mills, Inc. GIS Staples $18,319.78 1.83% $554.89 3.0289% BBB A 1
General Dynamics Corporation GD Industrial $16,430.29 1.64% $474.24 2.8864% A A++ 1
Colgate-Palmolive Co CL Staples $16,243.71 1.62% $361.61 2.2262% AA- A+ 1
Starbucks Corporation SBUX Discret $16,132.49 1.61% $317.20 1.9662% BBB+ A++ 1
Dominion Energy, Inc. D Utilities $13,588.55 1.36% $655.04 4.8205% BBB+ B++ 2
TJX Companies Inc TJX Discret $11,632.96 1.16% $0.00 0.0000% A+ A++ 1
McDonald's Corporation MCD Discret $11,297.17 1.13% $266.20 2.3564% BBB+ A++ 1
Honeywell International Inc. HON Industrial $11,277.59 1.13% $244.59 2.1688% A A++ 1
Medtronic plc MDT Health $11,265.12 1.13% $244.57 2.1711% A A++ 1
Costco Wholesale Corporation COST Staples $11,083.52 1.11% $89.60 0.8084% A+ A++ 1
Misc Type ……….. Partial Totals Weight Yr Dividends  Avg Yield …..832 …..9 …..82
Equity Stocks   $937,820.22 93.73% $23,333.15 2.4880%      
Investable US Dollars   $30,367.79 3.04%          
Toyota Vehicle Depreciate   $15,300.00 1.53%          
Miscellaneous Assets   $17,040.00 1.70% $85.00        
. .. Equity + Misc Weight …..2 ….. …..222 …22 …..223
Total     $1,000,528.01 100.00% $23,418.15        

Below are illustrations on the sector weightings and component weightings of my portfolio. Overall it is very diversified and any loss in one complete company will not severely hurt the dividend and portfolio value.



Since the $1M goal is now reached, after having set out on this journey many years ago, I will start thinking over the weekend what are my next goals.

-Young Dividend

17 comments:

  1. Congratulations for this huge achievement at the age of only 30!
    I follow your blog very closely and share your investment approach - I would therefore be keen to read more frequently of you with insights as to how you evaluate the situation/valuation of companies you own or you are watching.

    "I think it's good to be happy with what one has"...and not to be unhappy with what one doesn´t have. This is the top message I work on transferring to my children every single day!

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    Replies
    1. Thank you for the comment, I will see if I can have some time to write how I select what to purchase.

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  2. Congratulations YD! This is an incredible accomplishment. Hopefully, you will put your feet up at some point this weekend and reflect on what you have done in 11 years. You could literally stop investing and never worry about money again in your life. Well done.

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  3. Young Dividend -

    Bravo! Bravo! So excited for you. My wife and I are VERY close to hitting this mark for the net worth. So exciting and true inspiration. Onward to $10M!

    -Lanny

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  4. Congrats first $1M hard, the next $1M will come very quickly. It took me basically 24 years for first one and the next it only took only 3 years. KR. At 30 I was very poor.

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  5. Man, you are a great inspiration! Unreachable but still an inspiration :)
    Congratulation on your success.

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  6. Hello! Congratulations to the first million I hope there will be more and more and you will share your successes with us! Although our strategy is not the same, the blog gives a lot of strength not only to me but also to other investors. Just keep going. :)

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  7. Congrats YD! This is amazing! I discovered your blog at the end of 2018 and have been following you ever since. I like your conservative, long-term view with dividend growth stocks. Keep on going - it an only get easier from this point on.

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  8. Congrats on achieving 1M, i think you are one of the few in DGI community with this portfolio.

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  9. "playing catch up and envy and comparing results to another person's never leads to a good ending"
    cant agree more. Super happy to see what u have reached so far.

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  10. Congratulations, inspiring to see an engineering discipline applied to financials.

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  11. congratulations! it would be very helpful for others to know how much you've been investing per month on average, an estimatge would be enough. thanks

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  12. Wow! This is awesome, congratulations!

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  13. Congratulations. I am sure your portfolio has pulled back now from that $1M mark, given the frothy valuations on so many stocks (if not overvaluation for sure). Where are you looking to deploy fresh capital in your portfolio currently?

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    Replies
    1. Yes indeed the portfolio is sitting around $970,000 USD at the moment after the S&P500 pulled back around 7% from the highs.

      The valuations I find are still too expensive. So I am still holding cash around $30,000 USD.

      Given the situation we are in currently in the market cycle, if I had to buy I prefer buying slower growing non-cyclical businesses that likely will not return very high capital gains compared to the fashion for Technology in the last few quarters. Slower businesses include dividend aristocrat type companies, but the difficulty is finding ones that are close to fair value. When we are late in the business cycle I prefer being conservative instead of extending further as when the market cycle ends.

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