February 2022: Dividend Portfolio Update
Updated: Dec 24, 2022
TABLE OF CONTENTS
Portfolio Additions / Income Values
Upcoming Plans / Closing Remarks
The GOAL of my dividend growth portfolio is to balance increasing share value (Growth) while simultaneously building and producing passive income (Dividends) that can be used during retirement. Currently my portfolio is concentrated more on growth with a dividend yield of 2.60%. As I near retirement I will look to produce more income and less growth. Typically, I deposit $2,000-$4,000 monthly into this portfolio, with $6,500 deposited YTD. This portfolio is in addition to my tax deferred ROTH TSP. Currently, I reinvest all dividends utilizing DRIP. As I gain more dividends, I will hand select targeted reinvestment and withdraw the correct percentage to cover anticipated taxes.
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Overall, 2022 has been a rough year for the stock market thus far. My portfolio is down -6.64% compared to the -8% the SP500 has posted. The good news is my portfolio is fared better during the drawdowns, stay overall above the SP500 line. My index posted a -2.88% decline for February which is roughly on par with the SP500.
Portfolio Additions / Income Values
Overall, my portfolio is now producing $1,380.65 in passive income annually or $115.05 per month. Currently, Disney and ONL are my only positions that do not pay any dividends. I added positions this month to Apple, DGRO, MMM, and Oracle. I doubled my position in MMM to take advantage of the price being below my cost average and wanted to capitalize on a solid dividend Aristocrat.
The I received $51.53 in dividend in February which is a little over $20 more when compared to 2021. Next, months should be the largest game changer with most of my dividend payments falling on the quarter.
Below is my monthly income over the last 24-month period. This chart currently only goes back to July 2020 when I received my first dividend payment.
Yearly Growth Comparisons
Going into month three of the first quarter I have already surpassed by Q1 2021 numbers and will most likely do so by a large margin. I expect to beat them by about 3.2x what I received in 2021. I also anticipate Q1 2022 will beat Q2 & Q3 of 2021 as well. By the end of March I should see my best quarterly dividends to date.
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Future Value Estimates
The future value of my portfolio given my current contribution rate is around $1,890,260 in 15 years. This would give me a monthly passive income of $4,197 at age 48. This assumes a 10% average dividend growth rate and stock price appreciation. Couple this with my estimated pension and I should be receiving a passive income around $9,197, well above by FATFire value of $8,000 a month. This will allow my Wife and I to fully retire 11 years early.
Upcoming 2022 Plans
Currently Home Depot, Disney, and MMM all sit below my cost basis. I am considering adding to both Disney and Home Depot at current values. My portfolio is funded around the 15th each month, so we'll see where the market and my portfolio sit then. Otherwise, I will contribute to positions that are below their goal allocation, concentrated on the ETFs during the down market for maximum diversification.
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