November 2022: Dividend Growth Portfolio Update
Updated: Dec 31, 2022
Table of Contents
Projected Annual Dividend Income (PADI)
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 3.22%. 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 $27,500 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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All Charts are from my Dividend Portfolio Tracker, available in my store
Portfolio Update
November was a decent month for my portfolio overall, making back some ground that it lost this year. I've been flirting back and forth with $75,000 invested. I added another $3,000 into my account this month to purchase the following shares:
Cisco Stock ($CSCO) x 2
Microsoft Stock ($MSFT) x 1
Realty Income Stock ($O) x 14
Starbucks Stock ($SBUX) x 2
Oracle Stock ($ORCL) x 1
SCHD ETF ($SCHD) x 16
Exxon Mobile ($XOM) x 2
The newest addition to my portfolio are $XOM and $SBUX which I can't complain since they have returned 5%~ and 11%~ respectively. These new positions added $105.64 to my portfolio's passive income or just shy of $9 a month.
November returned nearly the same percetages as the the SP500. My portfolio returned 5.4% compared to 5.17% posted by the SP500. My yearly return has performed better than the SP500 by almost half. I'm still a -7.64% YTD. That's better than the -14.39% return posted by the SP500 since January 1st. Including DRIP I have returned around -4.5% for the year.
Dividend Income Growth (YoY)
My dividend income continues to surpass expectations. My November dividends are nearly 100% more than 2021 and 749% more than 2020. Yearly passive income received also surpassed 2021 totals and we still have Decemve dividend payments. My 2022 total passive income is $1,401.90 compared to $757.19 for 2021. That's a 85.15% increase!
One thing I have considered is modifying my portfolio to bring in consistent dividend income month to month. Currently the quarters have my largest dividend payments. This would require me to close some positions and start new positions in dividends in the months I'd like to raise. This is really a quality-of-life issue since it would require me to budget quarterly income over several months instead of a more balanced payment schedule. Below is the last two years of dividend payments.
Quarterly Comparisons
Quarterly income continues to grow as expected. I've already received more than half of my expected dividends for Q4 with December, the largest month for my portfolio, remaining. I expect to come close to passing 2021 Dividends total with just Q4 earnings.
Projected Annual Dividend Income (PADI)
Lastly, my projected annual dividend income is now $2,125.41 or $177.12 a month!
16 of my 17 positions pay dividends (Disney being the non-payer).
I hope this update hope this update helps break down the power of dividends and inspires some of the new dividend investors. Stay the course and be patient!
Happy Investing!