Updated: Dec 24, 2022
TABLE OF CONTENTS
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 2.43%. 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 $26,000 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.
September was a rough month for my portfolio when you look at the return on investment. My portfolio lost -4.8% over the month due to the market downturn. The large jump mid-month is my deposited funds.
My portfolio has done well this year overall when you zoom out and look at performance YTD. It has closely followed the SP500 with a +13.9% return on investment YTD compared to the SP500's +14.68%. This is the ROI if you don't include my reinvested dividends.
Portfolio Additions / Income Values
I added another $3,000 deposit in September that I used to purchase shares in Costco, Cisco, DGRO, Home Depot, Microsoft, MMM, and SCHD. No new positions were added and all purchases went to increasing my previous holdings. These shares added another $46.66 to my annual passive income or $3.89 per month.
Overall, my portfolio is now producing $900.48 of passive income annually or $75.04 per month. Not bad for just over a year and a half of building this dividend growth portfolio. Currently, Disney is my only position that does not pay any dividends.
I received $142.05 in dividends in September this year compared to the $6.62 I earned last year. September represents my the most dividends received for my portfolio since inception. Overall, my dividends have grown 589.17% YTD compared to 2020.
Yearly Growth Comparisons
My Q3 dividends have grown significantly compared to Q3 2020 and Q1 2021. I received 16.18x more dividends compared to Q3 2020 and 2x more dividends than Q1 2021. Q3 dividends were 8.8% more than Q2, receiving $15.56 more this quarter.
My portfolio's passive income has grown significantly when compared to 2020 and represents my transition to dividend investing near the end of that year. I'm excited to see how my portfolio grows in 2022 when I compare it to 2021.
Reviewing my current allocations I will most likely add to my positions in Cisco, General Dynamics, Home Depot, JEPI, 3M, Oracle, and VOO in October. I remain heavy in the technology sector and will continue to bring that down as Apple settles into my portfolio from a large investment earlier in the year. If the market continues to move sideways or down I will most likely change my plans and invest in any stock "on sale" or at or below my current cost basis.