Friday, April 15, 2022

Dividend Progress Portfolio Q1 Replace: 20 Holdings, New Job

jaturonoofer/iStock by way of Getty Pictures Welcome to my dividend development portfolio evaluation for March and Q1. I made no…

By Staff , in IRAs , at April 15, 2022

Miniature colorful house on stack coins

jaturonoofer/iStock by way of Getty Pictures

Welcome to my dividend development portfolio evaluation for March and Q1. I made no trades within the month, nevertheless it was for an enormous motive. I just lately accepted and began a brand new job, so on a regular basis life has taken my consideration. That is been completely tremendous, as I do know I’ve gotten my portfolio positioned to be proud of it. It has been over two months since I’ve made a commerce, and it would not hassle me.

The very first thing I wish to spotlight is that investing in your self is at all times value it. I’ve discovered expertise over the previous few years in constructing out my web site and tooling for my articles that helped me land an amazing new job alternative. This text collection has coated my 401k for a few years now, and the account itself is even considerably older than the articles. I’ve some huge selections to make, although I haven’t got to make any of them instantly. That additionally leaves me to ponder over two principal questions:

  • What’s going to I do with my 401k?
  • What’s going to it imply for this text collection?

I’ll probably roll over my 401k, though I am not constructive if will probably be to my new firm’s plan or an IRA of my selecting. I take advantage of M1 Finance on the taxable facet, and I actually like their tooling. With out turning into an excessive amount of of a gross sales pitch, you may create your personal customized “pies” and allocate shares and ETFs to specific weights. From there, any earnings will robotically go to maintaining every little thing balanced. I feel it is a superbly easy and simple approach to function, and I really like having full management over how my allocations are arrange. In fact, it isn’t with out its downsides; IRAs have a lot decrease yearly limits, so these property could shift very slowly over time.

However, I may convey all of the property into my new 401k when that’s established. I do not know what choices will likely be out there with that toolset or if there may be something novel, such because the auto-balancing characteristic. There are advantages in that I can hold the identical holdings, and future contributions are at a a lot increased degree than the IRA limits. I will have the 401k with my new firm; it is simply whether or not I really feel additionally compelled sufficient to convey over my different property.

Lastly, it appears extremely unlikely that I might let the property sit the place they’re now. There is no actual profit to that state of affairs, new cash will not be stepping into, and there would be the present tooling which is moderately restricted.

In terms of the article collection, I’ll take a step again for now. I’ve loved penning this collection for a while, however it’s a labor of affection. It takes fairly a little bit of my free time to combination all the information, current it right here, and supply my very own commentary. With my new alternative at hand, I’ll focus my consideration there for now. I will proceed to do my weekly collection as I can produce that fairly rapidly. I additionally do not wish to lose the heartbeat of dividend will increase that I care about.

Protecting with the theme, I’ve additionally stepped down from contributing to the Wheel of Fortune service. I felt it was in the most effective curiosity of the service to maintain the standard top-notch. I wish to thank The Fortune Teller for the chance to have my articles featured on his service.

About Me

This text collection covers my investing journey in direction of my eventual retirement as a father of two. Sure shares or quantities are specific to my self-directed 401k plan.

My portfolio goals to generate a perpetually rising earnings stream for my spouse and me throughout our golden years. The intention is to dwell off dividends with out touching the principal.

Dividend development shares and ETFs are the chosen autos to satisfy that objective. I am 36 and have 23 years earlier than I can contact this cash.

I write as a method additionally to help different buyers. I hope aspects of my technique that you simply discover enticing and may implement your self.

Present Yr Objectives

My objective is to have 10% dividend development throughout my holdings. I am presently at 13.9%. It contains the 4.4% improve from Abbott (ABT), which I’ve since offered. I did not have any will increase in March, however I am fairly completely satisfied about my progress this 12 months.

YTD, I’ve contributed about $10,000 into my 401k in direction of the utmost of $20,500. I ought to attain that objective, though, with my job announcement, it will be break up throughout two totally different plans.

Portfolio Technique

Shopping for Standards

These are the final pointers I’ll evaluation to see if one thing is value including to my dividend portfolio or whether or not I’ll add to an present place.

Investing Framework

Right here is the primary spherical of inquiries to evaluation throughout an preliminary filtering means of investments.

  • What’s the alternative right here, and is it higher than an present holding or ETF?
  • What are the dangers and drawbacks?
  • Will it add significant diversification?
  • Are we close to an all-time excessive? COVID-19 has proven us how rapidly markets can unravel. I’ll restrict how a lot cash I make investments after we are close to new highs.
  • How lengthy is its dividend development streak, and is it secure (60+ on Merely Protected Dividends)?

Dividend safety scores

Dividend security scores (Merely Protected Dividends)

Promoting Standards

Listed below are my pointers after I could think about a inventory sale. I do not wish to promote shares, however I’ll when circumstances change.

  • Firm degradation may very well be deteriorating steadiness sheets, lack of aggressive benefit, and credit standing loss. These components could come to gentle earlier than a dividend reduce manifests. The pandemic uncovered a whole lot of names on this class.
  • A dividend reduce, suspension, or paltry will increase are crimson flags.
  • Primarily based on out there data, I can focus capital on higher concepts.

Different Issues

After asserting its yearly improve, I’d add shares earlier than the ex-dividend date. The rise offers a look into how administration thinks the corporate is working. A hefty improve is a affirmation from the management crew that the enterprise is operating nicely.

Bushes do not develop to the sky, and neither do dividend yields. A top quality firm with a pleasant dividend improve ought to see its inventory value rise by an analogous quantity over the 12 months, readjusting to the brand new and better dividend quantity. I hold tabs when costs dip beneath their 50/200-day shifting averages.

Dividend reinvestment is at all times on for my holdings. Previously, I performed video games the place I might attempt to harvest dividends if the associated fee was above my foundation and switch reinvestment on after I may decrease it. The shares and ETFs I wish to personal needs to be going up over time. There needs to be no must play video games. There is a main crimson flag if one thing I personal is not going up over time or I do not need extra shares.

Lastly, I’ve some easy conditional formatting on my spreadsheet. Cells will likely be inexperienced if I’ve a chance to decrease my price foundation. I will look at this after I think about shopping for extra.

Stock cost basis

Inventory price foundation (Dividend Derek)

The Portfolio

Here is the portfolio with just a few of my knowledge factors highlighted.

Title Ticker % of Portfolio CCC Standing P.c of Earnings
Apple (AAPL) 9.32% Challenger 1.62%
AbbVie (ABBV) 2.78% Challenger 3.32%
BlackRock (BLK) 2.53% Contender 2.33%
Amplify CWP Enhanced Dividend Earnings ETF (DIVO) 6.17% None 10.19%
Domino’s Pizza (DPZ) 1.58% Challenger 0.51%
Cohen&Steers Alternative CEF (FOF) 6.84% None 19.36%
Dwelling Depot (HD) 2.67% Contender 1.91%
Mastercard (MA) 4.17% Contender 0.78%
Medtronic (MDT) 2.46% Champion 1.90%
Altria (MO) 4.36% Contender 9.67%
Microsoft (MSFT) 2.68% Contender 0.78%
Nike (NKE) 1.45% Contender 0.47%
Pacer US Dividend Multiplier 400 (QDPL) 4.18% None 7.46%
Invesco NASDAQ Subsequent Gen 100 (QQQJ) 1.57% None 0.30%
Cohen&Steers REIT & Most well-liked Earnings Fund (RNP) 6.65% None 14.46%
Starbucks (SBUX) 2.92% Contender 2.38%
Schwab US Dividend ETF (SCHD) 15.94% None 15.29%
Schwab Worldwide Dividend ETF (SCHY) 5.97% None 3.36%
T. Rowe Worth (TROW) 2.65% Champion 2.98%
Visa (V) 3.95% Contender 0.94%

Listed below are the values behind the “CCC Standing” class:

  • Champion/Aristocrat: 25+ years
  • Contender: 10-24 years
  • Challenger: 5+ years
  • King: 50+ years

Dividend Security

I take advantage of the desk beneath to maintain tabs on the dividend security rating from Merely Protected Dividends and the way that meshes with the S&P credit standing. I additionally hold tabs on the latest dividend will increase for my corporations. I add the security and development scores to develop an combination rating. My famous person corporations are those with a complete rating of> 100.

Title S&P Credit score Ranking SSD Security Rating SSD Progress Rating Whole Rating
BlackRock AA- 98 18 116
Visa AA- 99 17 116
Mastercard A+ 99 11 110
Microsoft AAA 99 11 110
Nike AA- 99 11 110
Medtronic A 99 8.6 107.6
Apple AA+ 99 7.3 106.3
T. Rowe Worth 94 11 105
Dwelling Depot A 87 15 102
AbbVie BBB+ 70 8.5 78.5
Starbucks BBB+ 67 8.9 75.9
Domino’s Pizza 55 17 72
Altria BBB 55 4.7 59.7

This reduce of knowledge has led to some insights and actionable gadgets:

  • I principally personal secure (60+ rating) corporations; Altria is the one one below a 60 score.
  • Typically, out of dividend security, dividend development, and present yield, you may decide two.


Here is my efficiency of my holdings versus their benchmark since I’ve first owned shares. Outcomes are sorted towards the benchmark, although precise outcomes could not align completely with my outcomes on account of subsequent purchases. Viewing efficiency knowledge helps me resolve whether or not I am higher off rolling cash into an ETF or including to my finest winners. I’ve and can promote underperforming holdings based mostly on this knowledge.

Ticker Owned Since Versus Benchmark Benchmark
AAPL 4/13/2015 328.87% SCHD
ABBV 1/28/2019 62.56% SCHD
MSFT 11/14/2019 46.97% SCHD
TROW 9/29/2016 34.74% SCHD
MO 12/18/2013 27.53% FOF
HD 5/3/2016 24.00% SCHD
BLK 10/16/2019 13.48% SCHD
MA 7/26/2018 1.17% SCHD
SCHD 9/24/2018 0.00% SCHD
RNP 1/12/2022 -7.51% VNQ
DIVO 7/8/2021 -7.81% SPYD
NKE 5/3/2016 -8.94% SCHD
FOF 10/10/2019 -18.66% SPYD
V 7/26/2018 -21.60% SCHD
QQQJ 6/22/2021 -24.54% SCHD
DPZ 11/17/2021 -28.04% SCHD
MDT 11/22/2016 -46.71% SCHD
SBUX 12/3/2015 -96.70% SCHD

The information runs off the API I host over at Customized Inventory Alerts. This set exposes the inventory return calculator as an API name out there on the net, MS Excel, or Google Sheets.

The following column permits flexibility to outline what my benchmark will be. REITs, for instance, evaluate towards VNQ. Wanting that, I usually evaluate every little thing else to SCHD.

Dividend Will increase

Dividend Cuts

Commerce Abstract

My Sells


My Buys


Charts and Graphs


This chart covers a rolling three-month common of my dividend earnings. The common view smoothens out month-to-month variations. The information has additionally match the blue trend-line fairly carefully over time.

Average monthly dividend

Common month-to-month dividend (Dividend Derek)

My progress was very regular and constant for a number of years. I bounced round from 2019 till 2021 by specializing in development, then high-yield, and eventually again to my core roots.

Dividends by month

Dividends by month (Dividend Derek)

This March was truly solely my third finest; each 2020 and 2021 beat it in absolute dividends. This has been on account of my mixture of holdings; I had began accruing extra higher-yielding/slower-growing property previously. It is taken two years, however my combine is extra balanced now.

Here is who paid me this month:

Quarterly dividend comparison

Quarterly dividend comparability (Dividend Derek)


I created the next graphics to help in charting my progress over time. This one exhibits my earnings per 30 days for the present and prior 12 months and any development related. With one-quarter full, I can start to make some higher observations. I am presently operating about 8.6% forward of final 12 months, which is a few good development. That features the large hit in absolute phrases in March declining from 2021.

Monthly dividend results

Month-to-month dividend outcomes (Dividend Derek)

Smoothing the information out, this is the aggregated view of Q1.

Q1 dividend results

Q1 dividend outcomes (Dividend Derek)

The chart beneath is my projected earnings view (including up all identified dividend charges multiplied by owned shares). Proper now, my finest guess is a ahead earnings of $14,816.

Forward-looking income projections

Ahead-looking earnings projections (Dividend Derek)

Portfolio Targets

My goal portfolio is how I’ve aimed to separate cash throughout totally different asset lessons. I shifted my targets a bit of this month, taking some away from high-yield and giving it to dividend development.

Class Precise Goal Delta
Money 0.50% 5.00% -4.50%
Dividend Progress 75.77% 65.00% 10.77%
Progress 10.24% 10.00% 0.24%
Excessive Yield 6.84% 10.00% -3.16%
REIT 6.65% 10.00% -3.35%

  • “Dividend Progress” includes my dividend rising holdings and ETFs like (SCHD), (DIVO), and (QDPL).
  • “Progress” has my Amazon (AMZN), Alphabet (GOOG) (GOOGL), (QQQJ), and (WCLD) holdings.
  • “Excessive Yield” has simply (FOF) proper now.
  • REIT simply consists of (RNP).


income by source

Earnings by supply (Dividend Derek)

This chart exhibits the earnings supplied by totally different sources. ETFs give about 44% of my earnings, and CEFs (FOF and RNP) now symbolize about the identical at 42%. The remaining 14% I’ve concentrated in just a few choose sectors.

Sector Allocations

Allocations by sector

Allocations by sector (Dividend Derek)

This chart exhibits how I’ve invested my cash. I’ve 36% in ETFs and 14% in CEFs, allotted throughout some sectors. I tilt closely in direction of tech, and several other sectors don’t have any holdings (like industrials, power, utilities, and supplies).

Champion, Contender, Challenger View

CCC Status

CCC Standing (Dividend Derek)

I categorize my picks based mostly on their dividend development historical past.

  • Kings 50+
  • Champions 25+
  • Contenders 10+
  • Challengers 5+

I take advantage of this to assist hold me targeted on high quality, and whereas it has been useful, it isn’t completely predictive.

This discipline on my spreadsheet is an automatic pull from my API. I’ve a “King” standing for these with streaks over 50 years. I wish to notice that the Abbotts per the CCC listing are usually not Champions, although, by legacy S&P guidelines, they’re each Dividend Aristocrats. Additionally, Altria now exhibits up as a Challenger and never a King.

Issues Coming Up/Motion Gadgets

Here is the brand new dividend improve scorecard for 2022! Here is a take a look at the will increase seen this 12 months; Abbott is now hanging on the underside although I wish to hold it for monitoring functions. Subsequent up needs to be Apple (AAPL) someday in April.

Title 2022 Improve Improve Month
BlackRock 18.0% January
Domino’s Pizza 17.0% February
Dwelling Depot 15.2% February
T. Rowe Worth 11.1% February
AbbVie 8.4% January
Apple April
Mastercard December
Medtronic June
Altria July
Microsoft September
Nike November
Starbucks November
Visa October
Abbott Laboratories 4.40% January

I will embody yet one more chart for consideration. Someday in 2020, I began introducing a scorecard for myself to assist with what to purchase subsequent.

I give factors for:

  • After I final bought it (older earns extra factors)
  • Earnings expectations for particular person corporations (or a flat rating for CEFs and ETFs).
  • Bonus factors for corporations with excessive dividend security scores and development scores
  • A couple of factors if the present share value is below my price foundation
  • Lastly, I tilt for the way the place dimension stacks up towards my decided allocation (for instance, AAPL is about 9% of my portfolio, and I need it to be 4%). In that instance, you may see it close to the underside because the rating is punished for being too massive to think about shopping for extra.

Portfolio scorecard

Portfolio scorecard (Dividend Derek)

Microsoft and Nike are sitting on the high for having robust anticipated double-digit earnings development over the subsequent few years and being comparatively underweight per my targets.


The portfolio generated $1,422 in March, down from the $2,114 in 2021. For the quarter, although, I am up 8.6% over 2021, with $3,927 in dividends.

I have not made any trades shortly and possibly will not till I type out what I wish to do with my 401k. I will most probably be doing a rollover, nevertheless it stays to be seen the place the cash finally ends up. Even when that’s full, I will take a step again for now from writing these month-to-month articles to concentrate on my new profession alternative. I recognize all of the help, nice discussions, and suggestions for a few years. Thanks for taking the time to learn this, and completely satisfied investing!

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