Portfolio: December 2018

The December Dividend Farmer update didn’t see much of a percentage weight shift relative to November.  Due to the addition of 65 shares in the Agriculture sector and 100 shares in the Energy sector, minor adjustments of one-tenth of one percent were made to the weight of a few holdings relative to the November distribution.

Aside from market news indicating a general trend toward bearishness, none of the holdings experienced events, good or bad, compelling me to alter any of the positions in a material way.  If anything, I’m taking the recent decline in the overall market as an opportunity to investigate shares that may have declined into the bargain range.  As long as new acquisitions conform to my investment selection process previously outlined, picking up a few shares during a market slide works well.

Weighted Distribution

The yield relative to current price declined from 3.82% in November to 3.75% in December due to the addition of the agriculture stock with an individual yield sufficiently below average that it moved the portfolio yield down by 7 basis points.  All dividends are automatically reinvested with no transactions fees.  Unweighted average yield on cost remained at 4.6%; nearly 1% higher than the current yield on price of 3.75%.

The average monthly dividend from this basket continues moving upward standing at nearly $1,130.  That doesn’t pay all the bills, but supplemental income is nice when needed.  The trailing 1-year CAGR bounced up from 12.6% to 14.3% primarily due to the new acquisitions.  Even if the CAGR slips back to something around 10%, it means my income stream should double in just over 7 years.  

Considering the length of time I have between now and full retirement, it’s possible I can enjoy multiple doublings as long as the portfolio continues its current trend.  Each month generates additional income growth through the power of compounding in a slow, steady manner.  The Rule of 72 post offers further detail about the power of compounding and why I’m an advocate.

The thoughts and opinions expressed here are those of the author, who is not a financial professional.  Opinions expressed here should not be considered investment advice.  They are presented for discussion and entertainment purposes only.  For specific investment advice or assistance, please contact a registered investment advisor, licensed broker, or other financial professional.