Portfolio: March 2019

The March Dividend Farmer saw a few changes relative to February despite no additions or subtractions to the holdings during the month outside of reinvested dividends.  REIT holdings bumped up nearly one percentage point and continue to lead the portfolio weight.  Conversely, my healthcare issues declined by nearly a like amount in terms of percentage distribution. 

Across the rest of the segments there was a half point movement or less up or down.  Most of the holdings didn’t experience significant events.  However, earlier this week one of my consumer healthcare stocks declined nearly 12% due to an unexpected and large earnings miss so we’ll see how things rebalance in April.  On the bright side, dividends paid now for that holding buy more shares than they would otherwise.   It’s good to be positive about these things, right?

Yield on price:  3.8% - down from 3.9% in February 

Average yield on cost:  4.7% - up from 4.4%   

Average monthly dividend:  $1,170 

Monthly dividend growth rate:  14.8%

Target monthly dividend growth rate:  10%

Time to double dividend stream:  ~4.8 years – down from 5.5 last month 

The growth rates serve as a reminder of the power of compounding given changes in long-term outcomes resulting from small changes in the rate of return.    

Each month adds to the income stream growth through the power of compounding in a slow, steady manner.  The Rule of 72 post offers further detail about the power of compounding.  The remarkable thing about compound growth is that if you’re patient you’ll eventually reach a point at which critical mass is achieved and growth in your dividend stream takes off.  That’s why this Dividend Farmer is an advocate of dividend investing.

The thoughts and opinions provided 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.