Dividend Growth Portfolio - Objective: Retire by 50

[Rasec]

Next month marks 4 full Quarters of my journey in DGI, I plan on making a full post highlighting Div growth on a quarterly basis, my holdings (now up to 40), sectors, etc. In the meanwhile I've been playing around with some numbers and modeling contributions on an annual base, then assuming multiple variables for different average rates of return and inflation for the next 20-30 years. Lastly, I played around with the 4% rule and came up with the following model:



The 1st number is average rate of return and the 2nd is inflation. Example, for the best scenario I calculated I used 12% returns and 3% inflation average, for the period. 


The goal is to leave the corporate world before age 50, as seen above there's a huge discrepancy between the different scenarios.

[DividendGarden]

(09-01-2016, 06:23 PM)Rasec Wrote: The goal is to leave the corporate world before age 50, as seen above there's a huge discrepancy between the different scenarios.

I'm a geek for charts & graphs.  Thanks for posting this, I love the thought process and modeling different variables.

[cannew]

Adding my 2 cents late, but I'd not worry about covering every sector or building a large number of holdings. You got some great stocks and I'd center on those.
1. Make your focus on Income Generation
2. Develop and refine your list of stocks, 30 is a good number
3. I don't like cyclical stocks and avoid them
4. Add to your list of stocks when they are value priced
5. Don't be afraid to hold cash if you feel the prices are high
6. Don't sell or rebalance, hold for the growing income
7. Keep taxes in mind and that certain types of stocks should not be held in a non-registered acct

Sounds like you have a sound plan and you've gotten some good advice here.

[Rasec]

It's been a 1 full year since I started DGI. It's been a fantastic ride with lots of fun moments and I've learnt a lot with this Forum, I'm looking forward to another year! Here's a brief update on my portfolio with plenty of graphs:

My 42 positions with % gains/loss, sorted by top losers to top gainers:





My Holdings as a % of Cost Basis:


And now represented as a % of Market Value:



Split by Sectors:


Going forward I want to bring basic materials Tech, Telecom and Utilities at around 5%, the others hovering around 10%. 


When factoring in my large position in EVT and Cash (money allocated in broker account ready to be deployed at any time) this is what it looks like:



And lastly, the dividends:




The good: 

• Portfolio is growing at nearly 11% (Market value+Dividends)/Cost Basis; before taxes). Some positions are pretty recent (eg. BA, SBUX, NKE, WBA) so this growth doesn't mean much. 
  
• I was able to capture some good value in some positions (eg. ADM, VTR, O, CVX)
  
• I believe I have a balanced portfolio, across sectors, yield (high yield vs high growth), risk and will produce good results going forward. 
  
• I've invested $48.3k YTD on top of dividend reinvestments this year. I'm confident I will hit my goal of $50k invested and $7k anual dividends. 
  

The bad:

• I opened too many positions in a short period which I'm not entirely sure now was a good idea, example, do I really need all these healthcare REITs or 1 would be enough. Same for oil companies? At some point I'll likely have to sell some positions, maybe at a loss.
  

• KMI and COP cut their dividends and impacted the portfolio badly. 
  
• WFC is gonna go through a massive readjustment period. 
  

Next steps for next year:

• There are about 3/4 positions I'm still pursuing (SHW, V, HD or LOW, PEP and eventually an additional Tech company)
  
• Understand if I should move some of these transactions to a tax deferred account or keep doing everything on a taxable account 
  

[Rasec]

I have 4 positions hitting 52 weeks highs today (EMR, BAC, WFC, BA) and another 4 very close to the 52 Wk high as well (IBM, CVX, DOW, UTX).

Fantastic little rally...

[DividendGarden]

(12-07-2016, 04:19 PM)Rasec Wrote: I have 4 positions hitting 52 weeks highs today (EMR, BAC, WFC, BA) and another 4 very close to the 52 Wk high as well (IBM, CVX, DOW, UTX).

Fantastic little rally...

I think many of us are in a similar boat.  And yet there are companies at lows like HRL, BF.b, GSK, CLX, NKE.  So, what I do is take all dividends and just buy whatever's at the lows.

[navyasw02]

(12-07-2016, 04:19 PM)Rasec Wrote: I have 4 positions hitting 52 weeks highs today (EMR, BAC, WFC, BA) and another 4 very close to the 52 Wk high as well (IBM, CVX, DOW, UTX).

Fantastic little rally...

Great rally, but I'm holding more cash than usual for when this ends.  I think we'll see some buying opportunities when the feds raise the rates.

[KTMarty]

Rasec - What software are you using for the graphs?

[Rasec]

It's all done in Google sheets: https://www.google.com/intl/en/sheets/about/

I like to do my own tracking and modeling.

[Rasec]

2016 was a great year for me personally and hence more challenging goals for 2017 with a bunch of B and C plans:



My 2017 Goals

Investments:

• Invest $75k in "new cash" in the market (outside 401K)
  
• DRIP all dividends
  
• Max out 401K by end of H1 2017
  
• Hit $10k in forward dividends / year
  
• Discuss tax plans with a CPA with experience in international taxes and tax planning
  
• Solve issue with IRS (basically they've owed me ~$4.5k for several years)
  

Keep improving my CV

• Do an executive course in Marketing / Business Management / Leadership at a top school in the US (eg. MIT / Stanford / Harvard, etc)
  
• Apply to at least 2 jobs outside my company and interview for those roles (I want to stay on top of my game in case I need to interview in the future)
  

Work life balance

• Visit at least 1 new country
  
• Spend more quality time with my son, sign up for one activity together (maybe soccer?)
  
• Play in 4 squash tournaments (played 3 in 2016)
  

Cheers to a fantastic 2017!!

[Rasec]

2016 wasn't a bad year!!


From my broker (just discovered this feature today!):

[RyanCMason]

Hi Rasec,

Do you keep track of your income from your various investments year over year?  Great job by the way!