Posts: 23
Threads: 2
Joined: Jun 2016
Reputation:
0
08-26-2016, 05:32 PM
(This post was last modified: 08-30-2016, 10:19 PM by jdhansen.
Edit Reason: I can't count my months correctly
)
Exactly 2 months ago, I posted my greeting to the forum as I start my journey down the Dividend Growth Path and felt like it was time to post an update on my portfolio and get some feedback on it (plus my wife was sick of talking to me about it). Over the course of the three months, we have been able to increase our monthly invest into our cash account with Robin hood from $200 a month to $400 and have enjoyed the excitement of our first dividend payment from our 2 shares of T.
It was the most exciting $0.96 I have ever made and I am eagerly looking forward to September when our other first quarterly dividends get paid out.
Here is the Current Portfolio:
T 2 shares
ORI 6 shares
KO 5 shares
WFC 2 shares
TGT 1 share
FLO 10 shares
Currently have the following companies on the watchlist: AMP LMT QCOM TROW IBM CMI WMT AFL VZ DIS DG GWW JNJ MO VFC KMB UTX MSFT ABT KINS
Current debate at my house hold is do we continue to grow these positions, especially when we can cost average down(KO, TGT) or do we work toward owning 10 companies to have greater diversification when they fit our investing criteria, than start growing our positions.
Comments and suggestions are most welcome, and I just want to thank everyone that posts on the forum, I have found it most enlightening and encouraging as I try to grow my dividend income stream.
I remember how exciting my first small dividend check was!
Unfortunately it is getting harder and harder to find undervalued or even fairly valued DGI stocks in this over heated market. However, looking through your list of holdings, only KO jumps out at me as being overpriced (25 P/E).
As far as growing individual stock positions versus diversifying, I usually try to make sure no one stock is producing more than 10% of my dividends. This is more of a down the road goal as you build up your portfolio. I would also try to diversify across market sectors. I recommend you at least add exposure to healthcare, industrial, and utilities.
Posts: 2
Threads: 1
Joined: Jun 2016
Reputation:
0
Put your money where it will perform the best. If it's a stock in your portfolio, fine, If it's on your watch list, then it goes there. Much easier to keep a portfolio balanced if you keep at it from the beginning but I wouldn't pass on a dip if the opportunity came up.
Posts: 1,899
Threads: 48
Joined: May 2013
Reputation:
10
(08-27-2016, 08:50 AM)NYNurse Wrote: Put your money where it will perform the best. If it's a stock in your portfolio, fine, If it's on your watch list, then it goes there.
Agreed. If you can buy without commissions, put each purchase where it will get you the most bang for your buck.
Posts: 1,002
Threads: 89
Joined: Dec 2013
Reputation:
32
(08-26-2016, 05:32 PM)jdhansen Wrote: Exactly 3 months ago, I posted my greeting to the forum as I start my journey down the Dividend Growth Path ...
Ahem, actually 2 months ago -- 6/26/2016. 
Which is all the more reason to celebrate since you're looking at 2 months of progress. Excellent start.
I agree; look for the better values when you next purchase. I do have to caution you -- don't get stuck in the psychological trap of wanting to be completely diversified so soon. Sometimes it shades your judgement when weighing a current holding versus something new to purchase. You've got a long way to go.
Congrats!
=====
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
Posts: 23
Threads: 2
Joined: Jun 2016
Reputation:
0
(08-30-2016, 07:30 PM)Dividend Watcher Wrote: (08-26-2016, 05:32 PM)jdhansen Wrote: Exactly 3 months ago, I posted my greeting to the forum as I start my journey down the Dividend Growth Path ...
Ahem, actually 2 months ago -- 6/26/2016.
Which is all the more reason to celebrate since you're looking at 2 months of progress. Excellent start.
I agree; look for the better values when you next purchase. I do have to caution you -- don't get stuck in the psychological trap of wanting to be completely diversified so soon. Sometimes it shades your judgement when weighing a current holding versus something new to purchase. You've got a long way to go.
Congrats!
Ah that has been corrected. Guess I'm doing better than I thought.. Bit worried about being able to read numbers correctly though. 
Thanks to all who have replied, lots of good food for thought.
Looking forward to the next three months or I guess 4 if I want to get back on track.
Posts: 193
Threads: 20
Joined: Aug 2013
Reputation:
5
I'm guessing you've years and years to retirment-- thus I concure with putting your money on equities offering the best entry price.
AND I'd also agree with being carefull to not overload on any one single company. I took five years to get a portfoilo of about 40 odd stocks, buying on the dips. I used to buy 1/4 to full positions (2.5-5% portfolio weight=full) when any stock hits my "buy" zone. Now I usually go "all in" if I have a strong conviction on the "buy" price. That 1/2 posotion in AT&T I bought at $32.48 is still eating at me;-)
However, in the long run, quality equities purchased at vaule or below will make your retirement MUCH happier!
Ronn
Posts: 1,530
Threads: 172
Joined: Mar 2013
Reputation:
24
(08-26-2016, 05:32 PM)jdhansen Wrote: It was the most exciting $0.96 I have ever made and I am eagerly looking forward to September when our other first quarterly dividends get paid out.
That's great, and suggests that you have the temperament to stick with it. I'm almost 8 years into my DG journey, and I still get excited watching the dividends roll in.
(08-27-2016, 08:50 AM)NYNurse Wrote: Put your money where it will perform the best. If it's a stock in your portfolio, fine, If it's on your watch list, then it goes there. Much easier to keep a portfolio balanced if you keep at it from the beginning but I wouldn't pass on a dip if the opportunity came up.
Couldn't agree more. While your portfolio is small, don't worry much about balance and diversification -- put your money into the best companies presenting the best opportunities at the moment.
Posts: 23
Threads: 2
Joined: Jun 2016
Reputation:
0
(08-31-2016, 10:35 AM)ronn38 Wrote: I'm guessing you've years and years to retirment-- thus I concure with putting your money on equities offering the best entry price.
AND I'd also agree with being carefull to not overload on any one single company. I took five years to get a portfoilo of about 40 odd stocks, buying on the dips. I used to buy 1/4 to full positions (2.5-5% portfolio weight=full) when any stock hits my "buy" zone. Now I usually go "all in" if I have a strong conviction on the "buy" price. That 1/2 posotion in AT&T I bought at $32.48 is still eating at me;-)
However, in the long run, quality equities purchased at vaule or below will make your retirement MUCH happier!
Ronn
Yes, I have quite the years to go. While retiring at 55 (23 years from now) would be fun most likely it is more around the 65 (33 years) when it will actually happen.
Thanks for defining your full position, have been struggling to figure out where I want that to be in my portfolio.
Posts: 23
Threads: 2
Joined: Jun 2016
Reputation:
0
Thank you for the linked thread. Looks to be very interesting reading and so far has helped answer some major questions I have been recently pondering.
Posts: 187
Threads: 14
Joined: Mar 2014
Reputation:
1
(09-01-2016, 08:45 AM)Kerim Wrote: (08-26-2016, 05:32 PM)jdhansen Wrote: It was the most exciting $0.96 I have ever made and I am eagerly looking forward to September when our other first quarterly dividends get paid out.
That's great, and suggests that you have the temperament to stick with it. I'm almost 8 years into my DG journey, and I still get excited watching the dividends roll in.
(08-27-2016, 08:50 AM)NYNurse Wrote: Put your money where it will perform the best. If it's a stock in your portfolio, fine, If it's on your watch list, then it goes there. Much easier to keep a portfolio balanced if you keep at it from the beginning but I wouldn't pass on a dip if the opportunity came up.
Couldn't agree more. While your portfolio is small, don't worry much about balance and diversification -- put your money into the best companies presenting the best opportunities at the moment.
That and with your age it is time in the market and the compound that will make it worth it in the long run. Like many here, if I knew then what I know now..
Posts: 1,873
Threads: 35
Joined: Jan 2016
Reputation:
6
Love what your doing. ORI is a steady performer that you can always count on and and a very safe holding. If your going to start any new positions LMT, VZ and JNJ would be great additions. They are my 3 largest holdings and forever stocks for me. Stick with consistent growers and stocks that continue to raise the dividend. Good Luck!
|
