The first quarter of 2019 is a wrap. Overall I'm pleased with the portfolio's start to the new year and the YTD dividend income YoY performance looking really good for Q1 which of course is substantially driven by the March results since many companies pay their dividend in the last month of the quarter. See below for the details.
March Dividend Summary
As I mentioned above, I am quite pleased with the results for March. I was pleasantly surprised by the fact the YoY favorable variance of 20.4% was driven by rate increases as opposed to volume increases - but I am always happy to report both in any event. In other words, had I not purchased nor reinvested dividends, my increase in dividend income would have been 11.5% - fantastic! A couple of the mutual funds that I hold experienced some significant YoY rate increases - 45% and 28% for VLCAX and VEIPX, respectively.
For the first several decades of one's accumulation/savings phase of life, I would generally expect YoY increases in investment income to be driven by volume activity resulting from additional shares purchased as a result of additional savings contributions and reinvestment of investment income (dividends or otherwise) allocated to the portfolio throughout the year. I expect situations like this month to be the exception rather than the norm at this point in my life and likely continue to be such for the next 10-15 years.
New positions in the last 12 months that contributed to the volume increase in income generated from the PIV portfolio include AVGO, DAL, and KHC net of one position, CMP, that was eliminated last year. Unfortunately, as many are aware, KHC has experienced some significant asset impairments and subsequently cut the dividend (36%) since I began building my position. I've considered buying more since the announcement and reduction of the market CAP valuation, but have held off for now in pursuit of other compelling valuations.
YTD Dividend Chart for 2019
2019 Q1 YTD Rate vs. Volume Impact
Per the summary above, 2019 Q1 dividend income is up 30.5% versus the same period last year. Thus far, the 2019 aggregate dividend rate increase is trending at 8.5% versus the 2018 annual rate increase of 6.7% which I noted in December 2018 dividend summary that you can read about here. I would be very pleased to experience an aggregate rate increase > 6% year to year, so needless to say I am happy to see that I've experienced 8.5% so far for 2019. With respect to the volume variance, the YTD increase of 22.1% is trending below the 2018 annual volume variance of 33.8%, certainly nothing to complain about.
Portfolio Value as of April 2, 2019
Portfolio value (excluding cash): $292,274
Portfolio weighted average yield per Google Finance: 2.93%
Portfolio annual dividend income per Google Finance: $8,569
# of positions: 50 positions in individual companies + 4 mutual funds
Current GICS Allocation Chart
March Dividend Summary
As I mentioned above, I am quite pleased with the results for March. I was pleasantly surprised by the fact the YoY favorable variance of 20.4% was driven by rate increases as opposed to volume increases - but I am always happy to report both in any event. In other words, had I not purchased nor reinvested dividends, my increase in dividend income would have been 11.5% - fantastic! A couple of the mutual funds that I hold experienced some significant YoY rate increases - 45% and 28% for VLCAX and VEIPX, respectively.
For the first several decades of one's accumulation/savings phase of life, I would generally expect YoY increases in investment income to be driven by volume activity resulting from additional shares purchased as a result of additional savings contributions and reinvestment of investment income (dividends or otherwise) allocated to the portfolio throughout the year. I expect situations like this month to be the exception rather than the norm at this point in my life and likely continue to be such for the next 10-15 years.
New positions in the last 12 months that contributed to the volume increase in income generated from the PIV portfolio include AVGO, DAL, and KHC net of one position, CMP, that was eliminated last year. Unfortunately, as many are aware, KHC has experienced some significant asset impairments and subsequently cut the dividend (36%) since I began building my position. I've considered buying more since the announcement and reduction of the market CAP valuation, but have held off for now in pursuit of other compelling valuations.
YTD Dividend Chart for 2019
2019 Q1 YTD Rate vs. Volume Impact
Per the summary above, 2019 Q1 dividend income is up 30.5% versus the same period last year. Thus far, the 2019 aggregate dividend rate increase is trending at 8.5% versus the 2018 annual rate increase of 6.7% which I noted in December 2018 dividend summary that you can read about here. I would be very pleased to experience an aggregate rate increase > 6% year to year, so needless to say I am happy to see that I've experienced 8.5% so far for 2019. With respect to the volume variance, the YTD increase of 22.1% is trending below the 2018 annual volume variance of 33.8%, certainly nothing to complain about.
Portfolio Value as of April 2, 2019
Portfolio value (excluding cash): $292,274
Portfolio weighted average yield per Google Finance: 2.93%
Portfolio annual dividend income per Google Finance: $8,569
# of positions: 50 positions in individual companies + 4 mutual funds
Current GICS Allocation Chart
Congrats on 20% YoY. You will achieve $2000 a month soon.
ReplyDeleteThank you! I am looking forward to reaching the $2000 a month and more. If all goes well with the economy and employment, perhaps hitting $2000 in any one month will happen within 4-6 years? We'll see :)
DeleteWow 20% YoY increase, amazing stuff! I see $2k coming later this year. :)
ReplyDeleteThanks Tawcan! The $2K can't come soon enough :)
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