Earlier this year, I redesigned my Performance page and included a set of radial charts, which are reminiscent of a logo my dad designed many years ago. The logo has a circular core, with radial arms pointing out in different directions. It is still being used today!Likewise, the radial charts on my Performance page have radial bars representing a data value for each of DivGro's holdings. The holdings are ordered clockwise by purchase date and start with my first buy, CVX, at the 12 o'clock position. I buy stocks for DivGro in chunks of about $2,500 at a time, except for master limited partnerships (MLPs), which I double-up on. Eventually, my goal is to have a weight-balanced portfolio.
After selling CHL and SNP recently, I needed to update the radial charts on my Performance page. Here is one of the charts portraying the current weight distribution of DivGro's holdings:
The outliers are ETP, VNR and APU, the three MLPs in DivGro. Of the remaining holdings, it is clear that GD has performed best of all my holdings and that SDRL is the worst performer. I have similar charts for DivGro's yield on cost and its payback percentage.
I'm still busy considering next actions for DivGro. October's top ten list presents several interesting prospects, though the correction in the market has offered additional opportunities. For example, I added shares of SDRL recently, which is the first time that I have purchased shares in an existing holding. On reflection, I jumped the gun a bit with my purchase, as SDRL is down nearly 9% since then. Other holdings that are presenting possible entry points include BBL, PNNT, and TGH.
Finally, I'm thinking about changing the frequency of my posts about dividend increases. Currently, I'm reporting dividend increases for stocks in my watch list twice a month – on the 15th and on the last day of each month. I think it would be more sensible to do these reports every weekend instead. Because October ends on a Friday this year, I'll start these weekly posts in November.
Let me know what you think of the idea of weekly posts rather than biweekly posts.
Let me know what you think of the idea of weekly posts rather than biweekly posts.
I don't know about anyone else but I love hearing about my dividend increases so the sooner the better if you ask me. :-) It's a bit more work for you though making 2x as many posts.
ReplyDeleteLove the chart by the way, curious what you used to make it.
Cheers,
CD
Actually, I think doing the posts every weekend would be easier. Most of the time, the 15th or the last day of the month falls on a weekday -- finding the time to do the prep work gets tight. Over the weekend, I have at least two days to do it...
DeleteThe chart is some excel magic, would you believe it! Read the following post for some hints on how to do it:
http://divgro.blogspot.com/2014/02/kilokor.html
If it still is unclear after reading it, let me know and I'll try to explain.
Cheers
FerdiS
I like the radial charts (this and some of your other ones), and how it reflects your current value for your portfolio, as it is just another way to analyze your performance. Visually, they are fantastic. That being said, it is swayed by the timing of the purchases (new vs. old positions) and market conditions that may or may not have anything to do with the purpose of your portfolio, which is to build a growing stream of passive income.
ReplyDeleteOf course the radial charts are temporally biased... but what better way to portray that than on a graph that resembles a clock!
DeleteI would be careful to dismiss weight distribution, payback percentage, and yield on cost as "not having anything to do with the purpose" of a dividend growth portfolio. And, to be fair, I don't think that's what you're saying. But I think those aspects are important measures of the health and performance of a portfolio.
Certainly my wording could use some improvement, I can't argue that! :)
DeleteWhat I really meant to say is that while it is important, it isn't a function that early in the accumulation phase that bears weight as a compass. I wholeheartedly believe in asset allocation even among specific positions, but knowing that I will be adding capital in multiples of my current portfolio's value, today's asset allocation based on fair market value will not have a significant impact on the decisions I make in the next couple of years. Of course, once my DG portfolios have matured and grown in size, I will transition into a place of ensuring proper allocation and making sure certain positions/sectors don't get too out of hand.
With your capital potentially being limited in 2015 (mortgage/house stuff I think you said) and having a much larger portfolio than I, asset allocation is much more prominent of an issue than for me. While not evident on my blog, I keep close track of my diversification between sectors right now, but as I am hoping to get on the $2,500+ per month club that you've been a part of these last couple of years, and sector settings I have now will be very different in 12-24 months.
As always, great stuff, discussion included. I love coming to read your posts and am looking forward to future updates.
Likewise, I enjoy your comments and discussions! Please continue to do so and to challenge my thinking...
DeleteI understand the issue of adding capital in multiples... I just started doing so with SDRL and, already, I'm challenged by how to handle them. My "easy" portfolio spreadsheets, graphs, etc. will need to be rethought and redesigned.
Take care, and good luck with growing your portfolio...
Cheers
FerdiS
I like the visualization, FerdiS. Ive been keeping an eye on GD and would love to add it to my portfolio.
ReplyDeletecheers
Thanks, Roadmap2Retire -- GD has performed well for me. Lately, it has dropped from its 52-week high of $130 to around $116 now, so maybe you'll get your opportunity soon!
Delete