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Sunday, October 5, 2014

Quarterly Review, Q3-2014

I started DivGro in January 2013, so the 7th quarter of DivGro is over. I'd like to report on DivGro's performance and progress made towards meeting my 2014 goals.

Before doing so, just a few words on happenings over the past three months. In July, we travelled to South Africa to visit with family and friends and to hike the Otter Trail. We also visited two national parks, Addo Elephant National Park and Kruger National Park. It was a wonderful trip and good to take break from our usual activities. In August, I created an expanded Blogroll page in which I'm highlighting blogs that include public portfolios. And, in September,  I increased DivGro's exposure by posting some articles on Seeking Alpha. The increased exposure created more traffic to this site and page views have since crossed the 100,000 mark.

This quarter, I contributed capital funds in the amount of $8,500 to DivGro. Dividend income in Q3-2014 totaled $1,244, an increase of 39% over the $892 I received in Q2-2014. For comparison, DivGro generated $386 in Q3-2013. I added four new dividend growth stocks to DivGro: IBM, PM, DE, and MCD. Due to dividend cuts, I sold out CHL and SNP. The net result is that projected annual dividend income increased from $4,390 to $4,592, a modest increase of 4.6%.

Jun 30, 2014
DOW: 16,826.60S&P 500: 1,960.2310-YR BOND: 2.52%
Sep 30, 2014
DOW: 17,042.90S&P 500: 1,977.2910-YR BOND: 2.51%

In the quarter ending September 2014, the Dow Jones Industrial Average increased by 1.29% while the S&P 500 increased by 0.87%. In comparison, DivGro's value decreased by 0.96% (when measured by internal rate of return (IRR) for Q3-2014).

At the end of Q3-2014, DivGro's market value of $111,249 represents a simple return of 17.1% on $95,000 invested. Of course, simple return does not take into account the timing and size of cash deposits as IRR does. DivGro's IRR since inception is 32.4%.

Here is a spreadsheet summarizing DivGro's performance for the quarter ending September 2014:

Dividend Adjustments:
  • New buys IBM, PM, DE and MCD added $341.96 in projected annual dividend income.
  • The sale of CHL and SNP subtracted $197.77 in projected annual dividend income.
  • CHL's actual semi-annual dividend (#2) reduced projected annual dividend income by $2.19. I sold all my shares of CHL due to the dividend cut. 
  • NTT's actual semi-annual dividend (#2) reduced projected annual dividend income by $0.51. Yield on Cost (YoC) of NTT is now 3.68%.
  • COP increased its quarterly dividend by 5.8% to 73¢ per share, adding $6.08 to DivGro's projected annual dividend income. YoC of COP is now 4.51%.
  • ETP declared a new quarterly distribution of 95.5¢ per unit, an increase of about 2%. The increase adds $8 to DivGro's projected annual dividend income. YoC of ETP is now 8.06%.
  • WAG increased its quarterly dividend by 7.14% to 33.75¢ per share, adding $3.96 to DivGro's projected annual dividend income. YoC of WAG is now 2.38%.
  • MO announced an increase of its quarterly dividend to 52¢ per share, an increase of 8.33%. Projected dividend income increased by $12. YoC of MO is now 5.89%.
  • BBL declared a new semiannual dividend of $1.24 a share, adding $6.88 to DivGro's projected annual dividend income. YoC of BBL is now 4.25%.
  • PM declared a quarterly dividend of $1.00 per share, increasing projected annual dividend income by $7.44. YoC of PM is now 4.92%.
  • MSFT raised their quarterly dividend to 31¢ per share, adding $9.60 to DivGro's projected annual dividend income. YoC of MSFT is 3.90%.
  • PMT declared a cash dividend of 61¢ per share, an increase of just more than 3%. The increase adds $9.60 to DivGro's projected annual dividend income. YoC of PMT is 11.65%.
Dividends Received:
  • Total for Q3 of 2014: $1,243.97 (up from $891.78 for Q2 of 2014)
  • Total year-to-date: $2,808.41
Dividend Details
  • 2014-07-01: Cash Dividend Receipt TRV:  $15.95
  • 2014-07-01: Cash Dividend Receipt NU:  $23.55
  • 2014-07-01: Cash Dividend Receipt DLR:  $39.84
  • 2014-07-01: Cash Dividend Receipt BAX:  $19.24
  • 2014-07-01: Cash Dividend Receipt PNNT:  $60.20
  • 2014-07-03: Cash Dividend Receipt CHL:  $44.06
  • 2014-07-07: Cash Dividend Receipt NTT:  $48.28
  • 2014-07-10: Cash Dividend Receipt MO:  $36.00
  • 2014-07-15: Cash Dividend Receipt VNR:  $37.80
  • 2014-07-30: Cash Dividend Receipt PMT:  $70.80
  • 2014-08-01: Return of Capital ETP:  $95.50
  • 2014-08-07: Return of Capital APU:  $105.60
  • 2014-08-08: Cash Dividend Receipt GD: $21.70
  • 2014-08-13: Cash Dividend Receipt ACE:  $15.60
  • 2014-08-14: Cash Dividend Receipt VNR:  $37.80
  • 2014-08-20: Cash Dividend Receipt CAT:  $21.00
  • 2014-08-27: Cash Dividend Receipt TGH:  $35.25
  • 2014-08-29: Cash Dividend Receipt PRE:  $18.09
  • 2014-09-02: Cash Dividend Receipt COP:  $27.74 
  • 2014-09-02: Cash Dividend Receipt AFL:  $18.50 
  • 2014-09-02: Cash Dividend Receipt INTC:  $27.00 
  • 2014-09-03: Cash Dividend Receipt WMT:  $16.32
  • 2014-09-09: Cash Dividend Receipt JNJ:  $21.00
  • 2014-09-10: Cash Dividend Receipt TGT:  $20.80 
  • 2014-09-10: Cash Dividend Receipt IBM:  $15.40 
  • 2014-09-10: Cash Dividend Receipt CVX:  $26.75 
  • 2014-09-10: Cash Dividend Receipt XOM:  $20.70 
  • 2014-09-11: Cash Dividend Receipt MSFT:  $22.40 
  • 2014-09-12: Cash Dividend Receipt VNR:  $37.80 
  • 2014-09-12: Cash Dividend Receipt WAG:  $14.85 
  • 2014-09-18: Cash Dividend Receipt SDRL:  $72.00 
  • 2014-09-23: Cash Dividend Receipt BBL:  $53.32 
  • 2014-09-30: Cash Dividend Receipt NU:  $23.55 
  • 2014-09-30: Cash Dividend Receipt TRV:  $15.95 
  • 2014-09-30: Cash Dividend Receipt DLR:  $39.84 
Goals 2014
  • Write at least 100 posts. 
This is my 77th post of 2014, so I'm on pace. In 2013, I wrote a total of 77 posts. 
  • Earn $3,600 in dividend income. 
So far, I've received $2,808 in dividends. That's 78% towards my goal, so I'm on pace.
  • Increase projected annual dividend income to $4,800.
Right now, projected annual dividend income is $4,592. At 96%, I'm almost there!
  • Increase number of holdings to 36, ...
Number of holdings is 33. I have enough funds for 3 purchases in October, so I'll meet that part of the goal this month!
  • ... balanced across all 10 sectors.
DivGro is nearly sector-balanced. It overweight in Energy and Information Technology and underweight in Industrials, Materials, Telecommunication Services, and Utilities. One quarter is ample time to further improve DivGro's sector diversity, but I'm already quite pleased with it as it stands.
Consumer Discretionary234.384 no action 4
Consumer Staples183.423 no action 3
Energy193.626 remove 2 4
Financials397.437 no action 7
Health Care61.142 no action 2
Industrials275.144 add 1 5
Information Technology132.483 remove 1 2
Materials112.101 add 1 2
Telecommunication Services50.951 add 1 2
Utilities285.332 add 3 5

Outlook For Q4-2014: It looks like I'll reach all of my goals for 2014. Towards the end of this quarter, I'll need to formulate a new set of goals for 2015. I'm already thinking about those. The main enabler for continuing to grow DivGro rapidly is the amount of capital we can afford to invest on a monthly basis. With new mortgage responsibilities, I think maintaining the monthly deposit of $2,500 would be tough, if not impossible. The good news is that DivGro would be generating nearly $500 in fresh cash every month. I'll continue to reinvest those dividends!

How did your portfolio perform this quarter? And how are you doing as far as your 2014 goals are concerned? Are you on pace?


  1. Great job DivGro! On target to meet all of your goals is pretty impressive. I'm behind on a lot of them but hopefully I'll be able to make some headway in Q4. Looking forward to seeing how strong you finish up the year.

    1. Thanks, Passive IncomePursuit!

      Goals are funny things. If you set them and they turn out to be relatively easy to attain, you might wonder if they were stretching enough. On the other hand, the act of setting goals can change one's actions and so increase the chance of success.

      Good luck on your Q4 catching up!

  2. Congratulations on a really successful 3rd quarter and on the continued growth of the blog. You've built quite a machine in a relatively short period of time and at this point it is going to start turning over on itself quite well. As you said, this will provide a natural boost to your capital for investment as you receive those dividends each month.

    I am unfortunately behind on my 2014 goals, but this was mostly the result of me overallocating resources in my projections to my public investments (DG and P2P lending). I am confident the next 15 months will be much stronger with my ability to consistently add capital to my tracked investments and should see some nice gains.

    1. Thanks, writing2reality! It has been a fun ride, so far. And it is starting to pay off nicely. I'm hoping to get to $500 in projected monthly dividend income early in 2015 and to reinvest those funds, along with any capital I can add on a monthly basis.

      Hang in there with your 2014 goals -- you still have a quarter to chip away at them. And, if you don't manage to attain one or more of your goals, remember that you wouldn't have gotten as far without setting any goals!

      Good luck!

  3. Congratulations on a solid month. Your portfolio is looking top notch. Any plans on adding to SDRL while the price is down?

    1. Thanks, Dividend Mongrel -- funny you should ask about SDRL... I'm actually looking at SDRL again. With the price down so much, the yield is popping! I need to do some due diligence, yet, but I'm interested!

  4. Nice spread sheets.
    Very informative. Good job.

    Keep cranking,

    Robert the DividendDreamer

    1. Hi Robert -- thanks for your comment and good words.



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