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Saturday, January 3, 2015

Monthly Review, December 2014

As we enter this new year, I'd like to review DivGro's performance in 2014. Before posting my quarterly and annual reviews, let me first take care of December's monthly review. As always, I'm updating my blog's Performance page so readers can review DivGro's status and performance relative to the markets and to prior months.

On the last day of 2014, DivGro's market value was $118,213, down slightly from November's month-end market value. The portfolio is delivering an average yield on cost (YoC) of 4.6%. Projected monthly income is $407, up from $398 at the end of November.

As far as dividend income goes, December was not quite the record month I had expected. The month's total of $480 is the second highest monthly income, after September's $498. Seadrill's (NYSE:SDRLdividend suspension is still impacting DivGro's statistics and charts (including the fourth quarter performance, which I'll report on soon).

AT&T (NYSE:Tannounced a small dividend increase of 2.17%, the only dividend hike for DivGro this month. Due to a currency exchange loss, the last dividend paid by Nippon Telegraph and Telephone Corp (NYSE:NTT) was smaller than expected. The overall impact on DivGro's projected annual dividend income of these dividend changes is small, an increase of only $1.31 ($3.00 - $1.69).

This month, I added 25 shares to my Chevron (NYSE:CVX) holding after the stock price dropped rather precipitously along with the crude oil price. My timing seemed to have been great, as the stock price has recovered nicely since the purchase. Initial YoC is 4.16% and, in the process, I managed to reduce the average cost basis on my CVX shares to $106.33.

Currently, DivGro's projected annual dividend income is $4,886, which means I can expect monthly dividend income averaging about $407 going forward.

  • Purchases
  • Dividends
    • 2014-12-01: Cash Dividend Receipt AFL: $19.50
    • 2014-12-01: Cash Dividend Receipt COP: $27.74
    • 2014-12-01: Cash Dividend Receipt HP: $19.94
    • 2014-12-01: Cash Dividend Receipt INTC: $27.00
    • 2014-12-01: Cash Dividend Receipt PRE: $18.09
    • 2014-12-01: Cash Dividend Receipt TGH: $35.25
    • 2014-12-09: Cash Dividend Receipt JNJ: $21.00
    • 2014-12-10: Cash Dividend Receipt TGT: $20.80
    • 2014-12-10: Cash Dividend Receipt CVX: $26.75
    • 2014-12-10: Cash Dividend Receipt XOM: $20.70
    • 2014-12-10: Cash Dividend Receipt IBM: $15.40
    • 2014-12-11: Cash Dividend Receipt MSFT: $24.80
    • 2014-12-12: Cash Dividend Receipt WBA: $14.85
    • 2014-12-15: Cash Dividend Receipt VNR: $37.80
    • 2014-12-15: Cash Dividend Receipt NTT: $40.35
    • 2014-12-15: Cash Dividend Receipt MCD: $22.95
    • 2014-12-15: Cash Dividend Receipt MDP: $23.79
    • 2014-12-15: Cash Dividend Receipt AVA: $23.81
    • 2014-12-31: Cash Dividend Receipt NU: $23.55
    • 2014-12-31: Cash Dividend Receipt TRV: $15.95
  • Deposits
    • 2014-12-30: JANUARY Cash Deposit: $2,500.00

Changes in Projected Annual Dividend Income:
  • The purchase of 25 CVX shares added $107.00.
  • T's dividend increase added $3.00.
  • NTT's dividend decrease removed $-1.69.
  • Projected annual dividend income (31 December 2014): $4,885.70.

Dividend Summary:
  • Dividend income last month: $301.60
  • Dividend income this month: $480.02
  • Total dividend income year-to-date: $3,945.10

Nov 30, 2014
DOW: 17,828.24S&P 500: 2,067.56 10-YR BOND: 2.19%
Dec 31, 2014
DOW: 17,823.07S&P 500: 2,058.90 10-YR BOND: 2.17%

In December, the Dow dropped -0.03% and the S&P 500 dropped -0.42%. In comparison, DivGro dropped -2.47%.

Portfolio: The following spreadsheet shows the state of DivGro on 31 December 2014:

Looking Ahead: Soon, I'll post my Q4 and second annual review posts. In the new year, I have very challenging goals to take care of, including earning $6,000 in dividend income and boosting projected annual dividend income to $7,500. I'll continue to deposit $2,500 of fresh capital every month and also look for opportunities to make a few bonus deposits. Along with my growing dividend income of about $400 per month as well as blog income, I hope to deploy about $45,000 in new capital this year.


  1. Looking great, FerdiS. Congrats on the dividend income -- so close to $4K...and looks like you are well on your way to achieve close to $5K in dividends over 2015. Inspirational, as always. Keep up the good work


    1. Thanks R2R -- I'm aiming for a bit more than $5,000 in dividends for 2015. We'll see where I end up -- it will be tough to get to my goal of $6,000, but I'm going to give it my best. Good luck to you, too, for 2015.

  2. A nice way to close out 2014 I'd say. Certainly the knock on the chin from SDRL hurts moving forward, but it isn't real life if you aren't learning lessons along the way!

    Pretty awesome to be planning for $45,000 of new capital in the upcoming year. I'm a bit behind you but am hoping to plow $30k or so into my publicly tracked investments (P2P Lending and DG Portfolio). Life always has a way of throwing some changes and curves into the mix, so we will see how thing end up working out. Here's to the both of us having a successful 2015!

    1. Thanks, writing2reality!

      Yes, SDRL hurts, but I've learned and thats valuable, too. Planning and reality could be very different, but I'm going to give it my best shot. $30k sounds like a great goal, too. Best of luck to you for 2015!


  3. Divgro,

    Have you said that you should be able to deploy 45k in fresh capital in 2015! Wow! I'll do my best to deploy at least 25k but since I'm also very agressive at paying down my mortgage and car debt I think it will be hard to do much more than that. I should be done with my car debt in 2 years so I guess that in 2017 I should be able to add 4k to my investments per year and in 2020 a lot more since I should also be mortgage free.

    Still 25k should add another 1000$ to my dividend income. Not bad! The dividend growth investing strategy is great but it takes a lot of time for the snowball to grow bigger...

    Wish you the best for 2015!

    1. Yes, I'm hoping to deploy $45k in fresh capital in 2015. That's not saying I'll be able to do that. Life happens, you know. But I'm going to give it my best go...

      Deploying $25k while also aggressively paying down debt would be a great accomplishment! And if you be debt free by 2020, that would be remarkable! Hang in there with the dividend growth investing strategy -- you'll quickly see that the growth component starts to dominate. The provision is that you reinvest all dividend income, so you start getting dividends on reinvested dividends...

      There's now way we'll be debt free in 2020, as we signed up for another mortgage in 2014. (Our first mortgage is being paid off by renters). I believe mortgage debt differs from consumer debt, as inflation causes the value of property to rise over time. So I'm fine with paying 4.3% interest on a mortgage loan to live in a nice house, the value of which should increase over time.

      Best of luck to you in 2015, too!

  4. Hi Divgro!. I'm also quite confident in Chevron. The low prices in oil will mean less competitors in the in the long term. I wonder if this is only the reason we are seeing this decline in prices...

    I've also just reported my december dividend income. It's the nicest month of the year for my portfolio. I'm also reporting my last buy.



    1. I agree -- I think Chevron is one of the stronger companies in the oil sector. They've gone through many of these challenges and have come through fine. December should be my strongest month, too, except that SDRL threw me a curve ball this year! Oh well, something to look forward to next December.

      My Spanish is very poor, so I used Google Translate to read your last post. I love this translation of your first sentence: "Time to review the dividends of December of the year that we just escaped. "



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