Wednesday, February 24, 2016

Monthly Review, January 2016

January was a tough month for investors. The new year started with lots of volatility and a wave of selling, which pushed the market to its worst weekly performance since 2011. Both the S&P 500 and the Dow Jones are down by more than 5% for the month. For dividend growth investors, the declining market should offer some great buying opportunities.

In the next few months, I'll continue to transfer holdings from my Scottrade account to DivGro. In the process, I'm adding some solid dividend paying stocks and increasing DivGro's projected annual dividend income. I'm also planning to transfer stocks from a couple of IRA accounts in a similar fashion. As with my Scottrade transfers, I'm not actually moving the holdings from one account to the other. (I'm not allowed to do that with IRA holdings anyway!). Instead, I'll just be managing these accounts using my DivGro investment strategies.

In this post, I'd like to review DivGro's performance in the month of January 2016. As always, I'm updating DivGro's Performance page at the same time.

January Highlights

After December's record-setting dividend income, this month I recorded 'only' $1,095. Of this amount, $552 comes from dividends transferred from my Scottrade account and $543 comes from dividends received in January.

Here is DivGro's projected monthly dividend income (red line) plotted against monthly dividends:

Comparing dividend income by month is another way to see progress. It is great to see how dividend income is growing year to year.

This month, I transferred 4 more stocks from my Scottrade account to DivGro. These are Reynolds American, Inc (NYSE:RAI), Dr Pepper Snapple Group, Inc (NYSE:DPS), Ford Motor Company (NYSE:F), and The Walt Disney Company (NYSE:DIS). Additionally, I purchased more shares of Ford on 2 separate occasions.

  • Purchases
  • Transfers
  • Sales
    • None
  • Dividends
    • 2016-01-04: Cash Dividend Received WMT: $16.66
    • 2016-01-04: Cash Dividend Received PNNT: $147.00
    • 2016-01-04: Cash Dividend Received RAI: $30.60
    • 2016-01-05: Cash Dividend Received KMB: $24.64
    • 2016-01-06: Cash Dividend Received DPS: $33.60
    • 2016-01-08: Cash Dividend Received PM: $66.30
    • 2016-01-11: Cash Dividend Received DIS: $9.46
    • 2016-01-11: Cash Dividend Received DIS: $19.17
    • 2016-01-11: Cash Dividend Received MO: $42.38
    • 2016-01-14: Cash Dividend Received VNR: $0.03
    • 2016-01-15: Cash Dividend Received WPC: $18.36
    • 2016-01-15: Cash Dividend Received STAG: $16.10
    • 2016-01-15: Cash Dividend Received O: $19.10
    • 2016-01-15: Cash Dividend Received STWD: $52.80
    • 2016-01-15: Cash Dividend Received DLR: $40.80
    • 2016-01-21: Cash Dividend Received CB: $16.08
    • 2016-01-27: Cash Dividend Received GPS: $95.67
  • Past Dividends
    • 2016-01-02: Transfer Past Dividends RAI: $258.64
    • 2016-01-03: Transfer Past Dividends DPS: $101.46
    • 2016-01-04: Transfer Past Dividends F: $102.00
    • 2016-01-05: Transfer Past Dividends DIS: $90.50
  • Deposits
    • 2016-01-06: January Cash Deposit: $1,000.00
    • 2016-01-27: February Cash Deposit: $2,000.00
  • Past Deposits
    • 2016-01-02: Transfer Past Cash Deposit: $2,452.10
    • 2016-01-03: Transfer Past Cash Deposit: $4,790.80
    • 2016-01-04: Transfer Past Cash Deposit: $2,573.47
    • 2016-01-05: Transfer Past Cash Deposit: $7,267.45

Changes in Projected Annual Dividend Income (PADI):
  • From Purchases
    • The purchase of 280 F shares added $168.00.
    • The purchase of 150 F shares added $90.00.
  • From Sales
    • None
  • From Transfers
    • The transfer of 85 RAI shares added $122.40.
    • The transfer of 70 DPS shares added $134.40.
    • The transfer of 170 F shares added $102.00.
    • The transfer of 73 DIS shares added $103.66.
  • From Increases
    • O's dividend increase added $9.00.
    • T's dividend increase added $6.00.
    • OHI's dividend increase added $5.60.
    • INTC's dividend increase added $9.60.
    • D's dividend increase added $5.46.
    • HCP's dividend increase added $3.00.
  • PADI increased by $759.12 to $7,535.09.

Dividend Summary:
  • Dividend income last month: $1,584.98
  • Dividend income this month: $1,095.27
  • Total dividend income year-to-date: $1,095.27
  • Total dividend income all-time: $14,296.84

Dec 31, 2015
DOW: 17,425.03S&P 500: 2,096.9310-YR BOND: 2.21%
Jan 31, 2016
DOW: 16,466.30S&P 500: 1,940.2410-YR BOND: 1.93%

In January, the Dow dropped 5.50% and the S&P 500 dropped 5.07%.

Portfolio: click on the triangle to see a snapshot of DivGro's state on 31 January 2016.

Goals Report:
I've set some challenging goals for 2016:
  1. PADI: Increase projected annual dividend income to $12,000.
  2. Dividends: Earn $10,800 in dividend income.
  3. Posts: Post 120 articles on my DivGro blog.
  4. Seeking: Write 52 premium articles for Seeking Alpha.
  5. DivNet: Write 8 articles for The DivNet.
With 31 of 366 days behind us, 8.47% of the year is over. I'm behind on all my goals except Posts.

January Posts

I wrote a total of 12 articles in January. In case you missed any of those articles, here they are:

Looking Ahead: January was a tough month for investors. The markets were very volatile and it looks like we could be entering a bear market. For dividend growth investors, bear markets provide opportunities to add shares of exceptional dividend growth stocks at or below fair value. In February and March, I'll continue to transfer stocks from my Scottrade account to DivGro. When those transfers are completed, I'll start transferring stocks I hold in a couple of IRA accounts to DivGro.

Thanks for reading and take care, everybody!


  1. Hey Ferdi,

    Impressive overview!
    You've made some interesting gauges from your goals.

    Most important though, is the dividend income, which is rocking in your case!
    Thanks for sharing.

    Best wishes, DfS

    1. Hi there, DfS -- thanks for visiting and commenting. I've been a little slow in doing my monthly report, as I'm quite busy at work. But I'm excited about my portfolio and how it is positioned. The next few years will be interesting!

      I like the new gauges and they're quite easy to create. Nice visual presentation of progress.

      Take care!

  2. Divgro,

    You've got a great looking portfolio with some solid companies. I also share WMT with you (long) and I'm loving how it has leveled off and has even seen some growth as of late. I think it's finally hitting some of the nay sayers that WMT is here to stay. On another note, I'll have to look into some of your other investments and see if others that you hold would be the right fit for my own portfolio. Thanks for sharing.

    -Dividend Monster

    1. Thanks for reading and commenting, Dividend Monster. Indeed, it seems to me that WMT is turning around now. The dividend increase was small (again), but I feel the company is in a consolidation stage and should start growing again once their move to e-commerce starts to pay off.

      Take care and best of luck with your investments!

    2. BTW -- I visited your new blog and it looks great! Congratulations and keep up the good work. I added you to my blogroll.

  3. New here. I'm amazed you went from barely a hundred a month to over a thousand in less than 5 years... that's awesome/crazy!

    Anyway, there's a lot of great info here and will definitely be coming back.

    1. Hi André -- welcome to DivGro. I jumped over to your blog and noticed you added me to your blogroll. Thanks for that! I've added your blog to my blogroll, too.

      It has been quite a journey over the last few years and I'm enjoying the ride. I'm looking forward to seeing where this leads to...

      Please visit again soon.



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