![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9GNQjpltNSoc7USdvtVmxrmUqLNtiBwzcmKaNEEHpnGkVcGpCgaqHtnytD9Tr6QL4ia6VR99VHLrzSNs36bDLt3rPs9EfpgX8voYadAJSjQtVqZqohKO4KPXMbm05RiI04PWFMpbRzww/w200-h133/divgro-review-small.png)
Welcome to the December review of DivGro, my portfolio of dividend growth stocks. This is the 120th monthly review since founding DivGro in January 2013, completing ten years of dividend growth investing and blogging!
In monthly reviews, I summarize transactions, dividends received, and dividend changes and how those events impact DivGro's projected annual dividend income (PADI).
In December, I opened one new position and added shares to three existing positions. Additionally, I closed one position. I also replace two positions called away by options assignments. Twelve DivGro stocks announced dividend increases in December, while one announced a dividend cut, and another will pay smaller dividends in USD due to exchange-rate fluctuations. The net result of these changes is that PADI decreased by about 0.2% in December. Year over year, PADI increased by 16.7%.
As for dividend income, in December, I received dividends totaling $5,927 from 50 stocks in my portfolio, a year-over-year increase of 25%. In 2022, I collected $47,646 in dividends, or about 110% of my 2022 goal of $43,200.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiO2t1bgGjnGaiy8KXDfsUIDqmChspggfy8QXMQSNtDEvpYyN3EpKFuECcoD7XS4KPWuuNPeV9w_o9sN_fZLT2145npn3ExMDYEBZmNDketaEN6m6vL0ioyZfMe8DY8lbC5nvX_U1WsJOHGJNtkk70qwbZe6E2ZqX-ZVmmfGs-o7rmW15yLpSgkaI-0/s1166/dec22-compare.png)
DivGro's current PADI of $45,885 exceeds my 2022 goal of reaching $45,000 by 1.96%!
PADI of $45,885 means I can expect to collect $3,824 in dividend income per month, on average, in perpetuity, assuming the status quo is maintained. That's a tidy monthly income!
Of course, DivGro's PADI should increase over time because I invest in dividend growth stocks and reinvest all dividends received.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1EprRQ4jvqu5Ws_o1ObSShg_NQD2N75gMlWIG4LQegTqmJxxwbf3YSpUhnl7s9FfyZJYEDnxyzE59fKEGwvcb4f2v9CB8bqejYoVdtld6Pt2QX1kiIhDR9pA-LM8VME83yR-5B3H_QSixETRm14ybAhxrVAzi0T_h1VmDqDSo_JOnsy26qVTDR4bB/s1912/dec22-stacked.png)
Dividend Income
I received dividends from 50 different stocks for a monthly total of $5,927 in dividend income:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUdfeNrXwxjTsPeQSNgfaWz9ZGsSXJ-aEcfZmbAAvltSaI_OlPTgE_XICRBNKQ-I6mCbghLMjvUy2beiP4KNE7V672YAxIvEIrh5MQN2vZP4jtKAYhPljZAb3ghGVq3D4F9OZP8pX4Qm6zyX8LsTKQ4DAaSY7EmhSN6NM9HaLvde5ZDr--x2cqKqbI/s2422/dec22-bymonth.png)
December's total was just $96 shy of January 2022's dividend income record of $6,023!
Here is a list of the dividends I received in December:
- Archer-Daniels-Midland Company (ADM) — income of $80.00
- Aflac Incorporated (AFL) — income of $80.00
- Virtus Artificial Intelligence & Technology Opportunities Fund (AIO) — income of $180.00
- Amgen Inc (AMGN) — income of $223.10
- Atmos Energy Corporation (ATO) — income of $148.00
- Broadcom Inc (AVGO) — income of $138.00
- American States Water Company (AWR) — income of $79.50
- BlackRock, Inc (BLK) — income of $170.80
- Cummins Inc (CMI) — income of $157.00
- Canadian National Railway Company (CNI) — income of $67.49
- Cintas Corporation (CTAS) — income of $11.50
- Chevron Corporation (CVX) — income of $213.00
- Anthem, Inc (ELV) — income of $12.80
- Enbridge Inc (ENB) — income of $191.55
- Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (ETO) — income of $171.75
- Eaton Vance Tax-Advantaged Dividend Income Fund (EVT) — income of $186.00
- The Home Depot, Inc (HD) — income of $190.00
- Honeywell International Inc (HON) — income of $103.00
- International Business Machines Corporation (IBM) — income of $165.00
- Intercontinental Exchange, Inc (ICE) — income of $38.00
- Intel Corporation (INTC) — income of $102.20
- Johnson & Johnson (JNJ) — income of $85.88
- The Coca-Cola Company (KO) — income of $88.00
- Lockheed Martin Corporation (LMT) — income of $120.00
- Main Street Capital (MAIN) — income of $96.00
- McDonald's Corporation (MCD) — income of $76.00
- 3M Company (MMM) — income of $111.75
- Microsoft Corporation (MSFT) — income of $68.00
- BlackRock MuniHoldings California Quality Fund (MUC) — income of $66.00
- NextEra Energy, Inc (NEE) — income of $42.50
- AllianzGI Equity & Convertible Income Fund (NIE) — income of $1000.00
- NIKE, Inc (NKE) — income of $5.10
- Northrop Grumman Corporation (NOC) — income of $69.20
- Realty Income Corporation (O) — income of $49.60
- PACCAR Inc (PCAR) — income of $37.00
- Public Service Enterprise Group Incorporated (PEG) — income of $162.00
- Pfizer Inc (PFE) — income of $80.00
- Pinnacle West Capital Corporation (PNW) — income of $173.00
- Public Storage (PSA) — income of $90.00
- QUALCOMM Incorporated (QCOM) — income of $75.00
- Raytheon Technologies Corporation (RTX) — income of $55.00
- Snap-on Incorporated (SNA) — income of $97.20
- The TJX Companies, Inc (TJX) — income of $29.50
- T. Rowe Price Group, Inc (TROW) — income of $120.00
- The Travelers Companies, Inc (TRV) — income of $93.00
- UnitedHealth Group Incorporated (UNH) — income of $66.00
- Union Pacific Corporation (UNP) — income of $91.00
- United Parcel Service, Inc (UPS) — income of $76.00
- Visa Inc (V) — income of $45.00
- WEC Energy Group (WEC) — income of $50.93
Following is a chart showing DivGro's monthly dividends plotted against PMDI. It is clear that quarter-ending months are huge outliers:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjKN8F1BTULGiBrYymajPc6NcBCIVLm32h0GOtq6ALR89tS5JDMndwElDYJcfXix5Gbx8kJLywAehbmDL2cjHihV47m_17W55gqYKXoZjQ3F7dPizVP3tCx1ryEZ5yJnwSRhchzHQ0vsfdGvj0cC5CeQchLj_sp1yNLlQcnkSRWzyRwfQ8aj47J9FOa/s2491/dec22-pmdi.png)
This is one reason that I also create a rolling 12-month average of dividends received (the orange bars) plotted against a rolling 12-month average of PMDI (the blue, staggered line):
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixGX4pu2-ElK7EPwwJaw6K-cRZK2VKI7wCyFKuvCPLcwAUfFU50Z3uurrZLesiaIw0MyEQ_QCS2X_gai6rzYrzYV1cy6yYBp91mMQzOCYjjKO7ZUpx85uNL8IKDDgYQt_r2-lapbY_SbCkY4oxSTOQWfHSvM3z65zzijEuYfsSSgr8MVPvXPIFfpiq/s2486/dec22-rolling.png)
While it would be great if dividends were distributed more evenly, I don't want to change my investment decisions based on the timing or frequency of dividend payments.
The reason the orange bars are tracking above the blue, staggered line is special dividends. These are not included in PMDI but do contribute to DivGro's total dividend income received.
Dividend Changes
In December, the following stocks announced dividend increases or happened to pay higher dividends in USD due to exchange-rate fluctuations:
- Amgen Inc (AMGN) — increase of 9.79%
- Broadcom Inc (AVGO) — increase of 12.20%
- Bristol-Myers Squibb Company (BMY) — increase of 5.56%
- Canadian National Railway Company (CNI) — increase of 0.70%
- CVS Health Corporation (CVS) — increase of 10.00%
- Mastercard Incorporated (MA) — increase of 16.33%
- Realty Income Corporation (O) — increase of 0.20%
- PACCAR Inc (PCAR) — increase of 8.82%
- Pfizer Inc (PFE) — increase of 2.50%
- Stryker Corporation (SYK) — increase of 7.91%
- WEC Energy Group (WEC) — increase of 7.22%
- W. P. Carey Inc (WPC) — increase of 0.38%
Additionally, these positions will pay smaller dividends in the future:
- Enbridge Inc (ENB) — decrease of 2.25%
- BlackRock MuniHoldings California Quality Fund (MUC) — decrease of 12.5%
The net result of these changes is that DivGro's PADI will increase by $39.
I like seeing dividend increases above 7%, and six of the eleven increases top my expectations. The arithmetic average of this month's dividend increases is 8.1%, which luckily beats inflation.
MUC's distribution decrease is disappointing and follows a rather large decrease of 20% announced in October 2022. Nevertheless, I decided to hang onto my position, which is exempt from federal taxes and provides an additional state tax benefit because I reside in California.
Transactions
This section provides a summary of my transactions in December. As mentioned in the introduction, I opened one new position and added shares to three existing positions. Additionally, I closed one position and replaced two positions that were called away due to options assignments.
New Position
- Alliant Energy Corporation (LNT) — new position of 100 shares
- American States Water Company (AWR) — new position of 200 shares
- Illinois Tool Works Inc (ITW) — new position of 85 shares
- Intel Corporation (INTC) — added 10 shares and increased position to 500 shares
- WEC Energy Group (WEC) — added 115 shares and increased position to 200 shares
- Xcel Energy Inc (XEL) — added 35 shares and increased position to 200 shares
- International Business Machines Corporation (IBM) — sold 100 shares and closed position
Portfolio Diversification
Markets
It is
worth looking at the markets to understand the environment we're investing in:
DOW 30 |
S&P 500 |
NASDAQ Composite |
10-YR BOND |
CBOE VIX |
|
Nov 30, 2022 | 34,589.77 | 4,080.11 | 11,468.00 | 3.703 | 20.58 |
Dec 31, 2022 | 33,147.25 | 3,839.50 | 10,466.48 | 3.879 | 21.67 |
In December, the DOW 30 dropped 4.2%, the S&P 500 dropped 5.9%, and the
NASDAQ dropped 8.7%. The yield on the benchmark 10-year Treasury note rose to 3.879, while CBOE's measure of market volatility, the VIX, increased by
5.3% to 21.67.
DivGro outperformed the S&P 500 in December, despite a loss of 2.12%! The following chart shows how the stocks and funds in my portfolio performed over the past month:
Portfolio Statistics
Given DivGro's current market value and the total capital invested, the
portfolio has returned about 114% since inception. But calculating the IRR
(internal rate of return) gives a better measure of portfolio performance, as
IRR considers the timing and size of deposits since inception.
DivGro's IRR is 13.7%.
I track the yield on cost (YoC) for individual stocks, as well as an average YoC for my portfolio. DivGro's average YoC increased from 4.20% last month to 4.28% this month.
Another interesting statistic is percentage payback, which relates dividend income to the amount of capital invested. DivGro's average percentage payback is 31.1%, up from last month's 30.3%.
Finally, DivGro's projected annual yield is at 6.92%, down from last month's value of 6.94%. I calculate projected annual yield by dividing PADI ($45,885) by the total amount invested.
Here's a chart showing DivGro's market value breakdown. Dividends are plotted at the base of the chart so we can see them grow over time:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhcckaoHRjCxm4KYlP9IRMqZsNSg3qyYw68xL-t-OWnJbstWQa4fdpAiNtAJlDdVqRxwPDXXCADBJXl2ftBDzgwTObBvcjbbPNVSy0N-aPxpVvr7Eoqv438-M-vhnnsIDg2s-Mf1jPdKWx8g2aljoO4bUGQhwwEC0ARLJrYt0OB8FRQIvWFb7KKlntD/s2580/dec22-breakdown.png)
Looking Ahead
I'm planning a few changes for DivGro, which I'll discuss in an upcoming post.
Before doing so, though, I plan on writing my 40th Quarterly Review and 10th Annual Review articles!
Please see my Performance page for various visuals summarizing DivGro's performance.
You can now follow me on Twitter and Facebook.
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