In March, I earned $275 in dividend income, which is my highest amount of monthly dividends
thus far. Also, I bought over $7k in new stocks, while selling out of 3 more positions. Throughout
this video, I’ll be updating you on the progress of my long-term dividend stock portfolio
and explaining the logic behind all my transactions. (Intro Vid)
My name is Zach and you should leave a like and subscribe to the channel if you enjoy
the video. Before we start the analysis, I’d like to let you know that you can join a community
discord server and gain access to a spreadsheet showing my full portfolio if support me over
on Patreon. Link in the description. With that said, let’s dive into the numbers.
Since May 2020, I’ve gone from $32,929 to $50,957 dollars invested. My current dividend
yield on cost is 4.94% and my compounded yield, which takes in the effect of reinvested dividends,
is 5.11%. My portfolio yield peaked in November because I loaded up on high-yield energy stocks,
such as ExxonMobil at a great value. This has already proved to be a great investment
and my only regret is not going even heavier. I locked in a 9% starting yield and saw significant
capital gains. That investment is only just beginning to pay off. Since November, my overall
yield has been steadily decreasing as I kept investing in stocks with a lower starting
yield. You can see that my portfolio yield decreased by over .3% in the past month as
most of my newer purchases had lower yields. The differential between the dividend yield
and compounded dividend yield stayed at .17%. This stat acts as a measurement of the snowball
effect from dividend reinvestment. You’d think that since I just had my largest month
of dividends this stat would increase, but selling 3 older positions lowered this number.
In this chart, you can see how the value of my dividend portfolio has changed over time.
My current value is $65,519.48. This has risen with the market over the last few months and
it’s now a 28.58% return on dollars invested. While a lot of more high-valuation tech and
EV stocks have seen slight declines recently, many of the stocks I’m invested in have
been rising. However, value is volatile and the main goal of this portfolio is to build
a source of growing dividend income. In this next chart, you can see my earned
dividends to date. In March, I earned $275.04 in dividend income, which just barely beat
out December as my highest month yet. This was led by a hefty $124.12 dividend payout
from ExxonMobil. Based on that, this brings my 3-month rolling average of dividend income
to $191.50. I’ve been investing lots of money over the past 2 months so we’ll see
this number increase in the coming updates. April’s dividend total will be much greater
than January’s measly $93. Here you can see my cost allocation by sector.
Consumer Defensive is my largest at 25.2%, followed by Communication Services at 19%,
and Energy at 18.3%. The biggest change here is that Technology is now 9.42% of my total
cost. If you’ve been following my channel then you know this is something I’ve been
wanting to increase. Consumer Defensive has also continued to increase in my portfolio.
Now let’s see the transactions that caused these changes. I sold out of 3 positions,
totaling $2,255.74. This was $268 in profit, which is an 11.8% return on investment. This
a continuation of the selling I mentioned in my last monthly update. I was just waiting
till these stocks hit the long-term capital gains mark. I sold GPC, UGI, and SON. I explained
in the last update why I was selling off some of my positions and the same logic applies
here. Go and watch that section if want more explanation. This brings my dividend portfolio
to 25 total stocks. Alright now let’s get into all my recent
buys. Since the last update, I’ve invested a total of $7,335.90. I bought 15 shares of
Apple at an average cost of $120.71, giving it a 0.68% starting dividend yield. I wouldn’t
say it’s a great value at the moment, but it’s the best price seen since last September
through November. The forward PE is 27.82, which isn’t bad relative to the high valuations
in the tech industry. The company is growing steadily and has been expanding into the services
business, adding to their already dominant products. The current yield is low, but they
are due to announce a dividend increase soon. I’m looking at this as a very long-term
play. The company is a cash-generating machine, with growth potential for decades to come.
The payout ratio is low at 18% so it has a lot of room to increase the dividend. The
company arguably has the largest economic moat through its brand and product ecosystem,
which I went into detail on in my Apple stock review. I want this to be one of my top holdings
and will dollar cost average into this stock. If the price goes down and the company is
at a good value I will be investing heavily into Apple.
I bought 11 shares of Kimberly Clark at an average cost of $128.86, giving it a 3.54%
starting dividend yield. I’ve been investing heavily in this over the past 2 months and
it’s now one of my largest positions. This is partially why the consumer defensive sector
has risen so much in my portfolio. I made an incredibly in-depth stock review on the
company which is linked below. Check it out if you want to know my full reasoning on why
I’ve been investing in KMB. I bought 6 shares of Microsoft at an average
cost of $229.94, giving it a 0.97% starting dividend yield. Similar to Apple, this is
something I want to make into one of my core holdings. It’s consistently growing at a
high rate and will continue to for decades to come. The current forward PE ratio is 32,
which is not cheap, but compared to similar companies is actually pretty attractive. It
has a huge growth rate in Azure cloud computing.For comparison Amazon, which is the other major
player in cloud computing through Amazon web services, is trading at a forward PE of 65.
Microsoft’s not a high starting yield, but it’s a cash-generating machine with plenty
of room to grow the dividend over time. I’m planning to dollar cost average into Microsoft
and invest heavily if it becomes a good value. I recently did an in-depth stock review on
the company, which you should watch to learn more.
I bought 8 shares of Pepsico at an average cost of $131.22, giving it a 3.12% starting
dividend yield. I like this company and think you can’t go wrong with this as core food
& beverage stock. The company has a diverse set of strong brands and is heavy in the snack
food category as they own Frito-Lay. Historically, if you buy the stock above a 3% starting dividend
yield then that seems to be a good entry point. I reviewed this stock in one of my earlier
videos and you can check that out for more info.
I bought 15 shares of AT&T at an average cost of $28.14, giving it a 7.39% starting dividend
yield. My most recent video was an updated stock review on the company. It renewed my
confidence in their direction and I think HBO Max will prove to be a success over the
coming years. I should have gone heavier when it was at these prices. I’ll be looking
to buy more if it’s around my average cost. I bought 2 shares of McDonald’s at an average
cost of $204.15, giving it a 2.53% starting dividend yield. Not the greatest value, but
I’m looking to add to this position if the price goes down. Once again, I’ve made a
stock review video on this in the past. I bought 2 shares of Disney at an average cost
of $183.27. It currently has its dividend suspended, but this is temporary and I don’t
need the income anytime soon. I’m very bullish on the company long-term and think Disney+
will lead to massive growth. The iconic entertainment franchises they have create a wide economic
moat. This is another stock I’m dollar cost averaging into and will load up on if the
price drops significantly. I’ve made multiple videos on this stock you can check out.
I bought 4 shares of The Coca-Cola Company at an average cost of $49.27, giving it a
3.4% starting dividend yield. This is a long-term holding of mine and historically mid 3%’s
is a good starting yield. I’ve made multiple videos on this stock before. I bought 2 shares
of Consolidated Edison at an average cost of $66, giving it a 4.7% starting dividend
yield. This is my only utility play, it’s boring but consistent, and was trading at
one of its higher starting yields. I bought 2 shares of Walgreens at an average cost of
$46.45, giving it a 4.03% starting dividend yield. I’m pretty bullish on the company,
but the share price has been rising significantly. I’ll continue buying if the price dips.
Finally, I bought 2 shares of Kroger at an average cost of $34.58, giving it a 2.08%
starting dividend yield. I’ve been dying to buy this, but it keeps eluding me. The
price just keeps rising. This will likely be one of my next stock reviews. Let me know
in the comments which companies you’d be interested in hearing more about.
Thank you for watching Dividend Data. I’d greatly appreciate it if you leave a like
and subscribe to the channel. If you follow me on twitter, link in the description, you
can real-time updates of my buys and dividends coming in. Also, you can follow me on instagram
at dividenddata where I’ve been posting frequently. You can support the channel over
on patreon, where you can gain access to a community discord server. The link is in the
description. Please leave a comment below and thank you for watching!