A Slacker's Quest For His First Million: Dividend Portfolio Update

Here is this month's update of the Buy and Hold Forever Dividend Portfolio. This and all future updates will be posted here. The spreadsheet tracking the portfolio is available on the original post and here.

In accordance with the results of a poll, where I asked whether Coors (TAP) should replace BUD in the portfolio, TAP has been added at Friday 12/12/08's closing price. The $350 that was originally used to buy BUD was used to buy TAP. The rest of the BUD sale proceeds ($41.47) will count as a dividend.

Here are the other dividends received since the last update:

BNI 10-Dec-08 $ 0.40 Dividend * 3.93 = 1.572

FRO 5-Dec-08 $ 0.50 Dividend * 11.006 = 5.503

JNJ 21-Nov-08 $ 0.46 Dividend * 5.706 = 2.62

KO 26-Nov-08 $ 0.38 Dividend * 7.944 = 3.0187

MCD 26-Nov-08 $ 0.50 Dividend * 6.042 = 3.021

PEP 3-Dec-08 $ 0.425 Dividend * 6.139 = 2.609

UNP 26-Nov-08 $ 0.27 Dividend * 5.242 = 1.415

WMT 11-Dec-08 $ 0.238 Dividend * 6.271 = 1.49

Update 1/6/09:

CPB 18-Dec-08 $ 0.25 Dividend * 9.223 = 2.30575 -1.194

DOW 29-Dec-08 $ 0.42 Dividend * 13.118 5.50956 2.0956

GE 24-Dec-08 $ 0.31 Dividend * 17.94 5.56 2.0614

KFT 23-Dec-08 $ 0.29 Dividend * 11.995 3.47855 -0.021

MO 22-Dec-08 $ 0.32 Dividend * 18.239 5.836 2.336

PM 23-Dec-08 $ 0.54 Dividend * 8.052 = 4.348 0.848

USB 29-Dec-08 $ 0.425 Dividend * 11.741 = 4.9899 1.4899

VNQ 24-Dec-08 $ 0.935 Dividend * 8.432 = 7.88 4.38

Update 2/9/09:

AXP 7-Jan-09 $ 0.18 Dividend * 12.727 = 2.29086 - 1.20914

BA 4-Feb-09 $ 0.42 Dividend * 6.677 = 2.80434 1.97434

CHD 5-Feb-09 $ 0.09 Dividend * 5.923 = 0.53307 -2.43693

INTC 4-Feb-09 $ 0.14 Dividend * 21.834 = 3.05676 2.61676

PFE 4-Feb-09 $ 0.32 Dividend * 19.763 = 6.32416

OKS 28-Jan-09 $ 1.08 Dividend * 6.356 = 6.86448 3.36448

PG 21-Jan-09 $ 0.40 Dividend * 5.423 = 2.1692 -1.3308

SI 23-Jan-09 $ 2.023 Dividend * 5.819 = 11.771837 8.271837

T 7-Jan-09 $ 0.41 Dividend * 13.074 = 5.36034 1.86034

VZ 7-Jan-09 $ 0.46 Dividend * 11.796 = 5.42616 1.92616

WFC 4-Feb-09 $ 0.34 Dividend * 10.279 = 3.49486 3.48486

XOM 6-Feb-09 $ 0.40 Dividend * 4.722 = 1.8888 0.2788

YUM 14-Jan-09 $ 0.19 Dividend * 12.065 = 2.29235 -1.20765

Disclosure: At the time of writing, I owned JNJ and have a limit order for FRO.

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Trade Notes

All previous trades posted here.

3/19/2009 .SZCDB SOLD TO CLOSE 4 CONTRACTS OF OPTION .SZCDB AT $3.50

3/19/2009 .SZCDB SOLD TO CLOSE 1 CONTRACTS OF OPTION .SZCDB AT $3.50

3/18/2009 .SZCPV SOLD TO CLOSE 10 CONTRACTS OF OPTION .SZCPV AT $1.60

3/18/2009 .SZCPV BOUGHT TO OPEN 10 CONTRACTS OF OPTION .SZCPV AT $1.50

3/17/09 Sold TBT @ $47.49. The Fed meets tomorrow and word is they might say they'll buy (or maybe already bought) Treasuries. If that happens, TBT is going down in the short term. In the long term, I'll be looking to buy more if that happens. If not, while I'm loathe to chase things as they go up in price, I might end up buying TBT back for higher than I'm selling it. We'll see.

3/17/2009 .SZCPT SOLD TO CLOSE 10 CONTRACTS OF OPTION .SZCPT AT $1.70

3/17/2009 .SZCPT BOUGHT TO OPEN 10 CONTRACTS OF OPTION .SZCPT AT $1.60

3/10/2009 .SWVPQ SOLD TO CLOSE 5 CONTRACTS OF OPTION .SWVPQ AT $2.90

3/10/2009 .SWVPQ BOUGHT TO OPEN 5 CONTRACTS OF OPTION .SWVPQ AT $2.80

3/5/2009 .SZCLC BOUGHT TO CLOSE 5 CONTRACTS OF OPTION .SZCLC AT $3.80

3/2/2009 .SZCLC SOLD TO OPEN 5 CONTRACTS OF OPTION .SZCLC AT $5.15

3/2/2009 .SZCFI BOUGHT TO CLOSE 5 CONTRACTS OF OPTION .SZCFI AT $1.25

3/2/2009 .SZCPS SOLD TO CLOSE 5 CONTRACTS OF OPTION .SZCPS AT $4.65

2/25/2009 .SZCPS BOUGHT TO OPEN 5 CONTRACTS OF OPTION .SZCPS AT $2.30

2/24/2009 .SZCCD SOLD TO CLOSE 10 CONTRACTS OF OPTION .SZCCD AT $1.03

2/23/2009 .SZCCD BOUGHT TO OPEN 5 CONTRACTS OF OPTION .SZCCD AT $1.10

2/20/2009 .SZCFI SOLD TO OPEN 5 CONTRACTS OF OPTION .SZCFI AT $2.50

2/20/2009 .SZCOW SOLD TO CLOSE 5 CONTRACTS OF OPTION .SZCOW AT $3.35

2/19/2009 .SZCCD BOUGHT TO OPEN 5 CONTRACTS OF OPTION .SZCCD AT $1.45

2/19/2009 .SZCCD SOLD TO CLOSE 10 CONTRACTS OF OPTION .SZCCD AT $2.59

2/18/2009 .SZCCD SOLD TO CLOSE 5 CONTRACTS OF OPTION .SZCCD AT $2.45

2/18/2009 .SZCCD BOUGHT TO OPEN 5 CONTRACTS OF OPTION .SZCCD AT $2.20

2/18/2009 .SZCOW BOUGHT TO OPEN 5 CONTRACTS OF OPTION .SZCOW AT $2.79

2/18/2009 .SZCCD BOUGHT TO OPEN 1 CONTRACTS OF OPTION .SZCCD AT $2.45

2/18/2009 .SZCCD BOUGHT TO OPEN 4 CONTRACTS OF OPTION .SZCCD AT $2.45

2/18/2009 .SZCCD BOUGHT TO OPEN 3 CONTRACTS OF OPTION .SZCCD AT $2.18

2/18/2009 .SZCCD BOUGHT TO OPEN 2 CONTRACTS OF OPTION .SZCCD AT $2.18

2/17/2009 .SZCPB SOLD TO CLOSE 6 CONTRACTS OF OPTION .SZCPB AT $5.90

02/10/09 Bought TBT @ $46.34.

5 comments

Dividends Anonymous // December 14, 2008 5:51 PM

Thanks for the update on the portfolio. Progress has been slow in my own holdings, but I got a dividend raise this week with CDN Utility Fortis (FTS). 4% but its better than nothing!
Bill M // December 15, 2008 12:20 PM

What is the average dividend yield your portfolio is returning to you every month?
d // December 15, 2008 4:29 PM

Dividends Anonymous, a dividend raise in the current environment isn't better than nothing, it's pretty good!

Bill,

Counting only the holdings that pay a stable dividend (that is, excluding DEO, ENB, FRO, LFC, OKS, SI, SNY, whose payouts are different every time because they depend on earnings or cashflow, and VNQ, which is an ETF) the portfolio's indicated annualized yield is 3.69% or 0.3075% per month. This should increase over time.
shahedWHAT // February 12, 2009 9:01 AM

Hi,

I was wondering why you don't just set-up a DRIP in your portfolio? It would make sense in the type of portfolio you have...

Thanks,

S
d // February 12, 2009 4:36 PM

Thanks for your comment, shahedWHAT. You're right about the DRIP (I assume you mean having the dividends be reinvested in the stocks automatically as they come in), and I would do it with my own money.

I'm not doing it here for two reasons:

1. With so many stocks it's a real pain to do the dividend reinvestment in the spreadsheet. I've been doing it with my sample ETF portfolio (though I've been busy and haven't updated it in a while). Also, as I wanted to concentrate on dividend return, I thought it would be hard to track that if dividends were reinvested all the time. So, basically, I'm lazy.

2. With a DRIP, dividends are reinvested into the company that paid the dividend. But what if the company is overvalued at the time? If I can take all the dividends and invest the sum into the company that is least overvalued/most undervalued, that might be better.