11/17/19

$50 Per Paycheck Dividend Portfolio Update 11/17/19


Despite my traveling, having limited internet access, and forgetting all about it, on 11/7/19 $50 was sent to M1 Finance for the dividend portfolio. I'll repeat myself: automate everything you can. It makes life so much easier.

So far $700 has been sent to M1 since late June 2019. The account's value as of market close on 11/15/19 is $730.52, which includes $3.57 in cash. Investing the same $700 into Vanguard's VOO ETF would be worth $739.79. The dividend portfolio is once again lagging its Standard and Poor's 500 benchmark.





Lots of dividends were received since the last update. See the screenshot below for details.






Below I am including screenshots of the portfolio's 100 holdings, organized by sector. As a reminder, most of the holdings were selected by their membership in iShares' DGRO ETF (dividend growth stocks), filtered by having a dividend yield 2.5% or higher at the time of selection.

At the time of portfolio construction, M1 limited accounts to 100 individual holdings. You can get around this by setting up more than one account, but I didn't do this because it would add too much complexity to this project. If and when M1 allows for more than 100 holdings per account, I will likely add additional stocks to it.

For added diversification, I also added a few international dividend paying companies. The selections were not purely random. Rather, I selected them based on having heard of them. I don't believe in stock research because even if you have all the information available, the future is not predictable. All research does is waste one's time. (But what about Warren Buffett? I shall write a post on that at some point in the near future.)













Date
Additional Investment
Running Total Investment
Dividend Portfolio Account Value
Additional Benchmark VOO Shares
Running Total Benchmark VOO Shares
VOO Closing Share Price
Benchmark VOO Value
Dividend Portfolio VS Benchmark
Comment
6/24/19
$200.00
$200.00
$200.00
0.737844
0.737844
$271.06
$200.00
0.000%

7/2/19
$0.00
$200.00
$200.00
0.003756
0.741600
$272.23
$201.89
-0.934%
$1.0226 dividend received and reinvested into VOO
7/3/19
$50.00
$250.00
$252.22
0.182269
0.923869
$274.32
$253.44
-0.480%

7/18/19
$50.00
$300.00
$299.10
0.182202
1.106071
$274.42
$303.53
-1.459%

8/2/19
$50.00
$350.00
$343.48
0.186005
1.292076
$268.81
$347.32
-1.106%

8/16/19
$50.00
$400.00
$385.57
0.188523
1.480599
$265.22
$392.68
-1.812%

8/30/19
$0.00
$400.00
$389.89
0.000000
1.480599
$268.60
$397.69
-1.961%
Forgot to transfer $50
9/3/19
$50.00
$450.00
$439.89
0.187189
1.667788
$267.11
$445.48
-1.255%

9/12/19
$50.00
$500.00
$514.39
0.180734
1.848522
$276.65
$511.39
0.586%

9/27/19
$50.00
$550.00
$563.02
0.180989
2.029511
$276.26
$560.67
0.419%

10/1/19
$0.00
$550.00
$548.87
0.009807
2.039318
$269.32
$549.23
-0.065%
$2.6412 dividend received and reinvested into VOO
10/10/19
$50.00
$600.00
$610.45
0.185653
2.224970
$272.13
$605.48
0.821%

10/25/19
$50.00
$650.00
$677.15
0.181232
2.406202
$277.04
$666.61
1.580%

11/17/19
$50.00
$700.00
$730.52
0.176610
2.582812
$286.43
$739.79
-1.254%


10/26/19

$50 Per Paycheck Dividend Portfolio Update 10/24/19


Fifty more dollars were sent to M1 Finance on 10/24/19 for the dividend portfolio. So far, $650 has been sent over and as of market close on 10/25/19, the account is worth $677.15. The account total includes $3.52 in invested cash that hasn't been invested.

The same $650 invested in VOO, the Vanguard ETF that tracks the S&P 500, would be worth $666.61.





The dividends received after the last update include payments from Cisco Systems, Total (with tax paid to France), Axis Capital Holdings, Realty Income Corporation, Occidental Petroleum, National Fuel Gas Company, Leggett & Platt, BCE Inc (with tax paid to Canada), and Schluberger.



Taxes on dividends have never made sense to me because dividends come from already taxed money, but that's the nature of the investing game. Again, a reminder for American investors: if you invest in foreign stocks for the dividends instead of the potential capital gains, consider buying them in a taxable account so that you can deduct or get a credit for the foreign taxes you pay. Holding the foreign stocks in your IRA won't stop the foreign countries from taxing you, and you won't be able to get some money back when you file your American taxes.

My next portfolio update would normally be posted on 11/9/19, but I'll be out of the country so I might not have time to do so. However, $50 more will go to M1 because it's automatic. Automate everything you can to make your life easier and yourself more productive. We live in a great time for this sort of thing. In the past, you'd have to pay someone to do the necessary things for you that weren't worth your time. Now it's just a few clicks in a browser or an app and you're set.

Date
Additional Investment
Running Total Investment
Dividend Portfolio Account Value
Additional Benchmark VOO Shares
Running Total Benchmark VOO Shares
VOO Closing Share Price
Benchmark VOO Value
Dividend Portfolio VS Benchmark
Comment
6/24/19
$200.00
$200.00
$200.00
0.737844
0.737844
$271.06
$200.00
0.000%

7/2/19
$0.00
$200.00
$200.00
0.003756
0.741600
$272.23
$201.89
-0.934%
$1.0226 dividend received and reinvested into VOO
7/3/19
$50.00
$250.00
$252.22
0.182269
0.923869
$274.32
$253.44
-0.480%

7/18/19
$50.00
$300.00
$299.10
0.182202
1.106071
$274.42
$303.53
-1.459%

8/2/19
$50.00
$350.00
$343.48
0.186005
1.292076
$268.81
$347.32
-1.106%

8/16/19
$50.00
$400.00
$385.57
0.188523
1.480599
$265.22
$392.68
-1.812%

8/30/19
$0.00
$400.00
$389.89
0.000000
1.480599
$268.60
$397.69
-1.961%
Forgot to transfer $50
9/3/19
$50.00
$450.00
$439.89
0.187189
1.667788
$267.11
$445.48
-1.255%

9/12/19
$50.00
$500.00
$514.39
0.180734
1.848522
$276.65
$511.39
0.586%

9/27/19
$50.00
$550.00
$563.02
0.180989
2.029511
$276.26
$560.67
0.419%

10/1/19
$0.00
$550.00
$548.87
0.009807
2.039318
$269.32
$549.23
-0.065%
$2.6412 dividend received and reinvested into VOO
10/10/19
$50.00
$600.00
$610.45
0.185653
2.224970
$272.13
$605.48
0.821%

10/25/19
$50.00
$650.00
$677.15
0.181232
2.406202
$277.04
$666.61
1.580%