Dividend Growth Investing

DGI #1: My Dividend Growth Investment Portfolio

I’m glad to see there is interest in this initiative which frankly I hope I get better at sharing, discussing and researching as time goes on. 

One Year Growth

You will notice that in the last 1 year this portfolio only grew ~8% which is in-line with the S&P500 Index fund (INDEXSP: .INX) ~9%. While the growth isn’t extra-ordinary, it is very much above average. However the important thing to note is that it earned a 3.66% of the portfolio value in dividends.

Purpose of Portfolio

The purpose of this portfolio is not to beat the S&P500 but to indicate my risk profile and my comfort level. Take this shitty drawing of %movement in the market. If the S&P500 goes up 20% and I make only 15% – I am happy with that yield because in the downside, when the index fund loses 20% of its value, I lose only 15%.

If and when the market falls, this portfolio does not lose as much value collectively as the index does and while the market gains, it doesn’t gain value as fast. It is more conservative because I am investing for the long run – to keep earning those dividends. When the market gets hit, I get hit less negatively is what this shows – and I keep earning my dividends (hopefully).

Example Investment

Had I invested $10,000 a year ago, I’d have a portfolio value of ~$10,800 which earned dividends totaling ~$366 – which isn’t a lot but when re-invested will compound over time.

This first newsletter was more so to give you an idea of my portfolio and in the future I will try to attach articles I find useful as well as discuss one branch of my DGI Passive Income portfolio which is on M1 Finance. I have only recently started my portfolio on M1 as I have been investing using Robinhood since May’2019 and Wealthfront since June’2019 (the latter two will NOT be in the scope of discussion but may be referenced from time to time).

Contributions to the Portfolio

I will be contributing to the fund every week and modify the ratios of investments based on economic factors and market volatility. I hope this turns out to be fruitful for everyone in the long run (as right now it may not seem as exciting).

Get started Investing

If you’d like to get M1 FInance and start investing (even if it’s $100), consider doing so using the link below as you’ll get $10 for using the link and funding the account. 

If you’d like to try and experiment with my selection of stocks/indexes, you can click into any sector and choose “invest in this pie” or add it to your research tab to customize as per your desire.

Future Plans

In future posts I’m going to discuss ways I research and choose a stock, my parameters and the tools I use. Additionally, I’ll share more details into each sector I have created so be sure to keep following.

I’ll also share ways to use M1 Finance and make the most out of the platform.

Check out DGI #2 here.

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