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October 2017 Dividend Growth Portfolio Update

by My Journey to Millions

My dividend portfolio is a tiny part of my overall financial picture, but it is easily my favorite piece.  My hope is to one day turn off the dividend reinvestment portion and have built a stable, reliable income stream.  A pension of sorts, but better, since the underlying foundation is built on a solid companies.

My October Purchase Undervalued Dividend Growth Purchase

After creating my October screen I was left with the following companies:

  • AFL
  • CTBI
  • CSVI
  • FMCB
  • THFF
  • IBM
  • SBSI
  • TGT
  • UTX
  • GWW
  • WMT

My portfolio as shown below is very heavily weighted with insurance and finance companies, so when I saw IBM, UTX, TGT, GWW and WMT pop up on the list I was pretty excited, and I cut out the other ones.  So instead of looking at pure valuations I started to think about what I didn’t want to own first:

  • IBM – I can’t shake the article after article about how IBM hasn’t grown its earnings per share in years!  Notwithstanding, that may be the perfect time to buy if you believe in the long term viability of the company.  Either way, I own a few shares through my investment club, so not really feeling the urge to start a new position here.
  • WMT – It’s P/E is a tad under 20  which is why it ended up here, but when you look at the chart it has gone up 8% in the last 5 days (Oct 6 – Oct 11), and that scares me.  Stocks like WMT don’t usually hockey stick up like that without coming back down.  I am hoping to see WMT in the months to come (this bullet point was written on the day I purchased my position – should note that I was completely wrong in the short term as it has continued it’s upward momentum).
  • GWW – At first I was excited to see this dividend champion.  In all the years I have been doing a screen this is a new name to make it through.  I was even more excited when I took a look at the chart as there has been a deep pull back.  Notwithstanding, a few more clicks on the google search led me to a few articles which says GWW’s newest competitor is Amazon.  I don’t think Amazon, can be ‘amazon’ in every single industry, but I am not looking to take that ride right now.

This left me with TGT and UTX. I own both already, but decided to go with 5 shares of UTX for $600.00 at 118.60 on 10/16/2017.

My Dividend Growth Portfolio Income – October 2017

The income from this account is made up of two parts that should be tracked.  The first is naturally the dividends earned from this account.  While I have years of records buried through this blog, I am going to take this opportunity to start from scratch.

The second source of income that should be monitored is the cleared income from selling (and the subsequent buying) of naked puts.  As time goes on I’ll start to graph the income, but with only two months under my belt, it seems silly to create a graph with nothing to compare.

Lastly, I think it is important to reduce the total of those two numbers with the margin interest I paid.  Hopefully, that number will be reduced over time to a nominal amount, but at the current time I am holding some stocks that were put to me driving that number up.

Dividend Income Cleared Income Margin Interest Paid Net Income
September 228.58 99.99 139.38 189.19
October 25.45 291.79 147.15 147.15

My current record keeping is too new to know whether October is simply a down month with regard to dividend income.  Notwithstanding, I absolutely love the cleared put income!  My short term goal is to get that up to a few hundred every month.  My hope is that the margin debt continues to decrease monthly as I clear out of legacy put positions I have been assigned.

How was your month?

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