Offline I keep close track of all of my investments, probably in more detail than one should, but for whatever reason I love mapping out and visualizing my progress in creating passive income streams. One benefit of this level of tracking is a clear snapshot of where I’m currently projected to be, which gives way to knowing exactly what I need to do to hit my goals for the year. So, much like I did last year, I’ll be maintaining a Dividend Calendar for 2015 that reflects all of my portfolio activity in one place. But before we look at that, let’s take one more look at 2014.
A Final Look at 2014
In case you haven’t gotten chance to check it out, you can see my fully complete 2014 Dividend Calendar. Over the course of the past year, I exited out of four positions: ARCP, LO, OKS, and PSEC. Each position exit has a story, but they boil down to Sleeping Well At Night and simplification of my tax filings each year.
More important than the exits were the many acquisitions of great companies soldiers in my passive income army. I ended 2013 owning shares in 12 different companies, spread between two portfolios, a taxable account and a Roth IRA account. My forward 12-month dividends were a respectable $1,285.19, but covered just three sectors, Financial, Energy and Consumer Staples. With such a concentrated portfolio, a high average yield (~5.6%), and some risky proposition based on a couple of my investments, ARCP and PSEC especially, 2014 was the year of diversification.
I closed 2014 with 32 separate companies in my dividend growth portfolio, spread across three portfolios. Simple math will show that I added 24 new companies to my portfolio after accounting for the four portfolio sold this past year. Just over half of these additions came in my new third portfolio with Loyal3, an unbelievable opportunity to add some great companies at no-cost, and for most of the year with a credit card. At the end of 2014, I ended the year going from three sectors to eight, adding some greater diversification, while extending my forward-12 month dividends to $2,062.57. This not only was an increase of $777.38 over the year before, but more importantly, is a portfolio I’m proud to call mine and one that will set me up for long-term growth and success.
This growth is best viewed through the increases in dividend payments from each company I owned during the year. While always a bit cloudy given the drastic increase in the number of positions, all but one of my positions increased their dividend payout during 2014. In focusing on the eight positions that are still in my portfolio from 2013-2014, my average dividend increase for those companies was 7.17%, which is incredible given the yield-on-cost (YOC) for those positions is 4.85%. Looking forward, I am pretty comfortable concluding the average increase in 2015 should be higher.
Note: I realize this is not a weighted average, which would be the most reflective of my actual portfolio’s growth, but for simplicity sake, this shows the overall dividend growth of the positions I held from 2013 to 2014.
Looking Forward: The 2015 Dividend Calendar
Some of my favorite features of the dividend calendar are the ability to track all of the purchases, stock sales, dividend increases, and projected dividends received throughout the course of the year. While it can look crazy busy with all of the positions I’ve invested in, just a quick look can tell you where I stand in relation to hitting my 2015 goal, as it is included on the dividend calendar.
As of this writing, I currently sit $685.42 away from my goal of $2,750 of dividends received. A long way no doubt, but I’ll always be able to see where I stand and how much I need to add by leveraging this dividend calendar.
I’ve linked to the new Calendar page a couple of times in the post; however, you can also find it under the Dividend Growth Portfolio menu at the top of the site.
Do you track your investments in this way? Would you find this to be something helps you hit your goals?
Flickr: Philippa Willitts