Growth Update: July 2014
July showed us some volatility in prices as the month ended lower for the first time in a while. The S&P 500 even had the lowest weekly decline since 2012. But that’s just noise and even opportunity as I continued to add to my holdings. I initiated positions in two companies; healthcare giant Johnson & Johnson (JNJ) and lesser known dividend contender and water technology leader A. O. Smith Corporation (AOS). My purchases helped me shatter my first 2014 goal, which was amount of new capital invested. I’ve now invested $20,121.06 while my goal was $17,500. This is such an important victory for me as I’m a freelance television editor and long gigs are hard to come by in this industry. In early 2014, I had no way to predict I would have such steady and rising income for so long this year. I’m still going to follow this goal to help me predict next year’s numbers.
With all the noise in the market, my portfolio value took a hit, but it doesn’t matter to me at all. By consistently investing in fairly valued companies that grow dividends, I’ll be able to take much bigger blows in the future. As long as the fundamentals of my companies don’t change and they continue to grow, I’m holding on forever. I’ve been investing over a year, and now that I’m finally starting to see my year-over-year stats, I’m changing how a few of my charts look going forward. With my July capital contributions, my portfolio value increased 13.26% from June’s $22,395.40 to $25,365.07.
My dividend payouts in July weren’t very impressive; however, I did see the power of my dividend reinvestment plan as the change from last quarter in April was $41.38 to $42.50 or 2.71%. Not bad for doing nothing. Next quarter, my additional shares of BAX and AOS will help increase my totals. I also realized a personal milestone. I received my first dividend in July of last year. So now, 12 months later, I get to see my first Year-Over-Year percent change. In 2013, I was jobless and would only be able to DRIP fractions of shares into my $1,149 portfolio for a few more months ahead. My first YOY number is ridiculous as I had $4.75 last year and $42.50 this year for an increase of 795%.
With the small change I saw quarter over quarter and some recent lower yield investments, I’m pretty sure I won’t be meeting my 2014 dividends received goal. Year to date, I’ve received $305.89 of my $750 goal. This was a hard goal for me to predict as a new investor and as time goes on, I find myself comfortable picking companies with lower yields and higher growth rates because I have a lot of time left before I need this income. It’s also interesting that I’ve already invested way more than I anticipated I would for the whole year, but am severely lagging where I thought I’d be in dividend payouts. Going forward I do still want to sprinkle in some higher yields for extra stability where it makes sense.
These are the shares I picked up in July using a DRIP:
I also got a small raise from Kinder Morgan Inc. (KMI). This was the second raise of the year for this company.
The faster I can get my money working by itself the better, because things change fast in the entertainment business. The network I edit for is very new, and they are constantly making employee cuts on an already small staff; they cut 21 more of my colleagues on Thursday. I feel like my higher up bosses really want to keep me, but what worries me is if they get blindsided themselves and get cut. So far I have no reason to fear, and I’ve already gotten way more out of the this job than I ever anticipated since it was only suppose to last from October to December of 2013. In addition to working there those three months, I’ve also worked all of 2014 so far.
Let’s hope this market continues to wave back and forth during August so we can continue to make solid dividend growth investments.
How was your July? Do you remember your first YOY payments?
Photo Credit: Keith Misner – http://unsplash.com