Growth Update: May 2014
My portfolio continued to climb higher in May. I got a little trigger happy with the departure of Target’s CEO and jumped on the first drop in its stock price, only to see better entries for the remainder of the month. Price movements are hard to predict and I don’t even try. Instead, I find a valuation that I’m comfortable with and make the purchase. While the company has challenges ahead, I’m hoping this will ultimately be a good addition to the portfolio in the long run. I have a feeling my only future complaints with most of these early buys will be that I didn’t buy more. With this purchase, my portfolio value increased by 8.84% from $16117.27 to $17,541.28.
I’m still well ahead of my “New Capital Invested” goal with $12,222.03 for the year so far. With my recent food planner and another opportunity I will talk about below, I’m hoping to invest at least $2,000 a month going forward in order to demolish this goal.
I now own thirteen companies; two of them gave me raises in May, including a huge 17.65% increase from John Deere. I continue to like John Deere and might add more soon. The dividend growth percentages in 2011-2013 were 31%, 18% and 11% respectively. The current low PE and dividend yield are attractive for investors willing to deal with the cyclical nature of this stock. I definitely believe this stock is worth looking into for dividend growth investors. Baxter also increased its dividend in May. It currently represents a great buying opportunity based on forward earnings, growth, and a company split next year. During April and May, over half of the companies in my portfolio gave dividend raises, and I absolutely love watching my money make money!
Speaking of money, I had another record month for dividends received at $68.80. I’m finally seeing amounts that can cover certain expenses and am excited to see this growth accelerate toward the end of the year.
I currently use a dividend reinvestment plan for all my stocks. At some point I’ll likely stop doing this for the positions that I determine are overweight or overvalued, but this month I was able to pick up shares for the following dividends I received:
With the larger purchases in the coming months, I hope I’ll still be able to hit my dividends received goal for the year. It’s going to be a close one.
Why the bigger purchases? I have continued to work at the same secure TV Network job for the sixth straight month. I’ve had a few other job offers recently which led to a conversation with my employers about my goals and more specifically my weekly rate. I’m doing much more work than when I first started and they’ve noticed which might lead to a raise. Nothing is cemented yet, but I hope the raise will be substantial so I can aggressively put that capital to work by generating more passive income. Even if the raise isn’t as big as I’d like, I still have stability until I choose my next gig.
I’m loving all the content everyone in this community has been putting out lately. I’m very lucky to have found dividend growth investing and all the wonderful people who are actively supportive and helpful. Thanks for reading and stopping by.
How did you do in May?
Photo Credit: Israel Sundseth – http://unsplash.com