Portfolio Growth Update: January 2015
It was a rocky month for the stock market with the S&P 500 down 3.1% and my portfolio moved right along with it. My portfolio’s value will go up and down month to month with short term unpredictability, but I predict and expect my dividend payouts to always grow every single year. One day I’ll pay all of my expenses with this ever rising income.
I work hard to save more money than I spend to expedite my journey to financial independence, and this year I’m setting a goal of $25,000 in contributions. That’s an average of $2,083.33 a month. In January, I was able to invest $3,128.10 when I added to my positions in Franklin Resources (BEN), Unilever (UL) and initiated a position in Bank of Nova Scotia (BNS). From here on, I’ll be contributing lesser amounts that are closer to my monthly goal because of upcoming wedding and honeymoon expenses. I’m also weighing that I’ve been lucky to have job stability this long being a freelance editor and wouldn’t be surprised at all if my career were shaken up somehow this year. This will be a challenging goal, but I’m hopeful I can beat it. Here’s a graph showing the mountain I’ll have to climb to reach my 2015 Portfolio Contributions Goal:
Overall I feel great about this month’s investments. I’m fully on board with asset manager Franklin Resources (BEN), but I’m disappointed I missed their special dividend that I thought I might qualify for. I’m happy to wait for this company though, and in a few months I’ll finally see some income from this investment. I look forward to some high percentage capital and dividend growth in this small yielding businesses future.
My timing of Bank of Nova Scotia (BNS) wasn’t the best, as its since fallen in price over 12%. This is a bank that has been paying and increasing dividends for almost 200 years, and I purchased it solidly yielding over 4%. There are current concerns with the business, but I believe the dividend will at the very least be maintained through any crisis. More likely though, my $62.72 in annual income from BNS will keep growing steadily all by itself through the coming years despite any short term capital losses and gains.
I was sad to see Unilever shoot up in price toward the end of the month, but I’m happy I got the chance to slowly build up a solid starting position in the company through my no commission Loyal3 account. When I tried easing into Wal-Mart (WMT) last year, it shot up over 10% almost immediately so I’ve left it as a tiny holding for now. Maybe another disappointing dividend raise this year will scare some people away, and I can feed it some more cash?
At the end of the month my portfolio’s total value stands at $47,248.19, a 5.33% increase over last month. A year over year increase of 390.57%, when my portfolio was worth only $9,631.23. With decreased contributions going forward, I wonder if I’ll see a monthly decline in my total portfolio value in 2015. It’s been a long while since that happened. Here’s the history so far:
I flirted with a total portfolio value of $50,000 during the month, but never quite got there. While that’d be a nice psychological barrier to hit, I realize I’ve only just begun this journey and I have a very long and challenging race to the finish line ahead of me. Here is my January 2015 Portfolio Snapshot:
Are you investing in this market? How does your portfolio stand at the end of January?
Photo Credit: Dustin Scarpitti, http://unsplash.com/