Portfolio Update: February 2015

Another month of work and play has rolled on by, and with that comes my latest portfolio update.  My portfolio is my ticket to financial independence; the more money I can save and contribute, the faster I’ll get there. I’m buying businesses that raise their dividends each year, and I’m building a growing stream of dividend payouts that will one day pay all of my expenses.  I’ve enjoyed sharing my investment activity this past year, and I hope these updates help inspire others to take charge of their own finances.

Any lost ground the market suffered in January roared back and then some, as we’re back to setting new highs again.  It was a good month for me to have limited contributions.  A higher market means less attractive investment values for long term shareholders.  I was only able to make one purchase in February, and that was of successful spin-off company Baxter International.  When I posted about my purchase, I forgot to mention the Cardinal Health’s (CAH) spin-off of CareFusion set to complete later this year.  That makes 5 spin-offs since 1992!  This is likely the last time I’m adding to BAX for a long while, and I can’t wait to see what happens post spin-off.

I’ve been saving at great speeds lately, but it appears I messed up a bit last year and am going to have an unexpected tax return of about $2,500.  Yay and Ouch!  I’d much rather that be closer to $0 or even owe money since I could have been using that money to buy more stocks and be that much further ahead; going forward I’ll be fixing my W2’s.  My total contributions for the year are trending down compared to my 2015 goal; this will continue for the next few months as we’re amping up our savings account.  So far, I’ve invested $4,565.15 these first two months.

2015_FEB_PC

My portfolio gained around $2,000 all by itself in February.  It’s nice finally seeing larger swings in such a short time, it’s just unfortunate it swung in the wrong direction.  I’m hoping for a market and portfolio decline in March so that new investment options become more obvious.  When I include my lone investment over the month, my portfolio gained 7.38% or $3,485.92 compared to last month. Year over year, I’ve grown my portfolio 360.25% from $11,023.17.  This graph shows my portfolio continuing to climb:

2015_FEB_PVH

I’m officially halfway to my first 100K!  But I wish the market would start to drop from here.  I wouldn’t mind taking my time trying to get there.  Either way, I’ll be buying fundamentally sound businesses for the long term.  By looking at my portfolio, you’ll see it needs a lot of work, especially in the consumer sector’s where I’d love to be overweight instead of severely underweight.  At least I’m not alone in my struggles to find value there since Chuck Carnevale, creator of F.A.S.T. Graphs™ recently penned the article, “Impeccable Quality, But There Are No Bargains Today In The S&P500 Consumer Staples Sector: Part 8.”  I’m keeping my eyes open on a lot of core businesses there and might end up having to jump in with a smaller position for some slight premiums; it’s a small price to pay for quality.  Here is my February 2015 Portfolio Snapshot:

2015_FEB_PS

How was your February?  What are you buying?

My Dividend Growth

http://www.mydividendgrowth.com

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24 thoughts on “Portfolio Update: February 2015
  1. Jeff

    Great article. I started around 15 months ago and invest in close to 30 stocks monthly. Keep up the hood work I enjoy your comments.

     
    Reply
    1. My Dividend Growth

      Thanks for the nice comment, Jeff. It’s always awesome to hear from others that started around the same time as me. I’m wishing you lots of success and thanks for reading!

      Best Wishes,
      Ryan

       
      Reply
  2. writing2reality

    Looking good my friend. You’ve got the makings of a well diversified, balanced dividend growth portfolio that should pay off in spades, in this year and in the many to come. Some companies just seem to be perpetually overvalued, and nibbling in is the only way to go.

    Thanks for sharing the update!

     
    Reply
    1. My Dividend Growth

      That’s great advice, W2R. I’ll likely be breaking out the nibbles soon, hopefully I can at least get a fair value. Those complements on my portfolio mean a lot coming from you — KING of diversity, hehe.

      All my best!
      ~Ryan

       
      Reply
  3. A Frugal Family's Journey

    Nice month all around MDG! Looks like you’re having a great start to the year so far! Keep putting that capital to work each month. Hopefully you can stay ahead of your goal the entire year.

    Also, that portfolio growth is awesome…the chart and upward trend is a real joy to see! You are well on your way to early retirement. Keep up the momentum! AFFJ

     
    Reply
    1. My Dividend Growth

      Hope all is well, AFFJ. Thanks for those kind words! It’s strange only investing once a month, I’m finding it way more challenging to make decisions. I can’t wait to get back to my normal rate and smash that goal 🙂 I love what you’re doing with the Collections on your site, it’s so helpful. Wishing you lots of continued success.

      ~RYan

       
      Reply
  4. Scott

    Great start to 2015! The amount of money that you are saving each month and the upward growth of your portfolio value is incredible. Hopefully the markets will cooperate so that each dollar goes as far as it can.

    I remember reading a study somewhere that said that the best time to invest is whenever you have the money. “Waiting” for a correction to invest a lump sum is just another form of market timing. Anyway, keep up the great work. Looking forward to the next update!

    PS Love how you described the mixed emotions of such a large tax refund. I bet most people don’t understand that the bigger the refund the bigger the interest free loan you gave the government.

     
    Reply
    1. My Dividend Growth

      I hope you’re right and the markets start showing us some good values soon. I think it’s a good sign that as I’m typing this every single holding of mine is in the red for the day. Keep dropping, tickers!
      Thanks for sharing that great saying and I couldn’t agree more. Cash flow is so much better than cash. I do have a little dry powder though in case of an flash sales. Here’s hoping.
      Ugh taxes… Hehe, I was a little embarrassed to post that because I think most DGIers would know better. Oh well, $2,500 for free??? I’m going to VEGAS!!! (hehe, kidding of course!)
      Thanks for stopping by Scott, it’s always good to hear from you!

      Best Wishes,
      Ryan

       
      Reply
  5. No More Waffles

    Ryan,

    Great progress! You continue to shovel a ton of money into your portfolio every month, so I’m sure you’ll be breaking that magical 100k barrier before long.

    Can’t wait to start publishing graphs like yours showing YoY progress!

    Keep it up, you’re doing fantastic,
    NMW

     
    Reply
    1. My Dividend Growth

      I can’t wait to see your first YoY stats too, you’ve been doing some serious work on your portfolio lately. I’m swiftly approaching my first two year comparison and it’s going to be pretty ridiculous. I’m so happy I stuck with this strategy, and am excited to hear you raving about similar successes shortly. We’re on a very rewarding journey, my friend.

      Take it easy!
      ~Ryan

       
      Reply
  6. JC

    I hear ya on the tax return. Unfortunately I expect to have a larger one than we expected. There was so much changing this year because we had a full year of property taxes and mortgage interest as well as welcoming our son to our family and plenty of medical bills too. Normally around 4Q I like to start playing with my W4 to lower my tax return but after all the issues with my son started in August my priorities changed. So this year I expect a larger tax return but I’d still rather get something back than owe anything.

    Consistency is key in the DGI strategy and your growth shows that. Keep up the good work and just continue to look for value and invest.

     
    Reply
    1. My Dividend Growth

      I completely relate to playing with the W2’s. This network I’m at changed payrolls 3 times last year which was weird, and I thought I balanced it correctly but oh well. Like you said, I’d much rather be receiving money. It’s exciting to see you with property already, I’ll be waiting a bit on that myself but I’m pretty sure I’d want a house at some point. Not a rental though. It pains me to read all those articles of what you get for the money in LA verses almost anywhere else.
      You’re a living real life example of why getting finances in order is so important. It’s inspiring that you’ve put your family in a such a great place financially so that priorities can change and not have stress about it. Thank you for sharing your story!

      Best Wishes,
      Ryan

       
      Reply
  7. Dividend Mantra

    Ryan,

    Another big step in the right direction. Very nice. Congrats on being halfway to your first $100k. I, like you, would rather see the portfolio drop rather significantly, but we get to enjoy the psychological benefit of the rising portfolio value. First world problems and all that. 🙂

    Keep up the great work. You’re in great shape thus far and off to a great 2015.

    Best regards.

     
    Reply
    1. My Dividend Growth

      Haha, it’s pretty sick that we’re so spoiled to be able to invest in the first place and we still find reasons to complain all the way up and down. I read a little spoiler on RBD and speaking of big steps, congrats on your latest purchase! It’s such a fantastic company and I can’t wait to read your post about it. Thank you for all the support, my friend.

      All my best,
      Ryan

       
      Reply
  8. Tawcan

    Looking good Ryan. You’re making great process. I like the fact that you’re contributing more than what you anticipated. Good stuff. Yea to halfway to your first $100k.

     
    Reply
    1. My Dividend Growth

      Thanks for that, Tawcan. This unexpected tax return is going to speed everything up by at least a month so hopefully I’m well on my way to smash that goal. What a blessing that would be. Always glad to hear from you!

      Best Wishes,
      Ryan

       
      Reply
  9. roadmap2retire

    Way to go, Ryan! Halfway to $100K is a great achievement. You are doing great…keep working at it and the rest will follow. You know what they say…First 100K is the hardest 🙂

    cheers
    R2R

     
    Reply
    1. My Dividend Growth

      I hope that saying works the same in 50K increments, because I want to get there already 🙂 Hopefully I can contribute way more capital than I originally anticipated this year. Same for you, R2R. You’re killing it over there.

      Best,
      Ryan

       
      Reply
    1. My Dividend Growth

      Thank you, DFF. 100K would be a huge win and thanks for cheering me on. If I do get there I hope it’s from a windfall of contributions instead of capital gains. I like the looks of your blog and you have a nice portfolio yourself. I’m rooting for you 🙂

      Best,
      Ryan

       
      Reply

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