Baby DivHut Dividend Income Portfolio Update Q1 2018

Every quarter I like to review baby DivHut’s portfolio and dividend income. Generally speaking there is not much change in his portfolio on a month to month basis as fresh capital is not always available to make trades for him. Still, with dividend reinvestments, stock spin offs and a couple small buys I made, his portfolio continued to diversify from last quarter. Of course, the aim of his portfolio is not necessarily to achieve capital appreciation rather dividend growth with the ability to generate an ever increasing passive income stream.

 

With the stock market gyrating wildly the last few months, it was nice to see baby DivHut’s dividend income continue coming in like clockwork and grow on a year over year basis. As you already know, I never try and time the market nor my buys. I simply buy when cash is available and let time work its compounding magic. See, when baby DivHut was born it could have been said, in fact it was, that 2015 wasn’t the best possible time to invest. The energy markets were in a tailspin and, if you recall, going into 2016 we were welcomed with one of the worst starts for the year for the stock market as a whole. Of course, the upcoming U.S. election, at the time, was throwing a lot of doubt on stocks too. What I’m trying to say is that there will always be negative headlines and always a reason to not invest. Looking back I’m happy to have started investing for baby DivHut soon after he was born and not wait for the “best” time to put his money to work. With that being said, let’s take a look at baby DivHut’s current holdings, sector allocation and dividend income for Q1 2018.

 

Portfolio

SymbolDescriptionQuantityCost BasisMarket ValueCost/ShareGain or Loss
ABBVABBVIE INC2.0859$130.69$193.80$62.65+$63.11
48.29%
ABTABBOTT LABORATORIES9.2321$348.81$548.57$37.78+$199.76
57.27%
CATCATERPILLAR INC15.7292$1,074.11$2,392.10$68.29+$1,317.99
122.71%
DDOMINION RESOURCES INC8.0777$584.30$517.86$72.33(-$66.44)
(-11.37%)
EMREMERSON ELEC CO COM38.8336$2,035.38$2,674.47$52.41+$639.09
31.40%
GISGENERAL MLS INC COM16.3734$921.59$743.76$56.29(-$177.83)
(-19.30%)
ITWILLINOIS TOOL WKS INC6.3999$546.43$999.54$85.38+$453.11
82.92%
JNJJOHNSON & JOHNSON8.6292$873.20$1,143.71$101.19+$270.51
30.98%
KMBKIMBERLY CLARK CORP5.0642$584.50$543.39$115.42(-$41.11)
(-7.03%)
MCDMCDONALDS CORP5.5046$907.64$890.75$164.89(-$16.89)
(-1.86%)
MMM3M CO1.0220$196.00$223.03$191.78+$27.03
13.79%
PEPPEPSICO INC5.2435$606.19$577.99$115.61(-$28.20)
(-4.65%)
PFEPFIZER INC13.3623$445.57$489.86$33.35+$44.29
9.94%
PGPROCTER & GAMBLE CO15.0082$1,292.08$1,181.88$86.09(-$110.20)
(-8.53%)
SOSOUTHERN CO6.7988$303.89$305.27$44.70+$1.38
0.45%
ULUNILEVER PLC - ADR13.7056$550.80$769.16$40.19+$218.36
39.64%
VFCV F CORP30.4586$1,917.97$2,365.41$62.97+$447.44
23.33%
YUMYUM! BRANDS INC14.7505$782.38$1,277.25$53.04+$494.87
63.25%
YUMCYUM CHINA HLDGS INC COM14.3945$327.53$576.50$22.75+$248.97
76.01%

Total Investment Balance $18,405.29

Gain or Loss $3,976.23

Q1 dividend income: $99.82 which is on track to surpass his 2017 total.

Sector Allocation

SectorSector %Market Value
Industrials34.17%$6,291.79
Consumer Cyclical27.77%$5,113.04
Consumer Defensive20.70%$3,811.64
Healthcare12.88%$2,372.47
Utilities4.48%$824.18

What do you think about baby DivHut’s portfolio and sector allocations? I would appreciate any suggestions for potential stock picks as well. Please let me know below.

Disclosure: Long all above

12 thoughts on “Baby DivHut Dividend Income Portfolio Update Q1 2018

  1. Hey DH. I am doing the same thing for my children, but I never thought about putting it in a blog post. Great idea! I am using the Vanguard S&P 500 fund for both children, so my update would be a lot shorter. 😊

    I’m sure you are doing it for the same reason I am – the time value of money. These kids could pile up a mountain by the time they need it, given how early we are starting.

    Have you considered adding REITs? A lot of folks are scared right now because of the Amazon factor and rising interest rates, but long-term a few of those funds might do very well.

  2. This is great set of companies for baby Hut 🙂 Very nice collection.

    Was it difficult to open custodial account ? I am assuming this is margin account, right ? I and Mrs. TDK were talking about our two kids to get them custodial account, great to know you are doing awesome for the kiddo :).

    Good Luck,
    TDK.

  3. I’m thinking of setting up one up for my family as well, and will probably do so for my kids when we have them. That being said, I think dividend yields are pretty low nowadays and bond yields are actually higher. Investing in stocks only makes sense if they’re undervalued, and the stock market has a whole is overvalued nowadays.
    Troy Bombardia @ Bull Markets recently posted…Why I’m medium-long term bullish on the stock marketMy Profile

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