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

27 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.

    • Hi DF,

      I’m always happy to read about another parent doing something similar for their children. As you already know, we are taking advantage of our kid’s greatest asset, time. In two, three or more decades a portfolio started from such a young age can amass a huge compounding income pile. For now, no REITs in his account. It’s still a work in progress as I’m building and diversifying his holdings.

    • Hi Passivecanadianincome,

      The main goal of his portfolio, like mine, is dividend income. Sure, over the near and mid term he’ll be holding some losers but hopefully with reinvestment, fresh capital and patience those losers will be long term winners.

    • Hi TPS,

      Unfortunately, a savings account these days simply won’t cut it over the long haul. I figure if dividend growth investing is good for me it should be good enough for baby DivHut, especially since we started his portfolio from birth. I don’t have an exact figure of how much we put in but you can see his gains and subtract that from his total portfolio value to get a rough idea. Of course, that doesn’t factor in dividends received.

    • Hi DFG,

      I don’t know if he’s set for life but he is being given a financial leg up, that’s for sure. It’s awesome that you are doing the same for your children. Over time it doesn’t require huge investment amounts as long as you consistently add to their portfolios and let time work its compounding magic.

    • Hi DG,

      Your comment is sad but unfortunately true. Whenever we have spare cash to invest we add it to his portfolio. Taking advantage of time in the market could prove to be the best thing for baby DivHut.

    • Hi DIS,

      Indeed it is. My only goal for his portfolio is to create an ever increasing passive income stream and as long as there is year over year progress I am happy.

    • Hi DD,

      Always happy to read a supportive comment. Baby DivHut is well on his way. Don’t want to rush things but it will be very interesting to see where this portfolio stands in ten or twenty years.

    • Hi BD,

      It’s all about making purchases when you can, reinvest dividends and simply hold on through all the highs and lows of the market. We all wish we had more time to invest. Our children do.

  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.

    • Hi TDK,

      It’s easy opening up a custodial account. Fill in name, details, social, beneficiary and you are set. This is not a margin account just a regular taxable account in his name. I always say, take advantage of a young child’s greatest asset, time. Buy solid companies, diversify, reinvest dividends and just ride out all the highs and lows over the next two decades or more.

    • Hi weenie,

      Thanks for your comment and continued support. Baby DivHut has something we all want more of, time. Why not take advantage of his greatest asset?

  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

    • Hi BM,

      I think something should be set up for any child that comes into this world. I don’t care if it’s cash under the mattress, precious metals, stocks, bonds, collectibles, etc. Just start saving/investing a little at a time and take advantage of time. For now, I plan to keep baby DivHut all in stocks. Of course, that may change over time but for now I’m comfortable creating a mini dividend income portfolio for him.

    • Hi IM,

      Take advantage of BIM’s greatest asset, time. Consistent small investments can grow into something substantial over a couple decades or more. Keep it up.

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