Baby DivHut Dividend Income Portfolio Update Q3 2017

With nine months of the year already behind us, it is time for me to highlight baby DivHut’s quarterly dividend income/portfolio progress. 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 small buy I made, his portfolio continued to grow in size 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 continuing to chug along it was nice to see some impressive gains made in his portfolio that’s only about two years old. 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 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 Q3 2017.

Portfolio

SymbolDescriptionQuantityCost BasisMarket ValueCost/ShareGain or Loss
ABBVABBVIE INC2.0590$127.90$197.87$62.12+$69.97
54.71%
ABTABBOTT LABORATORIES9.1440$343.82$514.99$37.60+$171.17
49.78%
CATCATERPILLAR INC15.5619$1,049.76$2,044.21$67.46+$994.45
94.73%
EMREMERSON ELEC CO COM38.2881$1,998.10$2,518.59$52.19+$520.49
26.05%
GISGENERAL MLS INC COM16.0855$905.75$836.61$56.31(-$69.14)
(-7.63%)
ITWILLINOIS TOOL WKS INC6.3380$536.52$982.58$84.65+$446.06
83.14%
JNJJOHNSON & JOHNSON8.5242$858.84$1,213.85$100.75+$355.01
41.34%
MMM3M CO1.0113$193.43$223.82$191.27+$30.39
15.71%
PFEPFIZER INC13.1226$436.87$477.93$33.29+$41.06
9.40%
PGPROCTER & GAMBLE CO2.0312$185.27$179.25$91.21(-$6.02)
(-3.25%)
ULUNILEVER PLC - ADR13.4921$539.20$739.23$39.96+$200.03
37.10%
VFCV F CORP30.0880$1,890.20$1,997.24$62.82+$107.04
5.66%
YUMYUM! BRANDS INC14.6334$772.70$1,114.63$52.80+$341.93
44.25%
YUMCYUM CHINA HLDGS INC COM14.3245$324.66$603.78$22.66+$279.12
85.97%

Total Investment Balance $13,644.57

Gain or Loss $3,481.55

Q3 dividend income: $77.30

Year to date dividend income: $213.57 which is on track to surpass his 2016 total.

Sector Allocation

SectorSector %Market Value
Industrials42.28%$5,769.20
Consumer Cyclical27.23%$3,715.65
Healthcare17.62%$2,404.63
Consumer Defensive12.86%$1,755.09

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

24 thoughts on “Baby DivHut Dividend Income Portfolio Update Q3 2017

    • Hi DD,

      It has been fun watching his portfolio grow over the last two plus years. Of course, I realize that many of these gains can be wiped out fairly quickly should the market turn south. That’s all good with me as long as those dividends keep rolling in and keep growing. That’s where the real compounding magic will occur. Thank you for stopping by and commenting.

  1. I can tell that baby DivHut is and will be a very astute investor 🙂 Perhaps MSFT would be a solid addition to his portfolio. You would then have the only 2 remaining triple A credit rated U.S. companies residing in baby DivHut’s portfolio (the other being JNJ) and also add some tech exposure. Tom
    Tom @ Dividends Diversify recently posted…Rags To RichesMy Profile

    • Hi DD,

      He is an astute investor indeed 🙂 I was looking at MSFT for myself not long ago. While tech is something that interests me and is in all our collective future, I never feel confident in investing in a tech name for the long haul. The space just seems to evolve rapidly taking down former stalwarts for new replacement companies only to be replaced themselves. We’ll see. For now, I am looking at more of the staples to be added to his portfolio. In time I’ll expand to other sectors. He’s just a toddler 🙂 As always, I appreciate your comment.

    • Hi DP,

      I am taking advantage of baby DivHut’s greatest asset, time. As with my own portfolio I simply went with solid, well known dividend payers that I plan to hold “forever.” By the time he is a young adult he’ll have two full decades of compounding under his belt. That is something I still have to look forward to myself. Thank you for sharing your thoughts.

    • Hi singledadmoney,

      Ha! Why am I not surprised with your suggestion of F? I still want to add more staples to his portfolio going forward. There are quite a few solid dividend payers I wouldn’t mind adding before branching out into the automotive sector. Thank you for stopping by and commenting.

    • Hi dividendgeek,

      This is a portfolio that I have built for him to go the distance. I hope it can continue to provide an ever increasing passive income stream for many decades to come. Of course, I still want to add more stocks to the portfolio but that will come in time. Thank you for your VYM and VIG suggestions. I appreciate all input.

  2. Some nice percentage gains in there for only starting in 2015. Baby DivHut is off to a terrific start. As for additions, how about Visa or Mastercard? These aren’t big dividend payers now, but by the time Baby DivHut gets older they should be sporting larger payout ratios that come with more mature companies. This would provide some additional sector diversification as well.
    Engineering Dividends recently posted…Recent Sell – GWWMy Profile

    • Hi ED,

      The market has been on a tear over the last two years. Just imagine if I let all the negative financial headlines get to me and I decided to wait for a correction before investing. Lesson here… just invest. Don’t wait. Use time to your advantage. Thanks for your suggestions. Both V and MA do look compelling for a long term dividend growth portfolio. There are other names I want to add before considering those names. No doubt the dividend growth rates have been monster for those stocks. Thank you for stopping by and sharing your thoughts.

  3. Hut –

    Wow… Over $13k, almost $14k already. This has really grown nicely so far. In 15+ years, this will be a P O W E R H O U S E portfolio. I am in awe and can’t imagine baby hut’s face when this portfolio comes to full fruition.

    -Lanny

    • Hi DD,

      His portfolio is a testament as to how much the market has risen over the last two plus years. Plus, industrial stocks are his largest sector holdings and that’s a sector that has been quite hot as of late. This is a real world portfolio and I look forward to seeing it continue to grow and develop over the coming decades. Thank you for stopping by and commenting.

  4. Divhut,

    This is great! In fact I started a portfolio for my son, he’s only 10 months, just a few months ago. Maybe I missed it, what brokerage are you using for this? I opened a TDAmeritrade account for baby AAI but I’m trying to make purchases of at least $2000 at a time to avoid trading fees. Currently he has some DIS, CRI, PEP and HBI. I figured I’d start with companies he would be familiar with once I can tell him about it.

    I like the diversification and you certainly have made some good investments so far. He will be well on his way to a million dollar portfolio. Oh how I wish I had that many years of compounding to put behind a portfolio.

    Anyways, keep up the good work. baby DivHut is off to a good start!

    • Hi AAI,

      I think it’s awesome that you have started a portfolio for your child. Take advantage of his greatest resource, time. Looks like you are filling his portfolio with solid names too! I make all my purchases through CapitalOne Investing (formerly Sharebuilder) and pay a grandfathered commission rate of $2 per trade under a promotion Sharebuilder had for Costco members. Thank you for your kind words and continued support.

    • Hi K.,

      I am using Capital One Investing (formerly Sharebuilder) under a grandfathered plan they had for Costco members where all commissions are a flat $2. Hope this helps.

  5. This is such a powerful dividend stock portfolio, I had to come back and look at it again. I’m long 8 of the stocks. Several of the others, I have looked at over the years, but never pulled the trigger much to my dismay (VF, ITW specifically). I have never seriously considered Yum, for no particular reason and I got burned by CAT. I felt like a dividend cut was coming with the global mining slowdown, sold and missed the recovery in the stock. Great portfolio for Baby DivHut. Tom
    Tom @ Dividends Diversify recently posted…Get Your Motor Runnin’My Profile

    • Hi DD,

      Thanks for those kind words about baby DivHut’s dividend portfolio. One thing I can infer from reading your comment is that you let the headlines get to you regarding certain stocks. CAT was very much unloved not that long ago which is when I decided to buy more. People were crapping all over VFC too calling it a fashion stock that was dependent on fickle fashion tastes and trends. It’s not a fashion company. It’s a fashion staple. There is a difference. MCD was left for dead too and YUM, especially after that meat scare in China. Today, GE is circling the toilet. Bottom line, while it’s no guarantee that a stock can recover from a seeming death spiral, more often than not, solid long time dividend paying companies tend to pull out of nose dives. Have a long term perspective, know that you will own duds every now and then and diversify to mitigate any single stock disaster. Thank you for commenting.

  6. BabyHut is looking pretty solid. Love that you are thinking about the next generation. I’ve got three 529s for my little ones. Two setup recently by my mom and one by me. I have considered setting up a DGI account for them.
    Dividend Seedling recently posted…Recent Buy TMy Profile

    • Hi DS,

      I think it’s great that you have set up 529s for your children. The bottom line is that doing anything for the next generation is better than doing nothing. I don’t care if it’s 529s, a taxable dividend growth portfolio, buying precious metals or whatever, we are taking advantage of the miracle of time and compounding to give our children a better financial future and that’s what counts. Thank you for commenting.

  7. My son is 2 years old now. What you are doing for Baby DivHut inspires me to do something similar for my son and use the power of compounding to maximise the long then returns.

    • Hi Ming,

      I’m happy this post can provide some inspiration for you. One of the greatest assets a young person has is time and it’s time that enables amazing compounded returns. I applaud you for wanting to do the same for your own child. Thank you for sharing.

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