Every quarter I like to review baby DivHut’s portfolio and dividend income. With the second quarter of 2018 already in the books it’s time to see how his portfolio has fared. 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 every month. Still, with dividend reinvestment, 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 that being said, let’s take a look at his current holdings and sector allocation.
Portfolio
| Symbol | Description | Quantity | Cost Basis | Market Value | Cost/Share | Gain or Loss |
|---|---|---|---|---|---|---|
| ABBV | ABBVIE INC | 2.1048 | $132.69 | $192.67 | $63.04 | +$59.98 45.21% |
| ABT | ABBOTT LABORATORIES | 9.2737 | $351.39 | $597.23 | $37.89 | +$245.84 69.96% |
| CAT | CATERPILLAR INC | 15.8080 | $1,086.38 | $2,181.03 | $68.72 | +$1,094.65 100.76% |
| D | DOMINION RESOURCES INC | 10.9150 | $768.30 | $773.98 | $70.39 | +$5.68 0.74% |
| EMR | EMERSON ELEC CO COM | 39.0910 | $2,054.21 | $2,692.20 | $52.55 | +$637.99 31.06% |
| GIS | GENERAL MLS INC COM | 16.5568 | $929.61 | $713.43 | $56.15 | (-$216.18) (-23.25%) |
| ITW | ILLINOIS TOOL WKS INC | 6.4345 | $551.42 | $889.25 | $85.70 | +$337.83 61.27% |
| JNJ | JOHNSON & JOHNSON | 8.6925 | $880.97 | $1,124.46 | $101.35 | +$243.49 27.64% |
| KMB | KIMBERLY CLARK CORP | 5.1124 | $589.56 | $542.73 | $115.32 | (-$46.83) (-7.94%) |
| MCD | MCDONALDS CORP | 5.5380 | $913.20 | $874.67 | $164.90 | (-$38.53) (-4.22%) |
| MMM | 3M CO | 1.0288 | $197.39 | $206.46 | $191.86 | +$9.07 4.59% |
| PEP | PEPSICO INC | 10.8246 | $1,166.14 | $1,242.01 | $107.73 | +$75.87 6.51% |
| PFE | PFIZER INC | 13.4887 | $450.11 | $508.52 | $33.37 | +$58.41 12.98% |
| PG | PROCTER & GAMBLE CO | 15.1550 | $1,302.84 | $1,197.09 | $85.97 | (-$105.75) (-8.12%) |
| SO | SOUTHERN CO | 10.8530 | $482.97 | $515.95 | $44.50 | +$32.98 6.83% |
| UL | UNILEVER PLC - ADR | 13.8222 | $557.30 | $779.02 | $40.32 | +$221.72 39.78% |
| VFC | V F CORP | 30.6246 | $1,931.98 | $2,801.54 | $63.09 | +$869.56 45.01% |
| YUM | YUM! BRANDS INC | 14.8136 | $787.69 | $1,159.16 | $53.17 | +$371.47 47.16% |
| YUMC | YUM CHINA HLDGS INC COM | 14.4302 | $328.97 | $483.41 | $22.80 | +$154.44 46.95% |
Total Investment Balance $19,474.83
Gain or Loss $4,011.71
Year to date dividend income: $235.49 which is on track to surpass his 2017 total.
Sector Allocation
| Sector | Sector % | Market Value |
|---|---|---|
| Industrials | 30.65% | $5,968.93 |
| Consumer Cyclical | 27.31% | $5,318.79 |
| Consumer Defensive | 22.97% | $4,474.29 |
| Healthcare | 12.44% | $2,422.89 |
| Utilities | 6.62% | $1,289.93 |
Looking at his sector allocation above I know I’d like to boost his healthcare holdings and may initiate several new positions as I have done recently in the pharma/biotech space. I know there are still gaping holes in his overall portfolio such as no finance, tech, energy or hyper growth companies listed. I’m sure that will change over time. My main goal with his portfolio, at this stage, is to set up a very strong base of “boring” stable companies and later add some “flashier” names into the mix. There are still many more consumer staples I’d like to add and even another utility or two before that will happen. Baby DivHut is only three (I know, no longer a baby) and at this point I’m very satisfied with the progress made so far.
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
this kid is set for life!
Hi alana,
Well, I don’t know about life… but I do know that this portfolio can help him a lot in the coming decades. Thank you for commenting.
Hut –
That is a MASSIVE portfolio for baby DH already! Talk about financial freedom, so sweet.
-Lanny
Hi DD,
I hope his portfolio will be able to supplement his lifestyle nicely in the coming decades. Getting a start early in life will surely help him achieve FI sooner than most, I hope. For now, the focus will be on the known, solid, boring dividend payers. I want to teach him that spending the dividend fruits is OK as long you don’t “cut” the dividend tree down. A lot to teach 🙂
Keith, I see Abbvie has stabilized and returned to the price it carried prior to the dramatic analyst announcement the other day to short it because it’s going to $60. I’m still smarting from getting in 1 day before the buy party started last week. Tom
Tom @ Dividends Diversify recently posted…How To Increase Your Dividend Income
Hi DD,
ABBV has seen some pretty wild price swings over the last year but long term it still looks like a good potential hold, especially when considering dividend payments too. I’m still liking it in August. Thank you for commenting.
Thanks DH for the updates. Baby DH’s porfolio is starting to ramp up real fast. When is he 18, he will have a nice passive income 🙂
dividendgeek recently posted…2018 Q2 / (April – June) Dividend Report
Hi dividendgeek,
That’s the long term plan for his portfolio. Keep buying, reinvesting and enjoy those dividend raises when they come. After two decades it should be producing some real nice passive income for him. Thank you for stopping by and sharing your thoughts.
Your baby is going to love you so much for doing this.
What a fantastic thing to do for your child. Well done.
Buy, Hold Long recently posted…And Your Winner Is…..
Hi BHL,
Thank you for those kind words. Slowly but surely I’m building up his portfolio when cash is available and I hope to teach him all about dividends and the magic of compounding. As always, I appreciate your comment.
That’s a pretty freaking awesome portfolio for baby Divhut Keith. Baby DH may not appreciate this now, but man, one day in the future baby DH will thanking you every day. I love the name of the holdings!
Bert
Hi DD,
I hope to teach him well about investing as he gets older. For now it looks like I’m sticking with the boring, solid, known dividend payers and when he gets older I might expand into more high growth names. Thank you for stopping by and commenting.
Nice call on the CAT! good to see 3-digit returns 🙂 I [regrettably] went long GE, hoping they don’t cut their div (again…)
Hi SAMBM,
Over the long haul you’re bound to see blue chips stumble and fall. It’s just the nature of long term investing. While baby DivHut has no GE, I hold plenty in my taxable account. No sell for me yet though. I’m hanging on.
Nice post.
Thank you. It will be fun to see how this portfolio does over time.