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.
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 2018.
Portfolio
Symbol | Description | Quantity | Cost Basis | Market Value | Cost/Share | Gain or Loss |
---|---|---|---|---|---|---|
ABBV | ABBVIE INC | 2 | $126.19 | $175.94 | $63.10 | +$49.75 39.42% |
ABT | ABBOTT LABORATORIES | 9 | $341.15 | $608.31 | $37.91 | +$267.16 78.31% |
CAT | CATERPILLAR INC | 15 | $1,025.32 | $1,969.80 | $68.35 | +$944.48 92.12% |
D | DOMINION RESOURCES INC | 10 | $698.88 | $735.00 | $69.89 | +$36.12 5.17% |
EMR | EMERSON ELEC CO COM | 39 | $2,048.68 | $2,818.53 | $52.53 | +$769.85 37.58% |
GIS | GENERAL MLS INC COM | 16 | $895.53 | $712.64 | $55.97 | (-$182.89) (-20.42%) |
ITW | ILLINOIS TOOL WKS INC | 6 | $515.30 | $762.18 | $85.88 | +$246.88 47.91% |
JNJ | JOHNSON & JOHNSON | 8 | $811.82 | $1,112.40 | $101.48 | +$300.58 37.03% |
KMB | KIMBERLY CLARK CORP | 5 | $576.09 | $551.15 | $115.22 | (-$24.94) (-4.33%) |
MCD | MCDONALDS CORP | 5 | $817.49 | $837.45 | $163.50 | +$19.96 2.44% |
MMM | 3M CO | 1 | $191.89 | $199.85 | $191.89 | +$7.96 4.15% |
PEP | PEPSICO INC | 10 | $1,066.21 | $1,102.90 | $106.62 | +$36.69 3.44% |
PFE | PFIZER INC | 13 | $433.75 | $578.50 | $33.37 | +$144.75 33.37% |
PG | PROCTER & GAMBLE CO | 15 | $1,288.70 | $1,309.50 | $85.91 | +$20.80 1.61% |
SO | SOUTHERN CO | 10 | $444.84 | $450.70 | $44.48 | +$5.86 1.32% |
UL | UNILEVER PLC - ADR | 13 | $524.83 | $702.26 | $40.37 | +$177.43 33.81% |
VFC | V F CORP | 30 | $1,887.09 | $2,332.80 | $62.90 | +$445.71 23.62% |
YUM | YUM! BRANDS INC | 14 | $742.56 | $1,251.60 | $53.04 | +$509.04 68.55% |
YUMC | YUM CHINA HLDGS INC COM | 14 | $318.67 | $445.90 | $22.76 | +$127.23 39.93% |
Total Investment Balance $18,657.41
Gain or Loss $3,902.42
Year to date dividend income: $369.95 which has surpassed his 2017 total.
Sector Allocation
Sector | Sector % | Market Value |
---|---|---|
Industrials | 30.82% | $5,750.36 |
Consumer Cyclical | 26.09% | $4,867.75 |
Consumer Defensive | 23.47% | $4,378.45 |
Healthcare | 13.27% | $2,475.15 |
Utilities | 6.36% | $1,185.70 |
Even though baby DivHut’s investment balance has dropped as a result of the recent market swoon his dividend income continues to rise at a nice clip and has already surpassed his 2017 total. The primary goal of this portfolio is to generate an ever increasing passive income stream and so far I have no complaints with the progress made.
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
Such a nice portfolio to have, your kid is a lucky kid! Keep up the great progress DH!
DI
Hi DI,
I appreciate your kind words. Going forward will be more of the same which is to buy more stocks when cash is available and slowly start to teach him about what dividends are all about.
Wow, baby Divhut is a very lucky baby to have such a thoughtful father! Almost all of your investments are in green as well so the results of the portfolio are also great.
Any reason why there are no companies from Technology sector in baby Divhut’s portfolio? I also don’t see any companies from the financial sector but I guess those are not so great for dividend growth portfolios.
Great work!
BI
Hi BI,
His portfolio was looking a lot better before the October swoon but as you know my main focus with his portfolio is not capital appreciation rather growing passive income. I don’t hold any tech either. I might like to add an INTC or AAPL one day to his portfolio but not just yet. I’d like to build it up with the slow, boring, stable dividend payers first. Tech seems too volatile at the moment. Financial stocks might be good too. AFL, CB, TD and RY have done nicely for me. There are many, many more years of planning and growing for his portfolio. One step at a time.
Hi Keith, You might consider some insurance and payroll service sector stocks like CB, PAYX and ADP or a maybe a solid regional bank. They may provide some diversification from higher interest rates since these types of companies profits typically benefit from higher rates. Tom
Tom @ Dividends Diversify recently posted…Can You Save Money at a Farmers Market?
Hi DD,
I agree. AFL and CB have done well for me. I still plan to expand the portfolio over the coming years and always welcome suggestions. For now, the focus is on the more stable, boring dividend growers. Thank you for stopping by and commenting.
I’m amazed by the value appreciation in all those (except 1) stocks! I think it’s awesome that you have already established a portfolio for your child, I might be starting the same!
Mr. Robot recently posted…Life changes
Hi MR,
His portfolio was up a lot more before the October swoon. Of course, I’m not totally concerned with price appreciation as much as continuing to grow his passive income stream. Once he is an adult he can focus on growth or other types of investing.
nice Hut.
Abbvie seems like a solid stock to add to your postion at the moment. I was just looking at it, wish i had.more usd….
great work with baby huts portfolio though.
cheers!
Passivecanadianincome recently posted…More Stocks – QSR
Hi Passivecanadianincome,
There are still many new names I’d like to add to his portfolio but I don’t have limitless cash 🙂 In the meantime, I’ll continue to reinvest all his dividends and make buys when I can. I look forward to teaching him more about it as he gets older.
That is a very impressive portfolio for your kid and I think he will really appreciate it as he gets older. I think it’s a great idea to start investing early and let the time do the work.
DD
Dividend Deluge recently posted…Recent Buy – Fortis Inc. (Utilities)
Hi DD,
Thank you for those kind words. I’m just taking advantage of his greatest asset, time. I’m sure along the way a dud will be held but overall his passive income should continue to grow.