This month I am celebrating a very special milestone as it is one full year since I became a father. We all know how fast time flies in retrospect, but for me to acknowledge that I have a one year old is pretty insane. Exactly a year ago I announced on this blog that, There’s A New DivHut In Town and was very touched by all the well wishes and nice comments left celebrating this happy occasion. Of course, the point of this post is not to simply make mention of baby DivHut turning one, rather a showcase for Starting A Dividend Growth Portfolio At Birth and highlighting baby DivHut’s 2015 dividends as well as portfolio update.
Well before baby DivHut was born I knew I wanted to create a dividend growth portfolio in his name. Happily, Mrs. DivHut was fully on board with the idea and within a few months of his birth we established a custodial account in his name. Following my own tenets of investing and not trying to time the markets I wanted to put capital to work as soon as possible and begin building his portfolio of passive income earners. With that being said, I am happy to announce that:
Dividend income from his custodial account totalled $62.04 for 2015.
Not a bad start for the little guy considering it wasn’t even a full year of investing. So far in the first two months of 2016 his dividend totals are $14.99. Of course, I expect him to smash his 2015 income total. It will be very fun to watch his passive income grow over the years and see what can develop over the course of two or more decades.
|Symbol||Description||Quantity||Cost Basis||Market Value||Cost/Share||Gain or Loss|
|EMR||EMERSON ELEC CO COM||36.4183||$1,891.30||$1,840.95||$51.93||(-$50.35)
|ITW||ILLINOIS TOOL WKS INC||6.1156||$508.66||$593.58||$83.17||+$84.92
|JNJ||JOHNSON & JOHNSON||8.1932||$818.17||$877.82||$99.86||+$59.65
|UL||UNILEVER PLC - ADR||12.9061||$510.46||$569.68||$39.55||+$59.22
|VFC||V F CORP||14.6862||$1,009.64||$958.27||$68.75||(-$51.37)
|YUM||YUM! BRANDS INC||14.1696||$1,063.92||$1,087.66||$75.08||+$23.74
|Total: $6,983.71||Gain or Loss: $201.92|
As you can see above, baby DivHut’s portfolio skews heavily towards industrial names. No doubt, this portfolio is not complete by any means as I am looking to add more diversification from the consumer staples and health sectors. Names that I am considering adding to his portfolio in the coming months/years include, in no particular order, General Mills, Inc. (GIS), Pepsico, Inc. (PEP), The Coca-Cola Company (KO), The Procter & Gamble Company (PG), Colgate-Palmolive Co. (CL), Archer-Daniels-Midland Company (ADM), Becton, Dickinson and Company (BDX), Abbott Laboratories (ABT), W.W. Grainger, Inc. (GWW) and Kimberly-Clark Corporation (KMB).
What do you think about creating or contributing to a dividend growth portfolio for your child or other young relative in your family? I’d love to hear your own suggestions for selecting individual stocks as well as sector allocation ideas.
Disclosure: Long all above