Portfolio Update – February 2015

The market in month of January was down by 2.96% (ETF: SPY) with a fair amount of volatility thrown in. It looks like volatility is becoming a new game in the town. The moody market never goes straight up or down but over long period, direction of market is up and will reward patient investors.

The month of January remained a busy month for me, though, I was not expecting this way. I allocated my capital in Unilever plc (UL) and initiated 15 positions in UL and at current yield of 3.05%UL will add $19.80 annually to my passive dividend income. This will push me closer to being financially independent in 12 years.

My DRIP Portfolio was active in January, 2015 and below positions were initiated/added:

Colgate -Palmolive Inc. (CL): 7.8 ($550)
IBM (IBM): 3.19 ($500)
Phillip-Morris (PM): 2.35 ($200)
The Clorox Corp. (CLX): 1.31 ($150)
AbbVie Inc. (ABBV): 2.3 ($150)
Verizon Comm. Inc. (VZ): 3.17 ($150)
Chevron Corp. (CVX): 0.88 ($100)
Royal Dutch Shell plc (RDS.B): 1.42 ($100)
Exxon Mobile Corp. (XOM): 0.55 ($50)

I sold 10 positions in iShares Emerging Mkts. ETF (DVYE) as dividends were drastically cut. This will result in reduction of passive dividend income by about $7.50 and was my first sell of this year in first month itself, as compared to last year where I sold only one security, ARCP. Now, I’ve completely exited from ARCP.

The lesson learned is that a longer dividend history of a company is a must and good quality of that business is paramount in building a long-lasting portfolio, just like high-rise building needs to have a good basement foundation on which to stand tall.

Currently, I’ve got 4 Portfolios: DRIP, HID1, HID2 and a recently added Roth IRA account. New capital is distributed across these 4 portfolios in both taxable and tax-free accounts so that I’ve freedom to enjoy my passive dividend income whenever they are able to cover all my expenses. I also contribute towards 401K account in order to get employer’s match and help lower taxes as well.

My total portfolio value at the end of January is $59,274.97. It was a slight increase of 2.42% over last month of December Portfolio value of $57,869.03. This was mostly due to addition of capital in UL and DRIPs in CL, IBM, PM, CLX, ABBV, VZ, CVX, RDS.B, and XOM.

Last year 2014, I crossed a very important and big milestone for me, i.e, crossing half-mark across a 6-figures portfolio size. 

Thanks for reading.

Full Disclosure: Long on the above mentioned securities, except for ARCP.

6 thoughts on “Portfolio Update – February 2015

    1. Hi Nuno,

      The small purchases are mostly made in my DRIP portfolio where I can invest small amounts at either a fixed interval or sometimes in a particular time window. Some brokerages will either make free trades or charge a very small amount of commissions like Loyal3, Sharebuilder, Computershare, or even deep discount brokerages like tradeking, scottrade, trademonster, and many others.

      Thanks for stopping by and asking.

  1. Mavericks,

    Nice job and great companies you’ve been entering into. You’ll be crossing that 6 figure mark in no time flat, with a great dividend income stream to boot. Keep at it and stay consistent!

    -Lanny

    1. Hi Lanny,

      Ha! When I hit 6 figures portfolio value, that will really a big milestone worth celebrating in style with champagne 🙂 Appreciate the kind words.

      I’ve tried to stick to great companies even more this year, after the debacle of ARCP and diversifying across few more sectors like technology, financial and healthcare.

      Thanks for stopping by!

  2. Looks like you have a good solid plan here! Sticking to companies with high quality history has been the key for me as well. Get in the technology and financials, there are great stocks there! 😉

    1. Hi DivGuy,

      Yeah. I’ve few securities in my taxable account that I consider higher risk than I would like to take: some REITs. To balance the risk, I’m now adding high quality.

      I’m extra cautious on technology and financial companies and highly selective. In fact, IBM was my first tech company to buy here and there are no financial company yet, but, contemplating some Canadian banks as they appear more rock solid.

      Thanks for stopping by!

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