Even though I have been building this portfolio for 18 months, I haven’t publicly released the results until now. I’m opening the website, groundupdividends.com to help you, the novice or even experienced stock dividend investor build your portfolio. I’m not about to present myself as the great know-it-all as I am learning, too. But, I have had good results with what I have done in the past year and a half and I want to pass it along to you, too.
The Ground Up Dividends (GUD) portfolio consists of 29 stocks, 26 of which are dividend payers, 3 are not. The 3 non-dividend payers are in the portfolio for a good reason. They are there to build wealth and grow the bottom line. The 3 stocks are Google (GOOGL), Amazon (AMZN) and Facebook (FB). These have had extraordinary runs while I’ve owned them and I expect them to continue good growth for some time. Otherwise, the GUD portfolio consists of the following stocks:
- Abbvie, Inc (ABBV)
- Boeing (BA)
- BGC Partners (BGCP)
- Bank of Nova Scotia (BNS)
- Chatham Lodging trust (CLDT)
- Consolidated Edison (ED)
- Franklin Street Properties (FSP)
- Goldman Sachs Group (GS)
- HCP, Inc (HCP)
- Johnson & Johnson (JNJ)
- The Coca-Cola Co (KO)
- Lockheed Martin (LMT)
- Main Street Capital Corp (MAIN)
- McDonald’s (MCD)
- Altria Group (MO)
- Merck & Co (MRK)
- Microsoft (MSFT)
- Realty Income Corp (O)
- Omega Healthcare Investors (OHI)
- Proctor & Gamble (PG)
- Starwood Property Trust (STWD)
- AT&T (T)
- Verizon (VZ)
- Wal-Mart (WMT)
- WP Carey, Inc REIT (WPC)
- Exxon Mobile (XOM)
There have been other stocks that I sold during this period like Ford (F), Mattel (MAT) among others. Pruning is a good thing and dividend income isn’t the only thing to consider when building your account.
Over the past 18 months, this account has grown from $84,195.32 to a current value of $104.780.34. This represents an increase of $18,713.87, a 21.74% increase. During all of 2016 and a couple of months of 2017, I re-invested dividends but as of March, I started going to cash payments into my account to accumulate some “dry powder” for future purchases. Currently, there’s $4,156.04 in cash for future purchases.
This portfolio is expected to produce $3,625 in annual income in 2017. 2016 actual dividend income was $3,213. This represents an increase of 12.8% over 2016. Yield on Cost sits at 5.01%. The dividend payments increased 8.49% since inception in January 2016.
Other than Amazon, Google and Facebook, the best preforming stock in this portfolio is Microsoft, up 37.9% since I added it to the portfolio. I didn’t add MSFT until in the middle of the year (2016) and it has done very well since. There are 5 other stocks that are in the 30% return but Microsoft edged them all out.
Actually, there is only 1 stock than has not made a profit (on the stock price only, not counting dividend re-investment). That stock is Goldman Sachs. I purchased that stock this year (2017) and it was right before the recent downfall of financials. It will come back. Goldman Sachs is the death star of financials – I’m sure of it!
Take a look at the GUD portfolio yourself, here.
I would love your comments regarding the GUD portfolio. Let me know what stocks you like in it and which ones you don’t. Any suggestions about what other stocks you would recommend. Remember, if you suggest a stock, make sure to say why.
In future posts, I’ll let you know why I chose these stocks and what my guidance is on how I pick stocks.
In the meantime, I wrote a free course for you to go through that explains this dividend investing stuff and the workings of it all. It also talks about how to prepare yourself for investing as well as lead you through the steps of the process of buying the right stock for your portfolio.