2016 was the year I discovered two things that are taking shape in my financial life. One is the path for Financial Independence that is achievable in a short period of time if we just focus and Dividend Growth Investing.
I am now extremely hungry for both FI/RE and Dividend Growth Investing. I have cut down my expenses, low hanging fruit without changing a whole lot.
This blog/journal will help me achieve and keep in sane so I can look back and see the achievements that I have done.
Notable financial things that happened in 2016
- Second home purchased
- First year of First Property be 100% rented/occupied
- Discovered the power of Dividend Growth Investing
- Read 10 more books than 2015
- Finished the year with $41,963.18 in taxable brokerage account that will produce about $1,503.90 in yearly dividends.
- Started side gigs to generate extra capital to invest in taxable account
2016 I can say was a good year in terms of savings. I started saving aggressively into the taxable brokerage account adding a monstrous $37,644.92 in new capital, an average of $3,137.08 a month. I hope that 2017 will continue to bless me in ways that I can not even imagine.
XIRR return for the portfolio currently sits at 16.64% and since the inception has generated $401.87 in dividends, 2017 will crush that.
Dividends Received Since taking changing focus from speculative to long term investing into good Dividend Growth Companies.
As you can see, the portfolio really started to take shape after September when the second stage of transformation happened. Hopefully I can continue to contribute at such levels God willing in 2017.
I continued to add to existing positions for December and opened new positions.
- OHI (38 stares @ ~$30)
- JNJ (7 shares @ ~$110)
- MA (2 shares @ ~$103)
- CSCO (12 shares @ ~$30)
- and other smaller additions.
Goals for 2017
- Double current savings rate to at least $6,000/monthly average.
- Finish the year with at least $150,000 in taxable brokerage account. That means I need about $108,000 from where I am now if there is 0 growth in 2017.
- Generate at least $40,000 in side income
- Go on a trip to Asia with the Wife.
2017 will definitely be more active on this blog. See you at the other side 🙂
Thanks for reading.
– Div Tech Guy
The beginning of December has been a rocky start for tech stocks. Visa is part of XLK which is the Technology Sector SPDR. It has taken a hit while other financials have climbed to record highs. While this is good news for us long term investors, we take every little opportunity to add on to the Portfolio War chest as a CORE holding.
Visa (V) is a leading global technology company that connects consumers, merchants, banks, and governments with the use of its global electronic payment network. Visa’s primary revenue stream comes from personal consumption expenditures.
I like toll collectors, businesses that make a little bit of the top at every transaction and V is the perfect toll collector. We are currently part of a transition from a cash economy to an electronic forms of payment. This explains why in the past 5 years, Visa was able to grow revenues at a double-digit rate, although global personal consumption expenditures only grew at approximately 3% per year.
Visa for me is a no-brainer and the reason its one of my largest holdings in my Dividend Growth Portfolio, sitting at 4.75%. The long-term growth prospects make it a great buy, hold, and forget investment. With all the recent decline, this is definitely a great time to be a shareholder.
Here is a glimpse of the latest dividend increase for Visa, which was 17.86% to be paid on Dec 6th.
Disclosure: long V, DFS
November has been a crazy month. First there was the big dip during the election over night, then a quick recovery and into positive territory.
It was a big shopping month where I added to a bunch of existing positions.
- and a few others
Since I use Robinhood to invest, I can add small positions and not have to worry about commissions, its always 0% of my investment.
November had also a few other nice little surprises with Dividend Increases.
- MSFT increased 8.33%
- MO increased 7.96%
- LMT increased 10.30%
- EMR increased 1.05%
- AFL increased 4.88%
- V increased 17.86%
- TXN increased 31.58%
- CVX increased 0.93%
- SBUX increased 25%
- MCD increased 5.62%
I track income two ways, average monthly income if I spread all the dividends and monthly income from dividends alone.
Dividend Income: $46.21
Average Monthly Income: $110.77
These figures don’t include amounts from Roth IRA since I’m planning on retiring early and those funds wont be accessible for my day to day expenses.
Since the beginning, my ultimate goal that has always been in the back of my mind is total Financial Independence so my wife and I can travel the world.
We started investing and saving a large portion of our income at the beginning of the year. As of today, we are saving on average $4500/month on track for 2028 for total FI to have the portfolio produce enough income to support us with dividends. We are also investing on Dividend Growth Stocks with a long track record of paying dividends and increasing them over time.
We are cutting back on things that we don’t need in the house such as Cable TV and any little bucks that we can scrape here and there or savings from coupons, we transfer to our brokerage account so we can purchase stocks as they come on sale.
Current Stats: (Does not include Roth IRA as it will not be usable if we retire early)
- Monthly Portfolio Income $100.48*
- Current Portfolio Size: $34,515.33*
I’ll start doing a financial update on the end of each month to document my progress and keep me in check.
October has been one of the wild rides and been just chugging along and buying everything that is on sale that money can buy so I can start opening positions.
Dividend Income for October $23.45
Portfolio Size: $26,880.72