🚀 Adding a New Position to the Dividend Growth Portfolio!
Inside the Dividend Growth Portfolio 💎
Today, we are adding our 5th position to our Dividend Growth Portfolio.
While the Dividend Growth Portfolio is still in its early stages. I’m quite excited about the way our portfolio is shaping up.
Before the addition we made to the portfolio today, here’s how the portfolio was shaping up:
However, after today’s addition, our portfolio gets fundamentally stronger.
On top of this, the valuation of our portfolio drops even lower from a price-to-earnings-growth perspective.
In a market that many would argue is overvalued, we’ve been able to add positions to our portfolio that:
Are fundamentally healthier than the S&P 500
Are growing revenues and EPS at a faster rate than the S&P 500
Trade at a more attractive valuation than the S&P 500
And of course, our portfolio has a higher yield than the S&P 500 while growing dividends at a substantially faster rate.
Our last addition to the portfolio was made in April, and that position is up over 30%!
While it’s fun to see gains in a short period of time, in reality, it means very little.
I’m far more concerned with the quality of the portfolio, and the evolution of the intrinsic value of the underlying holdings in the portfolio.
Let’s review the goals for our portfolio.
🧩 The Portfolio
As a reminder-
The goal of the Dividend Growth Portfolio is simple:
To achieve dividend income growth of 7–10%+ annually, while maintaining capital appreciation in line with or better than the S&P 500 over a full market cycle.
Achieving the above goal would allow us to take full advantage of all of the benefits of dividend growth investing, which you can see here.
Members of Dividendology will be able to view all the holdings of the Dividend Growth Portfolio on Dividendology.com.
💰Our New Buy
The stock we’re adding to our portfolio today has many attractive characteristics, such as the fact they:
Are projected to grow EPS at a high double digit rate annually over the next 3 years
Are trading at a PEG ratio substantially below the S&P 500
Are growing dividends at a double digit rate
It meets the quality criteria, while also trading at an interesting valuation.
This is the fifth purchase for our Dividend Growth Portfolio.
If you haven’t joined already, you can get access to everything pictured below here:
Now, let’s dive into our fifth Dividend Growth addition…