Dividend Portfolio Update - April 2023
Adding Great Companies at a Great Value
“Price is what you pay, value is what you get.” - Warren Buffett
This quote from the king of investing can be boiled down into simpler terms-
Price does NOT equal value.
And if you’re a dividend investor, that is phenomenal news.
Adding companies to my portfolio whose value is lower than their current trading price, and also have a commitment to increasing their dividend payouts overtime is the goal for my portfolio.
And while I’m technically still in the beginning stages of creating this portfolio, I believe it’s off to a pretty good start.
The S&P500 had a great month in April, finishing up a little over 5%. (All data is provided via Seeking Alpha, which you can get for 58% off here).
My portfolio saw a nice boost as well, as I am now up 8.63% overall.
One position that really pushed my portfolio upwards this month was Microsoft. This was a result of a great earnings report from Microsoft, which included (as compared to the corresponding period of last fiscal year):
Revenue was $52.9 billion and increased 7%
Operating income was $22.4 billion and increased 10%
Net income was $18.3 billion and increased 9%
Diluted earnings per share was $2.45 and increased 10%
This is the second largest position in my dividend portfolio, now making up around 14% of my portfolio.
Now let’s get into the fun stuff. I added capital to three existing positions in my portfolio this month:
Schwab U.S. Dividend Equity ETF ($SCHD)
Texas Instruments ($TXN)
Bank of America ($BAC)
These companies have decent starting yields of around 3.6%, 3%, and 3%, and they all have a GREAT history and commitment to increasing their dividend payouts overtime.
These added positions have also boosted my average monthly dividend income to $192 per month. Last month was my highest month of dividend income ever at $216.32. This month was an expected slight drawback, paying me $156.13.
As you can see from my historical monthly dividend income chart above, my dividend income monthly continues to trend up. My expected yearly dividend income continues to climb closer $2,500 as well!
In an effort to continue to reduce the number of total holdings in my portfolio and to make sure that my holdings align with my dividend growth strategy, I sold one positions this month, which was AT&T ($T).
I didn’t have much capital tied up in AT&T, but it was one of the higher yielding positions in my portfolio. I was up around 7% on this position when I decided to sell. Long term, I don’t see enough potential for growth to justify this position in my portfolio.
All of these moves are made in an effort to push me closer to my goal of achieving financial freedom by being able to live off dividend income. Thanks for following along on that journey and if you aren’t already, I hope you will join me soon!
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That’s a wrap on this months update! Let me know if you have any thoughts!
Link to download my spreadsheets:
https://www.patreon.com/dividendology
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