Baby DivHut's Dividend Income And Portfolio

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Includes: ABT, ADM, BDX, CAT, CL, EMR, GIS, GWW, ITW, JNJ, KMB, KO, PEP, PG, UL, VFC, YUM
by: Divhut

2015 has been a very memorable year for me as I welcomed the birth of my first child in early March. With all the uncertainty and questions that inevitably come up when becoming a first time parent, one thing I was certain of was wanting to start a dividend growth portfolio for my child. Sure enough, within a couple months of his birth I opened a custodial account in his name and began his journey as a dividend growth investor from birth.

As I stare at the calendar while writing, I am amazed at how fast the entire year has flown by and my newborn baby is now knocking on 10 months. I feel a great amount of satisfaction knowing that I am contributing to his own dividend growth portfolio and taking advantage of his greatest asset, time. Time to deal with short-term paper losses, time to deal with potential dividend cuts, but also time to allow a couple decades worth of dividend growth as well as the magic of compounding dividend returns.

With that being said, let's take a look at the companies in baby DivHut's current portfolio as well as other names I am considering and his 2015 total dividend income.

Dividend income from baby DivHut's 2015 stock portfolio totaled $62.04.

Of course, it will be interesting to see his year over year progress as time goes by.

Portfolio

Symbol Description Quantity
CAT CATERPILLAR INC 6.7158
EMR EMERSON ELEC CO COM 36.0759
ITW ILLINOIS TOOL WKS INC 6.0774
JNJ JOHNSON & JOHNSON 8.1361
UL UNILEVER PLC - ADR 12.8118
VFC V F CORP 14.6862
YUM YUM! BRANDS INC 14.0800
Click to enlarge

Sector Allocation

Sector Sector % Market Value
Industrial Products 45.18% $2,745.17
Retail/Wholesale 16.93% $1,028.54
Consumer Discretionary 15.05% $914.22
Medical 13.75% $835.74
Consumer Staples 9.09% $552.44
Click to enlarge

As you can see above, baby DivHut's portfolio skews heavily towards industrial names. Of course, this isn't by accident as the entire industrial sector got hammered in recent months only to slightly rebound towards the end of 2015. I'll admit, I jumped on board the sector a little heavily. No doubt, this portfolio is not complete by any means as I am looking to add more diversification from the consumer staples and health sectors. Names that I am considering adding to his portfolio in the coming months/years include, in no particular order, General Mills, Inc. (NYSE:GIS), Pepsico, Inc. (NYSE:PEP), The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Co. (NYSE:CL), Archer Daniels Midland Company (NYSE:ADM), Becton, Dickinson and Company (NYSE:BDX), Abbott Laboratories (NYSE:ABT), W.W. Grainger, Inc. (NYSE:GWW) and Kimberly-Clark Corporation (NYSE:KMB).

Going forward, I'll probably write these baby DivHut portfolio updates about two or three times a year as not much will change on a month to month basis with his holdings nor dividend income. Perhaps if there is interest, I can publish monthly dividend income updates for baby DivHut's portfolio too as those seem to be the most popular posts among our dividend growth community.

At the very least, this will be a real world "experiment" of sorts that can show the power of long-term dividend growth and how simply holding quality companies, reinvesting dividends and rarely, if ever, selling can create a substantial passive income stream for anyone, given enough time and patience.

Of course, comments and suggestions are always welcome regarding this real world dividend growth portfolio. I'd love to hear your own suggestions for selecting individual stocks as well as sector allocation ideas below.

Disclosure: Long all above