Dog Days Of Summer Portfolio Update

by: Derek Getz


Portfolio continues to chug along despite making no trades in August.

Income continues to steadly grow.

Looking forward to a monster income month in September.


This is my August 2016 portfolio roundup capturing everything that happened over the last month. This edition is going to take on a slightly different note as I didn't do any trading this month! Additionally, I found out that my 401k plan is being moved to a different provider.


Here are my yearly goals and tracking how I have progressed towards them.

  • Projected dividend income > $4,000. COMPLETE
  • > $100 in dividends received each month.
  • >= inflation rate of dividend growth (goal set at 2% this year) now set at 30%. (Currently at 27.88%)

Goal 1

I accomplished this goal in July! This month I by sheer compounding alone I added $7 of projected income, nothing to slouch at for doing absolutely nothing additional to earn it. For the year right now I'm looking at $4165.

Goal 2

I previously mentioned this is no longer a goal and falls in the "nice to have" bucket.

Goal 3

After having upped this goal from 2% ((NASDAQ:HA)) to 30% I am close to hitting the mark. It will take a little more buying to accomplish this. I won't specifically buy something just so I can cross this off the list. I'll still follow my process for putting capital to work.

Portfolio Changes

New Positions


Existing Positions




Dividend Increases

  • Altria increased 8% to $0.61/quarter

Dividend Cuts


As you can see, I did no trading during August. If you are wondering, no, it's not because I was too busy. Like many others, I am not seeing companies that represent a good value at this point in time.

One of the screeners I run if this one here.

Click to enlarge

Earlier this year this list was chock full of big name companies that we all know. I see that CVS (NYSE:CVS) is a recent addition here and is one I will probably do a little more research on. It has a 13 year dividend growth history.

Other than that, I have a full position right now of Target and seeing the number of articles covering them this month, I wasn't alone in seeing the value proposition.

Additionally some healthcare names are still on the list. I own both Anthem and Cardinal Health, but they still look interesting and I may add to them.

Click to enlarge

Click to enlarge

Administrative Update

So I received a letter about a week ago telling me that my self directed 401k account was being moved to a different provider. I understand that, I can't stop it, it's up to the plan administrator to handle all of that. A few interesting notes were on the letter however that got my attention.

Firstly, fractional shares will not be moved over, so I may take a backwards step in my income briefly as any fractional share will be sold. It's a little annoying that my compounding is being slowed.

Secondly, a separate Roth account will be setup. Right now I have my money about evenly split between traditional and Roth. When I first started working I really needed to take the tax benefit so I could get invested in the first place. Now that I'm married and doing a lot better than when I first started out, I switched to Roth a few years ago. I like the idea of having that money just be MINE now. I may consider doing an in plan conversion at some point, I'll have to research that a lot further. Right now I don't see a split, I just see my holdings and the money available to trade. Administratively it's also annoying because they will add all cash and then stocks alphabetically to the Roth first until the account value is fulfilled. So it looks like my Walt Disney may be in my traditional account as an example.

Lastly I'll be blacked out from trading the week of September 11th. Hopefully nothing monumental happens that week in the market.

I'm not sure as of yet whether there will be any benefits to me. There is the chance of more enhanced reporting or possibly lower trading fees but I am unsure of that yet. I called for details and was told they will send that information out in the next week or so. I do like having my current plan connected to my Mint account but I'm not positive whether the new administrator will have that capability.

Strategy Update

After having a tradeless month of August I started thinking more about indexing. How are they correlated you may ask? I am still above my desired cash allocation and I need a "default" action defined.

I revisited my assumptions made about the Schwab US Dividend Equity ETF (NYSEARCA:SCHD) that I really loved. It turns out I fell in love all over again. I went through a few of the popular dividend ETFs and this still came out on top. I love the fundamental rules based strategy that the underlying index follows. It is the closest thing I've seen to a dividend growth investor's mentality.

Anyway, that fund pays out quarterly (March, June, September, December) and the ex dividend date comes up about the 20th of those months. I set a reminder for myself every 3 months a few days prior to that to see whether it is worth adding to my ETF holdings.

I currently plan on adding more shares this month prior to my 401k blackout date.

New Rules

None this month.

Charts and Graphs

2016 Dividends

Name Ticker Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Aflac AFL 44.29 24.09
Altria MO 52.17 52.67 53.14
Amgen AMGN 10
Anthem ANTM
Apple AAPL 21.97 29.92 30.1
AT&T T 36 36.48 36.93
BHP Billiton BBL 49.14
Cardinal Health CAH 17.96
Cisco Systems CSCO 31.2
Clorox CLX 14.19 14.28 14.92
Corning GLW 16.88 16.98
Cummins CMI 50.7 31.69
Diageo PLC DEO
Duke Energy DUK 28.88 29.18
General Dynamics GD 9.12 9.17
Gilead Sciences GILD 14.1
HCP Inc HCP 80.5 53.35
Helmerich & Payne HP 53.44 54.11
Home Depot HD 15.18
Horace Mann Educators HMN 27.67 27.9
International Business Machines IBM 36.4 39.56
Johnson & Johnson JNJ 18.75 20.14
JPMorgan Chase JPM
Microsoft MSFT 9
Nike NKE 8
Occidental Petroleum OXY 31.18 31.56 31.88
Omega Healthcare Investors OHI 60
Oracle Corporation ORCL 4.5 4.52
Prudential Financial PRU 17.5
Realty Income O 3.98 4 4.01
Schwab US Dividend Equity SCHD 97.56 126.87
STAG Industrial STAG 5.79 5.82 5.85
Stanley Black & Decker SWK 6.6 6.64
Starbucks SBUX 8 16.03 16.09
Target TGT 19.6 19.73
Travelers Companies TRV 16.05 24.42
Union Pacific UNP 11
United Technologies Corp UTX 9.6 9.97
Ventas Inc. VTR 36.97 37.4
W.W. Grainger GWW 15.21 15.94
Wal-Mart WMT 17.15 17.64 17.77
Walt Disney DIS 25.56
WEC Energy Group WEC 15.12 15.25
Wells Fargo WFC 11.4
Sum 100.5 160.66 542.86 106.37 159.18 615.59 182.08 177.07 0 0 0 0
Click to enlarge

So in August I continued to plow along with $177.07 of income received. The payout beat the May payout by 11% due to a higher payout from Omega Healthcare (bought with proceeds from selling HCP) and starting to get the monthly dividends from both Realty Income and STAG Industrial.


I'm still pleased with my growth metrics, the year over year growth was 78% which is awesome. After September I'll see updated quarter over quarter growth which I expect will be in the range of 10%. Lastly looking at my projected yearly income I am getting close to my 30% goal, sitting at 27.88% right now.

The Portfolio

Click to enlarge

This month I added an additional columns for the shares I actually purchased. It's not incorrect per se, but my "price/share" column was being discounted by the reinvested shares. I just wanted to keep tabs on what I actually spent per share but my yield on cost figure still accurately represents the power of compounding.

Some holdings like Altria you can see that I've held longer and the compounding is quite strong. My personal yield on cost is close to 7% which is exciting!

As I've mentioned in past articles, this does not include my non dividend paying companies. I own Facebook, Amazon, Google, Berkshire and Under Armour. Each of them roughly has a position size in line with any one here.

I still have limit sell orders on Occidental Petroleum, Helmerich & Payne and Clorox. I'd prefer to reduce my exposure to the oil & gas industry but I will wait until my price hits. Clorox in my mind is incredibly overvalued for it's growth prospects, so I have a price set that I am willing to take a nice profit on. I would have considered selling but as noted I still have a large capital allocation so it wouldn't be a great move until my cash was low.

Like I mentioned above, I will probably add more shares to my SCHD holding, I'll probably add 100 to make it a nice even 500 shares.

Income by Sector

Here's how my income by sector looks:

Click to enlarge

This chart is virtually unchanged from last month due to my lack of trading. Only fractional moves occurred due to dividend reinvesting.

I am still happy with my allocations between the sectors so I have no qualms here.

Champion, Contender, Challenger View

The CCC view is again unchanged, no new positions entered the portfolio. I think this view is paramount as a cross reference that companies I add are of high quality with a long track record of success.

Click to enlarge

The Portfolio

The portfolio now contains the following companies: AFLAC (NYSE:AFL), Altria (NYSE:MO), Apple (NASDAQ:AAPL), Amgen (NASDAQ:AMGN), Anthem (NYSE:ANTM), AT&T (NYSE:T), BHP Billiton (NYSE:BBL), Cardinal Health(NYSE:CAH), Cisco Systems (NASDAQ:CSCO), Clorox (NYSE:CLX), Corning (NYSE:GLW), Cummins (NYSE:CMI), Diageo (NYSE:DEO), Disney (NYSE:DIS), Duke Energy (NYSE:DUK), General Dynamics (NYSE:GD), Gilead Sciences (NASDAQ:GILD), Helmerich & Payne (NYSE:HP), Home Depot (NYSE:HD), Horace Mann Educators (NYSE:HMN), International Business Machines (NYSE:IBM), Johnson & Johnson (NYSE:JNJ), JPMorgan Chase (NYSE:JPM) , Microsoft (NASDAQ:MSFT), Nike (NYSE:NKE), Occidental Petroleum (NYSE:OXY), Oracle Corporation (NASDAQ:ORCL), Omega Healthcare Investors (NYSE:OHI), Prudential (NYSE:PRU), Realty Income (NYSE:O), Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD), STAG Industrial (NYSE:STAG), Stanley Black & Decker (NYSE:SWK), Starbucks (NASDAQ:SBUX), Target (NYSE:TGT), Travelers Companies (NYSE:TRV), Under Armour (NYSE:UA), Union Pacific (NYSE:UNP), United Technologies Corporation (NYSE:UTX), Ventas Inc. (NYSE:VTR), W.W. Grainger (NYSE:GWW), Wal-Mart (NYSE:WMT), WEC Energy Group (NYSE:WEC) and Wells Fargo (NYSE:WFC).

To Do And Conclusion

I think my portfolio continued to perform strongly through August and I look forward to adding some more shares in September.

Finding value is still a challenge but opportunities always come.

What do you think? Let me know some feedback in the comments below.

Disclosure: I am/we are long ALL STOCKS MENTIONED.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.