DGP: 2020 Second Quarter Performance Charts

Summary

Normalized performance for my 4 real money DG portfolios.
Normalized results assumes $10,000 was invested in each option.
Since inception, no funds have been added or withdrawn (all dividends were reinvested in some company, but not always the company that paid the dividend).
Results for each portfolio are compared to DJI, SPY, S&P 500 Total Return (SPY with dividends reinvested), and in some cases CEF (a gold/silver fund, and a proxy for precious metals).
Results are as of 30 June 2020.

After completing my end-of-quarter reports I thought I'd share a summary of all four portfolios. What follows are normalized results.

I see each portfolio as a real-time, real money, non-repeatable experiment ... despite the fuzziness that entails, I continue to learn.

DGP-1:

Portfolio inception: 31 March 2011 (after market close).
Date fully invested: 31 March 2013 (chart starts with fully invested date).
Funding source: TSP to tIRA rollover.
Companies (current): 52: BDX, BNS, BTI, CAH, CASS, CBRL, CLX, CM, CVS, D, DLR, ED, EMR, ES, FAST, FLO, GIS, GWW, HAS, HRL, JNJ, KMB, KMI, KTB, LMT, LOW, MCD, MDT, MO, NNN, O, OGE, PEP, PG, PM, QCOM, SO, T, TGT, TROW, TRP, TXN, UGI, UNP, VFC, VTR, VZ, WEC, WELL, WPC, WTR, XOM
Summary: Actively managed, no additional contributions, no withdrawals.
Metrics: 5-year weighted Beta: 0.68; dividend yield 3.97%-3.99%; organic div growth rate: 7.02%; weighted div safety score 74.
Most recent published report: DGP-1: 2020 First Quarter Review

DGP-1 Normalized Performance, 31 March 2013 to 30 June 2020.

DGP-1 Super Sector Allocation.

October 2022 Update

DGP-1 Normalized Performance, 31 March 2013 to 31 October 2022.

At the end of October, DGP-1 had 68 holdings: ABBV, AMT, ASG, BCX, BIP, BNS, BST, BUI, CAH, CASS, CCI, CEF, CLX, CM, CVS, D, DLR, DNP, DUK, ED, EMR, ES, EVRG, FAST, FLO, GIS, GLW, HRL, INTC, JNJ, KMB, KMI, LMT, LOW, MCD, MDT, MO, NEM, NNN, O, OGE, PBA, PEP, PG, PM, PRU, RFI, RY, SJM, SLF, SO, SRUUF, T, TD, TGT, TROW, TRP, TU, TXN, UGI, UNP, UTF, UTG, VZ, WBD, WEC, WPC, XOM

DGP-2:

Portfolio inception: 31 August 2014 (after market close).
Date fully invested: 31 August 2014.
Funding source: existing (conversion) ROTH.
Companies (current): 21: BNS, BTI, CSCO, D, DLR, ES, GIS, KMI, MDU, MO, NNN, O, OGE, PEP, PFE, SO, T, VZ, WEC, WPC, XOM
All companies are targeted as full basis - except KMI which is targeted as half basis.
Summary: Actively managed, no additional contributions, no withdrawals.
Metrics: 5-year weighted Beta: 0.59; dividend yield 4.60%-4.65%; organic div growth rate: 7.48%; weighted div safety score 70.

DGP-2 Normalized Performance, 31 August 2014 to 30 June 2020.

DGP-2 Super Sector Allocation.

DGP-3:

Portfolio inception: 31 August 2014 (after market close).
Date fully invested: 31 August 2014.
Funding source: existing (contributory) ROTH.
Companies (current): 20.
Targeted full basis (20+ years of div growth): ADM, IBM, KO, MCD, MO, O, PEP, SO, TGT, TROW, WPC
Targeted half basis (less than 20 years of div growth): BTI, D, DLR, GIS, LNT, OGE, PM, WEC, XEL (will be adding at least two companies)
Summary: Actively managed, no additional contributions, no withdrawals.
Metrics: 5-year weighted Beta: 0.67; dividend yield 4.01%-4.06%; organic div growth rate: 6.17%; weighted div safety score 71.

DGP-3 Normalized Performance, 31 August 2014 to 30 June 2020.

DGP-3 Super Sector Allocation.

DGP-4:

Portfolio inception: 31 Dec 2017 (after market close).
Date fully invested: 31 Dec 2017.
Funding source: existing taxable account.
Companies (current): 15: AFL, AJG, AMNF, DUK, HRL, JNJ, KO, MCD, MSFT, O, PFE, PM, RPM, T, XOM
Summary: Passively managed, dividend investment only, no additional contributions, no withdrawals.
Metrics: 5-year weighted Beta: 0.73; dividend yield 3.36%-3.38%; organic div growth rate: 5.33%; weighted div safety score 72.

DGP-4 Normalized Performance, 31 December 2017 to 30 June 2020.

DGP-4 Super Sector Allocation.

Perspectives on Performance

One of the reasons I run different portfolios is to get a feel for how different DG investment techniques perform ... which implies I should -in some fashion- compare the results.

The following charts attempt to do that.

I created DGP-2 and DGP-3 after close of business 31 August 2014. The following chart shows the relative performance of DGP-1, DGP-2, and DGP-3 assuming I'd invested $10,000 in each on that date.

I created DGP-4 after close of business 31 December 2017. The following chart shows the relative performance of DGP-1, DGP-2, DGP-3, and DGP-4 assuming I'd invested $10,000 in each on that date.

To keep things interesting, I also compare portfolio results to the Dow Jones Industrial Average, the SPDR S&P 500 ETF Trust, the S&P 500 Total Return index, and CEF (the Sprott Physical Gold and Silver Trust which I use as a proxy for precious metals). In each case the results are normalized by assuming I invested $10,000 in each on the start date.

From inception until early 2019, DGP-2 held 25% to 33% of its total value as shares of CEF.

Observations

During the (very long pre-COVID-19) bull market DGP-1 has roughly matched the S&P 500 Total Return index, sometimes a bit ahead, and at other times a bit behind.
In the last 2-1/2 years, DGP-3 performed better than expected.
In the last 2-1/2 years, due to the COVID-19 recession, CEF did best ... but if measured from August 2014, it significantly underperformed.

Notes

On Yahoo! Finance:

the Dow Jones Industrial index is ^DJI;
the SPDR S&P 500 ETF is SPY; and
the S&P 500 Total Return index is ^SP500TR

Analyst's Disclosure: I/we have a beneficial long position in the shares of ABBV, ADM, AFL, AJG, AMNF, AMT, ASG, ATVI, BCX, BIP, BNS, BST, BUI, CAH, CASS, CCI, CEF, CLX, CM, COST, CSCO, CVS, D, DLR, DNP, DUK, EBAY, ED, EMR, EOG, ES, EVRG, FAF, FAST, FLO, GIS, GLW, HD, HRL, IBM, INTC, JNJ, KMB, KMI, KO, LMT, LOW, MA, MCD, MDT, MDU, MO, MSFT, NEM, NNN, O, OGE, PBA, PEP, PFE, PG, PM, PRU, PYPL, RFI, RPM, RY, SJM, SLF, SO, SRUUF, T, TD, TGT, TROW, TRP, TU, TXN, UGI, UNP, UTF, UTG, V, VZ, WBD, WEC, WMT, WPC, XEL, XOM either through stock ownership, options, or other derivatives.

All four portfolios are real money and part of my retirement plan. In 2020 I added a fifth portfolio to which I add cash every quarter.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.