July 2015 – Dividend income and portfolio update

I was just sitting down to start working on my August income update when I realized I hadn’t posted July’s so I’d better get that posted first! This is the first of two posts summarizing my progress towards (or from) financial independence and describes how my investment portfolio performed in July.

Most of my portfolio is actually in Vanguard funds; the individual stock portion is steadily growing and the portfolio as a whole is slowly tilting towards individual stocks and stock funds. But first let’s see take a look at the income for July since that’s probably what you’re interested in!

Dividend Income

My total dividend income from my portfolio in June was $349, back to more typical levels after June’s record $1,083! The stock funds don’t pay dividends in July & August which is a significant portion of the portfolio. Back in July 2014, I earned $277 so this is an increase of 26% over the same time last year!

The following chart shows the cumulative dividend income so far this year compared to previous years. No significant achievements to mention this month except for the continued onward and upward progress.

I’m still “up one month” over last year in that my income so far this year exceeds the cumulative income from August last year.

Income breakdown

The chart below shows what contributed to my total income of $349 this month.

I received income from individual stocks as well as from two of my four Vanguard mutual funds.

Dividend income from stocks

9 stocks paid dividends this month as shown below.

The yield calculations are annualized, or extended forward a year based on the current dividend payment against the market value. The value amounts include contributions from stocks added after the ex-dividend date so yield shown may be a little lower than the current yield.

Dividend income from funds

I received most of my income this month from my two bond funds, VWEAX (Vanguard High-Yield Corporate Bonds) and VWESX (Vanguard Long-Term Investment Fund). These pay their distributions monthly and the distributions are taxed as normal income and not the lower qualified dividend rate. The two stock funds that I own pay quarterly income so they only show up in March, June, September and December.

My Income Portfolio

Here’s an overview of my Portfolio and how it’s made up as of the end of July 2015.

It consists of individual dividend stocks as well as 4 Vanguard mutual funds and cash. There’s not much change in the allocation from last month. The bond portion is down a percentage point from last month as I’m no longer investing in those funds.

Asset Allocation

The following table shows the detailed asset allocation in my portfolio.

Portfolio Performance

Overall this month my portfolio increased by $4,686 to $207,680, an increase of 2.3% from last month’s $202,994 and my unrealized gains increased from 4.37% to 4.64%.

In July I added $3,977 of new capital to my portfolio, including $740.85 in a new purchase of Walmart shares. In addition to that, I also purchased $1,573 of VHDYX and $700 of VTIAX via recurring automatic purchases. Finally I added $963 of new cash to my cash reserves as I’m transferring some savings into my income portfolio.

Since the overall increase in portfolio value was $4,686 and I added $3,977 of new money, this implies a market value increase of $709 or about 0.3%. Overall however my current portfolio total is now $32,814 higher than at the end of last year.


Quote of the Day

You cannot strengthen the weak by weakening the strong.

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