October 2015 – Dividend income and portfolio update

I’m carefully climbing into my hot tub time machine to re-visit October, as I’m recovering from surgery. I usually have to be at death’s door before going to the doctor’s but in this case it all resulted from a simple skin examination and a suspicious mole on my back. So I can’t stress enough the benefits of annual exams and being proactive about your health.

After that public service announcement, let’s see what October brought. As usual we’ll start with income first and then go over the portfolio allocation.

Dividend Income

My total dividend income from my portfolio in October was $343, a decrease of 63% compared to September’s $919. The decrease is expected since the stock funds in my portfolio paid their dividends last month and won’t pay until again until December. In October 2014, I earned $295; a more useful comparison giving an increase of 16% over the same time last year.

The following chart shows the cumulative dividend income so far this year compared to previous years.

My total income at this point in the year is just a little below last year’s December’s total. My year end target of $5,850 is an easy reach from here.

Income breakdown

The chart below shows what contributed to my total income of $343 this month.

I received income from individual stocks as well as from my two Vanguard mutual bond 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 but their yield is higher.

My Income Portfolio

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

My Portfolio 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 two percentage points from last month as the bond value dropped quite a bit and I’ve been adding new capital only to the stock components. Cash is also down one point.

Asset Allocation

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

Portfolio Performance

Overall this month my portfolio decreased by $11,136 to $213,813, an increase of 5.5% from last month’s $202,677.

In September I added $2,164 of new capital to my portfolio as a mixture of cash and stock purchases. I added $206 to my cash reserves, added $728 of new shares, $800 of VHDYX and $250 of VTIAX. My stock purchases were 10 shares of TROW.

Since the overall increase in portfolio value was $11,136 and I added $2,164 of new capital, this implies a real market increase of $8,972 or about 4.4%.

Thanks to a strong stock market performance this month, my portfolio is now $38,947 higher than at the start of the year and the dividend income continues to increase.


Quote of the Day

Health is not valued till sickness comes.

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