My holding period just increased

3 months ago:

What have changed?
  • My $VOO trades has been reflected - 30 trades per month
  • Concentrated my position - removed $NUSI, $STAG, and $MMM
  • Initiated position in $HD
  • Traded 30% of $VICI for 15% profit
  • Doubled down in $U (hopefully bought and DCAed the dip) - resulting top 10 position % increment
  • Holding period increased from 7.6 months to 10 months thanks to long term holdings like $AAPL, $MSFT, $COST, $O and $NRZ

Future plans:
  • Increase holding period to 1 year+
  • Decrease the top 10 holding concentration and buy more into $HD and $WM
  • Keep 30 trades per month (buy $VOO daily)
  • Keep open position close to 15
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This is awesome - thanks for sharing!

Concentrating a portfolio is hard work.
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Why I like dividend growth investing and you might too...
I have been a dividend investor for more than 20 months now and I was able to build a portfolio of over $350,000. Now the portfolio is hovering around $300,000. YTD my portfolio is down around 13% and wrecks my heart as my portfolio is going down everyday. There are times people in finance attack dividend growth investing at times for its focus on companies that payout dividends, and as it is passive form of investing - today I will try to defend DGI by showing how it's relatively good in all market conditions with a brief history and strategy of my portfolio. I look towards the positive side and why I choose Dividend Growth Investing in the first place.

πŸ’Έ Dividend growth investing in every market conditions
The market can go in 3 directions and here are the scenarios and why dividend growth investing makes the best out of every conditions assuming companies that you invested doesn't cut the dividends:
  • πŸ‘‰πŸ½ Sideways: If the price stays relatively flat, we can buy more of the shares at $100, and once the sideways movement ends the compounding will be greater as we accumulated more stocks at a small price.
  • πŸ‘‡πŸ½ Downwards: Let's say if the market goes down, we still are getting the dividends from stocks that we hold. So, we can accumulate more of the dividend stock at a lesser price. We are increasing the cash flow and buying more assets.We just have to play the waiting game for the market to go to the bull run for capital gains.
  • πŸ‘†πŸ½ Upwards: Although, our reinvested money won't be able to buy as much of the asset, we have both capital gain and dividends to re-invest.
πŸ“ Brief history of my portfolio
I have been building my portfolio for few 20 months now and I have recently crossed $16k in dividends πŸ₯³πŸŽ‰. Capital gains can vanish like how it did with my $U but companies won't ask the dividends back

My portfolio link: here.

πŸ™ˆ My strategy
I have concentrated down my portfolio into 3 parts in the hopes to achieve all the possible benefits of dividends and growth of dividend growth investing.
  • πŸ’° Income: I want my portfolio to earn as much as I can, so I can re-invest as much as I can. This is possible due to covered call ETFs with high dividend yields like $JEPI, $QYLD and $BST. These 3 income ETFs yield at an average of 10.15% and has an expense ratio of 0.6% (on the higher side). They generate over 60% of my dividend income while they are 35% of my portfolio. I don't expect significant capital gain from it.
  • πŸ’Έ Cashflow: While income and cashflow are similar, cashflow category consists of monthly dividend stocks that yields at lower rates and has capital appreciation. This includes stocks like $O, $STAG, $AGNC, $NRZ. They cover around 15% of the portfolio while generating around 20% of the dividends income.
  • πŸ’— Growth: For growth in both capital gains and dividend CAGR I have stocks like $AAPL, $MSFT, $VICI, $VOO (i am planning to increase my position), $HD, $COST, $WM and $JPM. Together they make 45% of the portfolio and generating 20% of the dividends. They have a 3 year - weighted CAGR of 8.28% and average 3 year CAGR of 9.68%.

This gives my portfolio a decent place to stand. It will generate around $1,584.67 (while my cost per month are barely over $300) per month at 5%+ dividend yield (good cashflow). It also has a beta of 1.000217417 where I will be making gains similar to market (which I am happy about) and the movement lets me sleep well in the night as well (not too crazy in comparison to other individual stocks), so I can expect to make around 8ish% per year in capital gains. And, best of all the dividend CAGR is at 12%. So, I will be increasing my dividend cashflow too. This might be too conservative for some and but this gives me everything I need - cashflow and peace of mind.

Investing is like having sex - very personal. Everyone follows different strategy, and has different goals. But, every now and then it's exciting to mix things up. So, you might want to give DGI a try, you might like it...

And my final attempt to convince you to try DGI...

If this magic trick doesn't convince you, idk what will haha
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Keep accumulating and building that passive income! Doing that now when things are down is much better for you long term if you stick to it! Congrats on the substantial portfolio.
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Steve Matt's avatar
$10.4m follower assets
1 of 5
My $MKL $TYL $MCD $WM trades
New positions in my 401k. MKL and TYL for traditional, MCD and WM for roth. Will add to only these 4 companies for the next 6 401k contributions to get them to a roughly even cost basis with my other 10 positions. Then I'll resume spreading my 401k contributions evenly among the 14 positions.
$WM Shallow Dive
In my next β€œShallow Dive” I’m going to discuss Waste Management. $WM surprisingly has a very durable moat despite being a garbage company. Waste Management is a fully integrated waste-hauler and its moat benefits from regulations, economies of scale, and route density.

It is nearly impossible to open a landfill due to regulations and many smaller landfills shut down because they were unable to afford new environmental standards. In 1980, ~10,000 landfills existed, compared to 1,500 today. WM owns 268 landfills, ~45% more than the next competitor.

Waste Management is also the largest waste collection company. They have economies of scale in terms of customers and revenue. They have nearly twice the amount of revenue as RSG and three times as much as WCN.

Economies of scale and owning the most landfills enables Waste Management to have industry-leading route density. They’re more likely to have a shorter distance from their collection site to the transfer station to the landfill giving them cost advantages.

These advantages allow Waste Management to have superior ROIC over its competitors. These advantages are nearly impossible to replicate and Waste Management should continue to have ROIC above their cost of capital in the future.

I would like to hear others thoughts on $WM and the waste management industry!
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Upcoming Earnings Calendar (Jan 31st- Feb 4th)
Hey guys!

Here's the earnings calendar for next week! Here's what I'm interested in:

  • $XOM - Insights on the global oil market.
  • $GOOG - Strength of the digital ad market + growth of YouTube (since $NFLX slowed down).
  • $FB - Comments on their strategy to monetize Whatsapp (I don't expect any, but one can hope).
  • $SPOT - They recently expanded to other markets, so maybe they can maintain accelerated growth, unlike Netflix.
  • $AMZN - AWS and Advertising segment growth + impact of the increase in 3P fees.

What are you looking forward to next week?

If you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.





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Luka πŸ¦‰'s avatar
$97.1m follower assets
Today and Tomorrow, stock markets are closed.
Here are 10 Dividend Stocks you can buy on Tuesday. 🀩

$PG πŸ›οΈ
$HD 🏠
$V πŸ’³
$WM πŸ—‘οΈ
$TGT πŸͺ
$MA πŸ’³
$BBY πŸ’»
$MSFT πŸ’»

Don't plan to take action on Tuesday?
Bookmark this post for future πŸ˜‰
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