Its been a long time since my last update as I was busy with work and personal life. The 2016 year has come and gone and my portfolio as grown quite a bit since then.
The biggest decision that I’ve made in 2016 was to sell my gold mining stocks for a profit. After the peak prices at the end of 2016, there was a sharp drop which inclined me to unload my gold and silver miners for a hefty profit. I used those profits to take new positions in three companies in the taxable account. Those companies include, SJM (Smuckers), MKC (McCormick), and CHD (Church & Dwight).
I decided that I could not stomach the volatility of the precious metal price fluctuations anymore, so I decided to stick with my goal of slowly accumulating shares of high quality companies that pay dividends. I am usually an impatient person but dividend growth investing has the best strategy for someone like me. Below is the list of the three new companies in my taxable account!
Not only has my taxable account grown since my last blog update in July of 2016 but my 401k has grown as well.
The 401k account has grown from $7,525.52 to $11,928.66! This is a brokerage link account from Fidelity that my employer offers. My company matches 100% up to 6% of my salary, so I contribute the full 6% to my 401k. The match from my company is the amount that I transfer into my brokerage link to build my dividend portfolio. The other half I keep in an index fund.
I’ve also added many companies that I already own in the taxable account in the 401k. I try to find new companies and differentiate them but these companies are so solid that I don’t mind having them in a tax advantage account. My plan is to have no more than 15-20 companies in the 401k account. The taxable account will be limited to no more than 30-35. It would be fun to compare the progress of each portfolio based on the number of companies. I say this because some people believe that concentrating on less number of companies will have the highest return overall, but only if you choose the right companies. It could however backfire if you choose the wrong companies since you have less in the portfolio to be well diversified. But that is another debate, perhaps for another time. Only thing I can do is test this theory out myself.
There is another portfolio addition to this blog and it is my fiance’s IRA portfolio. She started her portfolio just around the time I made my last blog update in July 2016. She contributes a few hundred dollars into this account and maxes it out at the end of the year ($5,500) and her portfolio has already amassed $8,932.79! It is fun watching the three portfolios accumulate dividends every month, especially knowing that we will use these three accounts to retire in the future.
Its already the end of January of 2017 and I’m already ahead in dividends compared to last year. To be fair the 401k and Suzie’s IRA did not receive any dividends but the taxable account as already grown more than 53%! It will be an exciting year and I already cannot wait until 2018.
There you have it for the first month of 2017! It will be an exciting and interesting year as I can compare against 2016.I will have to set new goals as well.