My main focus as a Dividend Growth Investor is the amount of Income I receive on a monthly basis. My long term goal is to receive a yield that will surpass the cost of my expenses each month. My annual overheads are currently under £10,000 per year, and my investments average over a 4% return. By using those numbers, I would require £250,000 in my portfolio to cover all bills and spending money.
I want to keep track of the value of my portfolio each month as I go through this process. It's been motivating to see the growth of my pot since I started DGI. Recording this data has helped by raising my awareness of individual stocks and the market as a whole. I now find myself eager to invest so I can report back on the progress I've made.
I achieved one of my goals for 2014 by having a portfolio worth more than £12,000 in July. I sold some tracker funds I had in an old account, and used the money to invest in some companies last month. The reinvestment from the sale took my portfolio value up to my Version 2 Goal of £17,500. In last months Portfolio Update I announced that I would be creating Version 3, and increasing the Goal up to £20,000 because I didn't want to count the money that had been transferred.
My portfolio value went up in November. The increase was a result of purchasing Admiral Group, receiving above average dividends, and an increase in value in some of my shares.
At the end of October my Freedom Pot was worth £17,169.00. When the market closed on 28th November my portfolio was worth £19,263.99 which is a £2,094.99 increase (12.2%). This is a significant increase for me month on month. The total cost for Admiral Group including charges were £1,266.79, and I received £83.71 in dividends. If I subtract the combination of the two from my increase I'm left with £744.49. This would suggest that my portfolio grew by this monetary amount. There are a several companies that increased in November but there were a couple that performed particularly well and they were my recent purchases of Morrison's and IG Group which are now worth 11% more than what I paid for them.
At the end of October I was £2,831 off my Version 3 target of £20,000. At the end of November I'm now £736.01 short with one month to go. The increase in share value has helped immensely and I'm now within sight of the goal. I plan on making one purchase in December. If my portfolio holds its value during this month, with the support of another above average month of dividends, I should cross that mark.
Thank you for reading!
How was November for you? Has your portfolio increased this month? Are you still on track for your end of year Goals?
Labels: Portfolio Update