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 in October. The reinvestment from the sale took my portfolio value up to my Version 2 Goal of £17,500. In October's 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 December. The increase was a result of purchasing BHP Billiton, receiving above average dividends, and an increase in value in some of my shares.
At the end of November my Portfolio was worth £19,263.99. When the market closed at the end of December my portfolio was worth £20,386.78 which is a £1,122.79 increase (5.8%). This is a nice increase for me month on month. The total cost for BHP Billiton including charges were £1,042.71, and I received £71.44 in dividends. If I subtract the combination of the two from my increase I'm left with £8.64. This would suggest that my portfolio grew by this minimal amount during December.
No matter how small, an increase is an increase. It also means I'm now over my Version 3 Target of £20,000 and I'm delighted! I started 2014 with a portfolio worth £1,291.40. I've increased my portfolio to a level I wouldn't have thought possible at the start of the year. I've set a 'Freedom Fund' goal of £50,000 by the end of 2015. I wonder if I'll be able to exceed my expectations this time around?
Thank you for reading!
How was December for you? Did your portfolio increase this month? Did you hit your end of year Goals?
Labels: Portfolio Update
