Dividend Empire Portfolio

This page displays the current holdings in my dividend empire portfolio. This is my dividend growth portfolio that will someday grow into a dividend empire for my descendants (read full story here).  All ticker symbols link to my initial purchase for each holding.

This spreadsheet is updated by Google Finance and may be delayed up to 20 minutes. Definitions of the various columns can be found below the portfolio. If you are having trouble viewing the dividend growth portfolio or if the portfolio does not fit in your browser you can view it in Google Docs by clicking here (except for some mobile devices).

Rules for the Dividend Empire portfolio

  1. Follow my general method for buying and selling dividend growth stocks
  2. Automatically reinvest all dividends until the portfolio generates over $500 / quarter in dividends. At that point, dividends will be selectively reinvested into existing positions or new positions that meet the criteria set in rule 1.  Note – Reinvested dividends are treated as new purchases and therefore add to the cost basis (see my post on dividend accounting).
  3. I will NEVER make a withdrawal from this account until I reach age 50, at which point I may use dividend payments to help pay for my children’s expenses (if needed)
  4. At some point, when my children reach a point where they can manage the portfolio, I will transfer all assets to them with the instructions to continue contributing to the fund for the benefit of their descendants.

Portfolio Definitions:

  • Cost Basis – Cost of the position including reinvested dividends (all dividends are reinvested).
  • Basis / sh – (Cost basis / # shares owned), basically my effective purchase price.
  • Market Value – Current market value of the position (may be delayed 20 minutes).
  • G / L – (Market Value – Cost Basis), gain or loss of the position since inception.
  • % G / L – ((G/L / Cost Basis) * 100), % gain or loss of the position since inception.
  • Weight – ((Market Value of position / Market Value of portfolio) * 100), position’s percentage of the portfolio.
  • Div / sh – Most recent quarterly dividend per share.
  • Yield – (((Div/sh * 4) / Price)) * 100), this is the current dividend yield if you were to purchase the stock now.
  • Annual Income – (Shares * Div/sh * 4), the minimum dividend payment I expect to receive over the next year.
  • YOC – ((Annual Income / Cost Basis) * 100), stand for yield on cost. This is the dividend yield I am receiving based on my cost basis.

 

24 Responses

  1. Michael says:

    Hello Dividend Empire,
    Just checking out your site! Nice layout! Thanks for sharing your information with us. I look forward to following your blog in the near future. Keep in touch friend!
    Michael

  2. The layout and look of your empire portfolio excel file is very good. Looking forward to seeing the progress from here.

  3. DGC says:

    Hi Ken, I have added our blog to the list of fellow DGI bloggers I track. Welcome to the DGI world. Will you still be pulling some option-tricks :-)?
    Michael

    • Ken Ken says:

      Hello Michael. Thanks for adding me and thanks for stopping by.

      I will definitely pull some option-tricks at some point :). It will be nothing like the old days though when I ran nothing but short-term spreads, condors and highly leveraged swing trades.

      In these portfolios I will only use options to accumulate stock through put sales. I might also write the occasional call on a position if the conditions are right.

      Unfortunately I don’t have the capital yet in the empire portfolio for these strategies and my retirement portfolio (401k) does not allow options trading.

      Thanks again for the add. Best wishes.

      Ken

  4. Grant Willey says:

    Looks like your Healthcare sector is calling for maybe a JNJ, ABBV, BAX, BXLT, or AMGN – or heck, maybe even GILD?

    All good names, but some have really run-up pretty quickly, lately.

    • Grant Willey says:

      I now see that some of these names are in your other portfolio. Excellent choices!

      • Dividend Empire Dividend Empire says:

        Thanks Grant! I do want to pick up some quality healthcare stocks for this portfolio since, at least for the next 50 years or so, this Empire portfolio will be separate from my Retirement portfolio. I like your list (especially GILD & AMGN). For GILD, I’m just waiting for the price to come down a bit. As for AMGN, I don’t mention it much on my site but I’m already heavily invested in AMGN since I work there.

        I checked out your portfolio as well and it looks like we have made very similar picks. My buy list looks a lot like yours too. Have fun shopping!

        Ken

  5. Mati says:

    Hi!
    i have a question,
    are you selecting the empire porfolio stocks in a different way?
    because here you are trying to buy and hold stocks that you think you or your family will not sell in the long future.
    I agree with your technique and want to adopt something like this.
    But i think about an example KODAK company (photography):
    In the 70’s it was a perfect company. Why Apple couldn’t finish like them in the far future ?
    Thanks

    • Dividend Empire Dividend Empire says:

      Hi there Mati! I am actually using the exact same criteria for both portfolios for now as I am just getting them set up and I still have a ways to go before retiring.

      Eventually I will begin focusing on higher yielding stocks (and even some preferred stock) in my retirement portfolio to help provide the income I will need in retirement. For the empire portfolio I will focus more on dividend and earnings growth instead of dividend yield since my time horizon is essentially infinite.

      Also, once I’m gone my retirement portfolio will merge with the empire portfolio and will be passed on to my children as well. I am only keeping them separate for now because the dividends in the empire portfolio are off-limits while I will eventually use the dividends from the retirement portfolio.

      As for companies becoming obsolete or even going bankrupt – this is definitely a possibility and I’m actually counting on this happening. I have no delusions of being able to pick perfect companies that will last forever. That is why I am doing my best to be well diversified.

      I am also actively managing my portfolios. I will not hold a company that no longer meets my original criteria. Hopefully I (and my descendants) can stay on top of all the companies I own and get out when the red flags start waving.

      Thanks for stopping by and best of luck to you!

      Ken

      • Mati says:

        Hi Ken,
        thanks for sharing your last purchases. I am an Electrical Engineering and write you from outside the US . I have only 1 DGI portfolio with only a few stocks like IBM, XOM, ACE ltd, O, WPC, PFIZER. I have a very long term goal for passive cash income retirement and after that (this is the reason i pick very high quality dividend stocks, like your empire) . On the other hand, i have “short” term goals : for example to purchase a house (property) in the next 4-7 years to live in with my family (i am 30 ).
        I am trying to split my portfolio into 1) long long term 2)short-mid term . I wonder if purchasing stocks “like” you are picking in your Retirement portfolio, could help for the “short-mid” term. There i need maybe faster growth (but more dangerous) and probably will need to sell stocks to purchase a house. So also the capital gain is important in this case, not only dividends like in the long long term portfolio.

        I see that for example you purchase KinderMorgan that for me sounds very nice and has high dividend yield for a mid term like i wrote above. My problem is that when i look for stocks i set very strict parameter rules like :
        – minimum dividend growth rate of 7-10 % in last years 10, 5 years average
        – historical stocks that increased dividend at least for the last 15 years or paid historically (like BANK OF NOVA SCOTIA)
        – very low debt
        – low payout ratio
        – historically (long term) stock price has been increasing
        etc…

        and then is very complicated for me to take the risk of buying relatively “new” companies that not always their trend is up (KinderMorgan is an example) . Because in the near 4-8 years future i will need to sell those stocks and i need to sell with gain.

        Do you have maybe a tip ?
        I must say i have not a lot of experience investing and also not an economics expert.
        best regards

        Mati

        • Mati says:

          Note : regarding KMI maybe i am wrong with this example. Hope you understand the general explanation.

        • Dividend Empire Dividend Empire says:

          Hi Mati

          I understand your dilemma completely. Your strict rules that you listed above seem perfect (and very similar to mine) for selecting dividend growth stocks. However, I don’t see a reason to use those same rules for your short-term portfolio.

          As you mentioned you are interested in capital gains to fund some short-term goals. For this you would probably want a higher percentage of growth stocks that don’t necessarily pay a dividend. While this type of investing typically involves more volatile stocks (and therefore more risk), there are ways to mitigate this risk.

          One way is to always have a stop loss on your positions – a maximum amount of money you are willing to lose on a position. This is not so important for long-term investing since we only care about the company’s fundamentals. Drops in price without a change in the company is meaningless and will be smoothed out in the long-term. But for shorter term trading it is important to keep losses small and move the money into another, hopefully better opportunity. With short-term trading you have to have the mindset that you will have some losers. The goal is to get out of the losers quickly for a small loss while taking full advantage of the winners.

          The other way, and this is somewhat controversial, is to use options. Most people think options are extremely risky instruments to trade but it really depends on how you use them. I used to do all types of trading – day trading, swing trading, futures, etc – but by far the most profitable type of trading for me was options.

          One strategy I frequently used was to find companies that I would like to invest in, wait for a good entry price and then purchase long-term call options (1-2 year expirations). The advantage of this method is leverage, well-defined risk and a low cost to enter a position. If you are interested we can chat more about this.

          Sorry for the long reply but basically I would suggest finding high growth stocks that have dipped or fallen to strong support levels without a real change in the company’s outlook. These offer great entries. Then set a stop loss below the support level or at a price consistent with your risk tolerance. If the stock goes against you and you get stopped out its no big deal – the loss will be small and you can move on. If the stock jumps in your favor move the stop loss up a bit to lock in profits. There are many ways to make money in these shorter time frames and I’m sure people will have other (maybe better) suggestions – but this is what worked for me in the past.

          Feel free to contact me if you have other questions or if you want details on anything I mentioned.

          Take care,

          Ken

  6. Mati says:

    Ken,
    thank you for your response.
    Wish you all the best

    Mati

  7. BKelly says:

    Hi Ken,
    I enjoy reading your story/ blog and seeing all your allocations at this point (good job). I’m little older then you at 53 on 9/5 and I’m also starting to work on my dividend portfolio income with my 401. It is great to see someone doing this and how you are creating your retirement and families portfolio. I started a little late with my dividend stock portfolio but I’m getting it done. Please continue to share as their are a lot of people who really don’t know what they need to do for there family and retirement. Happy investing sir!

    • Dividend Empire Dividend Empire says:

      Thank you so much for the kind words BK! It’s great to hear that you are getting started with dividend growth investing – it’s never too late. Do you have a target retirement age? I’d love to hear about your progress in your 401k so please keep in touch.

      Take care,

      Ken

  8. WOW!!!! Great portfolio. May I know how much additional money are you putting into your portfolio each month?? I recently just started my dividend growth portfolio and my blog. It’s not doing that well now since the overall market is down. However I am using this opportunity to purchase more dividend growth stocks. Please check out my blog at http://www.dividendgrowthbunny.com

    • Dividend Empire Dividend Empire says:

      Thanks, DGB. I feel you on the portfolio performance as mine have taken quite a hit lately. No big deal though since these holdings are very long-term.

      As for my contributions, they depend on the portfolio. My dividend retirement portfolio is a portion of my 401k so it is a steady ~$800 per month. My Empire portfolio is based on savings and income from other trading activities so it varies. My annual goal for contributions this year is just $10k since I have some new expenses.

      Great looking blog and portfolio by the way!

      Take care,

      Ken

  9. OthalaFehu says:

    I started a new Net Worth Blog and I would like you to check out my portfolio, any feedback is appreciated

    • Dividend Empire Dividend Empire says:

      Hi there. I enjoyed going through your site. It looks like you have a solid, well-diversified portfolio. Best of luck to you in the future.

      Ken

  10. Nice set of stocks and funds. What I am pleased to see is the good diversification, because I have also similar mindset what comes to investing. Keep up the good work!

    Btw. You have many stocks which are already in my watchlist or my portfolio (if you are interested you can check it from my site).

    Regards,
    Matt

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