It is that time of the year again where we look back at the past year and reflect on the good times and the bad times. 2018 overall was a good year. I didn’t get hospitalized, I finally finished a degree, and I was able to grow my investment portfolio. There were some bad and I will talk about them shortly. First here is how more portfolio performed and grew over 2018.
As you can see my portfolio grew from $13,779.57 to $19,221.49 thanks to $6570.40 in funds being added and earning $1,966.94 in dividends. Wait though, if you add up $13,779.57, $6570.40, and $1,966.94 you get $22,316.91 and not 19221.49! So what happened well, we all know what happened. During the 4th quarter we saw a huge drop in stock prices. While I had an exit plan and waited to see if stocks would recover I lost
over $3000.00 Once I sold all my shares and paid fees my lost came to $3095.42. I do not regret this action looking back even though stocks have rebounded in the last few weeks of January, as an investor I have to think about now not what or could happen in the future.
I do not blame how my portfolio was constructed. I know it was very aggressive portfolio and I knew it would have huge swings in prices. The problem with this I didn’t want to have to watch my portfolio every day to see if I need to sell or if it was a great time to buy. This lead me to wanted to create a portfolio that was still aggressive but there was more order to the chaos. So after a few weeks of looking at stocks, mutual funds, and ETFs I have created a portfolio that is 25% bonds, and 75% stocks. As you can see most of my bonds concentrate on US companies with some coming from foreign. With my stock I chose to have 15% of my holdings be made up of foreign stocks while 60% is made up of US stocks. I thought it was a good idea to make sure my holdings was well balanced across all markets.
I have 2 stocks, UNIT and SUN, and a mix of ETFs and Mutual Funds. While the ETFs have a very low fee the Mutual Funds fees are pretty high so I will keep an eye on them to how much they eat into my dividend throughout the year. My current dividend yield is not as aggressive as my 100% stock portfolio which was mainly concentrated on REITS that had high yield. As of this written my yield is 7.17% compared to 10.92% of my old portfolio. I am hoping I make up the difference by investing in capital growth ETFs/Mutual Funds. Here you can see my current projected monthly dividend payments for 2019 and compared to 2018.
So for 2019 my plan is to invest in at least $6000. I plan on buying at least one more foreign ETF to have coverage in all emerging and developed markets. Continue to buy shares of the current funds and stocks I own and at the end of every quarter I will rebalance my portfolio to make sure it keeps to the 25/75 ratio I have. Every 6 months I will look to see if I need sell any under performing holdings and pick up new ones. Of course if we go through a recession I will switch to a more conservative portfolio to ride out the recession.
As always, Happy dividend investing and see everybody in retirement!