Happy New Year!
2015 was a good year: our annual divided income increased by 132% compared to 2014! This includes distributions from our mutual funds (GENIX and RMT). Overall this year’s dividend progress was great, while our portfolio value stayed relatively flat. This roughly matches the broader market’s performance. Here’s a breakdown:
2014 Income: $736 2015 Income: $1707.72
Income By Month:
JAN — 146.17
FEB — 98.19
MAR — 93.19
APR — 119.72
MAY — 104.240
JUN — 137.37
JUL — 148.81
AUG — 104.81
SEP — 71.61
OCT — 146.14
DEC — 426.44
December 2015 Income Breakdown:
Main Street Capital (MAIN) – $78.39
Realty Income Corp (O) – $12.22
Coca Cola (KO) – $3.66
National Oilwell Varco – $15.93
PowerShares Dynamic Pharmaceuticals Portfolio (PJP) – $37.05
Chicago Bridge and Iron (CBI) – $0.70
Royce Micro Trust (RMT) – $79.91
Gotham Enhanced Return Fund Institutional Class Shares (GENIX) – $198.584
Gilead Sciences (GILD) – $4.33
Vanguard Europe FTSE ETF (VGK) — 4.15
I know some may not include distributions from mutual funds (like GENIX) in their dividend calculations, and that’s fair. I choose to include them in my tally to get an accurate idea of how much income our portfolio is producing. If I am totally honest and consistent with my beliefs on investing, I should sell GENIX today and divert those funds to a low cost index fund, an ETF, or some healthy dividend paying stocks. This would replace the income that GENIX produces each year and cut portfolio costs. Right now, GENIX is an actively managed fund that charges over 2% a year in expenses and I consider that amount to be extremely high. GENIX is a mutual fund run by Joel Greenblatt, author of “The Little Book that Beats the Market”. I bought into it many years ago and have not touched it since. This was before I became a little more educated about investing and costs, etc. so here we are. I have an emotional attachment to the fund, and a lurking fear…”if I sell…the fund will explode and I will miss out on the massive gains…”. All that being said, one of my goals for 2016 will be to divest this high cost fund by the end of the year, and I’ll be posting my other goals for 2016 in the coming days.
So that’s it. We made $1707 in passive income in our portfolio this year. This might be the last monthly divided income post I ever do. I’ve been thinking about changing directions on this blog and to take the focus away from my personal income, and moving towards personal finance topics that interest me. I look around on other dividend tracking blogs and quite frankly I get a little miffed at myself — I’m finding I’m constantly comparing my journey/income to others and that’s not what I should be doing. I definitely can use others for inspiration, and I do, but I don’t want to become negatively focused and critical of myself or where my family is in the journey to financial freedom.
Here’s to 2016 and the changes it will bring. Happy New Year!