It’s time to close the books on the economic disaster that was 2022 and we are going to start by closing out our dividend portfolio update for the year. This will also be the first time we incorporate some more historical data points in order to give more visual prospective to the growth of our portfolio and positions.
Since our last update just a few short weeks ago the markets have dropped, we sold our losing position in the soon to be taken private Weber (WEBR), we reinvested the proceeds elsewhere and then we contracted Covid-19 for the first time. The perfect end to the year that was 2022!
As we sit here, isolated from the world around us, we have time to reflect on what went wrong in 2022 and plan for a better 2023. At least until we start hacking uncontrollably, then it’s time to go back to bed and take a nap.
Circling back to Weber for a moment, so we can officially close out that saga and move on, there were further developments shortly after we posted our last blog.
To recap, company had previously been offered a measly $6.25 per share to go private in a buyout from the largest shareholder. This killed our plans to buy more and start writing covered calls in order to generate some income while we waited for the company to recover. Then, just before the earnings call, it was announced that the offer was increased to a less measly $8.05 per share and had already been agreed to by the company.
With this news we started looking for the exits as the price was now going to be capped by the agreed upon amount and it was essentially dead money earning no income and having no ability for further valuation gains. So we took our lumps and sold, above the buyout price actually, and moved on. On the bright side, we have a small tax loss harvest to write against! While it’s very disappointing to take the loss on a company we had high expectations of, we are glad to be done with that mess.
With the remaining proceeds we added shares of SCHD, JEPI, MAIN and MPW to our existing positions. This instantly gave us a nice boost in PADI and to our YOC as the funds had previously been earning zero income for us.
Here is where our dividend portfolio ended 2022:
| Symbol | # Of Shares | Change Since Last Update |
| ABBV | 13.721 | – |
| ABR | 21.456 | – |
| BKH | 3.135 | – |
| DOW | 9.638 | – |
| FRT | 6.174 | – |
| GIS | 5.214 | – |
| IBM | 3.230 | 0.036 |
| IRM | 12.822 | – |
| JEPI | 11.416 | 3.000 |
| JNJ | 6.228 | – |
| K | 2.106 | 0.017 |
| KHC | 5.297 | 0.052 |
| KMB | 2.091 | – |
| KO | 2.106 | 0.015 |
| MAIN | 10.376 | 1.055 |
| MMM | 7.359 | 0.087 |
| MO | 11.93 | – |
| MPW | 14.727 | 3.000 |
| O | 5.251 | 0.020 |
| QYLD | 30.677 | – |
| SCHD | 9.074 | 4.046 |
| SO | 2.129 | – |
| SPTN | 6.334 | 0.043 |
| T | 14.212 | – |
| VTRS | 10.319 | 0.111 |
| WBD | 3 | – |
| XOM | 5.259 | – |
Since our last update we added shares of the following positions: JEPI(3), MAIN(1), MPW(3) and SCHD(4). Most of these purchases were made using the reallocated funds from closing out our position in the name we shall no longer speak of.
We also reinvested dividends totaling $30.73 via DRIP for IBM, K, KHC, KO, MAIN, MMM, O, SCHD, SPTN and VTRS.
Year to date we reinvested $517.85 in dividends back into our portfolio positions and we now have a yield on cost of 5.43%. This is a 0.43% increase when compared to our last update and is again mostly attributable to putting dead money back to work. With the markets deciding to take December off our portfolio now sits at $12,680 which is essentially flat from our last update.
With these share purchases and reinvestments our dividend portfolio will now provide projected annual dividend income (PADI) of $666 or $55 per month on average. This is an annual increase of $41 or $3.41 per month average from our last update. Hmm, 666 at the end of 2022, how fitting!
Looking at the month of December our dividend income grew by 40.76% from the same period in 2021. That is very nice progress on a year over year basis. It will be hard to keep that pace going forward as our portfolio continues to grow, but we will certainly try!
| Month | 2021 | 2022 | YOY Growth % |
| December | $40.90 | $57.57 | 40.76% |
If we breakout December dividends for each of our positions we can see that we had some solid year over year growth. In 2022 we started new positions in JEPI, MAIN, SCHD and VTRS so there is no YOY comparable for these positions. Obviously WEBR suspended their dividend so that went to zero. QYLD also shows zero and it appears they pushed their monthly dividend to January 2023. Overall, solid progress for the the month of December!
| Stock | December 2021 | December 2022 | YOY % Change |
| BKH | $1.20 | $1.94 | 61.67% |
| DOW | $4.96 | $6.66 | 34.27% |
| IBM | $4.98 | $5.27 | 5.82% |
| JEPI | $0.00 | $5.08 | – |
| JNJ | $6.39 | $6.99 | 9.39% |
| K | $1.17 | $1.23 | 5.13% |
| KHC | $2.01 | $2.10 | 4.48% |
| KO | $0.85 | $0.92 | 8.24% |
| MAIN (m) | $0.00 | $2.99 | – |
| MMM | $5.96 | $10.84 | 81.88% |
| O (m) | $0.75 | $1.30 | 73.33% |
| QYLD (m) | $3.67 | $0.00 | -100.00% |
| SCHD | $0.00 | $3.54 | – |
| SO | $1.34 | $1.43 | 6.72% |
| SPTN | $1.22 | $1.32 | 8.20% |
| VTRS | $0.00 | $1.22 | – |
| WEBR | $2.00 | $0.00 | -100.00% |
| XOM | $4.40 | $4.74 | 7.73% |
While 2022 was a disaster for the markets we continued to invest on a consistent basis even if it was only small amounts that were available. This is reflected in the year over year growth of our portfolio which still grew by over 26% despite horrible market conditions. It’s also reflected in the growth rate of the amount of dividends we received which was a whopping 251.92%!
| 2021 | 2022 | MOM % Change | YOY % Change | |
| December | $10,029.46 | $12,680.53 | 0.18% | 26.43% |
And let’s not forget where our PADI stands today! In just a year and a half we have gone from $0.00 in passive dividend income to over $500 and we are already projected to be over $650 for 2023, which hasn’t even started yet! Dare we set a goal and try and achieve $1000 in PADI by the end of 2023? It would be a bit of a stretch but it might be possible!
| 2021 | 2022 | YOY Growth % | |
| Annual Total | $147.15 | $517.85 | 251.92% |
| AVG. Per Month | $12.26 | $43.15 |
As a reminder, we didn’t start our dividend portfolio until mid 2021. So while it’s fun to see huge percentage increases it is also unreasonable to expect those type of numbers to continue as the portfolio grows. However, this again shows how quickly one can grow an income stream in a relatively short time frame even with limited funds.
What are you waiting for?!!
Well, that’s a wrap for the dividend portfolio in 2022! We hope you enjoyed the update and found the added visibility into our numbers insightful. I’m sure there will be some tweaks here and there, but we would like to keep providing this information on a regular monthly basis.
Hopefully we can inspire someone to get on the road to financial independence that hasn’t started yet or even help keep people motivated who are following their own path.
Please leave some feedback if you have any questions or suggestions about the data as we are open to any ideas.
Thanks for reading our blog!
Happy Investing!!
Joe
P.S. If you haven’t heard we started an online store called StuckonCamping where you can get some of our designs on stickers, magnets, shirts, hats, tote bags and more! Check it out for camping, hiking, RV and other outdoor designs!
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