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DGI For The DYI: Q1 2016 Recap

A Roller Coaster Quarter Ends With New Portfolio Highs

What a quarter for the stock market!

DGI For The DYI Logo

The beginning of the New Year wasn't too kind to investors, as January produced an ~8% market decline that left many wondering if we were about to head into recession. Along with the stock market decline was a washout in the commodities that saw crude briefly touch the high $20s.

The DJIA saw an intraday low of around 15,500 on February 11th and has been on a tear ever since, rallying to close out the quarter at just a tick below the open for the year.

^DJI Chart

As mentioned, crude oil prices also bottomed out during the quarter before starting on a strong rally in the second half of February, which continued into the end of the quarter. This resulted in a strong performance of many of the oil & gas and industrial companies in the portfolio.

CVX Chart

These and other large gains from utilities and REITs helped the portfolio to outperform the market by a large margin, and led it to an increase of over 6% compared with the generally flat market.

DGI For The DYI: Q1 2016 Update

This outperformance underscores the benefits of having a diversified portfolio, as the gains from the sectors mentioned offset price declines from some of the healthcare and financials. Overall, I'm quite happy with how the portfolio is performing, and am comfortable with my current holdings.

The Dividend Growth Train Keeps Chugging

The paper gains are nice, as it's fun to watch the portfolio value increase, but with this being a dividend growth portfolio, the focus continues to be on the dividend income it produces.

It was a successful quarter for dividend growth, as the drop seen in the fourth quarter was overcome, and the portfolio once again saw new all-time highs for dividend income.

DGI For The DYI_Q1 2016 Dividends

Dividend income for the quarter was up nearly 16% year over year and up 1.25% from the previous all-time high set in Q3 of 2015. This was accomplished through a combination of organic dividend increases, reinvestment of dividends, and new contributions into the portfolio.

The first quarter is generally the one that sees the most activity for dividend increases; here are the ones received so far this year:

At an average annual increase of just over 7%, this was one of the lowest rates of dividend growth since the portfolio was created. Several companies including: Polaris, Church & Dwight, and...