I hope everyone has a prosperous New Year ahead.
I’ve always had cash dividend shares in my portfolio, as I also use preferred shares as kind of how one would use bonds to diversify out of equities (bonds not being easily accessible to the typical Philippine stock market player).
My cash dividends per annum as % of principal from 2013 are as follows:
- 2013: 4.71%
- 2014: 4.03%
- 2015: 3.62%
- 2016: 2.14%
- 2017: 3.20%
- 2018: 3.61%
The percentage has been steadily going back up as it crashed when I infused a significant amount of cash in late 2016.
The goal has always been to create enough regular cash dividends / trading gains for me to safely gain financial independence and retire as early as possible (FIRE).
My portfolio has been badly affected the past year. Gain from principal is a measly 9.8% up. I haven’t XIRR’d just yet, so I don’t have an idea if I’ve beaten the market this year or not. Principal has grown by around 21% from the start of 2018, as I tried to cost average as the market was heading down. Over the year the PSEi declined around 12.5% from 2017’s close of 8,535.09 to 2018’s close at 7,466.02. My straight line percentage gain against principal was standing at 25.36% up in January 2018, crashing down to just 6.35% up in October 2018, then closing the year at around 9.8% up.
Cheers everyone.
Pinoy Invest Blog 