It is officially the 3^rd year anniversary for the LBF dividend portfolio. During the 3 years I have learned quite a bit about what dividend focused investing is all about. I have been planning and ready to evolve my strategy. I have made quite a bit of changes to the portfolio this month.

First, a few highlights for the portfolio after 3 years have gone by.

The portfolio began with about $57,008.64. After 3 years it has grown to $259,081.38. That is a 354% increase.
At the end of 2018, my projected income was $3,817. Today, the projected income is at $9,727.73 which comes out to be a 154% gain.
The portfolio would yield 3.7% if purchased today but my YOC is 4.4%. Which comes to about 0.7% gain.
The goal to reach $10,000 in dividend income is expected to be reached in year 2022.

I Practiced ESG

ESG investing known as environmental, social and governance investing focuses and considers such as the following:

I sold off some holdings that score poorly when it comes to ESG scores. The overall portfolio scores much better than before but not 100% an ESG portfolio. I don’t plan to make this a 100% ESG compliant portfolio but it is something I will consider to some degree when making future investment decisions.

I Spread Myself Too Thin

I was following too many companies which diluted my ability to focus on key areas of interest such as tech. It was hard for me to keep up with all the individual companies and industries, so I allocated more into managed products aligned with where I wish to be invested.

I also wanted to free myself from obsessively reading too much all day trying to keep up with all the news. As much as I enjoy it, balance is important. 🤔

July Will Now Be My Official Pay Raise Month

Investors don’t ask for raises. They create them.

It’s the month of my birthday and the month I decided to plant more seeds from the fruits generated by my growth trees. A birthday gift to myself. A pay raise month! 😁

How I raise my pay will depend on how well the growth businesses perform in the year. I plan on taking some profits and reallocating them towards the LBF portfolio.

Super Overweight In Tech

I’m bullish on tech over the long term. I wanted to align this portfolio with more tech. The tech sector is not the most ideal sector for income investors. So, I decided to swap some dividend income for option premiums using CEF (closed end funds). That way I don’t have to deal with buying and selling options while maintaining overweight in tech.

You wear a different hat when you are investing with income as an elevated objective. It’s hard to have both capital appreciation comparable to the S&P and a decently yielding monthly income hitting your account at the same time. It’s a balancing act for sure.

I knew maximizing capital appreciation was never the objective with this portfolio, but I think I can do better when it comes to overall total return while generating the income I want.

I also believe we may get a stagnant economy in the next 5-10 years. Inflation will be a problem for people like myself who are retired. Not all inflation will be transitory and high prices for many goods and services will likely remain sticky and permanent. Wages will likely go up across the board so the employed should ride the rise. As for the retired, it’s likely a good idea to seek protection.

I have been scrambling to shelter more cash from inflation and decided to allocate some in products like NUSI which uses an options collar strategy to generate premiums while providing some downside protections through puts. The product does come with its own set of risks so do your own due diligence when considering. Most people would not consider this as a good cash alternative!

With that out of the way, here is a quick update to the LBF dividend portfolio.

Picture of the Month

San Diego is such an awesome city! Best weather of any place I have ever been to. But our time here has come to an end. It’s time to explore a new city!