Well, it’s exactly one year of running my blog. My first post Wal-Mart – is it really the end of traditional stores? was about company, which was also my first (and successful) buy.

Summing up, I wrote 135 posts during my first year, mainly analysis of particular companies. It means that post was on average every 2.7 days. In my opinion it is appropriate frequency – what do you think?

Lately I started using Twitter to bring some more traffic, it goes in line with my expectations and number of followers is steadily growing (currently 43, but I launched it not long ago). Twitter is for me mainly a tool to inform you about new posts, read what’s going on and write my short thoughts. Here I would like to thank you my DGI friends for promoting my website/sharing my posts. Special thanks to (in no particular order) DividendHawk, DivHut, Dividend Diplomats – you help me on Twitter a lot by sharing my posts. So far there are 55 comments on my website – than you very much for all your (and not only yours, but it is hard to enumerate everyone) effort. I try to thank all in my blogroll (see more) if I see some value in cooperation. I hope I didn’t miss anyone, if so please let me know!

Coming to analysis of my investment performance we should note that market is at all-time-highs, so it is relatively easy to earn money. Difficulties will come when markets goes down. Anyway, let’s analyse briefly my investment performance.

Company Cost basis Market value
Wal-Mart 2,000 2,330
Archer Daniels Midland 2,021 2,622
Apple 2,068 2,332
Franklin Resources 2,051 2,437
Gilead Sciences 2,119 2,038
Cardinal Health 2,068 2,115

We can see that so far so good! My “older” investments are strongly on plus, with average gain of WMT, ADM, AAPL, BEN of around 19%. Newer investments GILD and CAH are so far more or less neutral, but I believe in the long term potential. In fact it is hard to compare investment performance to the market due to different timing of my inflows (e.g. I keep AAPL for half a year, so comparing to YTD S&P500 is not appropriate), but definitely 19% rate of return on first 4 names is way above satisfactory level for me. Also we should add dividends to this performance. In 2016 I should collect $206 gross dividends. Not bad, but the most important is that:

  • This amount should grow year by year
  • Some of my investments (due to timing of buying) paid only 0-1-2 quarterly dividends, on 2017 assuming no new investments I expect gross dividends around $350, which is far better result!

I didn’t earn single dollar on my blog so far – that’s in line with expectations. The real value of my blog for me is knowledge about companies I wrote about and profits on my investments. In long term I assume there might be some adds on my blog, but first I need to build a recognizable brand and traffic.

Many of my DGI friends publish some targets for every year. Well, probably that’s good idea, but I don’t do it. I think it is sometimes unpredictable and why then should I say myself that I didn’t complete target due to some external factors? I mean, let’s assume that my target is to invest $15000 – $20 000 annually. Then if market is high and I see no opportunity to buy should I buy to complete my target? I do not think so J

I plan investing further, but with market at all-time-highs it is quite difficult. Maybe I will buy some European names, which sometimes looks cheaper. From US companies if I were forced to buy today I would choose Medtronic and Abbvie. I would also think about consumer related companies, especially KO, JNJ, PG, KMB – these names offer a significant yield and are after a noticeable drawdown. And obviously my top picks are GILD and CAH, but these are names I already have and I do not want to increase my exposure too much.

 

Summing up, let’s the DGI journey to continue!