Where our Dividend Portfolio is headed in 2021 and the steps we’ll take to get it there.

2020 was an absolutely crazy year, definitely the most volatile year in the stock market for most current investors – at least those who’ve started within the past decade.

Our portfolio, like many others was all over the place. We experienced huge capital losses in the spring only to rally for a majority of the year afterwards and we ended up very pleased with the overall performance on the year.

For 2021 we expect some of the same, with vaccination roll-outs, a growing (recovering) GDP and overall, a more positive sentiment in the stock market we fully expect to see growth in our portfolio for the year.

We may see and hear a lot of talk on how “over-valued” the stock market is currently and that is partially true if you just look at it from a PE ratio (projections are showing a 2021 PE somewhere around a 25x which is a bit high) we must also take into account that there is a growing presence of the technology sector in the major indexes which typically do carry higher forward PE’s.

Another thing to consider is that a vast majority of people who make calls for a major pullback make these calls constantly and as they say “even a broken clock is right twice per day” so as to say if you call for a pullback frequently enough eventually one comes and you are “right”. It’s important to question what these people are doing with their predictions – are they in fact shorting the market? selling all of their shares? or are they carrying on as they were and just thinking that there should be a pullback? These are very conflicting statements they’re making.

While we definitely could see a down year in 2021, I’m certainly not willing to bet against the markets and all of the money that has been flowing in in the recent months since this recovery began.

Next we’ll take a look at where our dividend portfolio is at currently and what we expect to do moving forward:

So this is the breakdown of our roughly $225,000 dividend portfolio which yields us $10,300 per year. We’re slowly moving towards our “target %’s” and that’s how we expect to spend our 2021 as well. Some of the sectors might be a little bit misleading for instance our “financials” seems like a lot when you think huh 22.5% in banks? but when you realize how diversified banks can be, the fact that insurance companies both life and asset as well as large asset managers like Brookfield Asset Management all fall under this sector we really are quite diversified and will only scale this back to 17.25%.

Our main growers this year will be into consumer staples and healthcare where we still lag our desired allocations. These additions will come in the form of growing our positions in holdings such as: Coca-Cola (KO), Pepsi (PEP), Kimerly-Clark (KMB), Clorox (CLX), Pfizer (PFE), Johnson & Johnson (JNJ).

Our plan is to contribute $4,000+ dollars per month and just funnel our contributions into the lagging holdings where we are below our target. We will be selling very little and quite possibly no current holdings for the year.

Provided we see a 7+% return this year plus achieve our contribution goals we’re really optimistic that we can be pushing a $300,000 portfolio by years end.

So that’s really all we’ve got for our plans for 2021, keep in mind we are not financial professionals and are only documenting our own journey through the stock market so be sure to contact your investment professional prior to making any changes in your own holdings.

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FIC.