Overall portfolio dividend growth rate has crossed my mind a few times. That’s my whole strategy, but how could I reduce all these transactions, dividend payments, and dividend increases (or cuts) into one single number to compare annually? It seemed like too much to try to tackle.
I got inspired by Engineering Dividends’ post, who was actually inspired themselves by Passive Income Pursuit’s post.
I already had all the data I needed, and with a little tweaking, I added a simple formula column and voila!
First, I made sure I had the following for my 2017 holdings:
- Ticker symbol
- Annual dividend frequency (4 for quarterly stocks, 12 for monthly, etc) (Annual Dividend Frequency)
- Shares owned at time of dividend increase (Shares Owned)
- Dividend payment per share at time of increase
- Dividend payment at time of increase (Dividend Payment)
- Percent dividend increase (Percent Increase)
- Total Dividend Paid by Portfolio in 2017 (Total Dividend Paid)
Next, I made a new column to calculate Weighted Dividend Growth using the same formula as Engineering Dividends and Passive Income Pursuit:
Percent Increase * Dividend Payment * Shares Owned * Annual Dividend Frequency / Total Dividend Paid
I totaled all the weighted portfolio increases up, and revealed my 2017 weighted portfolio dividend growth to be 7.39%! I made a strong effort in the middle of 2017 to refocus my portfolio on dividend growth stocks. 7.39% is a great growth rate, but I think my 2018 and beyond will actually be quite higher. Now I will have an easy way to compare my previous performance along with projecting future portfolio income.
BA, LOW, MO, SBUX, and TXN were my top 5 dividend growth drivers. This makes sense because of their large dividend increases. MO did not have as large an increase as the others, but I did own more market value in MO at the time of the 2017 dividend increase.
This was a fun exercise. I recommend it to anyone already tracking their dividend growth.
*Gray cells represent stocks I did not own at the time of their most recent increase.
**I only included individual stocks within my taxable account.
3 thoughts on “Weighted Portfolio Dividend Growth”
7% dividend growth is amazing. Beating inflation comfortably.
Interesting to see you do this. Triggers me even more to calculate this in the future.
And that 7+% is not too shabby either! 🙂
That’s a terrific group of stocks leading your dividend growth, Dozer. TXN was almost 1% by itself! Thanks for sharing your individual numbers, in addition to the one for the portfolio.
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