Project $3 Million .............................
Towards the end of 2008, I decided I would change direction with my Son's (currently age 25) portfolio and go with a Dividend Growth Strategy and reinvest the dividends.
The goal is to contribute $500 monthly and earn an 8.25% annual compounded rate of growth. Based on his portfolio value at the end of 2009, he will have accumulated a little over $3 Million by age 65.
The link below provides the site I used to determine the objective. The criteria:
40 years of $500 monthly. An interest rate of 8.25% compounded annually. Initial amount $42,205.00 (year end 2009 value of portfolio).
planningtips.com
In order to be on target at the end of 2010, he needed to accumulate $52,053.79.
Mission accomplished. End of year total is $54,949.87.
Dividend income is listed below.
Portfolio Value (PV):
2009: $42,205.42 ..... 2010: $54,949.87.
PV as of July, 1 ... $63.064.15.
Dividends:
Qtr 1: 09 ... $108.00 ... 2010 ... $264.95 ... 2011 ... $542.81
Qtr 2: 09 ... $102.00 ... 2010 ... $357.17 ... 2011 ... $575.40
Qtr 3: 09 ... $132.55 ... 2010 ... $518.24
Qtr 4: 09 ... $341.83 ... 2010 ... $510.71
Holdings:
Drugs: ... ABT, JNJ
Beverage: ... DEO, KO
Food: ... MCD, SYY
Utilities: ... D, SO
Bus. Srv.: ... ADP
MLP's: ... EPD, KMP, MMP
Tobacco: ... MO, PM
Cons. Disc.: ... VFC
Cons. Staples: ... CL, GIS, KMB, PG
Oil/Gas: ... BP, CVX
Telecom: ... FTR, VZ
Materials: ... NUE
Defense: ... LMT
REIT's: ... O
Later this year, as funds become available, I plan to add PEP and UHT. |
