M1 Portfolio End of Year Update

It is time to wrap up my annual M1 portfolio stats here on the site.  During that time there have been some very minor adjustments and now is a good time to summarize how it has grown, changed and what future changes I would like to make.

Contributions

I started the year making weekly contributions of $120 but in March I received a raise at work and was able to increase it to $130 and then $140 in November as my oldest daughter takes on more of her own expenses.  My total contributions for the year were $6,750. 

I do not foresee weekly contributions changing going into 2022 but I think the 3rd quarter will be a different story as my middle daughter will graduate college and if she gets a job that should reduce my expenses and allow an additional $40 per week.

Portfolio Performance

My portfolio balance at the beginning of the year was $7,634, adding in the 12 months of contributions that is a total of $14,384.  My portfolio balance at the end of December was $17,784 which represents a total gain of $3,400 for a total return of 23.64%.  The S&P500 YTD return was 26.89% but a better comparison would be to compare to dividend growth ETFs VYM and SCHD. VYM’s YTD return was 25.97% and SCHD’s YTD return was 29.78%.  The portfolio significantly underperformed in comparison.

The portfolio yield has dropped from 3.21% to 3.04%. This is a reflection of the capital gain growth that has exceeded dividend growth. However, when I compare it to VYM and SCHD, they yield 2.76% and 2.78% so I am receiving a slightly better yield.

Holdings

My portfolio holdings grew from 55 to 64. 

In my Healthcare pie I picked up Organon (OGN) in a Merck spin-off.

The Technology pie I added Broadcom (AVGO) and picked up Kyndryl Holdings (KD) in an IBM spin-off though undecided if I want to keep it.

The Industrials pie I added Packaging Corp of America (PKG) and Watsco (WSO).

The Telcom pie was expanded to include Canada’s two largest telcom companies BCE Corp. (BCE) and Telus Corp (TU). 

And finally in my Utilities pie I added Pinnacle West Capital Corporation (PNW) and OG&E Corp (OGE).

Possible Portfolio Changes

Going forward I am considering cleaning up a little to remove some holdings that have been in a penalty box for either suspending or cutting their dividend.

Transports Pie – I held Alaska airlines for two years, but alas COVID has won out. My plan is to remove it completely. and reallocating the entire % to Union Pacific (UNP) or possibly replacing it with Canadian National Railway (CNI).

Basic Materials/Energy Pie – Compass Minerals (CMP) cut their dividend in the 4th quarter with plans to reallocate the capital to fund development of lithium mining making this a growth opportunity and it no longer fits into this portfolio. My plan is to remove completely and reallocate the entire % to Air Products (APD).

3 thoughts on “M1 Portfolio End of Year Update

  1. It looks like you were really consistent in 2021 SD Growth. Congrats, and I’m glad your weekly investment amount doesn’t seem like it will dip in 2022. I also just realize we have a somewhat similar sized portfolio. It’s just a reminder that we are not alone.

    Happy New Year to you and your family.

    Liked by 1 person

    • Thanks and Happy to New Year to you also Dividend Portfolio, This is just my M1 account. My primary account is over in fidelity which holds the bulk of my savings. Outside of my Roth, M1 is the only account I add fresh capital to so even though I am much older than you our saving rates are comparable with the difference of only time between us.

      When you see my posts for weekly buys that is not me adding capital but me reinvesting dividends into other companies from my fidelity account.

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s