2014 Year-End Performance
2014 was another great year for stocks. Yes, oil-related stocks did drop a bit but overall the market continues to be strong. I look to add more oil companies on weakness if I have the cash available.
Beginning 2014 account value: $68,907
Ending 2014 account value: $123,001.82
Net cash in: $14,846
Stock transfers in: $24,765
Account appreciation: $11,442
Dividends reinvested: $2,258.08
Portfolio return: 16.36%
XIRR Annualized return: 52.9% (high due to net cash flow into Apple at a very favorable per share cost basis)
Dividend income in 2014: $2,357.66
Forward 12-month dividends: $3,480.33
Options income in 2014: -$255.85
Post-tax salary: $43,781
Pre-tax moonlighting income: $1,500
Percentage income saved: 32.8%
The dividends of $2,357.66 received in 2014 was a 108.3% increase from 2013. And, without any additional investments, the forward 12-month dividends are $3,480.33.
Effect of Dividend Increases
|Company||Effect of Dividend Increase|
|Johnson & Johnson||$4.87|
Dividend increases added $180.50 to my future dividends. This is 5.2% of my forward 12-month expected dividends. The cool thing about this number is that I didn’t have to add any new capital to receive it. This bonus of $180.50 is the equivalent of adding a little over $6,000 at a 3% yield. Things like this are definitely one of the benefits of dividend growth investing!
Total 2014 Dividends
Annualized Stock Performance
|Company||2014 Annualized Performance|
|Johnson & Johnson||20.10%|
The XIRR formula takes into account net cash flow and then gives an percent that shows how the stock performed when annualized to a year. Stocks like Disney, which have been held for significantly less than one year, are subsequently skewed with this formula. Disney’s annualized performance of 39.9% only shows how it would perform if its current performance is carried out to an entire year.