The Portfolio Spotlight …..
Welcome to the new Portfolio Spotlight series. Here I will detail one of my portfolio holdings and the performance results since its purchase. The goal is to show how dividends and patience will reward you over time if you stick the the DGI strategy. I plan on doing this once or twice a month. First up is Brookfield Infrastructure Partners (BIP), my longest current holding!
Portfolio Spotlight -BIP
I wanted to start a new series of posts entitled ‘Portfolio Spotlight’ that highlight securities in my portfolio and their performance. I was thinking about which holding I currently own which is my oldest. Originally, I thought it was GE. After looking closer I realized I owned it in 2010 but sold it and reinitialized a position at a later time. Close inspection revealed the security I owned the longest was Brookfield Infrastructure partners (BIP). I went through the brokerage history and pulled out the purchases and then calculated the totals today to see how much appreciation the dividends and share price have amounted to. Regular readers know how much I love dividends and why I think they are a key to achieving anyone’s financial goals. I have outlined the power of dividend investing on this site (Effects of Dividends) and I think this first spotlight will clearly show this principle in action. The results are pretty startling. Lets take a look:
As you can see, I only made an initial purchase of 100 shares in 2011. I usually invest via dollar-cost-averaging but this particular time was a one-time purchase. The results are pretty dramatic. One purchase of 100 shares and today 6.5 years later, I am sitting on a 195% gain ! If you look at the price appreciation, it is not stellar. It is only up a little over $12 in 6.5 years but the dividends received have vaulted this investment up significantly.
I think this really shows the power of dividends, and reinvestment. The initial dividend payment was $35 for the 100 shares in 2011. My last dividend payment in December 2016 was $75.66. This is all off the original 100 share investment. It is amazing to see the growth of this investment over 6.5 years. This performance is what helps keep me motivated to stick to my DGI investment strategy. Thanks for looking, I hope this helped shine a light on the power of dividends.