Between the day I created the post for the portfolio, I found a job, posted a celebratory 1000-page-views entry for this blog, finished my last semester in university, and had a great time enjoying my holidays. Of course, I kept up with markets regularly, but my life and time were not overwhelmed by my investments.
You could say that life went on with minimal change; and for those of us who are working, I'm sure that you can appreciate this even more. However, one significant, yet almost invisible change in our lives however, is the fact that our investments have begun working for us. While we continued our daily lives, capital gains and dividends subtly racked up in background. So how did the portfolio perform?
Just to refresh our memories, here's the dividend portfolio allocation once again:
This particular portfolio provided diversification among industries that were minimally affected by the plummeting oil prices, shaky Eurozone market, and had solid businesses that consumers and businesses would demand even if economies were doing poorly.
Ultimately, the portfolio did well, earning 4.09% in its first month, and outperforming the market by 6% by the third month.
Moreover, during this time, any of us investing in the portfolio would have earned 10.26 cents in cash for every unit of this portfolio ($5.18 per unit based on 14 March prices). This is a significant difference compared to other investments where most, if not all of the earnings would still be locked into the investment. Now we can decide for ourselves if we want to spend the cash or reinvest it.
And so, here it is, a real life, practical application of the dividend portfolio which has earned us good returns, outperformed the market, and given us an option to spend the returns, all while being hassle-free.
