Battle of Dividend Stocks 2017 – Update

At the end of last year I announced a little game where 10-10 dividend stocks are competing against each other during 2017. For the full background and the rules please check out the original article.

Now two months have passed and I was checking the current status as the first bimonthly review.

First of all I don’t simply want to compare the performance of the two portfolios with each other, but also against a benchmark.In this case I’ve selected the Vanguard Total Stock Market ETF (VTI) as the benchmark. What would be the point of selecting stocks with hard work if their performance is behind this ETF, which you can easily buy without any prior research?

Based on the opening price of 3rd January and the closing price of 28th February, an amount of USD 10k would worth USD 10,486 if invested 100% in VTI. A return of 4.86% in only two months is not too bad at all!

Now let’s see how the two portfolios have performed so far comparing to this!

Ben Reynolds Portfolio

As discussed before, the recommendations of Ben Reynolds has many medical and pharma companies. Based on my earlier review, since the US elections the pharma sector slightly under-performs the broader stock market, even though it supposed to be one of the winners of the Trump presidency. Instead of this, we see the following:

This is a stunning total return of 7.9% so far! It didn’t only outperform VTI, but out of the 3 companies that has lost from their values, only AbbVie is a pharma company. This is a very solid performance so far.

Now let’s see how my selected stocks were doing over the same period!

The Road to One Million Portfolio

The 10 companies are more diverse both in terms of industries and country of establishment. This can be both an advantage and a disadvantage in this challenge.

This is how it stands after 2 months:

4.47% total return, which is quite good after such a short period of time, but still far behind the Ben Reynolds portfolio. The performance is also a bit behind VTI; so far I’m not happy.

Let’s check some metrics in more detail:

Best and Worse Performers

Top 3

  1. Apple (TRTOM) +18.85%
  2. Unilever (TRTOM) +18.51%
  3. Abbot (BR) +17.40%

Bottom 3

  1. Target (TRTOM) -18.31%
  2. Qualcomm (TRTOM) -13.46%
  3. Royal Dutch Shell (TRTOM) -4.38%

Seems like my portfolio has the extremes from both end. Target is pulling back the overall performance a lot so far.

Dividend Income

  1. The Road to One Million Portfolio – USD 79.43
  2. Ben Reynolds Portfolio – USD 33.03

At this point of time it doesn’t mean a lot, especially as some companies haven’t paid dividend yet in this year.

Performance Chart

So this is where we are at the moment. I’m definitely behind, but let’s see what the rest of the year brings. The next update is coming in early May!

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Disclaimer: This post or any other information on the site is not intended to be and does not constitute financial advice or any other advice. I am solely sharing my idea, plan and progress on financial independence and early retirement.

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4 Comments

  1. Buy, Hold Long March 4, 2017
    • Roadrunner March 4, 2017
  2. Dividend Diplomats March 13, 2017
    • Roadrunner March 15, 2017

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