Freedom Fund Update – May 2012

Well, the time has come to update the Freedom Fund once again as we start another month. The Freedom Fund is my portfolio, and I think it’s aptly named. My portfolio is my way to freedom; freedom from working at a job I don’t enjoy to purchase goods I don’t need to impress neighbors I don’t care about.

I feel extremely fortunate and thankful that I’m able to post these updates every single month which shows the power of monthly contributions to investments because of the high savings rate I maintain. It shows how a relatively large sum of money can be built through the power of time, patience and perseverance.

Mr. Market continues his emotional swings up and down, but what do I care? I just collect my dividends and combine that with fresh capital. I take the combined sources of funds and allocate that towards attractively priced dividend growth stocks. I try to buy on days when the market is particularly emotional and we see large spikes in volatility, but otherwise I just try to buy quality at an opportune price for the long-term. I believe that’s a sure recipe for success if one is looking to build wealth over a significant period of time.

The S&P 500 has basically been flat over the last month, so the increase in the value of my portfolio came from dividends received and the capital I added at the beginning of April. I’m perfectly okay with a flat market month-over-month, and actually prefer that to a rising market as it gives me more shares for my dollar.

I made just a couple of minor changes to the Freedom Fund since the last update, purchasing two quality dividend growth stocks. I hope these two purchases provide me two gears in my dividend growth machine that will continue to grind out dividends for many years to come. I initiated a position in Southside Bancshares, Inc. (SBSI) and also purchased shares in Raytheon Company (RTN) a couple weeks ago.

The current market value of the Freedom Fund now stands at $67,900.79. This is a nice increase since the last published value of $65,666.59. Again, this increase in market value is mainly due to my own capital as well as dividends received.

I’m currently invested in 27 positions. This is an increase since last month, when I was invested in 25 positions.

These updates are mainly designed to show the increase in the value of the underlying equities I’m invested in, but the main purpose of investing in dividend growth stocks is for the rising stream of dividends over time. So, with that said I don’t put too much emphasis in these monthly updates on the value of my portfolio. I think it is a good idea, however, to keep track of the rising (or falling) value of one’s securities and be aware of where they are in terms of the marketplace and whether or not certain stocks are attractively priced or not. It proves to be a useful exercise, for me at least, to update the values monthly. It gives me fresh perspective on which equities are performing well and which aren’t, and from there I can make educated decisions (based on further due diligence) on which stocks I’d like to add fresh capital to (while considering portfolio weight as well).

How are your portfolios doing? 

Thanks for reading.


  1. says

    0 at the moment, but hope to start building one :)

    A chart of growth and pie of your owned shares would add nicely, because present table looks very boring for such visual as my self :) Have you ever considered of purchasing Apple and Google as they are now dividend shares to. I know their price is very high and over evaluated but these two has the strongest balance sheet of all 10 largest companies that I have looked at and has the best earning growth.

    • says

      Financial analysis,

      I’m not particularly good at pie charts and visual graphs as my HTML skill is limited. I’d like to be able to do something like that, but the biggest goal is to achieve passive income that exceeds expenses rather than a set portfolio value. Still, that’s a great idea.

      I don’t, at the moment, have an interest in Google or Apple. They’ve both been phenomenal investments if you got in early, but I prefer to stick to “meat and potatoes” type investments that produce products that even in a severe recession/depression people will still buy. I like tech to a degree, but only really follow INTC and MSFT in that sector.

      Best wishes!

  2. Anonymous says

    Now I have shares of (PSX) spun off from (COP). As of now they don’t pay a dividend. Any ideas on what to do with them?

    Bill from Wmsport

    • says


      PSX will be paying a $0.20 quarterly dividend and I expect dividend growth going forward. I will plan on holding my PSX shares once they land in my brokerage account. COP will retain the same payout as before.

      Best wishes!

    • says


      I’m very excited as well! Two companies raising dividends instead of one. Sounds good to me! I’ve been reading various reports lately of why COP is a better/worse investment than PSX and visa versa. I like both, but COP now has a monster yield!

      Take care!

  3. Chicago says

    I think the plan is for PSX to pay a dividend. I read an article that suggested it would be about $0.80/year per share.

  4. says

    Nice update. I agree that a flat market is a nice market. Living overseas its very difficult for me to time a purchase but I look to your blog and several others for advice. Glad to see your fund growing!

    • says

      The Kechi One,

      I’m really glad that you stop by and find inspiration from the blog. As blogging certainly doesn’t compensate well, I do this mainly to inspire and learn from others.

      I hope you continue to stay in touch.

      Best wishes.

    • says

      Investment Road to Freedom,

      Thanks for the support! I’m just doing my best to keep growing the fund and passive income month by month. It’s a slow, but rewarding journey.

      I’m glad you are also doing well on your journey with your now positive net worth and great month of April.

      Best wishes!

  5. says

    Nicely done, DM!

    Even though portfolio value isn’t your primary concern, it sure is nice to see both the dividends AND the overall portfolio value continuing to increase month to month.

    Keep up the good work!

    • says

      Dividend Fool,

      Thanks for stopping by. I appreciate the support!

      You’re absolutely right there. Although the dividends are my primary concern, it’s certainly nice to see the overall value of the fund increasing over time.

      Keep up the good work on your end too. You’re growing your fund at a phenomenal rate.

      Best wishes!

  6. Anonymous says

    Are you still connected with thedivnet? I am not seeing your blog posts showing up there.

    • says


      Thanks for asking!

      No, I’m sorry I’m not a core member of The Div-Net any longer. I am still, however, an associate member and supporter of the network.

      Best wishes!

  7. says

    Yet another good month. Stay the course, your plan is working.

    Once in a while I like to compare my portfolio’s value to the amount of money I’ve actually deposited. Just looking at gains/losses omits the dividends we reinvest since we don’t drip.

    Take care

    • says

      Compounding Income,

      Thanks for your continued support and fellow inspiration.

      I also compare the cost basis and market value and get excited by the large differences in most cases. Holdings like PM, KO and MCD are all way up for me and that’s exciting!

      You’re also doing a phenomenal job. Keep up the great work!

      Best wishes.

  8. Anonymous says

    Thanks for the update DM,

    I do find your blog very inspiring as I come here often. It was nice to see my first dividends :) promptly reinvested. I am thinking of purchasing GABUX, which is a utilities fund that pays $0.07 every month. I already initiated a position in my 401K brokerage account and thought this would be a good thing for my personal growth fund as well.

    • says


      Thanks for stopping by! I’m glad you find inspiration here, as that and mutual education is why this blog exists.

      Receiving your first dividend is very exciting stuff, and I was in your shoes not that long ago. It doesn’t take long for them to really start piling up if you stick with a plan and stay patient. Persevere and you will find success!

      Good luck and stay in touch!

      Take care.

    • says

      AC Banks,

      Thanks for the support. I’m truly glad you find inspiration here at this blog. That’s what it’s all about!

      I agree with you. It’s extremely important to “save save save”. The proof is in the pudding, and that’s why I post these updates. The assets can really start to add up over time.

      Stay in touch.

      Best wishes!

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