Q1 2022 Review
Q1 2022 Review
Let's take a look at the 1st quarters performance
2022 has been quite year so far, hasn’t it?
Supply chain troubles, inflation, FED rate hikes and of course the war in Ukraine have dominated the news and heavily impacted the markets.
In fact the year started off low with a “correction” in the S&P500 in January. Do you know what a correction is? That’s a euphemism for losing a lot of money rapidly.
How my portfolio performed
For the purposes of comparison we will be using Time Weighted Returns since they take out the impact of additional deposits and let us compare on a one to one match with indexes.
The indexes we will be comparing against will be VWRL and SXR8.
VWRL is the distributing version of VWCE (unfortunately Interactive Brokers won’t let me assign VWCE as the index). This distribution makes it slightly under-perform VWCE which makes no distributions.
This is the Vanguard FTSE All-World UCITS ETF, and is a whole world market cap weighted index. This is the European equivalent to VT.
SXR8 is a accumulative S&P500 index. It tracks the S&P500 including any reinvested dividends.
Overall my portfolio performed very well, never having been in correction territory, outperforming both indexes, and even ending “in the green”.
I made 3 separate deposits into my investment account, as per my usual monthly investment schedule.
As you know, I make it a point to invest every month on the day I receive my paycheck. In this case the timings worked out very well and I accidentally “caught” the two low points in the market.
This was totally accidental, but i really highlights the benefits of sticking to the plan and not trying to time the market even in situations of high volatility.
The only change to my portfolio was the addition of Foot Locker for the reasons outlined here.
Additionally I maintained my goal of building up my index position, however given the out-performance of my individual issues and the addition of Foot locker the split between indexes and individual issues has more or less remained at 51%.
As I said before, if I can’t get to my 60/40 distribution due to my individual issues outperforming the index, that will be a good problem to have.
In terms of dividends, I’m happy to say that my Q1 Dividends are up 40% Year over Year!
I won’t give you exact numbers, but I’m well on track to pass the goal I gave myself to increase my Annual Dividend Income to $1500.
My highest dividend payer for the quarter was Altria, with Realty Income, Aflac and Intel following.
This more or less matches up with the portfolio distribution, though Altrias significantly higher yield does have a major impact.
Conclusion
I’m pretty happy with the way the quarter went, and how the volatility in the markets allowed me to get a few deals in.
My plan for the rest of the year remains the same, I will continue to invest primarily in indexes, unless I happen to find a wildly undervalued company (like Foot Locker!)
How about you? How did you deal with the quarter?
Did your dividend payments increase?
Let me know in the comments below!