Portfolio Shareholder Letter, December 2025
To fellow investors: At year‐end 2025 our Dividend portfolio of 20 equities sits at about $4,590. During the year we’ve mainly held our positions, letting our businesses compound and reinvest their dividends (DRIP is on). In Buffett style, let’s skip the buzzwords: these are all businesses we own, not trades we’ll flip. Our goal remains long-term growth and compounding, with the modest goal of a steady stream of dividends along the way.
In the spirit of full disclosure, our current forward‐annual dividend haul is only in the low tens of dollars. We estimate about $80–85 of dividends per year, roughly a 1.6% yield on the full portfolio (80/5,377) – well below the market’s average. (For reference, Visa pays ~$2.68/yr, Costco ~$5.20/yr, Intuit ~$4.80/yr, UNH ~$8.73/yr, etc., summing to around $84 .) In plain terms: this portfolio isn’t a high‐yield basket; it’s heavy on growth names with small payouts. For example, Waste Management’s quarterly dividend was $0.83/share in Dec ’25 (≈$3.32/year), Starbucks about $2.45/year , while giant techs pay tiny fractions: Microsoft roughly $3.64/year (≈0.76% yield) and Apple only about $1.04/year. The result is that our income stream is modest and dominated by just a few stocks (strong payers like ADP, WM, UNH, banks, etc.).
Composition and Structure
Our 20 holdings mix well‐known blue chips with a handful of smaller names. We have Microsoft, Apple, Alphabet, Visa, Mastercard, Costco, Starbucks, Meta, etc., alongside payroll giant ADP and diversified healthcare leader UNH. These are (mostly) durable businesses with wide “moats.” On the other side are smaller banks, utilities and specialty names (e.g. AWR, HFBL, FSBW, FSFG) and one cyclical tech hardware (DELL). Many of our big names pay little or no dividend, but we hold them for long‑term capital growth: we treat their stock as ownership stakes in great franchises, not as income machines. By contrast, some of our smaller/regional stocks (like banks and utilities) carry higher yields in the 3–4% range. In sum, the portfolio is tilted to growth with a sideline in pocket‑change dividends.
We also have no extremely concentrated bets – the largest positions are on order of 5–8% of value each (MSFT, AAPL, etc.), so no single stock dominates. In Buffett terms, think of it as a diversified orchard: a few apple trees (tech giants) with slow fruit, more cherry trees (consumer/finance names) bearing regular small fruit, and a sprinkling of nut trees (banks/utilities) with modest yields. The bottom line: we own pieces of many solid businesses, none of which are about to cut their dividends or disappear, and many of which have raised dividends for years (or decades).
Dividends: Concentration and Quality
Dividend income is indeed concentrated. A large chunk comes from companies like ADP and UNH (both paying multiple dollars per share) plus some financials. Many holdings (Google, Meta, Salesforce, etc.) pay nothing. On the flip side, the quality of the dividend sources is high: companies like WM, ADP, and UNH have rock-solid earnings and strong balance sheets. Even our smaller banks are well‑capitalized, and ADP just marked its 51st straight year of raising the payout. As Warren might say, we prefer a sure $1 from a business we understand over a risky gamble for $2.
It’s true our overall yield (~1.6%) is modest. Some readers might wince at that number – it’s Buffett’s style to acknowledge it candidly. But recall our goal: capital growth + a growing income stream over decades. Dripping these dividends back into the companies themselves (through Robinhood’s DRIP) is like feeding the orchard to make it grow bigger. In the long run, even a small yield contributes significantly when coupled with compounding. Recall that over many decades, reinvested dividends (even modest ones) have been shown to generate a large portion of total market returns.
Looking Forward (Long View)
As 2025 closes, our investments have generally done well enough, though we make no predictions year to year. We survived a choppy market with +- single‑digit swings, but our portfolio’s focus on quality means we can tolerate volatility. In Buffett fashion, we won’t yearn for action – we’d rather just watch value accumulate patiently.
Our guiding principle is the same: buy and hold strong businesses at reasonable prices. If a stock’s price falls far below fair value (giving us a margin of safety), we would happily add more. Conversely, we won’t chase fads or high yields from shaky firms. The recent market backdrop – low interest rates and inflation – did little to alter the long-term story of our companies. We still like these franchises for the next 10 or 20 years.
One practical note: this is a Roth IRA, so dividends and capital gains are essentially tax-free at retirement – another reason to reinvest rather than chase current yield. Buffett has often quipped that the real “dividend” for Buffett shareholders is business earnings left behind. Likewise, we are more excited about owning the businesses than the cash payouts themselves.
In closing, thank you for entrusting us with this portfolio. As always, we remain humble students of business and markets. We strive to learn from mistakes, stick to what we understand, and remember that markets can be (and often are) indifferent on the short term. Our plan is to keep focusing on high-quality companies and let time do its work. In Buffett’s words: “Our favorite holding period is forever.” We couldn’t have said it better.
Sincerely,
Zachary Gedal
Summary Figures: Forward annual dividends ≈ $84; implied yield ≈ 1.6% of current value . Major dividend contributors: ADP ($6.8/yr), WM ($3.3/yr ), Starbucks ($2.45/yr ), UNH ($8.73/yr), etc. Lowest-yield names include MSFT (≈0.76% yield, $3.64/yr ) and other tech heavyweights. All data are current as of Dec 2025.
Combined Portfolio Dividend Analysis
The DivTracker Combined Portfolio view consolidates multiple accounts (e.g. several Robinhood accounts) into one summary, showing total market value, cost basis, and gains. In the example above, the portfolio’s market value is ≈$5.34K with a cost basis of $4.18K (implying a ~$389 total gain, ~+9.3%). Key statistics are highlighted: Annual Dividend Income ($49.84), Yield (1.09%), and Yield on Cost (1.19%). DivTracker’s interface is designed to centralize all portfolios and display metrics at a glance . For instance, the tool explicitly breaks out annual dividend income into monthly, weekly, daily, and hourly averages. These are computed from the total payouts; e.g. $49.84 annually corresponds to about $4.15 per month. As a check, dividend yield is defined as the annual dividend divided by the current market value , and yield on cost is the annual dividend divided by the original purchase price . In this portfolio, 1.09% yield means ~$49.84 ÷ $4,572.63 ≈1.09%, and 1.19% yield on cost means $49.84 ÷ $4,183.06 ≈1.19% .
- Total Value & Gain: Combined value ~$5.34K, invested $4.18K, total gain +9.31%.
- Dividend Income: $49.84/year ($4.15/mo, $0.96/wk).
- Portfolio Yield: 1.09% (annual dividends ÷ total value) .
- Yield on Cost: 1.19% (annual dividends ÷ total cost) .
- Cash Position: $767.76 (about 14% of total value) for liquidity.
Portfolio Composition (by Value)
The chart below (visible in the DivTracker UI) shows each holding’s weight by market value. In this portfolio, Home Federal Bancorp (HFBL) is the largest holding (~10.9% of value), followed by Apple (AAPL) ~9.5%, Alphabet (GOOGL) ~8.6%, Microsoft (MSFT) ~7.8%, and Dell (DELL) ~7.0%. The remaining assets range down to small positions (e.g. Cintas (CTAS) and UnitedHealth (UNH) each <1%). Monitoring the allocation helps gauge diversification. DivTracker notes sector breakdowns as well , but here we see a mix of financials (HFBL, FSBW), tech (AAPL, MSFT, GOOGL), and consumer/industrial stocks (SBUX, WM, COST, etc.). No single sector dominates entirely, although regional banks (HFBL, FSBW, FSFG) collectively account for a significant slice of the portfolio.
Dividend Composition
DivTracker also reports dividend composition: each stock’s share of total dividend income. Here, HFBL contributes 25.8% of projected dividends (the largest share), Starbucks (SBUX) ~9.7%, Dell ~9.3%, and so on down the list. In other words, HFBL’s $12.86 in annual dividends makes up about one-quarter of the $49.84 total. The top 5 dividend contributors are: HFBL, SBUX, DELL, BDX, and FSBW. This breakdown highlights which positions drive income. (DivTracker explicitly offers this “Dividend Composition” view .) It’s important to note that having a high percentage from one stock can be a concentration risk; here HFBL is dominant. Ideally, dividend income would be spread across multiple stable payers.
Dividend Income & Yield Details
The Annual Dividend Income ($49.84) is derived from each stock’s declared payouts. DivTracker converts quarterly dividends into an annual sum. The breakdown of $49.84 into monthly ($4.15), weekly ($0.96), and daily ($0.14) incomes is simply the annual total divided by 12, 52, and 365 respectively. These figures help in cash-flow planning. The current yield (1.09%) is the ratio of annual dividends to current portfolio value , reflecting what percentage of the portfolio’s value is returned in dividends each year. The yield on cost (1.19%) is the ratio of annual dividends to the original cost ; it is higher because the stocks have appreciated. Over time, as companies raise dividends, the yield on cost will increase even if the current yield (relative to market price) stays low .
Tracking dividend income by month is considered good practice: it makes sure you’re meeting income targets and shows any seasonality in payouts. In this portfolio, the tool forecasts about $51.9 total in the next 12 months (slightly more than current annualized, probably due to expected raises), averaging $4.33/month. Charting this on a calendar or graph (as DivTracker does) helps visualize when cash flows arrive. As one analysis notes, “tracking monthly dividend income is very useful… [it] helps you monitor progress toward financial goals and maintain a steady income flow” .
Upcoming & Recent Dividend Events
DivTracker’s Calendar feature lists important dates: ex-dividend dates, record dates, payment dates, and earnings. For example, on Dec 15, 2025 Meta (META) went ex-dividend for its quarterly $0.53 payout (meaning new buyers that day are not entitled to the next dividend) . On the same day Google (GOOGL) had a payment date for its $0.21/share dividend (the cash was distributed to holders of record) . The calendar also shows that Cintas (CTAS) paid $0.45 on Dec 15, and American States Water (AWR) paid $0.16 on Dec 16. Looking ahead, Mastercard (MA) goes ex-dividend on Jan 10 for $0.88, and Intuit (INTU) on Jan 9 for $1.20. Such a dividend calendar ensures you never miss a payout. In general, an ex-dividend date is “the deadline for investors to own a stock to receive a declared dividend” , while the payment date is when the company actually distributes the dividend .
The Recent Changes list notes companies that adjusted dividends. For instance, ADP announced on Nov 12, 2025 that its annual dividend will rise from $6.16 to $6.80 per share (fwd) – a 10% hike . As cited in ADP’s press release, “the board… approved a $0.16 increase in the quarterly cash dividend to an annual rate of $6.80” (raising it from $1.54 to $1.70 quarterly). That dividend is payable Jan 1, 2026 (record Dec 12) , matching the calendar. Similarly, Becton Dickinson (BDX) announced on Nov 6, 2025 that its new quarterly dividend will be $1.05 (annual $4.20), up 1% . Indeed, the calendar shows BDX paying $1.05 on Dec 31, 2025. Waste Management (WM) also raised its dividend (shown as $3.30 → $3.32 annual). These tracked changes keep the projected income up to date.
Portfolio Projections
DivTracker’s Portfolio Horizon chart projects future dividends and value over time under assumptions (no new contributions, reinvested dividends, etc.). Here it shows annual dividend income growing from ~$62 today to ~$265 in 20 years. This illustrates the power of compounding: reinvesting dividends and holding stocks with growing payouts significantly boosts income over the long run . In effect, each year’s dividends buy more shares, raising the base that generates the next year’s income (yield on cost grows over time ). Such projections help set long-term goals (e.g. aiming for a target passive income) and demonstrate how far the portfolio might go if trends continue.
Key Takeaways: This dividend portfolio report (via DivTracker) provides a complete view of current holdings, income, and expected future cash flows. It emphasizes the total value and gains, shows which stocks contribute most to income, and highlights when dividends will arrive. Using yield metrics (current vs cost ) and tracking ex-dates/payment dates helps an investor measure performance and plan cash needs. Overall, tools like DivTracker make dividend investing transparent by combining detailed data (composition, yield, forecast) in one interface .
Sources: DivTracker portfolio data is interpreted according to standard dividend investment concepts and reports (e.g. yield definitions , key dates ). Company press releases confirm recent dividend increases (ADP , BDX ). The DivTracker platform itself is described as providing insights on composition and calendars .
