As 2025 draws to a close, it is time to reflect on the growth of the portfolio over the last twelve months. December has traditionally been a "heavy" month for distributions, and this year was no exception. By looking at the raw data, we can see exactly how the portfolio has evolved since the same time last year.
The 2025 market was defined by "record-breaking resilience." While the S&P 500 saw a total return of about 17.9%, much of that was driven by earnings growth and continued AI momentum. However, for income investors, the real story lies in the steady climb of those monthly and quarterly payouts.
The portfolio concluded 2025 with a total December dividend payout of $4,360.57, representing an 8.14% year-over-year (YoY) increase from December 2024’s total of $4,032.19. Despite a volatile spring defined by trade "reciprocal tariffs," the portfolio's core holdings—specifically AVGO, SCHD, and DFS—delivered robust organic growth, outpacing the 2025 S&P 500 average dividend growth rate of approximately 5.5%.
Macro Review: The 2025 "Resilience" Rally
The 2025 market was characterized by what analysts call "Record-Breaking Resilience." While the spring saw significant volatility due to the "reciprocal tariff" announcements, the market found its footing in the second half of the year. The S&P 500 concluded 2025 with a total return of 17.9%, but for the desidividend strategy, the focus remained on cash-flow reliability.
The "December Drivers": Top Performing Holdings
The growth this month was driven by a mix of organic dividend raises and strategic share accumulation (DRIP).
COF: A standout performer with a jump from $136.05 to $159.71 (+17.39%). The financial sector's strength in late 2025 provided a significant boost to our year-end totals.
SCHD (Schwab US Dividend Equity): Our core ETF position saw distributions rise from $85.08 to $115.04. This 35% increase is a direct result of aggressive reinvestment during the mid-year market dips.
AVGO (Broadcom): Maintaining its status as a "Growth & Income" hybrid, Broadcom delivered a solid 11.14% increase in payouts YoY, fueled by the ongoing AI infrastructure expansion.
Analysis: Hitting 102.90% of the Goal
Reaching $23,644.46 in total annual dividends against a goal of $22,978.00 is a testament to the power of the Dividend Growth Investing (DGI) framework. This "over-performance" was primarily driven by:
Organic Dividend Hikes: Companies like LMT, JNJ, and SHEL raised their payouts at rates exceeding the 2025 inflation average.
The Reinvestment Engine: By staying fully invested and allowing dividends to purchase more shares throughout the 2025 "Spring Dip," we effectively lowered our cost basis and increased our forward yield.
Looking Forward to 2026: The Path to Financial Sovereignty
As we enter 2026, the strategy remains steadfast but watchful. With a new fiscal environment emerging, we are focusing on:
Defensive Yield: Strengthening positions in Consumer Staples (KO, HSY) to hedge against potential 2026 cooling.
Yield on Cost (YOC) Tracking: We will continue to monitor the YOC of our early 2024 tranches, which are now beginning to yield significantly higher than the current market average.
Conclusion
2025 was the year the desidividend portfolio moved from "stable" to "surging." Surpassing our annual goal by nearly 3% provides a massive psychological and financial headstart as we begin the 2026 journey.
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