3 DGR Portfolio - Year 1 Performance Review

What Worked, What Didn’t, and What I Learned

📈 Final Results

Let’s start with the bottom line — Year 1 performance.

• Total Return: +5.28%

• Starting Value: $8,024.82

• Ending Value: $8,448.47

Breakdown:

• Dividends Received: $146.37

• Capital Appreciation: $277.28

• Dividend Return: 1.82%

• Capital Return: 3.46%

For comparison, the S&P 500 returned +12.10% over the same period, meaning this portfolio underperformed by 6.82%.

🏆 Winners and Losers

Of the 20 selected stocks:

• 13 had positive returns

• 7 ended in the red

Top Performers:

• COKE: +65.15%

• TJX: +38.58%

• MLI: +33.01%

• V: +29.58%

• PAYX: +27.48%

• KNSL: +19.92%

• MSCI: +18.42%

• NTES: +16.36%

• ALLE: +16.24%

• GWW: +12.06%

• HD: +10.58%

• WSM: +8.87%

• STLD: +1.20%

Biggest Laggards:

• HSY: -11.14%

• EOG: -13.96%

• LECO: -18.49%

• AGCO: -23.12%

• AMAT: -23.47%

• PZZA: -41.73%

• MCHP: -48.64%

🔍 Relative Performance

The average return of the broader investable universe was +2.81%, which means:

• The strategy outperformed the universe by a respectable margin.

• But both the portfolio and its universe significantly underperformed the S&P 500.

That context matters.

💡 What I Learned

While the portfolio didn’t beat the S&P 500, it did beat the broader universe it was built from. That suggests the stock selection process added value, even in a tough environment for many of these names.

But there were gaps:

• Valuation and growth potential weren’t adequately factored in.

• These are addressed more thoughtfully in the Year 2 update (linked below).

Yes — I could have just invested in the S&P 500 and earned more. But that would’ve taught me less. This portfolio gave me the opportunity to test, learn, and optimize — and that’s invaluable moving forward.

🔁 Year 2: Redemption in Progress

The updated portfolio for Year 2 has only been live for 7 trading days, but it’s already off to a stronger start.

• Portfolio Value (as of May 9): $8,890.93

• Gain: $442.46 — nearly $19 more than Year 1’s full-year gain

• YTD Return: +5.24%

• S&P 500 YTD: +1.66%

That’s encouraging, but we’re early in the game.

The revised portfolio isn’t expected to deliver dividend growth this year due to its reconstitution. Its forward yield is 1.13%, with projected dividend income of $100.69.

This reflects a shift in focus — while dividends matter, total return remains the primary objective.

🧮 Since Inception

• Cumulative Portfolio Return: +10.79%

• S&P 500 Return: +12.10%

• Current Underperformance: -1.31%

We’ve closed much of the Year 1 gap. Whether we fully catch up — time will tell.

🧭 Looking Ahead

I may share occasional updates, but I don’t plan to micromanage the portfolio. Watching it daily won’t make it perform any better. The real insights will come with time — so I’ll revisit it meaningfully around April 2026.

Thanks for following along.