Year 4 of the FiveTwenty portfolio experiment is in the books with the close of 2024. It’s a moment to review the portfolio’s performance against the easy-peasy benchmark and contemplate any newfound insights.
By the numbers
2024 saw all the new capital allocated to the FiveTwenty portfolio go VIG and VIGI. The FiveTwenty portfolio started the year underperforming the easy-peasy portfolio by 6%. By the first week of February the FiveTwenty portfolio was trailing by 11% and proceeded to stay in an underperformance range of 9% to 18% for the remainder of the year. Finally, it ended the last week of 2024 trailing the easy-peasy portfolio by 12%.
2024 once again saw close out a position in the FiveTwenty portfolio. We sold all our shares in LEG following the company cutting it quarterly dividend in Q1 2024..
Overall, as of the close of 12/29/2024, the FiveTwenty portfolio had a net gain since inception of 2.89%. 17 active (Including VIG & VIGI) and 1 closed position increased in value while 19 active and 4 closed positions decreased in value.
Regarding dividend payouts, the FiveTwenty portfolio exceeded the easy-peasy benchmark in the first 3 quarters of 2024 but was surpassed by a strong Q4 payout from the easy-peasy portfolio. However, when compared to the quarterly dividend targets specified in the strategy description, the dividend payouts for the FiveTwenty portfolio were below projections. Over the year, the FiveTwenty portfolio earned $12,067.56 in dividends, and the easy-peasy benchmark yielded $9245.92, while the estimated value from our strategy outline was $14,108. Furthermore, the portfolio concluded the year with a TTM (Trailing Twelve Months) yield on the current value of 2.74% and a TTM yield on cost of 2.82%.
Some “fun” portfolio facts as of 12/29/2024:
| for a position | highest | lowest |
|---|---|---|
| Value change | 104.00% | (75.59)% |
| TTM dividend yield (on current value) | 10.40% | 1.49% |
| TTM dividend yield (on cost) | 7.11% | 1.80% |
| TTM dividend payout | $1943.50 | $33.28 |
| % of portfolio | 24.76%* | 0.20% |
* VIG had the largest TTM dividend payout, excluding VIG and VIGI the largest single stock payout was $731.58