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Welcome back to my monthly dividend Investing review where I will analyze my dividend Income an Investments for September 2020.
Keeping track of my monthly dividend income is a great way to keep focused on my Finacial freedom goals. I have set myself a target of covering all my current expenses with dividend income and I am on track to achieve this goal within the next 12 years. Read here to find out why I choose Dividend growth Investing as my main investment vehicle.
Hope you enjoy it and feel free to drop me a line if you have any questions!
Dividend Investing
Its good to be back in the 3 figure club. I “earned” a total of $114.27 for the month of September. I say earned but in reality I did not have to do any extra work for this money. As you can see below my income grew just over 160% from $71.21 to $114.27 in September.
I love seeing how my portfolio is growing each month and it really keeps me motivated to keep investing each month.
Dividend Raises
I had 9 Dividend raises in total. LYB remained unchanged while Microsoft, Shell, Exxon Mobile and SBSI were all new additions to the freedom fund.
UPS was sold before the ex dividend date so did not get a dividend this year from them.
https://www.buymeacoffee.com/dividendtalk
$JNJ ( one of my favourite holdings) gave the largest raise which was nearly 6% followed by $SON. $IBM were a little bit disappointing but I am hoping they will post stronger figures in the next couple of years.
Dividend Chart
The Chart below shows the Dividends I received in 2019 in Red.
The Blue is what I have received so far this year. The projected income is $1,435.49 assuming that there are no dividend cuts and I add no more cash to my investments. This is roughly €1217 at current fx rates.
In Reality, I will be continuing to add €1250 which will bring in roughly €37 in forward income each month.
September purchases
For those of you who listen to our podcast, you will be aware that I am currently reshaping my portfolio and reducing the amount of companies I own.
All of the purchases I have made below are to existing positions that I own.
I purchased an additional 62 shares of Red Electrica ($BME:REE) which a Spanish utility company. This brings my position up to about 20% of a full level 4 position. Morning star gave them a fair value rating of just over €17 and they have an impressive dividend record.
However, there are some warning signs for REE and European DGI wrote a very good post here – I would highly recommend giving it a read. I am happy to hold this for a couple of years and will not be adding to my position in the foreseeable future.
Royal Dutch Shell, Danone, Walgreens, ADP and Cisco will not be a surprise to anyone who listens to the podcast. I have gone through these before and believe all present decent buying opportunities right now.
September Sales
In lasts months report, I mentioned I wanted to whittle my portfolio down to 32 companies in total. Well I have gone a little bit further and have cut my portfolio down to 23 companies right now. That means there is room for 9 more.
I am in no rush to add them right now and will focus on Quality and beefing up my top tier companies over the coming months.
TRADING 212
Recently I found out that you can create your own ETF (pie) on Trading 212 which is a really interesting feature. They even went one step further and allow you to turn on an auto invest feature that will deposit and invest your money in your pie automatically each month.
As an automation engineer, I love anything that is automated, I also love PI (maths geek) so this is a match made in heaven. I have set up a Pie with my top 32 stocks and as you can see below It is estimated to earn 11.58% on average before TAX.
If you haven’t used Trading 212 and are curious then check it out with my refer a friend link. We will both get one free share www.trading212.com/invite/GIgnCTJo
Hope you enjoyed this review, If you did, please consider joining my community by signing up to my mailing list where I will keep you up to date with my investments and provide more analysis.
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I also Co-host a podcast called Dividend talk where I chat with European DGI about Dividend growth Investing. Feel free to listen to our latest episode below
Thanks for reading and happy Investing!
Disclaimer - Engineer my Freedom is not a licensed or registered investment adviser or broker/dealer. We are not providing you with individual investment advice on this site. Please consult with a licensed investment professional before you invest your money. This site is for entertainment, informational, and educational use only. Any opinion expressed on the site here and elsewhere on the internet is not a form of investment advice provided to you. We use information, data, and sources in the articles we believe to be correct at the time of writing them, but there is no guarantee of their accuracy, completeness, timeliness, or correctness. We are not liable for any losses suffered by any party because of information published on this site or elsewhere on the internet. Past performance is not a guarantee of future performance. By reading this site or subscribing to it, you agree that you are solely responsible for making investment decisions in connection with your funds.
Just nicked some of your stock ideas and ran them through IOCharts (what a great site).
I noted SON has a PSR of just 1.07.
According to one stock picking book I read, a PSR below 1.0 was “buy immediately”.
PSR 1-2 was “very good”. Etc.
WEYS looks a bit exposed to retail & Cov19, and a lot of it’s assets are in the receivables pipeline.
I guess some of those creditors might not pay / late etc.
SJM looks good but high debts.
Added CSCO to my watchlist.
I think Intel has a lot of potential if I read right that its profit (or more specifically cashflow) margins are 50% of revenues?
Astounding unless I am missing something.
I reckon they will re-orientate themselves from PC chips to “everything else” in this fast growing market.
If China (govt) printed up $165bn last year to invest in “chip fabrication”, they clearly see it as a hugely important industry going forward with massive potential. And now Nvidia buy ARM, trumping Intel.
Podcast is great, thanks.
And CAH – record low PSR of 0.09 (it says here), but a profit margin so tiny (1.28%) there just isn’t any room for maneuvre [in a crisis] here.
I definitely need to look into more foreign stocks, they can be cheaper and just as valuable as companies from the U.S.
I’m curious why you bought BTI in New York and RDS in Amsterdam, rather than on LSE. You could avoid dividend withholding tax.
Hi Ed, I will pay the same amount of tax regardless of WHT or not because I still file my returns at the end of the year. Most of my portfolio is in dollars and I’m expanding the euro companies so its easier for me to track in those currencies. If I held them in a tax advantaged account I would opt for the LSE for both.