One of the very first things I told myself when starting this DGI journey was to NOT get emotional about my purchases or my portfolio. I knew full wel going into this that emotions are a bad thing in the investing game. I also told myself not to check my portfolio value often or be worries when I saw a drop (or too happy on a rise).
Easier said then done.
Although I do believe that my purchases (except HASI) have been done without emotional interference I cannot claim to have been totally free of emotions. To be specific, I have been looking a lot at my portfolio worth. Since I’m a beginner at this investing game, every euro/dollar is extremely precious. And although I’m in it for the dividends and the long run, I didn’t fully appreciate what my emotions would do with a negative of allmost €100 on my portfolio balance.
Allmost every stock I have bought (ironically except HASI) has been negative of late causing a negative capital value “growth”. Since one of my first larger purchases was T and the stock has been through the wringer, this one contributes the most to my capital value lost.
Luckily the value loss is only on paper and that makes it somewhat easy to relativate this. Since the -€100 I’ve seen it go up again to -€34 but its currently again at -€92. It still doesn’t really feel good, but I hope the continuing (and hopefully expanding!) dividend stream should solve this emotional problem.
Anyone else recognise this feeling?
So talk about a last minute change of heart! As part of my diversification strategy I wanted to start a position in the Healthcare sector. For the past month I have been trying to make a choice between Pfizer and Johnson&Johnson. With a lot of reading blogs in the DGI community and seeing other people buyíng (for example WDYR) I thought I was ready to pull the trigger on one of these.
As I transferred the (fixed) monthly amount in my brokerage account I saw a pretty nice dip on Realty Income Corp (O) which has been on my watchlist for a while (and seems to be part of a LOT of other DGI’s stock portfolios) and decided to go for that one instead for this month.
- 91 Dividend Increases Since 1994 NYSE Listing
- 78 Consecutive Quarterly Increases
- Compound Average Annual Growth Rate of Approximately 4.7%
- Dividends paid for 48 years = over $4.6 billion
I’ve bought 5 shares @ $55,35 which should add $0.211 * 5 = $1,055 monthly to my passive income. Total for 2017 should then be $1,055 * 6 (months) = $6,33 (before taxes). My forward annual income should increase with (ofcourse) twice that amount $12,66. After the tax (-15%) this should result in $10,76 of free money!
Small but steady increases in my portfolio towards my 2017 goal of €130,-!
This is my second ever dividend update and it is exciting! You can read my first update here. I must say, receiving the “free” money in my brokers account is still a strange feeling, but I’m getting use to it. 🙂
So, what companies payed out (after foreign withholding, before government tax):
So thats a total of € 11.23 of passive income this month. It is worth to note that AMS:AD pays a yearly dividend, so unfortunately we will not be seeing more of that this year.
My total for passive income in 2017 now stands at: € 13,21
This means that I am making progress towards my 2017 goal as seen in below graph:
How was your april, did you reel in any nice dividends?
I have never been one for a gym membership, even though there are a LOT of gyms in my neighbourhood. I really hate the fact that I lose lots of time going to/from the gym, changing clothes, etc. Thats the mean reason I decided to “invest” in my own home gym.
I’m fortunate enough to have some space on the second floor where I can put my workout stuff. Currently there is a cross trainer (used most by Miss Bot), a set of dumbells with different eights, three kettlebells (8, 12, 16 Kg), straight bar, EZ curl bar and now (finally!) I’ve added my brand spankin’ new pull up bar (it was my previous christmas present :)). Its a Gladiator Monkey chin-up bar with a variety of hand positions to work different pars of the body.
I’ve never been able to do more then 3 chin-ups, but that is going to change in 2017!
Do you have a home gym?
So after starting somewhat over a year ago with cost saving and replacing all the lights in the house with LED counterparts I can finally say that it is done!
Last week we made a final trip to IKEA ( I know 🙂 ) and bought replacements for our hallogeen spots on the ceiling.
So instead of 18 * 40 Watt = 720 Watts when the light go one it is now merely 15 * 6 = 90 Watts. Thats 12,5% of the original wattage.
Since we already brought down the bill to €133,- (from €158) we are expecting another drop in the monthly costs. Unfortunately the real season for our main lights is already over so we most likely we see the decrease next winter.
Did you do any DIY improvements?
So a new month, a new deposit in my investing account and a new buy for my portfolio.
After doing some investigating in different stocks and reading (a lot) of my fellow bloggers in the community (thanks guys & gals) I saw a nice dip on General Mills (GIS) heading below $59.
I bought 5 shares @ $58,83 (it unfortunately dipped even lower now but what can you do 🙂 ). So its currently at its lowest point of the past 52 weeks (58.10 – 72.95) with a P/E of slightly above 21. The company has been paying dividends for about 117 years and has been increasing them for over 13 years. With a dividend yield of 3,33% and a payout ratio of 62,5% this seems to be a nice income generator for the coming years.
This buy will add $ 0,48 * 4 * 5 = $ 9,60 minus 15% withholding tax = $ 8,16 -> € 7,66 to my annual dividends total.
So next time I enjoy one of my favourite snack combinations of Bugles & goatcheese (Chavroux) I will be extra satisfied knowing I have supported my own dividend!
So what are you going to buy?
So this is my first dividend update post! Its actually going to be a very small one since I already spilled the beans in my previous milestone post.
So my march dividends were from (after foreign withholding, before government tax):
Infinite increase on 2016 since I wasn’t even thinking about investing at that time. 🙂