Investing

This is my second (and last) buy for June 2017

So as I said in my previous post I had the option to add an extra cash deposit in my brokerage account due to receiving my holliday allowance. Since I was looking at a tech stock already it didn’t take my long to make my second purchase of the month.

cisco_logo

  Cisco Systems
P/E 16.03
Yield 3.68%
Payout Ratio 54.31%
Trackrecord Dividend since 2011 (increasing in double digits)
Valuation 8.38% off 52-wk high

For the (very) few of you who haven’t heard from this tech giant: “Cisco Systems, Inc. designs and sells a range of products, provides services and delivers integrated solutions to develop and connect networks around the world.”

I can pretty much garantuee that the only reason you are able to read this post is because of equipment from Cisco. It could be directly via switch/router on your own location or via the internet backbone(s) based on Cisco-technology.

Cisco has started paying dividends since 2011 and has increased them every year with double digits. Coupled with a solid balance sheet, low payout ratio and enough room for future growth via security, cloud and IoT. I am really excited to now own 10 shares of CSCO. I bought them on a small dip @ $31,45. With a quarterly dividend of $0.29 this should bring me (10 x 0,29 x 2)-15% tax = $4,93 in 2017. My forward annual income should ofcourse increase with twice that amount: $9,86.

So have you bought anything in june?

Additonal question for my fellow DGI bloggers, how do you research/calculate the fair value of a stock you are analysing? I’m really having trouble find the right sources of information for a few key statistics.

Investing

This is my (first?) buy for June 2017

So June is on its way so its time to buy some new stock(s). Since May is the month that the holiday allowance (“Vakantiegeld”) is added to your salary this gave me, after some discussion with Mrs. Robot, an additonal €250 for this month.

I’ve already had my eyes set on the healthcare sector last month, but ultimately decided to open up a position in Realty Income due to a dip in their share price (and now again, but I ignore it :)). So the deciscion was again between PFE and JNJ!

Although I don’t think you can go wrong with either stocks, I decided to go with…….PFE!

pfizer

P/E  Yield Track record Valuation
PFE 26.61 4.03 Blue-chip Near 52-wk low
JNJ 21.95 2.57 Aristocrat + King Near 52-wk high

Hmmm if I look at these basic fundamentals, JNJ is the safer choice were it not for the extremely high share price (overpriced?). Safety definetely comes with its price or so it seems.

Both companies have a solid financial base and pipeline so as stated before I don’t think there is a wrong choice here. I wish I would have started my DGI journey sooner so I might have bought JNJ at $111 in januari of this year.

I think this article offers some additional information about why I also went for PFE at this moment. I would like to add JNJ as well since its the safer stock on the long term (thanks to its diversification in consumer products next to being a pharmaceutical) but its trading at such a high valuation that I (think I) can get a better deal with the higher yield on PFE while waiting for the price to drop on JNJ.

So with this addition of 9 shares bought at $32,00 and a dividend of $0,32 this should provide me with an additional $5,76 in 2017. My annual forward income would increase with $11,52. Babysteps I know but we all have to start somewhere right?

So did you already buy something in June?

Investing · Personal

May 2017 dividend update

Another month has come and gone, time really flies by so fast! Thankfully due to a few well-deserved (and well-needed!) vacation days I could enjoy some quality time with my family. And that, to me, is still wat matters most.

Besides having a great holiday I also have some dividends to report!

Date Ticker Shares Amount (€)
01/05/2017 NYSE:T 12 4.57
01/05/2017 NYSE:GIS 5 1.86
15/05/2017 NYSE:OHI 12 5.8
€12.23

 

So thats a total amount of  €12.23 which is pretty nice!

may_dividend_2017

My total for passive income in 2017 now stands at: € 25,44.

Which brings me a bit closer to my 2017 goal of €130,-.

may_dividend_goal_2017

How was your month, did you receive any nice dividends?

Investing · Personal

Capital Value Anxiety

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?

Investing

This is my buy for May 2017

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.

realty_income

  • 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,-!

Investing

April 2017 dividend update

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):

Date Ticker Shares Amount ($) Amount (€)
13/04/2017 NYSE:HASI 15 4.21 3.96
26/04/2017 AMS:AD 15 7.27
 Total € 11.23

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.

dividends_rec_2017

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:

april_dividend_goal_2017

How was your april, did you reel in any nice dividends?

Persoonlijk

Expanded the home gym!

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?