Thursday, March 12, 2015

Monthly Update: February 2015

It's that time of the month again! A few days late but here's my second monthly update in 2015. What a month it was. Stock markets were on a tear, especially in Europe. The Dutch AEX index increased over 8%! My dividend portfolio did not increase as much but it still ended above € 24.000 which is obviously not chump change.


IndicatorAs of 31-1As of 28-2% change
S&P 500 Total Return3.6563.866+5.7%
Dow Jones Industrials Total Return34.76736.441+4.8%
AEX GR1.3141.421+8.1%
USD.EUR0,88340,8907+0.8%
Portfolio value€ 23.386 € 24.214 +3.5%

All in all a hectic month. However, since I am in it for the long haul I am not too interested in these daily or monthly fluctuations. What matters is that I keep focused on buying high quality companies which provide me with a steady stream of growing dividends.

Monday, February 9, 2015

Monthly Update: January 2015

It's that time of the month again! A few days late but here's my first monthly update in 2015. What a month it was. The ECB decided to act on continued fears of deflation and will pour over a trillion euro's in the market in the coming years. This decision resulted in a lower euro and rising stock prices in Europe. However the opposite seemed to happen to US stocks in the past month.

All in all a hectic month. However, since I am in it for the long haul I am not too interested in these daily or monthly fluctuations. What matters is that I keep focused on buying high quality companies which provide me with a steady stream of growing dividends.


Indicator
As of 29-12As of 31-1% change
S&P 500 Total Return3,8273,656-4.5%
Dow Jones Industrials Total Return36,08134,767-3.6%
AEX GR1,2441,314+5.6%
USD.EUR0.82270.8834+7.4%
Portfolio value€ 22,390 € 23,386 +4.4%

Thursday, January 22, 2015

Praxair Is My Favorite Play In The Industrial Gases Sector

Recently I searched the CCC list and Westlake Chemical Corp. (NYSE:WLK) popped up on one of my screens. My own, self-made Excel application directly lists all the competitors in the particular industry (Chemical-Specialty), ranked by market cap. Praxair (NYSE:PX), an industrial gases company, was the biggest with a market cap of $38 billion, yet somehow I never heard of the company. However, just by looking at the company overview, I could see that this company could be a potential add-on to my dividend growth portfolio. 

There has only been one in-depth article on Seeking Alpha last year about this industry leader. So I decided to do a write-up of the company. Check out my new article on Seeking Alpha and let me know what you think.

Thursday, January 15, 2015

Syngenta: Demographic Trends Will Result In Future Revenue And Earnings Growth

Syngenta AG is a Swiss agribusiness operating in the crop protection and seeds business. In 2000, the agrochemical and seeds division of Novartis and the agrochemicals and biotechnology research divisions of AstraZeneca spun-off and merged to become Syngenta. Syngenta recently popped up in one of my screens in the CCC-list with a decent yield and high dividend growth rate. My article on Seeking Alpha provides a breakdown of the company and whether it is worthy as a possible addition to my dividend growth portfolio!

Go check it out and I am looking forward in hearing your reactions!

Wednesday, January 14, 2015

Syngenta: Demographic Trends Will Result In Future Revenue And Earnings Growth

Syngenta AG is a Swiss agribusiness operating in the crop protection and seeds business. In 2000, the agrochemical and seeds division of Novartis and the agrochemicals and biotechnology research divisions of AstraZeneca spun-off and merged to become Syngenta. Syngenta recently popped up in one of my screens in the CCC-list with a decent yield and high dividend growth rate. My article on Seeking Alpha provides a breakdown of the company and whether it is worthy as a possible addition to my dividend growth portfolio!

Go check it out and I am looking forward in hearing your reactions!

Sunday, January 11, 2015

Goals for 2015!

Halfway 2013 I started my journey of becoming a Dividend Growth Investor. 1.5 years ago I sat down and calculated income goals for the coming 30 years. These goals (annual dividends received) were based on the assumed dividend growth, yield, monthly deposits and stock price appreciation. So far I've been killing these goals!

I am not going to change these goals because they are meant to be long-term goals. It's great that I am ahead of these goals for now but there are obviously going to be times when I might not be able to contribute as much to my portfolio. But just like last year I am going to set annual goals. These goals could differ from my long-term goals. It's just a method of keeping myself motivated and to keep pushing myself this year to reach more goals.



I decided to expand the theme of my goals a bit and to include some non-financial related goals. Without further ado, here is my list of goals for 2015.
  • Deposit €350 per month (on average)
  • Receive €950 in annual dividends
  • Write 24 premium articles for Seeking Alpha
  • Lose 10kg (currently at 98kg)
In general I think my goals are ambitious but not completely out of reach all together. I'll just have to work hard, earn some extra money and put aside time to write SA articles. I am off to a good start, my 2nd article of the year just got published! In the next few days I'll put out a reminder post for this article.

I am not going to set a goal for the value of my portfolio because I am hardly in control to reach that goal. Market gyrations have far too much influence on the portfolio value. I just can't expect to earn 20% for another year. 

I'll keep all of you updated about my progress towards reaching my goals for 2015. Finally I hope all of you will reach your goals in 2015, whether they are financial or not!

Thursday, January 8, 2015

Recent buy: RDS

Yesterday I've purchased my first shares in 2015! It was finally time for me to pounce on the recent weakness in oil stocks. Currently I have three oil related stocks in my portfolio: Exxon Mobil, Kinder Morgan and Royal Dutch Shell. I decided to add 37 shares to my current position of Royal Dutch Shell for 26.77 per share. This is slightly more than I paid last year in my first purchase of RDS.

My reasoning is as follows:

  • Shell is a fundamentally sound company and also important: it's an integrated energy company. Lower oil prices are obviously bad for upstream business (exploration and production) but margins for downstream operations (refineries) are increasing.
  • Shell unloaded lots of assets earlier this year (roughly $10 bn) when oil prices were high. Great job by management!
  • Shell bought back shares recently when prices were low. Again, great job by management!
  • Oil prices will fluctuate. They have so done in the past and will do so in the future. I still see future potential in the oil business (like for 20-30 years or so) before alternatives are economically feasible and provide enough (and stable!) energy. The world's population is growing to 9 billion people and these people need energy. Shell can and will provide these needs.
  • The dividend yield of 6% looks awesome!
  • I wanted to add to this existing position to take advantage of the DRIP possibility (if that still exists). Usually I would get the opportunity to reinvest my dividend in stock IF the amount would be able to purchase at least 1 share. My former quarterly dividend was not enough to purchase 1 share of RDS: my current quarterly dividend definitely is.
  • I wanted to strengthen my EURO-denominated part of the portfolio. Even though the US dollar is getting more expensive, over 80% of my stock portfolio is listed in US dollars. I am not too uncomfortable with that right now, but it still provided me an extra argument in purchasing RDS.
So, these new 37 shares add roughly 60 to my annual forward dividend income which now stands at 866! To put my recent progress into perspective: I expected to earn around €850 in annual dividends in my 4th year of DGI. Right now I can expect this amount of money after just 2.5 years of DGI which means I am more than 1.5 year ahead of my income goals so far. It feels great!

What do you think of my purchase? And my reasoning?