May 2021

May was a good month! Progress on the house front, a solid return from the Income portfolio and I finally took the plunge into crypto so I’ll cover that too!

Overview

If you aren’t familiar with the Income Portfolio, check it out before you read on. This series is primarily focused on monthly portfolio updates.

We had hoped to get the keys to our new house by the end of May, but as with a lot of things in the era of Covid, this was delayed. Although the building sites are back open, the number of workers permitted in a specific house is limited so that has slowed down the interior finishing. The end of June is looking like a more realistic goal.

If you read my April update, you will know that there was one new name on my watchlist. Not as exciting as April when I added four new names to the portfolio, but the performance of the one I did add was fantastic. After underperforming in April relative to the S&P, I’m happy to say May was a much more positive month.

Crunching the Numbers

Savings: €1,600 saved.

Pension: €562.50 contributed. Half by my employer, half by me. My contributions cost me €168.75 in after-tax income.

Income Portfolio: $454.81 contributed in May. Figures for the income portfolio will be stated in USD as that is the primary currency the stocks are denominated in. Currency risk will play a role in the returns for this portfolio but as we know from our risk post, that can work both ways.

Passive Income: In May I added an estimated $18.76 in future yearly dividends.

The Income Portfolio Returns

As a benchmark, the S&P 500 returned 0.55% in May. The Income Portfolio returned 6.35%. After last months underperformance, it was nice to see such a positive return for May. As usual, this is taken with a pinch of salt. The returns versus the S&P can vary in any given month, but I think it is useful to keep track anyway. 

Dividends Received: 

  • TX: $6.30 received.
  • SIMO: $0.70 received.

Total Dividends Received = $7.00

A quiet month for dividends, but TX’s relatively large dividend ($2.10 per share) kept things ticking over. The only downside is they only pay this once a year!

Dividends Increased: 

  • NC increased its dividend by 2.6%, from $0.1925 per share per quarter to $0.1975 per quarter. Not a huge increase by any means, but at least it is growing. My average yield on cost for NC is now 3.43%

Stocks Added in May

There was only one new stock added to the portfolio in May, Taitron Components, Inc. Below is the performance for May.

Taitron Components, Inc.

  • Number of Shares – 10
  • Purchase Price – $4.17
  • Dividend Yield at Purchase – 3.84%
  • Closing Price – $5.67
  • Return – 35.97%

As I have said previously, the initial performance of the stock isn’t of any great concern. Yes, a 35% return in the first month is nice but isn’t hugely relevant to the long term portfolio. I do feel like it is relevant to share for transparency reasons.

June Stock List

All of the below stocks are on my list to purchase in June. I have added €350 to the account for the month.

  • CRWS
  • NC
  • RGR
  • RIO
  • SPTN
  • SCCO
  • TX

Again, one newcomer to watch out for in June.

Other Interesting Items

Not a huge amount to discuss this month. No new podcasts or books to highlight. The main point of interest is my dip into the crypto market. I have deposited some funds onto the Polygon Network to play around with. It is important to note that this is money I’m willing to lose. Although I feel hugely positive about crypto and its place in the future of finance, it is a very volatile market. With that in mind, I won’t be too upset if I lose everything I have deposited. I am viewing this as a learning experience. I may make a shit load of money, or I may lose everything, either way, I have exposed myself to a new asset class and industry and will learn from it. If you are interested in reading more about my first crypto experience, check out this post.

As always, this post is not a recommendation to buy the above list of stocks. It is for informational purposes only. Before investing your hard-earned money, make sure you do your research.

The Stoic Trader

Posted in Income Portfolio, Monthly Updates and tagged , , , , , .
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