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It was another good month for the Income Portfolio! Read on to see how the portfolio performed, along with my savings and investments for the month.
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.
My savings rate dipped slightly from last month due to two factors: Christmas presents and additional money deposited to the investing account. If I was being 100% by the book, my savings should have come before my investing, but I have been enjoying the process too much to not invest for a month.
Apart from the income portfolio, my automatic pension contributions (10% of gross salary) have continued as normal. It has been an interesting month for the markets, with the S&P 500 posting a 10.75% gain in a month that included US elections, Covid vaccines and a record number of Covid cases. Even with all that noise, it is important to continue investing in the market. Stocks may be at an all-time high, but I’m not in the business of picking the top or the bottom of the market, so I will continue to invest no matter where the market is.
Crunching The Numbers
Savings: €1,200 saved, €700 less than October but still on track.
Pension: €562.50 contributed. Half by my employer, half by me. My contributions cost me €168.75 in after-tax income.
Income Portfolio: $245.64 contributed in November. 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 I added an estimated $9.84 in future yearly dividends.
Income Portfolio Returns
As a benchmark, the S&P 500 returned 10.75% in November. The income portfolio return was 16.91% for the same period. November was the first month I received dividends from this portfolio, a fantastic feeling!
Dividends Received: It was a busy month for dividends!
- PFE – $4.08 received. Not an actual dividend, but received in lieu of shares in VTRS which split from PFE. Normally I would receive the shares, but my broker, in this case, could not provide them and issued the cash value instead. No big deal, I probably would have sold anyway.
- MSM – $0.64 received ($0.75 before withholding tax). I added MSM in early November. It met my criteria in both October and November but I did not have enough funds in October to purchase a share. Additional good news for MSM was the announcement of a special dividend, payable in December. The special dividend will be $3.50 per share, a nice little bonus!
- SIMO – $0.35 received.
Total Dividends Received = $5.07
Stocks Added in November
For transparency, I will list the stocks purchased in November, all of which were purchased on the same day (2nd November). The closing prices quoted are the closing prices on the 30th of November. I will provide full details of my new positions, along with additions to previously held positions. Three new stocks were added to the portfolio in November. They were MSM, SIMO, and HNNA.
MSM – MSC Industrial Direct
- Number of Shares – 1
- Purchase Price – $71.81
- Dividend Yield at Purchase – 4.18%
- Closing Price – $83.32
- Return – 16.03%
SIMO – Silicon Motion Technologies
- Number of Shares – 1
- Purchase Price – $37.50
- Dividend Yield at Purchase – 3.73%
- Closing Price – $39.68
- Return – 5.81%
HNNA – Hennesy Advisors
- Number of Shares – 1
- Purchase Price – $8.19
- Dividend Yield at Purchase – 6.72%
- Closing Price – $9.36
- Return – 14.29%
I also added to CSCO, NC, PFE, STLD, and KBAL. For an up to date and more complete picture of the portfolio, you can view it here. As was the case last month, there were a number of stocks that met my criteria but I did not purchase, they were CIX, EVR, GD, IDA, INGR, MED, and NATI. As you can see, quite a number of stocks met the criteria, but as I have a limited investment budget for the month I could not purchase them all.
December Stock List
All of the below stocks are on my list to purchase in December. I may not be able to purchase them all as I have only €300 or so added to the account for the month.
Not as long a list as last month, but I have slightly tweaked my criteria. Going forward, any stock with a yield lower than 4% will need to show an average growth rate of 10%+ per year before I will invest.
Overall I am happy with the portfolio, with November marking the second month in a row it has outperformed the S&P 500. It is nice to see some dividends rolling in, as we progress we should see this number increasing on a monthly basis.
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