September 2021

Chinese corporations going bankrupt? Check. US debt ceiling approaching? Check. September, what a month! The end of September marked the first full year of the Income Portfolio. It has been an interesting year, bookended by an extremely frustrating month, but that’s how it goes!

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.

I plan on doing a full year review at some point in October (possibly November at this rate) so stay tuned for that. I will give a few quick thoughts here though. Although I have not looked at the CAGR for year one, I’m happy with the Income Portfolio to date. As my first foray into individual stock picking and dividend investing, I’m happy with my plan and how I have stuck to it, particularly in the tough months (looking at you September). The constant income from the portfolio certainly makes the daily fluctuations in price easier to stomach, but more on that in the yearly review.

On a separate note, a number of job opportunities presented themselves over the last few weeks. None are at a very advanced stage yet, but my gut feeling at this point is there will be a change of job on the horizon. Stay tuned.

Crunching the Numbers

Savings: €0 saved.

Income Portfolio: $598.50 contributed in September. 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 September, I added an estimated $34.30 in future yearly dividends.

The Income Portfolio Returns

Here is where September gets ugly. Not only did the S&P post its worst month since March 2020, but the Income Portfolio performed even worse! In September, the S&P 500 returned -4.67% while the Income Portfolio returned -5.36%. Not a massive difference, but a tough month in any case.

On a more positive note, September provided the best month to date in terms of dividends received. $RIO provided the majority of it, with $33.42 received. (Please note, these figures may be slightly different to the US dividend, my $RIO dividend is paid out in GBP and manually converted). Months like September provide a nice boost in morale, seeing the portfolio producing an additional income stream makes the plan easier to follow. The YOC (Yield on Cost) has remained above 5% which is encouraging to see, the increase in dividend yield itself is down to the lower portfolio value. In any case, for me, YOC is an important long term metric.

September 21 Yield

Dividends Received

  • RIO $33.42 received ($22.39 ordinary dividend, $11.03 special dividend).
  • HNNA $1.51 received.
  • EDUC $0.60 received.
  • PFE $1.56 received.
  • HVT $0.75 received.
  • EVR $0.68 received.
  • CIX $0.60 received.
  • GOLD $0.46 received ($0.28 return of capital, $0.18 ordinary dividend).
  • NC $3.16 received.
  • JNPR $1.35 received.
  • GFI $0.89 received.
  • NEM $3.85 received.
  • MTEX $1.00 received.
  • SPTN $1.40 received.

Total Dividends Received = $51.23

Stocks Added in September

One new stock was added to the Income Portfolio in September. Below is its initial performance.

Ethan Allan Interiors

  • Number of Shares – 2
  • Purchase Price – $24.20
  • Dividend Yield at Purchase – 4.13%
  • Closing Price – $23.70
  • Return – -2.06%

October Stock List

All of the below stocks are on my list to purchase in September. I have added €500 to the account for the month.

  • ALCO
  • AUY
  • BHP
  • CIX
  • EDUC
  • ETD
  • GFI
  • NEM
  • RGR
  • RIO
  • SCCO
  • TAIT
  • TX

Quite the shopping list for October, with one new company set to be added to the portfolio.

Other Interesting Items

I have made zero progress on the book I started last month, so no update to provide on that front. With covid restrictions easing, I have business travel on the agent in October for the first time in nearly two years. Part of me is looking forward to getting out and meeting people again, part of me doesn’t want the hassle of airports and travel.

I have been giving some thought to how I track my portfolio. Typically I use Wallmine., but I don’t believe it is as accurate as I would like. The dividends I receive are noted as cash in the portfolio, which is fine but I cannot remove it which means the cash portion displayed represents a larger cash position than I actually have. If I try to withdraw it on the tracker, all hell breaks loose. If I was directly re-investing the dividends it would be no problem, but I don’t make things that easy. Dividend income is re-invested but into the new stocks the following month rather than back into the stock that paid the dividend. It’s a small issue, but it still annoys me. I’ll figure it out eventually. If you have any portfolio tracking software you would recommend, let me know.

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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